Sagility India Ltd (NSE: SAGILITY) Q3 2026 Earnings Call dated Jan. 28, 2026
Corporate Participants:
Ramesh Gopalan — Group CEO
Abhishek Kayan — Deputy Chief Financial Officer
Analysts:
Unidentified Participant
Presentation:
operator
It’s.
operator
Foreign.
operator
And welcome to the quarter 3.9M FY26 earnings webinar of Sigility Ltd. This is Siddharth Ranganekar from CDR India and I shall be your host for today. As a reminder, all attendee lines will be in the listen only mode and there shall be an opportunity for you to ask questions after the presentation concludes. Please note that this webinar is being recorded to introduce the management we have with us today Mr. Ramesh Gopalan, Managing Director and Group CEO and Mr. Abhishek Kyan, Deputy Chief Financial Officer. Before we begin, I would like to state that some of the statements made on today’s call could be forward looking in nature and may involve uncertainties and risks.
A detailed statement in this regard is available in the Quarter 3 and 9M FY26 results presentation that has been uploaded to the stock exchanges. I would now like to hand over the forum to Mr. Ramesh Gopalan to begin the proceedings of this webinar.
Ramesh Gopalan — Group CEO
Over to you. Thank you Siddharth Good evening and welcome to our Q3 and nine month FY26 discussion. Let me start with some opening remarks in Q3. FY26 we continued to build on the strong momentum from the first half of the year. Our performance across payer and provider segments reflects the depth of our healthcare domain expertise and our ability to deliver consistently at scale. As clients navigate the evolving regulatory environment, they continue to rely on our execution excellence, operational stability and our expanding role in shaping the transformation agendas. The last quarter was especially important as it marked the beginning of the AEP or OE season for several of our large payer clients.
I’m pleased to report that the results were broadly ahead of expectations with strong traction across Medicare Advantage programs. Parts of our portfolio saw membership growth above forecast, driving higher operational activity across engagement services, prior authorization, claims processing and clinical workflows. A near perfect handle to forecast performance across key portfolios remained a clear differentiator, further reinforcing our position as a trusted partner for our clients. As you know, the addition of Broadpath has expanded our exposure to open enrollment related work. Historically, OE seasonal revenues accounted for approximately 3% of our annual revenues. Following the acquisition of Broadpath, it’s likely to increase to 4.5%.
However, specifically for this year, given the favorable OE season, we project this to be closer to 5.5% for FY26. As we’ve discussed in the past, looking ahead to FY20Q4 and FY27, our long term growth strategy remains anchored in three pillars, the first one expanding into white spaces within existing accounts, second building large transformation LED and outcome based managed services constructs and third accelerating our expansion into the middle and small market segments. We’ve made considerable progress in each of these three areas. For example, in the white space expansion we grew our clinical operation footprint significantly for a large payer client in Q3, demonstrating how sagility can continue to grow within long standing relationships.
Cross sell into Broadpath was limited this quarter as payers were primarily focused on the AEP season. However, our ongoing conversations remain active and we anticipate these discussions will gather momentum once the AEP seasonal peak subsides. On a second strategic lever, large end to end managed constructs, our pipeline continues to advance. These deals typically have longer sales cycles and we are engaged in multiple conversations where clients are explicitly looking for multi year transformation anchored savings and sagility is well positioned to meet that task through a combination of domain led operational depth and technology enabled delivery. As an example, we launched Sagility Synchrony, an integrated operating solution for Medicare Advantage that consolidates key lifecycle functions to accelerate time to market, strengthen compliance and improve member experience.
At the same time, we are deepening Genai adoption through a growing portfolio of production use cases and a strong pipeline of new opportunities. On the third, the mid and small market expansion seven of the 12 new logos that we won in the first nine months of FY26 have come from this segment. With that, let me now turn my attention to the performance in Q3 if you can. Yeah, move to the next slide please. Yes Consolidated revenues for Q3 stood at INR 19,712 million or 222 US million dollars. This represents a year on year growth of 35.7% in INR and 29.1% in constant currency.
So this has been an exceptional quarter for us. Our organic growth was also strong at 19.9% year on year in INR terms and 13.9% in constant currency. Momentum in business was seen both in the payer and provider segments. Payers reported 37.3% growth year on year, contributing 90.4% of the total revenue for the quarter, Whereas providers reported 21.6% year on year growth, delivering 9.6% of the total revenues for the quarter. Our operating profits showed strength. Adjusted EBITDA came in at 5,125 million INR or US$57.7 million, reflecting a growth of 24.2% year on year. Adjusted EBITDA margins stood at 26%.
