1. At a Glance – Blink and You’ll Miss the Irony
Sagility India Limited is what happens when Wall Street healthcare meets Bengaluru back office efficiency. Listed at ₹51.7 with a market cap of ₹24,189 crore, Sagility has quietly become one of the largest pure-play US healthcare outsourcing companies listed in India.
Q3 FY26 numbers came in hot: quarterly revenue of ₹1,971 crore (+35.6% YoY), PAT of ₹268 crore (+34.6% YoY), and EBITDA margins holding steady at ~26%. Sounds sexy, right? But then you look at ROCE (9.6%) and ROE (7.4%) and suddenly the excitement needs a cold shower.
Three-month return? -5.3%. Six-month return? +15%. Promoters? Busy selling. FIIs and DIIs? Busy buying. This stock is literally a live panel discussion between “growth story” and “valuation hangover.”
So is Sagility a long-term healthcare compounder hiding in plain sight, or just another ITES story with great margins and mediocre capital efficiency? Let’s autopsy the numbers.
2. Introduction – The US Healthcare ATM Nobody Talks About
Sagility operates in one of the most boring yet lucrative industries imaginable: US healthcare administration. Claims. Eligibility. Billing. Audits. Things patients hate, insurers need, and hospitals outsource faster than you can say “prior authorization denied.”
Incorporated in 2021 (yes, technically a baby), Sagility is actually an old soul. Its top five client groups have been around for an average of 17 years. That’s longer than most Indian startups’ entire life cycle.
The company serves only US clients, which means zero India exposure risk, full USD billing, and full exposure to American policy drama. From ACA rule changes to excise tax threats, Sagility sits right in the blast radius — and yet keeps growing at 30%+ topline.
But here’s the fun part: despite processing 105 million claims annually and managing 75 million member/provider interactions, Sagility still holds only 1.23% market share of the US healthcare outsourcing market. This is a giant ocean with a small but
fast-swimming fish.
So the obvious question: is Sagility too small, or is the market just too damn big?
3. Business Model – WTF Do They Even Do?
Think of Sagility as the outsourced nervous system of US healthcare.
For Payers (88.5% of revenue):
They handle claims adjudication, payment integrity (a fancy way of saying “catch fraud and overpayments”), and provider data management. Basically, they stop insurers from bleeding money.
For Providers (11.5% of revenue):
Revenue Cycle Management — from verifying insurance before treatment to chasing payments after treatment. Hospitals treat patients; Sagility treats cash flow.
Revenue Model Breakdown:
- Time-based: Bill per hour/month (classic ITES)
- Transaction-based: Per claim processed
- Outcome-based: “We get paid if you recover money” — management’s favourite
Delivery is spread across 31 locations in 5 countries (India, Philippines, Colombia, Jamaica, US). Translation: labor arbitrage on steroids.
Simple business. Deep moats? Moderate. Sticky clients? Very.
4. Financials Overview – Growth With a Side of Maths
Quarterly Comparison Table (₹ crore)
| Metric | Latest Qtr (Dec FY26) | YoY Qtr (Dec FY25) | Prev Qtr (Sep FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1,971 | 1,453 | 1,658 | 35.6% | 18.9% |
| EBITDA | 511 | 392 | 415 | 30.4% | 23.1% |
| PAT | 268 | 217 | 251 | 23.5% | 6.8% |
| EPS (₹) | 0.57 | 0.46 | 0.54 | 23.9% | 5.6% |
Annualised EPS (Q3 rule):
Average of Q1–Q3 EPS ≈ (0.32 + 0.54 + 0.57) / 3 × 4 ≈ ₹1.81
At ₹51.7, that’s a P/E of ~28x. Growth is real, but the
