Buy Sagility; target of Rs 66: Motilal Oswal

Motilal Oswal is bullish on Sagility has recommended buy rating on the stock with a target price of Rs 66 in its research report dated January 28, 2026.

Broker Research

January 30, 2026 / 21:02 IST

Buy

Motilal Oswal's research report on Sagility

Sagility’s 3QFY26 revenue rose 29.1% YoY in Constant Currency (CC), higher than our estimate of 21% YoY CC. EBIT margin stood at 19.7%, and adj. PAT came in at INR3.2b (up 7.3% QoQ and 23.0% YoY), well above our estimate of INR2.8b. This excluded a one-time effect of INR328m towards the impact of the change in labor laws. For 9MFY26, Sagility’s revenue/EBIT/adj. PAT grew 29.2%/62.7%/44.3% YoY in INR terms. We expect its revenue/EBIT/adj. PAT to grow 37.6%/ 39.0%/62.0% YoY in 4QFY26. Management raised its FY26 CC revenue growth guidance to 22.5% (incl. 13.8% organic growth), while retaining its adjusted EBITDA margin guidance of 25%. We value the stock at 22x FY28E EPS to arrive at our TP of INR66. We reiterate our BUY rating on the stock.

Outlook

We believe the new logo addition, cross-selling, and synergy from Broadpath will drive its revenue/EBIT/PAT CAGR of 21%/30%/24% over FY25 28. Consequently, we reiterate our BUY rating on the stock with a TP of INR66 (based on 22x on FY28E EPS).

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