This robust operating profitability is an outcome of a deep focus on execution, excellence, process optimization and driving technology led transformation across our portfolio. A quick reminder, our adjusted EBITDA does not include other income and forex scales. Adjusted PAT for Q3 came at 3,229 million INR increasing 23% year on year on the back of robust EBITDA margins and declining finance costs. Ongoing reduction in debt continues to strengthen our cash flows and enable continued investment in technology and in our domain. Moving on to the nine month FY26 results, our nine month saw a year on year growth of about 29.2% in INR terms and a 24.2% in constant currency.
We reported revenues of 51,686 million INR or 591.8 million USD for the first nine months of FY26. Organic growth was also strong at 18% in INR terms and 13.5% in constant currency. A nine month adjusted EBITDA came in at INR 13,164 million up 25.3% year on year. Adjusted packs stood at 8,236 million INR up 44.3% year on year. I’ll now turn my attention to the new WINS. As of December 31, 2025 we have 81 active clients and during Q3 we won business from 22 existing clients while adding 3 new clients. The aggregate annual contract value or ACV1 from existing and new clients stands at the 30.5 million for Q3.
A new client wins this quarter includes a top 10 health insurance company, a benefit administration company and a regional health insurance plan. I’d also like to highlight a few recognitions from the last quarter. Avasan’s radar view cited Sigility as an innovator in revenue cycle management business process transformation in 2025 reflecting stronger practice maturity driven by scaled technology enabled services, deeper domain specialization and more repeatable outcome led revenue cycle transformation. Great places to work recognize agility amongst India’s best workplaces in pharmaceuticals, healthcare and biotech 2025 and we were also recognized at the Healthcare Information Management association of the Philippines Excellence.
In addition, we earned the Ecovartis Committed Batch highlighting our continued commitment to sustainability and responsible business practices. These recognitions reinforce the depth of our talent, the consistency of our delivery and the values that guide how we operate across markets. To move to the next slide. At the close of the quarter we had 48,522 employees across five countries and as I’ve said before in our previous earnings call, our workforce includes highly skilled operational specialists, clinicians and technologists. Annual attrition for the quarter remained steady at 22.8%. Importantly, during the AEP season we successfully hired skilled resources to cater to seasonal growth while effectively managing attrition, cross skilling our teams and consistently delivering strong performance across our portfolio.
We continue to make incremental investments in AI powered learnings both in healthcare and technology domain which helps us enhance the skills and prepare a future ready workforce. On this slide you’ll see the standard KPIs that we report on client concentration, capacity additions, grouping of clients by annual revenues and so on. I’ll just pause here for a couple of seconds for you to look at the numbers, but I’m not going to read out each of them, So let’s move to the next slide. So I want to cover a few of the market developments related to our business.
Continues to be a lot of activity that impact the US Healthcare market. First one the ACA subsidy expiration has resulted in a decline of roughly 3.4% in enrollments and these are provisional reserves. However, we’ve told you before, our exposure to the ACA market is very negligible and so we are unlikely to be impacted by that. And as part of CMS’s proposed changes to 2027 Medicare Advantage, the STARS rating focus is shifting towards client safety and patient experience. We believe that this will accelerate the demand for care coordination and member experience, two areas that we are very strong in.
Similarly, new measures are being introduced in HEDIS along with the push to digital and fire aligned reporting which will create opportunities in HEDIS abstraction. While we don’t do a lot of HEDIS work at this point in time, we plan to take advantage of these changes. And finally, on the PBM front, all of you would have heard and seen the news. On the Pharma and the PBM front over the last quarter, there is a much higher scrutiny on price transparency, higher accountability for clinical outcomes and stronger coverage policies, all of which is likely to present additional opportunities for us.
If you move to the next slide, we’ll talk specifically about the Medicare AAP 2026 and the ACA marketplace. Starting with Medicare AEP for 2026, the industry view so far is that the season has largely been in line with expectations. At the same time, payers are clearly shifting their posture from membership growth to margin repair, prioritizing better risk mix and stronger STAR cohorts over pure enrollment expansion. We also expect 2026 to be a consolidation phase with reduced participation in certain low margin high utilization segments, the outcomes across our specific large payer relationships have been broadly ahead of expectations.
