Sagility shares soar 9% as Nomura sees 47% potential upside
Sagility rose 9.16 per cent to hit a high of Rs 40.74. Nomura suggested a target of Rs 55 on the stock, which suggested 47 per cent upside over Tuesday's closing price.
- Mar 25, 2026,
- Updated Mar 25, 2026 3:25 PM IST
Shares of Sagility India Ltd, a technology-enabled, pure play, healthcare-focused solutions and services provider, soared 9 per cent in Wednesday's trade after Nomura initiated coverage on the stock with a 'Buy' rating with a target suggesting 47.4 per cent potential upside.
Nomura sees Sagility delivering dollar revenue and earnings per share (rupee terms) growth of 12 per cent and 20 per cent, respectively, over FY26-28. The foreign brokerage said its target for Sagility is based on 20 times estimated FY28 EPS.
Sagility derives 90 per cent of its revenue from US health insurance companies and providers and 10 per cent revenue from hospitals based in the US. At the end of December quarter, Sagility had 81 client groups, with an average client tenure of 18 years and a retention rate of 95 per cent.
On Wednesday, the stock rose 9.16 per cent to hit a high of Rs 40.74. Nomura suggested a target of Rs 55 on the stock, which suggested 47 per cent upside over Tuesday's closing price of Rs 37.32.
Clients transition from transactional to outcome-based services, consolidation would favour vertical specialists over horizontal point-solution providers, the foreign brokerage said. Clients seeking multi-year cost savings require end-to-end operational capabilities that only vertical players can deliver. Sagility's deep healthcare expertise positions it as a key beneficiary, Nomura said.
It said the engagement services, which accounts for 30 per cent of revenues, will not face disruption due to regulatory constraints and complexity requirements.
"While AI handles simple queries, complex claims requiring back-and-forth decision-making need human involvement, as CMS prohibits bots from making clinical decisions. However, we believe AI significantly boosts engagement efficiency through tools such as Agent Assist, which uses GenAI and analytics to automate workflows. We think that 70-80 per cent of AI efficiency gains will be passed back to clients; hence, we expect margins to remain stable in the medium term," Nomura said.
The foreign brokerage said US healthcare operations outsourcing market CAGR from 2024-28 is expected to be 6-8 per cent for the payer segment and 11-13 per cent for the provider segment. Recent macro developments including Medicaid funding cuts and MLR rules have led insurance companies to move towards digital and AI-led operating models as they face pressure on margins, which Nomura expects to act as a tailwind for Sagility’s services.
"We also expect the shift to outcome-based models to support the company’s growth. Insourcing by some clients (set-up of GCCs) is largely due to data privacy concerns and requirements from their customers, and has thus far been limited in scope," it said.
Shares of Sagility India Ltd, a technology-enabled, pure play, healthcare-focused solutions and services provider, soared 9 per cent in Wednesday's trade after Nomura initiated coverage on the stock with a 'Buy' rating with a target suggesting 47.4 per cent potential upside.
Nomura sees Sagility delivering dollar revenue and earnings per share (rupee terms) growth of 12 per cent and 20 per cent, respectively, over FY26-28. The foreign brokerage said its target for Sagility is based on 20 times estimated FY28 EPS.
Sagility derives 90 per cent of its revenue from US health insurance companies and providers and 10 per cent revenue from hospitals based in the US. At the end of December quarter, Sagility had 81 client groups, with an average client tenure of 18 years and a retention rate of 95 per cent.
On Wednesday, the stock rose 9.16 per cent to hit a high of Rs 40.74. Nomura suggested a target of Rs 55 on the stock, which suggested 47 per cent upside over Tuesday's closing price of Rs 37.32.
Clients transition from transactional to outcome-based services, consolidation would favour vertical specialists over horizontal point-solution providers, the foreign brokerage said. Clients seeking multi-year cost savings require end-to-end operational capabilities that only vertical players can deliver. Sagility's deep healthcare expertise positions it as a key beneficiary, Nomura said.
It said the engagement services, which accounts for 30 per cent of revenues, will not face disruption due to regulatory constraints and complexity requirements.
"While AI handles simple queries, complex claims requiring back-and-forth decision-making need human involvement, as CMS prohibits bots from making clinical decisions. However, we believe AI significantly boosts engagement efficiency through tools such as Agent Assist, which uses GenAI and analytics to automate workflows. We think that 70-80 per cent of AI efficiency gains will be passed back to clients; hence, we expect margins to remain stable in the medium term," Nomura said.
The foreign brokerage said US healthcare operations outsourcing market CAGR from 2024-28 is expected to be 6-8 per cent for the payer segment and 11-13 per cent for the provider segment. Recent macro developments including Medicaid funding cuts and MLR rules have led insurance companies to move towards digital and AI-led operating models as they face pressure on margins, which Nomura expects to act as a tailwind for Sagility’s services.
"We also expect the shift to outcome-based models to support the company’s growth. Insourcing by some clients (set-up of GCCs) is largely due to data privacy concerns and requirements from their customers, and has thus far been limited in scope," it said.