Sagility block deal: Promoter Sagility BV likely to sell 12% stake for Rs 2,377 crore

Promoter Sagility B.V. is likely to sell a 12% stake in healthcare-focused IT-enabled services provider Sagility through a block deal, according to reports. The offer size is pegged at Rs 2,377 crore, with the floor price set at Rs 42.45 per share, implying a discount of up to 4.9% to the stock's previous closing price. The promoter will be subject to a 365-day lock-up on its residual stake.

According to the September-quarter shareholding data, Sagility B.V. held 2,38,51,29,151 shares, representing a 50.95% stake in the company. If the proposed transaction goes through, the promoter's shareholding will decline.

Sagility shares settled at Rs 44.69 apiece on Thursday on the BSE, down 1.17% from the previous close of Rs 45.22.

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Sagility Q2 results

Sagility reported adjusted profit after tax (PAT) of Rs 325.4 crore ($34 million) for the second quarter of FY27, marking year-on-year growth of 8.1%. Adjusted PAT stood at 16% of revenue.

Revenue rose 22.5% year-on-year to Rs 2,032.1 crore ($212.6 million), while growth in constant currency terms stood at 12.2%. Organic revenue growth was 22.2%, or 11.9% in constant currency terms.

Adjusted EBITDA increased 23% year-on-year to Rs 535.3 crore ($56 million), with the adjusted EBITDA margin at 26.3% of revenue. Basic earnings per share rose 13.3% year-on-year to Rs 0.61, while adjusted basic EPS grew 8.1% to Rs 0.70.

The company secured $40.2 million in annual contract value (ACV) from 31 existing clients and one new client. It added 28 client groups in the first half of FY27, including clients acquired through the CareSeed acquisition, taking its total active client group base to 105.

Sagility also reported growing momentum in artificial intelligence, with new statements of work (SOWs), more solutions moving into production, and AI-led go-to-market initiatives enabling faster solutioning.

The company acquired Chirok Health LLC to accelerate growth in its provider segment. The acquisition adds specialised clinical documentation integrity (CDI) and coding capabilities, extending Sagility's end-to-end revenue cycle management (RCM) offering.

At the end of the second quarter, Sagility had 51,486 employees. As of September 30, 2026, the company had a presence in five countries, with 28 delivery centres.

The board declared an interim dividend of Rs 0.15 per share.

Management commentary

Commenting on the results, Ramesh Gopalan, managing director and group CEO, said the company's performance in the first half of FY27 reflected broad-based momentum across the business.

He said the pipeline remained healthy, with larger deals and a growing set of opportunities among Blues and mid-market health plans. The company's AI solutions were gaining traction, with new SOW wins and more solutions moving into production.

CareSeed has been integrated into Sagility's Clinical Practice, adding to its healthcare quality capabilities, while the Chirok acquisition is expected to accelerate growth in the provider segment and strengthen its end-to-end provider RCM capabilities.

Gopalan said the company's priority in the second half would be disciplined execution through the annual enrolment period (AEP) and open enrolment season, alongside investments in capabilities to support its next phase of growth.

Srinivas Mattapalli, group chief financial officer, said the second quarter was marked by healthy growth, robust cash generation, and the company's highest adjusted EBITDA margin in six quarters, supported by operating leverage, disciplined execution, and delivery efficiencies.

He added that the revenue trajectory demonstrated the resilience of the operating model ahead of the seasonally stronger second half. The interim dividend of Rs 0.15 per share, up from Rs 0.05 in the previous interim period, underscored the company's confidence in the business and its commitment to shareholder returns.

Sagility will continue to invest selectively in technology, AI, and domain-led growth to create long-term value for stakeholders, he said.

Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
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