ECA Marketplace Like I’ve mentioned earlier, the provisional results from CMS indicates declines in both new consumers and overall enrollment compared to last year, largely linked to higher net premiums as premium tax credits expire, which is driving churn. And like I said, our exposure to the ACA market is very negligible. So what does this mean operationally to us? Higher administrative throughput across engagement, service volumes, prior authorization claims and clinical workflows alongside continued cost pressure at the payer side. At the same time there is a heightened emphasis on stars recovery, clinical quality and automation. Industry wide plans are moving towards digital and AI led operating models and towards outsourcing to improve margins while protecting member experience and benefits.
Overall, we view these trends as supportive for us. Payers are looking for partners who can deliver operational efficiency, quality outcomes and scalable execution and these things align directly with our strengths Moving over to the Next Slide so this is a section that we introduced in the last quarter which showcases our expertise through a selection of case studies, white papers, solution videos and expert talks. Like I mentioned earlier, we launched a new offering called Sagility Synchrony for Medicare plan submission, sales and enrollment. We also started to consult with some of our clients on both admin and clinical cost optimization in their operations.
Like before, I encourage all of you to explore our collections on solution videos, case studies, go to market documents on the slide as well as on our website. I’m also pleased to update that we have successfully deployed 32 distinct AI driven use cases across 10 clients. In conclusion, we had an exceptional Q3. As we enter the final quarter of FY26, our priorities remain clear. Continue our execution, excellence at scale and embed technology and AI enabled transformation to help our clients build highly efficient, resilient and future ready operations. In our Q2 earnings call we had increased our guidance on constant currency revenue growth to 21% plus and an adjusted EBITDA margin of 25%.
Due to the better than expected OE season, we are increasing our revenue guidance in constant currency to 22.5% for FY26 which includes an organic growth of 13.8%. Our adjusted margin guidance will continue to remain at 25% for the full fiscal. With that, I now hand it over to Abhishek to walk you through the financial performance and I’ll take questions later in the call. Thank you. Over to you Abhishek. Abhishek, I don’t think you’re audible.
Abhishek Kayan — Deputy Chief Financial Officer
Can you hear me now?
operator
Yes.
Abhishek Kayan — Deputy Chief Financial Officer
Sorry for the technical glitch and thank you Ramesh Good evening. I am pleased to present an overview of Sagility’s financial results for the third quarter and the first nine months of the fiscal year 2026. Q3 showed strong revenue and profitability driven by consistent revenue growth that we expect to continue. Our 9 month FY26 results are above the guidance shared in the last earnings call. This was driven by strong operating performance and better than expected AEP season. Moving on to cash flows, operating cash flow conversion at the end of nine months was 49.7%, impacted mainly by increasing account receivables in Q3 driven by high growth in Q3 over Q2.
As you know, we have seasonality in our business and revenues in Q3 is almost 33 million higher compared to Q2. This revenue increase of 17% over Q2 has led to an increase in AR by 15% over Q2. At quarter end our DSO was 86 days, 51 days in AR and 35 days in unbuild. We expect the DSO number to come back to normal at the end of quarter four. Next slide please. Q3 usually benefits from strong seasonal Medicare AP and OE activity which results in a revenue increase over Q2. This result this year, the addition of Broadpath has further expanded our exposure to open enrollment related work and with an exceptional OEC overall we have registered a 17% growth over Q2.
As we look at Q3 we generally see a revenue boost linked to seasonal Medicare AP and open enrollment activity. This year with broadband, our exposure to open enrollment has increased and has resulted in a resulted in a 17% growth over Q2. However, given the seasonality we experienced in the second half of the year, it is important not to focus solely on quarter over quarter business growth. If you look at the slide in front of you, you’ll see a quarterly revenue trend for last nine quarters and that will give you a sense of how Q4 and Q1 would pan out.
We ended the quarter at a global headcount of 48,500 reflecting the scale added to support AEP and ongoing ramp in our payer and provider operations. Let me now share a broader perspective on our long term performance. This slide provides a detailed view of our growth trajectory on a full year basis. You’ll notice that we have consistently achieved high growth in revenue, adjusted EBITDA and adjusted pat. The significant increase that you see on adjusted path is driven by higher operating profits and reduced interest expense and lower intangible amortization charges. Next slide please. On this slide we’ve captured few key financial indicators.
