SAGILITY

“But in spite of this, we are continuing with our guidance of low double-digit organic revenue growth in constant currency for FY '27.”

“So I think considering what we have been able to achieve in quarter two, we do feel that the full-year we'll be able to continue to leverage those efficiencies, and we expect the FX also to be remain at broadly the same levels.”

“No, that's organic growth. But, yes, Chirok and CareSeed will be on top of that.”

“So if you look at the number of seats, that's definitely continued to increase.”

“Moving to new deal wins, deal ACV increased 18.2% year-on-year to $40.2 million, with wins across 31 existing clients and one new client.”

“This quarter, we won a large payment integrity engagement from a Big Ten health plan covering over 10 million members.”

“The deal has a minimum potential of over $10 million in ACV and could possibly be much more.”

“We expect OE and AEP revenue to be slightly lower than last year.”

“But basis current visibility, we think, like you said, it was 6% of our total revenues last year. We think it may be lower by 100 basis points or so.”

“Marginally lower than flattish, I would say, at this point of time.”

“In payment integrity deals, which are contingency-based linked to payment recovery, revenue will build progressively over time.”

“So we are hoping to grow providers at a much faster clip than we've grown in the past.”

“Demand remains healthy, and clients are more deliberate in how they make decisions.”

“For larger transformational deals, the buying process is more rigorous.”

“However, many of the national payers reported a significant improvement in their profitability in the first half of 2026 as a result of right sizing of membership and decrease in medical utilisation rates.”

“The clients we added in FY '26 are growing well, and our pipeline is robust.”

“Our pipeline reflects the shift. It includes more managed service deals and a healthy set of opportunities with Blues and other mid- market plans.”

“On the AI front, like I said, a lot of the productivity gains that we gain from AI will basically be passed on to our clients.”

“Operating profitability remains strong with Q2 adjusted EBITDA at INR 5,353 million, or $56 million, representing a year-on-year growth of 23%, with a margin of 26.3%, the highest in six quarters.”

“This improvement reflects stronger operating leverage, disciplined cost management, delivery efficiencies, and favourable foreign exchange movements.”

“The only item I would want to highlight at this point is the impact of statutory minimum wage revisions. Quarter two reflects the full quarter impact of about INR 148 million compared to about INR 70 million in quarter one.”

“These investments in sales and marketing is not going to have a major impact on our margins.”

“We continue to remain on track to repay our outstanding debt fully during FY27 which will further strengthen the balance sheet and reduce our finance costs.”

“We moved from a net debt of INR 1,962 million at the end of FY '26 to a net cash position of INR 1,127 million by September 2026.”

“Collections also improved with our DSO declining from 80 days in Q1 to about 78 days in Q2.”

“For H1, the same numbers, operating cash flow was INR 6,343 million and free cash flow was at INR 5,176 million.”

“Net cash used for financing activities was INR 3,123 million, primarily reflecting the repayment of promoter borrowings and lease liabilities, as well as the dividend payment.”

“As you can see, the trailing 12-month revenue up to September 2026 was $13 million, with an adjusted EBITDA margin of 35.8%. and a net revenue retention rate of over 115%.”

“We closed the Chirok acquisition yesterday.”

“They have 750-plus employees, most of them in India and a few of them in the U.S.”

“The CareSeed acquisition announced last quarter is now integrated into our clinical practice.”

“We expect Chirok to continue to grow at a healthy clip. I mean, I'll possibly give more guidance, hopefully, towards the end of FY '27.”

“I am also happy to announce that the board has approved an interim dividend of INR 0.15 or 15 paise per share to be paid in Q3.”

“We will continue to take a disciplined approach to capital allocation, balancing investment in technology, AI, and domain-led growth with appropriate returns to shareholders.”

“For H1, the bridge also includes exceptional past service costs included in Q1. There is no corresponding exceptional adjustment in Q2.”

“And while we have grown clients and we've grown revenue, we've also had some revenue tapering off from some discrete projects from one of our provider clients.”

“In terms of pressures on us because of that, I mean, those pressures will always be there because now with the availability of AI and other transformational opportunities, clients are expecting service providers like us to take out more costs from the work that we do.”

“And so while AI will continue to play a role in terms of improving the efficiency of the work that we do and Chirok does, it is unlikely to eliminate it completely, right?”

“Yeah, I mean, if there is some change in what has been called out, I mean, there could be a potential upside of those numbers. But at this point, we have fully baked in those numbers.”

“Consolidated revenue for Q2 came in at INR 20,321 million, or $212.6 million, representing a year-on-year growth of 22.5% in INR terms and 12.2% in constant currency.”

“Excluding the CareSeed acquisition, organic revenue growth remains strong at 22.2% in INR terms and 11.9% in constant currency.”

“Adjusted PAT for Q2 was INR 3,254 million, or $34 million, up 8.1% year-on-year, with a margin of 16%.”

“Turning to the half year performance. H1 FY '27 was INR 39,956 million, or $420.4 million, representing on a year-on-year growth of 25% in INR terms and 13.7% in constant currency.”

“For example, if there are multiple facilities in one sort of park or one campus, we are now counting that as one.”