Elara Capital initiated coverage on Sagility India with a ‘Buy’ rating, with a target price of Rs 54, looking at an upside of 26% from the current market price. The brokerage said that industry tailwinds, scale-up potential of top accounts, and many other factors contributed to the rating of the stock.
Sagility India: Favourable industry tailwinds for outsourcing
Rising Medical Loss Ratios (MLR) and persistent inflation in administrative costs are forcing US healthcare payers to optimise their cost structures. This creates a strong “outsourcing imperative” for core and non-core workflows like claims adjudication and member services to maintain profitability.
Sagility India: Significant scale-up potential in top accounts
Sagility India has strong connections with major clients, servicing seven of the top 10 US healthcare payers with an average tenure of 18 years for its top-five accounts. Elara expects the revenue from these top-five accounts to have the potential to double through further account mining and service expansion.
“Sagility generated 60% of revenue from the top 3, 71% from the top 5, and 85% from the top 10 as of December 2025. With a view to gauging the potential scale-up in these accounts in the long-term, revenue from the top 3 accounts was $465 million as of December 2025, with potential to be scaled up further by 40%,” said Elara Capital.
Sagility India leadership in a specialised niche
The company has strengthened its market position, moving from a “major contender” in 2019 to a “leader” in Everest Group’s Payer Operations PEAK Matrix by 2023. This reflects its comprehensive, end-to-end capabilities across the payer value chain.
Expansion into high-growth segments
Beyond large payers, Sagility India is successfully targeting the under-penetrated mid-market segment, which saw 28.5% YoY growth as of December 2025. Additionally, the company is expanding its Provider Revenue Cycle Management (RCM) services, which are fueled by a structural shortage of clinical talent in the US.
Sagility India: Financial deleveraging
Sagility India is expected to post a 20% earnings CAGR through FY26-28. This growth is supported by strong free cash flow generation and the planned full repayment of debt by FY27, which will eliminate finance costs and drive a jump in FY28 earnings.
Sagility India share price performance
The share price of Sagility India has risen 0.8% in the last five trading sessions. The stock has given a return of 16.3% in the past one month. However, the stock has declined 7.8% in the last six months and 1.9% over the previous 12 months.