Adjusted EPS continues to improve steadily in line with adjusted path growth. The adjusted eps for for trailing twelve months FY26 is 2.27 as against 1.76 that we reported for FY25. Our adjusted ROC remains steady in the range of 50%. And I mean this is a long term trend that we observed over last few years. Cash conversion has been lower year to 8 year to date due to higher DSO in December, higher non cash expense and tax refunds that we received in last year. Our net debt continues to come down as we continue to repay our debt.
This is a busy slide but would give you a very comprehensive view of our P and L. I’d like to highlight that in this quarter we have a one time impact due to new Labor Code in India that came into effect on 21st November 2025. This new Labor Code standardizes the definition of wage on which certain employee benefits like gratuity, leaving cashmere and statutory bonuses are computed. We have reported a one time impact of past service cost of INR 328 million which has been reported as an exceptional line item in the P and L below EBITDA.
We estimate an ongoing impact of 20bps on our profitability going forward. If you if you can move on to the next slide. On this slide we present the adjustments to ebitda. Our adjustments on EBITDA include adjustments made for M and A earnout, stock appreciation rights and other income and forex gains. While our adjustments on adjusted PAT includes the adjustment made for EBITDA as well as adjustments made towards intangible amortization and the exceptional items that we have booked this quarter for one time impact coming out of new Labor Code. This is a this is a go forward view of of our debt repayment plan of share based payment awards earnouts and intangible amortization.
We we give this every quarter. There is a small change that we made for FY26 and that is on account of deduction in SAR. On account of on account of certain resignations that have happened in the previous quarter, our debt would be fully repaid by FY27. There’s I mean no major call out on the balance sheet. Our balance sheet continues to be healthy and stable. If you if you can move on to the next slide. Again no major call outs on the cash flows. Cash position and conversion continues to be strong. With this I end my presentation.
Thank you.
operator
Abhishek Participants who wish to ask a question, kindly click the raise hand icon at the bottom center of your screen. We shall wait for the questions to assemble it. We take the first question from the line of Manik Taneja. Manik, your line has been unmuted.
Unidentified Participant
Thank you for the opportunity. I hope I’m audible.
Unidentified Participant
Yes. Yeah.
Unidentified Participant
So you called out that the impact of open enrollment this year essentially was much higher than what we anticipated. If you could help us understand, was this driven by the acquired portfolio or the organic business? That’s question number one. And then related to it, how should we be thinking about this playing out from a. From the RAM down that you see on the open enrollment piece sometime, given the given the timing of the open enrollment cycle? And how does that impact Q4? And finally, with regards to margins, while we’ve seen very solid revenue growth, margins remain broadly in a very tight range.
If you could help us understand the moving parts to that, those would be my questions. Thank you.
Ramesh Gopalan — Group CEO
Sure. So, Manik, thanks. Thanks for your question. Let me address the revenue questions and I’ll ask Abhishek to address the margin question. The performance, Like I said in my opening remarks, the performance across our traditional large clients as well as broadband, both were very strong in this quarter. Overall Medicare Advantage performance came in line with expectations for the industry as a whole. But specifically for some of our clients, it was ahead of expectation, which means there was a lot more activity than we anticipated. So the performance was equally strong across both organic business as well as across broadband.
To your other question, yes, the seasonality of OE is a known factor in our business. And like I said in my opening remarks, it used to be about 3% of our revenues were solely attributable to the seasonal nature of OE. With Broadpath, that’s likely to go up to 4.5%. But this year, given that we had exceptional performance on both organic and Broadpath, we think we are projecting the OE related additional revenues to be 5.5% of our total FY26 numbers. And we’ve also given you the overall guidance for the fiscal. So that should give you an idea of how we think Q4 is going to pan out.
Abhishek Kayan — Deputy Chief Financial Officer
Monica, on the margins, I get your question. We’ve grown substantially in this quarter, but our margins are flat compared to previous quarter. So let me answer this for you. Essentially, bulk of the growth in revenues that have come in in this quarter have come in because of OE linked revenues. And as you know, OE linked growth typically happens in US location and in other offshore Locations, but not in India. So in this quarter, specifically in this quarter, I had a higher share of non India revenues. So while I, while we benefited from stronger forex, we benefited from operating leverage, but that was kind of compensated by higher share of revenues coming in from lesser profitable locations.
So these factors netted out each other and that led to our margin profile for this quarter to be consistent with what we reported in previous quarter.
Unidentified Participant
Great, thank you.
