Brokerages such as Jefferies and JM Financial are positive on the stock, and see potential upside of up to 29.7% on the stock from its previous close of ₹50.87 apiece. Among the
Jefferies
The brokerage has a “buy” rating on the stock and has raised its price target by 14.8% to ₹62 per share from its previous ₹54 apiece.It said Sagility’s second quarter revenue was in-line with estimates, though it margins and profit beat estimates, which were the key positive surprise.
The company’s growth outlook remains strong, given healthy deal wins, consistent new client additions and cross-sell synergies with Broadpath, Jefferies said.
It has raised the company’s Earnings Per Share (EPS) estimates by 2% to 8% and expects the metric to grow at a Compounded Annual Growth Rate (CAGR) of 20% during the same period.
JM Financial
The brokerage has maintained its “buy” rating on the stock and has a price target of ₹66 per share.
It said strong visibility to earnings, high cash conversion, and around 27% EPS CAGR over FY26-28 keeps it constructive on Sagility. This is despite the possibility of promoters paring some stake, which is a key overhang on the stock, it said.
Q2 Results and Guidance
Sagility’s net profit in the second quarter more than doubled to ₹251 crore from ₹117 crore in the year-ago period.
Its revenue increased by 25.2% to ₹1,658 crore from ₹1,325 crore in the previous year.
Sagility’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 37.7% to ₹415 crore from ₹301 crore in the second quarter last year, while margins expanded to 25% from 22.7% in the year-ago period.
The company’s management told CNBC-TV18 on Thursday that it has raised its FY26 revenue growth guidance to over 21% from the previous 20%. Its EBITDA margin guidance has also been revised upwards to 25% from the previous 24%.
The management expects the second half of the ongoing fiscal to be as robust as the first half. It said the company is constantly on the lookout for mergers and acquisitions with good valuations.
It also clarified that over 99% of its employees in the US are green card holders or residents. Hence, the new H-1B visa regulations will not impact the company.
Stock performance
All seven analysts who have coverage on shares of Sagility have “buy” ratings. Among these seven, IIFL has the highest price target of ₹70 on the stock.
Shares of Sagility gained 12.3% to hit an all-time high of ₹57.13 apiece on Thursday. The stock was up 10% at ₹55.93 apiece around 11 am. It has gained 31.1% in the past month.
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