The stock of healthcare-focused solutions and services provider Sagility India Ltd has risen by around 10% in the last two trading sessions. At its recently held Investor Day 2026, management outlined its business strategy and outlook amid US healthcare policy changes and increased adoption of artificial intelligence (AI) in the sector.
Right now, health insurers in the US are under pressure. Medical costs are rising, medicare prices are not increasing much, and fewer people are enrolling. According to management, enrolments fell 3.4% in 2026, with a 29% drop in new consumers. As a result, insurance companies are struggling to maintain their margins.
The recent macro developments, including Medicaid funding cuts and medical loss ratio rules, have led insurance companies to move towards digital, AI-led operating models to reduce costs. This has forced a change in their strategy.
Earlier, companies focused on growing their customer base. Now, they are more focused on saving costs and improving efficiency. Instead of handling everything themselves, insurers are outsourcing more work, like claims processing, billing, and clinical support, to specialised companies.
According to management, this outsourcing market is growing steadily at 6–8% for insurers and 11–13% for hospitals, and since only 20–25% of work is outsourced today, there is still a lot of room to grow. This could act as a tailwind for Sagility’s services.
The type of work is also changing. Clients now want partners who can handle bigger and more complex tasks, not just basic services. This has led to more long-term contracts where companies are paid based on results, which is good for stability.
Sagility is using AI to improve efficiency and has already deployed 32 AI use cases across 10 clients. But in healthcare, AI cannot fully replace people due to strict regulations. So, the model is becoming a mix of AI plus human expertise, which suits companies like Sagility. These trends are already visible in the business. Sagility is getting more work from existing clients and is also adding new ones. In fact, 7 out of 12 new clients in FY26 came from the mid- and small-segment, showing that growth is broad-based.
According to Nomura Global Financial Services estimates, the company is expected to grow its revenue by around 12% annually and profits by about 20% over the next few years, while maintaining margins of 24–25%.
Management has also increased its FY26 growth guidance to 22.5%, which shows confidence in demand. Further, merger & acquisition remains an integral part of Sagility’s growth strategy. It enables access to new clients and expansion of capabilities and unlocks cross-sell opportunities across existing accounts.
The stock is trading at FY28 price-to-earnings of around 15x, showed Bloomberg data. This appears reasonable given its growth potential. That said, the business is heavily dependent on the US healthcare system, as it generates around 90% of its revenue from US health insurance companies and around 10% from hospitals in the US.