Unidentified Participant
And all the best for the future.
operator
Thank you, Mane. Participants who wish to ask a question, kindly click the raise hand icon at the bottom center of your screen. We take the next question from the line of Raj Vyas from Bonanza Portfolio. Raj, your line has been unmuted.
Unidentified Participant
Hi, am I audible?
Ramesh Gopalan — Group CEO
Yes, Raj.
Unidentified Participant
Yeah. So first of all, congratulations on a very good set of numbers. And look, as you mentioned that we were ahead of the expectations as well, so clearly was expecting that we were, we, we would increase the guidance and that has happened. Uh, my question is with respect to uh, the, the top 10 clients. Right. So it is now contributing to 84.6% of our revenue. So though it is down on FY25 basis, if we look at it, that was around 90.5. So what are the key strategies that we are looking in place so that we can further diversify our pool beyond the top 10 clients so that our revenue contribution remains intact even if there is some kind of uncertainties going ahead.
Abhishek Kayan — Deputy Chief Financial Officer
Thanks. Thanks Raj for your question. Right, so we’ve answered this question in the past also and let me link it back to the three strategic objectives that I spoke about at the beginning of the call. Right. One of them was to expand into mid and small market. And that’s something that we’ve been focused on over the last three plus years. Like I said, you’re starting to see consistent increases in the number of new logos that we win in the mid and small market segments. However, to your point, these small clients start small and will take us a period of time to grow the revenue.
So if you look at the concentration of the top three or the top five or the top 10, they’ve been coming down consistently year on year and we are very confident that that downward trend will continue. But I’ve always also at the same breadth mentioned to all of you in the past that our top clients continue to keep growing. So while they’ve been top clients, one of the strategic objectives that I laid out was also to mine additional white spaces and larger clients. And that’s what we are continuing to do. While your question alluded to hiccups in some of these clients.
Yes, the whole industry is under a lot of pressure because of the regulatory and other cost pressures. But that’s what gives us the opportunity to continue to mine additional opportunities with the top clients. And so while we continue to push for mid market and small market account growth, our top clients continue to grow in high single digits. And that’s why the concentration doesn’t come down as fast as you probably would like to see.
Ramesh Gopalan — Group CEO
Also, I guess last quarter we have announced a dividend of 5 Pacific.
Abhishek Kayan — Deputy Chief Financial Officer
Right.
Ramesh Gopalan — Group CEO
And we also highlighted that we may continue to give it. Do we have to pay debts as well? So we have to keep cash as well in our hand and at the same time we are also seeing that our receivables have also increased. So I guess my suggestion or my thought is that how can we improve this trade receivables segment so that we can continue keep giving dividends ahead as well? Because last quarter only we started and again in this quarter, I guess there is no dividend to the shareholders.
Abhishek Kayan — Deputy Chief Financial Officer
So even when we gave dividends last quarter, we didn’t say that we are going to give dividends every quarter. Right. So we will, we will look at our full year results and we will take a call at the end of the year. To your other question, there is no issue with a dso. Right. Like Abhishek mentioned, when your quarter on quarter revenues grow up by 17%, unbilled receivables go up. Right. So all the work that we did in December are yet to be built. Right. So it’s just a factor of the revenue growing by 17.5% that the DSO appears to be high.
Right. So there is absolutely no problem in our collection cycle. And like Abhishek mentioned, the DSOs will come down again in Q4 once the the revenue growth rate stabilizes on a Q on Q basis. Okay.
Unidentified Participant
And lastly that as we will be paying our debt by FY27 as you have mentioned in the call as well. So after that or during the period, are we looking for for other M and A acquisitions as well so that that could be helpful as a company to us so that we can acquire smaller companies and we can have get benefit from them as well.
Ramesh Gopalan — Group CEO
Yeah, like I’ve mentioned in the past, M and A continues to be something that we are keen on. We have a team that’s constantly looking at opportunities for, for acquisition and yes, it depends on the size of the acquisition. A couple of acquisitions that we’ve done, we’ve managed through internal accruals. We’ve not had to raise additional debt and so depending on the size of the acquisition, we’ll have to take a call. But to your question overall, yes, M and A continues to be a key strategy for us. And if you find the right opportunity at the right valuation, we’ll be more than happy to consider that.
Okay.
Unidentified Participant
And lastly, how’s the demand panning out currently? As I know we have moved into the last quarter, but it’s been few days only. But how we are as a demand scenario looking not just this quarter but beyond as we move into FY27 as well. So how’s the demand scenario overall looking both in the geographies that we operate currently?
