Revenue and Profit Growth
Over the three-year period, Sagility’s net sales have shown a robust increase, rising from ₹4,218.41 crores in March 2023 to ₹5,569.92 crores by March 2025. This represents a compound growth rate that underscores the company’s expanding market presence and operational scale. Total operating income mirrored this trend, as other operating income remained nil, indicating that the core business activities drove revenue growth.
Operating profit before depreciation and interest (PBDIT) excluding other income also improved steadily, climbing from ₹1,027.22 crores in March 2023 to ₹1,297.89 crores in March 2025. Including other income, operating profit rose to ₹1,354.20 crores in the latest fiscal year, reflecting enhanced operational efficiency and additional income streams.
Profit before tax surged significantly, reaching ₹760.23 crores in March 2025 from ₹185.68 crores in March 2023. Correspondingly, profit after tax more than tripled, advancing from ₹143.57 crores to ₹539.12 crores over the same period. This improvement was supported by a notable increase in tax provisions, aligning with higher profitability levels.
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Cost Structure and Margins
Examining the cost components, employee expenses have risen in line with revenue growth, increasing from ₹2,494.20 crores in March 2023 to ₹3,498.90 crores in March 2025. Other expenses also saw a moderate rise, reflecting the company’s expanding operations. Despite these cost increases, Sagility maintained a healthy operating profit margin, which stood at 23.3% in March 2025, slightly up from 22.89% the previous year, though marginally lower than the 24.35% recorded in March 2023.
Gross profit margin improved notably to 22.03% in the latest fiscal year from around 19.6% in the preceding years, signalling better cost management or pricing power. The profit after tax margin also showed a marked improvement, reaching 9.68% in March 2025 compared to 3.4% in March 2023, highlighting enhanced bottom-line efficiency.
Balance Sheet and Financial Position
Sagility’s balance sheet reflects a strengthening financial position. Shareholder’s funds increased from ₹6,206.67 crores in March 2023 to ₹8,336.05 crores in March 2025, supported by rising reserves. Equity capital also grew substantially, indicating possible capital infusion or share issuance. Meanwhile, total liabilities remained relatively stable around ₹10,916.92 crores in March 2025.
Notably, the company has reduced its total debt significantly from ₹2,347.94 crores in March 2023 to ₹816.96 crores in March 2025, signalling a focus on deleveraging. Long-term borrowings declined sharply, while short-term borrowings remained modest. This deleveraging effort enhances financial flexibility and reduces interest burden, which is reflected in the declining interest expenses over the years.
Asset Base and Cash Flow
The net block of fixed assets has increased moderately, indicating ongoing capital investment, while accumulated depreciation has also risen, consistent with asset ageing. Total assets remained stable at around ₹10,916.92 crores in March 2025, reflecting balanced growth and asset management.
Cash flow from operating activities has shown a positive trend, increasing from ₹856 crores in March 2023 to ₹1,214 crores in March 2025, underscoring strong cash generation capability. Investing activities have consistently been cash outflows, reflecting capital expenditure and expansion efforts. Financing activities have seen net outflows, consistent with debt repayment and reduced reliance on external borrowings.
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Shareholder Returns and Valuation Metrics
Earnings per share (EPS) have improved from ₹0.75 in March 2023 to ₹1.15 in March 2025, reflecting enhanced profitability on a per-share basis despite an increase in equity capital. Diluted EPS follows a similar trend. However, book value per share adjusted has decreased from ₹32.35 in March 2023 to ₹17.81 in March 2025, likely due to equity capital growth outpacing reserves in the short term.
Overall, Sagility’s historical performance reveals a company on a growth path with improving profitability, prudent debt management, and solid cash flow generation. Investors may find these trends encouraging as the company balances expansion with financial discipline.
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