Sagility Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Sagility Ltd trades at ₹43.4, in a downtrend and 20 weeks into that stage. That is +0.6% against its own 200-day average. It sits at 36% of a 52-week range of ₹38 to ₹53. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 1 straight week.

Today the stock is in a downtrend — week 20 of stage 4, confirmed. At ₹43.4 it trades +0.6% versus its 200-day average and sits at 36% of its 52-week range (₹38–₹53).

Against the market, two honest reads. Cumulative: over the last 1.7 years the stock moved +52% while the NIFTY 500 moved +7% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 1 straight week — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Sagility Ltd trades at 19.8× P/E, near the bottom of its own range — cheaper only 9% of the time. Its long-run median P/E is 31.2×, measured across 1.7 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 19.8× is near the bottom of its own range — cheaper only 9% of the time, against a long-run median of 31.2× measured over 1.7 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +72.2% against a −3.5% price move — earnings outran the price, pushing the multiple DOWN its own range.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Sagility Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE lifting at 13.6% — the per-curve reads carry the story. The read is built from 9 quarters across 3 curves, on partial evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

66.1/100 — rank 2 of 36 in Miscellaneous · 87% evidence confidence

Sagility Ltd scores 66.1 out of 100 against the 36 companies it is compared with in Miscellaneous, ranking 2. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 24.4 + 15.5 + 14.2 + 12 = 66.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Sagility Ltd reported ₹1,963 Cr of revenue in the Jun 26 quarter, +27.6% year on year. That is the 9th straight quarter of year-on-year growth. Over 4 years it has compounded at 67.1% a year. The last full year, FY26, came in at ₹7,193 Cr. The last four reported quarters add to ₹7,616 Cr.

FY26 revenue came in at ₹7,193 Cr (+29.1% on the year), capping 4 years at 67.1% compound. The latest quarter (Jun 26) printed ₹1,963 Cr, +27.6% year on year — the 9th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +29.4% growth against the decade's 67.1% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +29.4% over the last 4 quarters against +25.2%/yr over the last 8 — accelerating; TTM profit +49.2% vs +118.6%/yr — rolling over.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Sagility Ltd's operating margin is 22.0% in the Jun 26 quarter, +0.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 5 fiscal years the operating margin has ranged 21.0% to 25.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 22.0%, +0.0 pp against the same quarter a year ago. Across 5 fiscal years the operating margin has ranged 21.0%–25.0%, and FY26's 25.0% is the top of that band — a record year.

🚨 Why the margin moved: operating margin went −0.2 pp year on year while gross margin went +0.0 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Sagility Ltd earned ₹217 Cr of net profit in the Jun 26 quarter, +45.6% year on year. It is the 8th consecutive quarter of growth. Full-year FY26 profit was ₹925 Cr. That is 11.1% of the quarter's revenue. The same quarter a year earlier earned ₹149 Cr.

Jun 26 profit was ₹217 Cr, +45.6% year on year — the 8th consecutive quarter of growth. On the full year, FY26 printed ₹925 Cr (+71.6%).

Why profit moved: revenue contributed +27.6% and the margin +0.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +56.1% vs revenue +29.4%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 200% of Sagility Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹1,203 Cr of operating cash against ₹925 Cr of profit. After ₹885 Cr of capital spending, ₹318 Cr was left as free cash.

FY26: operating cash of ₹1,203 Cr against reported profit of ₹925 Cr, leaving free cash of ₹318 Cr after ₹885 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 200% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 200%: the cash cycle tightened 273 days between FY22 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Sagility Ltd's cash conversion cycle runs 93 days in FY26, down from 366 days in FY22. Capital spending ran ₹2,431 Cr over the last 3 years. At FY26 sales of ₹7,193 Cr each day of that cycle holds about ₹19.7 Cr, so roughly ₹1,833 Cr sits inside the business at any moment.

FY26: debtors at 93 days (an asset-light business — no inventory to speak of) — for a full cycle of 93 days, tighter than FY22's 366.

In money terms: at FY26 sales of ₹7,193 Cr, each day of the cycle holds about ₹19.7 Cr — so the 93-day loop keeps roughly ₹1,833 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹2,431 Cr over the last 3 fiscal years against ₹1,643 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹43.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Sagility Ltd earns a ROCE of 13% in FY26. That is up from a trough of 5% in FY23. Return on invested capital clears the cost of that capital by −1.6 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 12.9% net margin on 0.58× asset turns.

FY26 ROCE is 13%, recovered from a FY23 trough of 5% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 12.9% net margin × 0.58× asset turns × 1.29× balance-sheet leverage ≈ 9.7% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 10.4% − 12.0% = a −1.6 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Sagility Ltd carries total debt of ₹1,111 Cr against shareholder equity of ₹9,659 Cr as of Jun 26, a debt-to-equity of 0.12 — effectively unlevered. On the annual view that ratio went from 0.39 in FY24 to 0.12 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Jun 26: total debt of ₹1,111 Cr against shareholder equity of ₹9,659 Cr — a debt-to-equity of 0.12. On the annual view, debt-to-equity went from 0.39 (FY24) to 0.12 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 31.4 points of Sagility Ltd over 6 quarters, the biggest move on the register. That takes promoters to 51.0% of the company. Domestic institutions moved +14.2 points over the same window, to 21.4%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −31.4 points over 6 quarters to 51.0%; Domestic institutions: +14.2 points over 6 quarters to 21.4%; Foreign institutions: +6.2 points over 6 quarters to 10.0%.

🚨 Why the register moved: promoters drove it (−31.4 points), absorbed on the other side by domestic institutions (+14.2 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Sagility Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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