Unidentified Participant
Yeah, so like, I mean it’s basis, what we see is how we’ve increased our guidance for the, for the full year. So demand continues to be good. So if you, if you go back to the commentary, we, we continue to see opportunities in our existing clients and we continue to add newer logos. And given that clients continue to be under cost pressure, there is more and more opportunity that we see because clients use outsourcing as a lever to reduce costs and manage their profitability. So we continue to see opportunities both from existing clients and from new clients.
And as a company, again, I did talk about our strategy of getting into some of the larger outcome based managed services constructs. Some of those conversations are also going on pretty well. So, so we are, we are confident that those will help us improve our close rates and continue to keep the growth momentum going forward.
Unidentified Participant
I understood.
Ramesh Gopalan — Group CEO
I understood.
operator
Thank you, Raj.
Ramesh Gopalan — Group CEO
Yeah, thank you and all the best.
Ramesh Gopalan — Group CEO
Thank you.
operator
We take the next question from the line of VAMSHI from Kotak securities.
Abhishek Kayan — Deputy Chief Financial Officer
Hi.
Unidentified Participant
So. So my first question is for you, Ramesh. So just when you say you are the marketing incrementally moving towards outcome based.
Abhishek Kayan — Deputy Chief Financial Officer
Engagements, so how is facility positioned to.
Unidentified Participant
Maybe capture greater share from some of the undifferentiated vendors?
Abhishek Kayan — Deputy Chief Financial Officer
And second is on the pricing which.
Unidentified Participant
CMS has announced for the CY27MA plans.
Abhishek Kayan — Deputy Chief Financial Officer
Now there’s a case that it could lead to increased outsourcing.
Unidentified Participant
But then some of your larger accounts.
Abhishek Kayan — Deputy Chief Financial Officer
Are say fairly mature outsourcers. So how would that have an implication for such a thing?
Unidentified Participant
So vamshik, I mean the similar questions we’ve answered on the second part. Right, so let me take your first question. Right. Outcome based engagements, we continue to, like I’ve said in the past, we continue to build on our capabilities both as a domain expert as well as a transformation capabilities. So a large part of these Outcome driven models is essentially contracts in which clients expect more than just the labor cost based arbitrage. They expect cost reduction over several years. And those cost reductions typically come about because of technology and transformation. And if you look at for example, the synchrony that I was talking about, that’s the solution that we’ve taken to the market in partnership with a couple of technology vendors.
So these are platform players and so we have partnered with them to offer this end to end service to our clients. So essentially clients don’t have to pay a license fee for the platform and we would manage the whole thing as a managed service, both the technology and the services around those technologies. So, so it’s going to be a combination of continuing to build on our domain expertise, continuing to build on some of our transformational capabilities, and thirdly, to continue to partner with some of the technology vendors who have platforms and stitching it all together to get to this end to end offering with a, with a cost takeout commitment.
And like I said, it’s an evolving journey. Our capabilities are increasing and as you will see over the next two, three quarters, we are likely to launch many similar offerings which takes advantage of partner capabilities and our own capabilities. To your second question, look, this profitability pressure is not new and I’ve, I mean told everyone about this over the last several quarters and we continue to show growth in our large accounts. Right? So, so yes, our clients are mature outsources in a number of areas, but again, there are a number of additional areas in which they still can do more.
And those are the areas where we are trying to win new business. And some of the managed service constructs are also being, those conversations are also being held with some of the large clients. Right? So when we were doing piecemeal outsourcing for them in the past, now they are trying to look at end to end and saying, okay, if you guys can actually deliver value by looking at this whole value chain end to end, we are more than happy to give it to you under, I mean if you can promise committed cost takeouts over the three to five year time frame.
Right. So those opportunities are coming not just from newer clients, but also from our existing clients. And specifically on the MA rate reduction, we didn’t talk about it because it just came out yesterday. It’s preliminary numbers. Yes, the preliminary numbers seem to suggest that the rate increases are not going to happen. But we’ll wait to see what happens when the final numbers are announced in March and April. But that’s only going to put additional pressure on our clients. Right. So the one thing which is also very clear from all these conversations is while there are additional opportunities that are also going to be additional pricing pressures because clients continue to look at all opportunities to improve their profitability.
A lot of the work that we currently do will also come under pressure. But then that’s where like I’ve said, we need to use our transformation capabilities to try and deliver those cost takeouts that the clients are looking for without having a bigger impact on our margins. And good to know that you are launching new platforms.
