Sagility India shares tank 5% post Q3 earnings; analysts see up to 55% upside potential

Sagility Q3 results: Brokerage firms continue to remain positive on Sagility India Ltd after the company reported a strong set of performance in the December 2025 quarter with select analysts pushing the price targets higher. However, the stock saw some profit booking after the quarterly earnings.
 

Sagility financial performance

Sagility Indiareported a 23.37 per cent YoY to Rs 267.6 crore, while revenue rose 35.7 per cent YoY to Rs 1,971.1 crore for the October-December 2025 quarter. The IT solutions player's ebitda rose 30.4 per cent YoY to Rs 511 crore, while margins came in at 25.9 per cent for the quarter.
 

Sagility share price movement and history

Shares of Sagility dropped 5 per cent to Rs 49.11 on Thursday, commanding a total market capitalization close to Rs 23,500. The stock has fallen more than 15 per cent from its 52-week high at Rs 57.90 in October 2025. The stock has gained nearly 38 per cent from its 52-week low, while it is up 70 per cent from its IPO price.

Sagility India raised a total of Rs 2,106 crore via its initial public offering in November 2024 by selling its shares for Rs 30 apiece with a lot size of 500 equity shares. The issue was entirely an offer-for-sale (OFS) by its US-based promoters Sagility BV and Sagility Holdings BV.
 

Sagility India target price

Sagility reported robust growth and Ebitda margin in Q3FY26 with strong traction across traditional large clients, medicare advantage programs, robust traction in broadpath revenues, and better-than-expected AEP seasonality. It aims to grow in low-to-mid teens organically; with overall FY26 revenue growth guidance upgraded to 22.5 per cent with 25 per cent margin range, said ICICI Securities.

This will be achieved by targeting white spaces in existing clients and expansion in the mid–small market segment. The policy changes in US healthcare are expected to increase outsourcing, resulting in tailwinds for Sagility," it added. ICICI Securities maintained a 'buy' rating on the stock with a revised target price of Rs 76 apeice, hinting at 55 per cent in the stock.

Sagility reported growth, beating expectation, which was aided by stronger than expected AEP/OE season. PAT performance was robust with higher than expected revenue growth, and lower interest and amortization costs. FY26 guidance was raised yet again, it now stands at 22.5 per cent. It is proactively pursuing large outcome based managed services deals, said JM Financial.

"Management acknowledged the regulatory pressures that could hamper top line growth for US payers, but maintained that these pressures will accelerate outsourcing and platform adoption. Sagility can achieve its medium term growth targets while maintaining margins despite pressures. It has a track record of navigating client-side pressures in the past," it added with a 'buy' and target price of Rs 70.

"Margins to remain range-bound and model a 24–25 per cent Ebitda margin for FY 26-28, considering likely margin risk. We raise earnings estimates considering the upgrade in revenue growth guidance and the possibility of increased work outsourcing from the US health insurance companies, aided by likely government healthcare spending cuts in CY27," said Motilal Oswal.

"We believe the new logo addition, cross-selling, and synergy from Broadpath will drive its revenue/EBIT/PAT CAGR of 21 per cent/30 per cent/24 per cent over FY25- 28. Consequently, we reiterate our 'buy' rating on the stock with a target of Rs 66 (based on 22x on FY28E EPS)," it adds.