Sagility India, a leading healthcare BPM and technology solutions provider, has announced strong Q4 and FY25 results with record profitability and revenue growth. Backed by a strong portfolio, strategic acquisitions and growing digital transformation demand, the company is accelerating its growth in the US healthcare market. Let’s dig deeper into Sagility India Q4 and FY25 results.
About Sagility India
Sagility is a healthcare BPM provider to US payers and providers. It operates in India, US, Philippines, Jamaica and Colombia with a focus on operational excellence, client experience and health outcomes.
Sagility India Q4 FY25 Results: A Quarter of Breakthroughs
Sagility India Q4 FY25 consolidated PAT stood at INR 182.57 crore, a 127.6% growth from INR 80.2 crore in Q4 FY24. This is a result of the company’s operational discipline and strategic alignment to high growth verticals like US healthcare payers and providers.
Revenue from operations for the quarter grew 22.2% YoY to INR 1,568.5 crore from INR 1,283.2 crore a year ago. In dollar terms this is USD 181.8 million with consistent demand from both existing and new clients.
Adjusted EBITDA was INR 404.2 crore, 25.8% of revenue, a 28.6% growth over the previous year. Though there was a sequential dip from Q3 FY25 due to salary hikes and revenue mix shift post BroadPath acquisition, operational margins were strong.
Sagility India FY25: Growth Across the Board
Sagility India FY25, Sagility reported revenue of INR 5,569.9 crore (USD 658.3 million) up 17.2% YoY. Adjusted EBITDA was INR 1,468.5 crore (USD 173.6 million) up 28.4% from last year. Adjusted PAT was INR 810.7 crore (USD 95.8 million) up 37.5% from FY24.
The company had a good cash conversion, OCF was INR 1,214.1 crore (89.7% of EBITDA) and FCF was INR 1,089.6 crore.
Strategic Highlights: BroadPath Acquisition & Digital Expansion
Sagility India Q4 and FY25 results were significantly bolstered by the acquisition of BroadPath, a U.S.-based mid-market healthcare BPM firm. The deal was funded entirely through internal accruals and adds 1,083 employees, new delivery sites and mid-market clients to Sagility. This sets the stage for aggressive cross selling in FY26.
The company now operates in 5 countries with 33 delivery sites and a global headcount of 39,409 as of 31 March 2025 up 12.5% YoY. Voluntary attrition was 27.5% for FY25 (excluding BroadPath), Sagility India Q4 was 32.5% which is a point of concern and may require further human capital strategies.
Operational Efficiencies and Client Diversification
A notable shift in client concentration reflects Sagility’s growth maturity. Number of active client groups increased from 44 in FY24 to 75 in FY25. Gross new client additions more than doubled YoY to 38. Top 5 clients contributed 77.9% of revenue, down from 79.2% in FY24 which is a good sign of revenue diversification.
From a vertical perspective, Payer segment contributed 89.4% of revenue and Provider business grew impressively and increased its share to 10.6%.
Leadership Commentary: Strategic Optimism
Ramesh Gopalan, Managing Director and Group CEO, commented,
“Sagility India FY25 has been a strong year, marked by consistent growth across both payer and provider market segments. Our domain-led strategy, strengthened by the BroadPath acquisition, reinforces our leadership among U.S. healthcare payers. Our expanding portfolio of GenAI, automation, and analytics services continues to enhance our client value proposition.”
Sarvabhouman Srinivasan, Group CFO, added,
“Our focus on cost optimization and capital efficiency is evident in our improved margins and high cash conversion. The BroadPath acquisition is already yielding positive synergies. Our debt has been significantly reduced, and with capital infusion from the promoter, our balance sheet is robust.”
Balance Sheet and Financial Indicators
- Equity increased to INR 8,336.1 crore as of 31 March 2025, up from INR 6,443.1 crore last year.
- Net debt reduced to INR 1,043.2 crore from INR 2,167.8 crore and Net Debt/EBITDA was 0.68x which is a big decline indicating financial prudence.
- Adjusted Return on Capital Employed (ROCE) improved to 54.9% from 47% in FY24.
Sustainability and Recognition
In addition to financial achievements, Sagility has gained recognition for its ESG initiatives. The Science Based Targets initiative (SBTi) validated Sagility’s climate targets, classifying its Scope 1 and 2 commitments as ambitious. The company also won “Best Organization for Women 2025” by ET Now and was recognized as a “Major Contender” in Everest Group’s PEAK Matrix® assessments.
The Road Ahead
Management has outlined clear go-forward positions for FY26:
- Targeted cross-selling into BroadPath’s mid-market client base.
- Continued investment in AI-driven solutions and consulting-led engagements.
- Steady debt reduction, with INR 249 crore scheduled for repayment in FY26.
Sagility’s strategic focus on domain expertise, operational excellence, and technology-led transformation positions it well to deliver continued stakeholder value. With a resilient business model, a diversified client base, and expanding global footprint, Sagility India stands poised for another strong year. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.