1. At a Glance
Sagility India Ltd — the BPO brat serving US healthcare payers and providers — has quietly built a ₹20,532 Cr empire out of claims, coding, and clinical admin. With 22%+ revenue growth, 23% EBITDA margins, and a rising EPS, this Bangalore-based ex-Berkmeer is officially in the ITes big leagues.
2. Introduction with Hook
Imagine if your KYC agent married a US healthcare admin and started billing insurance companies from Bengaluru. That’s Sagility India.
- Revenue (FY25): ₹5,570 Cr
- Net Profit (FY25): ₹539 Cr
- Market Cap: ₹20,500+ Cr
- Clients: 100% US-based, across insurers & hospitals
And with Net Profit up 136% YoY, you may want to grab a hospital gown and join the diagnosis.
3. Business Model (WTF Do They Even Do?)
Sagility provides technology-enabled services in the US healthcare industry — not hospitals, but the messy backend that makes sure doctors get paid and patients don’t faint seeing the bill.
Key Segments:
- Payers: Claims processing, payment integrity, clinical audits
- Providers: Revenue cycle management (RCM), billing, A/R follow-up
- 100% export-driven
- Uses AI + automation for scalability + accuracy
Think of it as Infosys + Healthcare + Compliance training modules on steroids.
4. Financials Overview
| Metric | FY24 | FY25 |
|---|---|---|
| Revenue (₹ Cr) | 4,754 | 5,570 |
| Operating Profit | 1,088 | 1,298 |
| OPM % | 23% | 23% |
| Net Profit (₹ Cr) | 228 | 539 |
| EPS (₹) | 0.53 | 1.15 |
| Dividend | Nil | Nil |
YoY Profit Growth: 136%
Margins: Holding steady at a healthy 23%
5. Valuation
| Metric | Value |
|---|---|
| Price | ₹43.8 |
| EPS (TTM) | ₹1.15 |
| P/E Ratio | 38.1x |
| Book Value | ₹17.8 |
| P/B | 2.46x |
EduFair™ Valuation Band:
| Method | Value (₹) |
|---|---|
| Historical P/E (25–30x) | ₹28 – ₹35 |
| DCF (10% discount, 10% growth) | ₹40 – ₹55 |
| Relative Peer Multiple | ₹38 – ₹48 |
Fair Value Range: ₹38 – ₹50
Current price ₹43.8? Sahi hai… until margin fatigue kicks in.
6. What’s Cooking – News, Triggers, Drama
- Name Change: From Berkmeer to Sagility India in 2023
- Promoter dilution: From 82% → 67% in just 2 quarters
- EPS nearly doubled YoY
- Investor call on 30 July for Q1 FY26 numbers
- Promoter pledge: Yes, 100% shares are encumbered (uh-oh)
Hot Triggers:
- Q1 profit traction
- Fresh US client wins
- Any updates on dividend or pledge resolution
7. Balance Sheet
| Item | FY24 | FY25 |
|---|---|---|
| Equity Capital | ₹4,285 Cr | ₹4,679 Cr |
| Reserves | ₹2,158 Cr | ₹3,657 Cr |
| Borrowings | ₹2,532 Cr | ₹1,402 Cr |
| Total Assets | ₹10,529 Cr | ₹11,051 Cr |
Observations:
- Debt halved → Great move!
- Reserves up 70% → Profit retention in action
- Balance sheet cleaned up like a hospital floor
8. Cash Flow – Sab Number Game Hai
| Flow Type | FY24 | FY25 |
|---|---|---|
| Operating Cash Flow | ₹973 Cr | ₹1,214 Cr |
| Investing Cash Flow | ₹-463 Cr | ₹-964 Cr |
| Financing Cash Flow | ₹-751 Cr | ₹-256 Cr |
| Net Cash Flow | ₹-241 Cr | ₹-6 Cr |
Takeaway:
- Cash from operations strong
- Most of the outflow = reinvestment, not panic
- Financing cost down = less debt, more confidence
9. Ratios – Sexy or Stressy?
| Ratio | FY24 | FY25 |
|---|---|---|
| ROCE (%) | 5% | 9% |
| ROE (%) | 5% | 7.3% |
| OPM (%) | 23% | 23% |
| D/E Ratio | 0.59x | 0.30x |
| Working Cap Days | 25 | 50 |
| Debtor Days | 91 | 83 |
Verdict: Margins stable. Returns improving. Working capital stretch — monitor it.
10. P&L Breakdown – Show Me the Money
| Quarter | Revenue (₹ Cr) | OPM % | Net Profit (₹ Cr) |
|---|---|---|---|
| Q1 FY25 | 1,223 | 16% | 22 |
| Q2 FY25 | 1,325 | 23% | 117 |
| Q3 FY25 | 1,453 | 27% | 217 |
| Q4 FY25 | 1,568 | 24% | 183 |
Commentary: Revenue up every quarter. Profit is on a stairway to heaven.
11. Peer Comparison
| Company | CMP (₹) | P/E | ROCE | OPM % | PAT (₹ Cr) |
|---|---|---|---|---|---|
| L&T Technology | 4,368 | 36x | 28% | 17% | 1,265 |
| Tata Tech | 716 | 42x | 25.8% | 17.5% | 685 |
| Inventurus Knowl. | 1,591 | 56x | 27% | 29% | 486 |
| Sagility India | 43.8 | 38x | 9.5% | 23% | 539 |
Conclusion: Sagility’s numbers look solid — but valuations not cheap. Still, cheapest entry ticket to US healthcare outsourcing.
12. Miscellaneous – Shareholding, Promoters
| Shareholder Type | Jun 2025 |
|---|---|
| Promoter | 67.38% |
| FIIs | 5.99% |
| DIIs | 14.07% |
| Public | 12.57% |
Other Observations:
- Number of shareholders: 4 lakh+ (retail ka pyaar)
- Promoter pledge: 100% encumbered → 🚨 Red flag
- No dividend declared yet → Retaining cash to scale?
13. EduInvesting Verdict™
Sagility is quietly becoming the Infosys of US healthcare outsourcing — without the jazz hands.
Why it’s compelling:
- Revenue and profit growing consistently
- Margin profile is healthy
- Serving recession-proof clients (insurance + hospitals)
- Debt dropping, cash rising
Why you should keep your guard up:
- Promoter pledge = suspense thriller
- No dividend yet = conservative capital policy
- Working capital stretch = monitor receivables
Bottom line: If you like healthcare + IT + profits + Bangalore, you’ll like this one. But maybe wait for Q1 FY26 diagnosis before rushing in.
Metadata
– Written by EduInvesting Team | 21 July 2025
– Tags: Sagility India, Healthcare BPO, US Outsourcing, IT Services, FY25 Earnings
