| Sagility Limited | ||||||
| 'Crisil A / Stable / Crisil A1 ' assigned to Bank Debt | ||||||
| Rating Action | ||||||
| ||||||
| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||||
| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has assigned its ‘Crisil A/Stable/Crisil A1’ ratings to the bank facilities of Sagility Limited (SL). The rating reflects its established market position in the U.S. Healthcare Outsourced Operations Services industry, strong revenue growth, profitability and a healthy financial risk profile. These strengths are partially offset by threats and challenges inherent in the U.S. Healthcare Outsourced Operations Services industry and geographic & customer concentration in revenue. |
Analytical Approach To arrive at the ratings, Crisil Ratings has combined the business and financial risk profiles of SL, and all its subsidiaries, held directly or indirectly, as all the entities share a common management, and operate in a similar line of business with significant operational and financial linkages. Crisil Ratings considers these entities as being strategic to SL considering their strong integration with the operations of the parent.
Crisil Ratings has amortised the goodwill arising out of the acquisitions over a period of 10 years starting fiscal 2024.
Crisil Ratings has not consolidated the debt of Sagility BV (SBV, holding of Sagility Ltd) with the group. This stems from the management’s stance that cashflow from the group will not be upstreamed to service the debt obligations of the parent. Debt is on account of the leveraged acquisition of the healthcare services business vertical of Hinduja Global Solutions Ltd (HGSL; rated ‘Crisil A/Stable/Crisil A1’) in 2022. SL has not extended any corporate guarantee towards the parent level debt.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers - Strengths Established market position in the U.S. Healthcare Outsourced Operations Services industry, strong revenue growth and profitability. The Sagility group is a prominent player in the sector, especially in US healthcare industry, catering to both the payer and provider segments. Strong relationships with clients ensure a continuous flow of orders and long-term contracts and have led to a steady growth in revenue over the years. The group has acquired few entities in the past, with technologies that can be integrated with current offerings and bring synergy to the business. The healthcare services business vertical was acquired from HGSL in 2022. SL’s operations reported a 25.47% growth during the first six months of the current fiscal period wherein the revenue improved to Rs 3,197 crores from Rs 2,548 crores in previous corresponding period. Crisil Ratings expects the growth trajectory to continue in the medium term, supported by the recurring revenue from existing clients and incremental revenue from new clients. Operating margins of the company remained healthy in the range of ~22-23% over the few fiscals and stood at 23.47% in fiscal 2025. The margin is likely to sustain as a result of strong operating leverage upon several cost efficiency measures undertaken. Longstanding customer relationships and reputed clientele support the business risk profile.
Healthy financial risk profile Financial risk profile of the Sagility group is characterised by robust networth of Rs 5,124 crore as on March 31, 2025, which is expected to improve further. Debt stood at Rs 802 crore as on March 31, 2025, mainly comprising external commercial borrowing from the parent i.e., Sagility BV. Gearing has been healthy at 0.16 time as on March 31, 2025, and debt protection metrics were comfortable too, with interest coverage ratio at 10.65 times for fiscal 2025. Regular capex of Rs 250-300 crore, likely to be undertaken over the medium term, will be funded through internal accrual. Financial risk profile is expected to remain strong; however any change in these expectations that could materially alter the financial risk profile and debt metrices would be a key rating monitorable. |
Key Rating Drivers - Weaknesses Threats and challenges inherent in the U.S. Healthcare Outsourced Operations Services industry: Despite being a leading player in the industry, its business could face challenges posed by an evolving market condition, regulatory changes, potential new entrants, and also a slowdown in commercial and/or government spending in the U.S. healthcare industry as these factors could weaken demand for its services. Growing concerns around data privacy, compliance, and a shift toward in-house models may reduce outsourcing adoption. Talent shortages, high industry attrition, and upskilling gaps could impact operational efficiency and profitability. Additionally, emerging competitors with innovative models may intensify market pressure and challenge the growth trajectory of the company.
Geographic and customer concentration in revenue The group derives its entire revenue from customers based in USA, and thus, any change in outsourcing policies of the country could impact revenue growth. The top three customers contribute 66% of revenue, leading to customer concentration. However, the group is continuously adding new clients to diversify its revenue base. |
Liquidity Strong The fund-based limit of Rs 230 crore remained unutilised for the 12 months ended June 30, 2025. Expected cash accrual of over Rs 1,000 crore should support the term debt obligation of Rs 235-570 crore over the medium term. Current ratio was healthy at 1.68 times as on March 31, 2025. High unencumbered liquid investments and cash equivalents of around Rs.600 crore were held as of September 2025. Sustenance of adequate liquid surpluses will be a key monitorable |
Outlook Stable The Sagility group will continue to benefit from its established market position and their longstanding relationship with customers. |
Rating sensitivity factors Upward factors
Downward factors
|
About the Group SL, (formerly known as Sagility India Ltd and prior to that, Sagility India Pvt Ltd) was incorporated in July 2021, and it acquired the healthcare services business vertical of HGSL in 2022. Sagility BV (earlier known as Betaine BV), the holding company of SL, was incorporated in Amsterdam, Netherlands on June 8, 2020. EQT AB, a private equity firm, is the ultimate holding company of SL and is based in Sweden).
SL along-with its subsidiaries and step-down subsidiaries, is engaged in rendering technology-enabled services to customers in the healthcare and insurance industry in the US. It collaborates exclusively with clients across the healthcare spectrum, both payers (US health insurance companies that finance and reimburse the cost of care) and providers (such as hospitals, physicians, and diagnostic and medical device companies).
The payer value chain comprises claims management, payment integrity, clinical management, provider network operations, and front-office services, among others. The provider value chain includes end-to-end revenue cycle management, integrating patient access and clinical services with licensed professionals. It has multi-shore presence with operations spanning delivery centres across India, the Philippines, the U.S., Jamaica, and Colombia.
SL was listed on the Bombay Stock Exchange and the National Stock Exchange on November 12, 2024. In August 2025, the name of the company was revised Sagility India Ltd. Mr Martin I Cole is the Chairman and Mr Ramesh Gopalan is the Managing Director and Group Chief Executive Officer. |
Key Financial Indicators*
*Crisil adjusted figures |
Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
|
Annexure – List of entities consolidated
*Including branch |
| Annexure - Rating History for last 3 Years | |||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||
| All amounts are in Rs.Cr. | |||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||||||||||||||
|
Criteria Details
|