Abhishek Kayan — Deputy Chief Financial Officer
And of course on profitability you have anyways delivered better than what was earlier guided for. And just my third question is, and.
Unidentified Participant
Last one is on the white spaces.
Abhishek Kayan — Deputy Chief Financial Officer
That you have identified and say what could be the addressable market which can.
Unidentified Participant
Or what’s the growth rate of those white spaces that you are trying to expand into? So clinical continues to be a big area that, that where we are seeing an opportunity. Like I said, we expanded into the clinical area for one of our existing large relationships. We continue to see opportunities there for that client as well as for other clients. I spoke about Hedis though we don’t do too much work there. We want to take advantage of that with all of the changes going on Stars as a program while we’ve been doing clinical work. We’re kind of trying to get all those capabilities together and go to market as effectively helping clients improve their star ratings.
So everything around clinical seems to be a big growth area. We are also on the back of the acquisition of dci. We are also trying to expand our payment integrity capabilities to a much broader scope. So all of that is likely to drive growth in areas where we weren’t present before.
Abhishek Kayan — Deputy Chief Financial Officer
Sure.
Unidentified Participant
Thank you. And maybe last for Abhishek.
Abhishek Kayan — Deputy Chief Financial Officer
Yes. Can you help us with the margin.
Unidentified Participant
Work for the quarter? And that’s my last question. Thank you.
Abhishek Kayan — Deputy Chief Financial Officer
Can you repeat your question?
Unidentified Participant
Vamshi so I was asking for the.
Abhishek Kayan — Deputy Chief Financial Officer
Margin work for the quarter.
Abhishek Kayan — Deputy Chief Financial Officer
Margin work with previous quarter.
Abhishek Kayan — Deputy Chief Financial Officer
Yes.
Abhishek Kayan — Deputy Chief Financial Officer
See essentially we delivered adjusted a bit of 26.2 in previous quarter. Current quarters adjusted EBITDA is 26%. So we are broadly in the same range as previous quarter. Approximately. Approximately. I can tell you. Right. I mean we benefited by 1% because of forex. Favorable forex in quarter three versus quarter two. We also were benefited by 100bps because of operating leverage. I mean we had significantly higher revenues and we had some scale benefits. So that impact was almost 100 bits. We, we had, we had a 220bps of negative impact because of change in the delivery mix in this.
In this quarter the share of revenues that were delivered from us almost doubled compared to previous quarter. We had a huge AP linked seasonal growth in US in broadband and then we had the organic business. Also saw AB related seasonal businesses delivered from Philippines, Jamaica and us. So because of this the the revenue share of low margin geographies was higher compared to India and that led to a 220B dip over previous quarter. Net net we had a 20B STP over previous quarter. I hope this helps.
Unidentified Participant
Very helpful, thank you.
operator
We take the next question from the line of Ninaj Sarpodar from Aditya Belamani.
Abhishek Kayan — Deputy Chief Financial Officer
Good evening. Congratulations on the great set of numbers. Just a few questions. Wanted to understand this slashing of M funding. I just wanted to get some understanding whether if at all it happens, will the impact of drop in volumes or new enrollments will be much more higher or immediate than. I understand that cost pressures will always drive our business as outsourcing partners. But that will happen over the time. But immediate impact, could it be adverse for us? That’s my first question.
Unidentified Participant
Okay, so, so let me try and clarify a few things. Right. The membership for 2026 was decided through the AEP that just concluded. Right. So, so the membership for 2026 is not going to change because of this. And the rates that were also announced is the rates for calendar year 27. Right. So, so that’s, that’s going to take effect 12 months from now and again those are preliminary numbers. We are still waiting for the final numbers in March and April. Right. Hopefully that that should address your question of immediate impact. Right. So there’s, there’s no immediate impact either on membership or on rates basis.
Abhishek Kayan — Deputy Chief Financial Officer
Immediate. I mean I meant for the next year only. But just the focus was on like whether will be impacted more adversely with the drop in volumes and the improvement will happen gradually over the time. Was my question.
Unidentified Participant
If membership increases, why would volumes drop? Right. So volumes are not going to drop. Right. So when, when like I said, a few of our large clients have had growth ahead of expectations in the AP season and for those clients volumes are going to increase. Right. Obviously the reimbursement per member, I mean again that’s CY27. Again it’s not funding is being cut, it’s the rates are not going to increase. Right. So rates are not going to increase. Risk adjusted rates will go up by 2% or something. But essentially coming back to your question, AEP drives the membership volumes and membership volumes drives the activity volumes.
