Sagility rallies over 10 percent on 69 percent QoQ profit growth and higher guidance, 'no tangible impact' of Trump tariffs

Sagility added that the company does not rely on the H-1B program, and the visa fee hike proclamation by the US administration does not impact the company.

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26 Aug, 2025 12:21

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Shares of Sagility - a healthcare technology services provider to US-based clients - are sharply higher by over 10 percent after the company raised FY26 revenue growth guidance to over 21 percent from previous 20 percent and sounded confident of a robust H2FY26, following strong September quarter results.

Good Show Despite Trump Tariffs

The strong earnings performance has come at a time of 'normalisation of tariffs as a policy measure' by USA, Sagility said. The company added that it sees 'no tangible impact' as tariff-driven cost increase of imported medical equipment and pharmaceuticals 'will impact providers more than the payers'.

No Impact on H-1B Visa Fee Hike

Sagility added that the company does not rely on the H-1B program, and the visa fee hike proclamation by the US administration does not impact the company. " Over 99% of Sagility employees in the US are citizens or green card holders," the company added.

Impact of Trump's Proposed HIRE Act

The proposed HIRE Act 2025 (Halting International Relocation of Employment Act) aimed at discouraging companies from outsourcing jobs overseas could result in 'margin compression' of payers and service providers in the USA, Sagility added.

The bill proposed to impose a 25 percent excise levy on payments to foreign service providers for services to US consumers. "Even with proposed taxes, offshoring would remain more cost-effective than onshore," Sagility said.

Earnings Fineprint

The company had posted a consolidated net profit of Rs 251 crore in the September quarter as against Rs 149 crore a quarter ago, a growth of 69 percent. The revenue from operations stood at Rs 1658.5 crore, higher by 7.8 percent on quarter. Sagility will pay an interim dividend of Rs 0.05 per share and has set November 12 as the record date for the purpose.

"...we are confident of continuing this momentum into the second half of FY26," Ramesh Gopalan, Managing Director and Group CEO said.

The company added that it is planning to create an AI-ready workforce, and further invest in technology. "We continue to generate strong operating cash flows and maintain a healthy balance sheet while progressively lowering debt," said Sarvabhouman Srinivasan, the Group Chief Financial Officer.

Sagility added that it has seen strong client engagement with deals evolving 'beyond traditional service delivery models'. On a YTD basis, Sagility's shares are higher by 17 percent, and up by 18 percent in last five sessions. The company has a market capitalisation of over Rs 26,000 crore.