Shares of Sagility, a healthcare technology services firm catering to U.S.-based clients, jumped over 10% on Thursday after the company raised its FY26 revenue growth forecast to above 21%, up from the earlier estimate of 20%. The company also expressed optimism about a robust second half of FY26, following a strong performance in the September quarter.
Strong Earnings Amid U.S. Tariff Policy Changes
Sagility reported that its strong quarterly performance came despite the U.S. “normalisation of tariffs” policy, noting that there was no tangible impact on its business. The company said that tariff-driven cost increases for imported medical equipment and pharmaceuticals would affect healthcare providers more than payers, insulating its core operations.
No Impact from H-1B Visa Fee Hike
Addressing concerns about the recent H-1B visa fee hike announced by the U.S. administration, Sagility clarified that it does not depend on the H-1B program. The company said that over 99% of its U.S. employees are citizens or green card holders, ensuring no disruption from visa-related policy changes.
Impact of the Proposed HIRE Act 2025
Commenting on the Halting International Relocation of Employment (HIRE) Act 2025, which proposes a 25% excise levy on payments to foreign service providers catering to U.S. consumers, Sagility acknowledged potential margin pressures across the industry. However, it added that offshoring would remain more cost-effective than onshore operations even with the proposed tax.
Earnings Highlights
For the September quarter, Sagility reported a consolidated net profit of ₹251 crore, a 69% increase from ₹149 crore in the previous quarter. Revenue from operations rose 7.8% quarter-on-quarter to ₹1,658.5 crore. The company declared an interim dividend of ₹0.05 per share, with November 12 set as the record date.
Managing Director and Group CEO Ramesh Gopalan said, “We are confident of continuing this momentum into the second half of FY26.”
Group CFO Sarvabhouman Srinivasan added that the company plans to build an AI-ready workforce, continue investments in technology, and strengthen its balance sheet while reducing debt.
Sagility noted that client engagements are increasingly moving beyond traditional service delivery models, reflecting the sector’s digital transformation.
On a year-to-date basis, Sagility’s shares have risen 17%, and 18% in the last five sessions, taking its market capitalisation to over ₹26,000 crore.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Investors are advised to consult a certified financial advisor before making investment decisions.