Abhishek Kayan — Deputy Chief Financial Officer
And in Terms of growth, I mean, do you, how can you, you know, classify or bifurcate? Do you do that in terms of increased sows or addition of or, you know, launching of new solutions? And in terms of organic growth. So can you throw some light on that?
Unidentified Participant
Look, a new sow or launching a new product which is sold to an existing client all is part of organic growth. Right. So organic versus inorganic is only the differentiation between the growth coming out of an acquired entity versus growth coming from the business that was there in the previous year. Right. But all of those contribute to growth. Like we, like we report new wins every year. Those new wins comprise of both revenues coming from new logos, new clients that we open, as well as additional business that we sell to existing clients.
Abhishek Kayan — Deputy Chief Financial Officer
Okay.
Abhishek Kayan — Deputy Chief Financial Officer
Okay, understood. Yeah.
Unidentified Participant
That’s awesome. Thank you.
operator
Thank you, Nina. We take the next question from the line of Chirag Kacharia from Motilal Oswal. Chirag, your line is unmuted.
Abhishek Kayan — Deputy Chief Financial Officer
Am I audible?
Unidentified Participant
Yes, please go ahead.
Abhishek Kayan — Deputy Chief Financial Officer
So Congress on a good set of numbers. Just one question in continuation to the what previous participant has asked. So what I understood so far from the proposal that the spend is going to remain stagnant on medical advantage part. So in that phase, is there a possibility that the volume of work will increase as the insurance companies have a cost pressure or you can share some.
Unidentified Participant
Yeah. So like I answered to the previous question also Chirag. Yes. I mean cost pressures result in a in a number of initiatives that clients take. Right. One is obviously they need to reduce admin cost as much as they can as well as the clinical cost. Right. So on the admin side, which is what a lot of the work that we do is predominantly on the admin side. So there are two things to do. If there are still work that is being done onshore and if that work can be offshore, clients look to service providers like us to help them with that.
Second thing, like I said, while to the earlier question, some of the larger clients may have been mature outsourcers, there is still smaller chunks of work upstream and downstream because of the scale issues that they have not thought of outsourcing before. But if you combine it in an end to end model, obviously that’s something that we could take over and move parts of it offshore and run the rest of it onshore, but still give them a committed saving through technology and transformation. So. So those are the opportunities that clients are warming up to because any reduction in admin cost is going to help them at this time where there is pressure on profitability and then on the flip side, like I said, there is always pricing pressure.
So most of the either new business that comes or contracts that get renewed, there is constant pressure on what more can you do at the same price or how can you reduce my price even further? And so those conversations will obviously put a, a downward impact on, on, on, on, on revenues and margins. But that’s, that’s where we, we try and see how best we can deliver to the client’s request without a bigger impact to our profitability.
Abhishek Kayan — Deputy Chief Financial Officer
Because if we look at our current margin profiles, I mean as compared to what other providers posting. Okay, so in that context, I mean we, I’m assuming that we are running at almost your guidance.
Unidentified Participant
Sorry, you’re not very clear.
Abhishek Kayan — Deputy Chief Financial Officer
Hello? Yeah, yeah, can you hear me?
Unidentified Participant
Hello, I can hear you. Your question wasn’t clear. Can you repeat?
Abhishek Kayan — Deputy Chief Financial Officer
Yeah, so I, I was asking if you look at our current margin profile, that is, I mean adopt for most of our peers, I mean we’re running almost a peak or near to peak margin and let’s say cost pressure comes, is there any possibility that we may witness a margin pressure considering the client and situation and all and considering our position of a peak margin at current.
Unidentified Participant
Look, there’s always margin pressure, right? So I’m not going to tell you that there is no margin pressure. There’s always margin pressure and like I said, in times of heightened profitability concerns at our clients and there is going to be pressure, right? So the, the answer to your question is can you deliver what the client wants in terms of cost reductions for them and still continue to, to, to maintain your margins? Right? So that’s the balancing act that all of us have to do so far. We are, we are confident that we can do that, but obviously we will keep updating our guidance if, if that changes.
But this is not a new thing, right? This has been going on for the last several quarters. So the profitability pressure is not something that’s happened. And again, these rates are going to take effect in 27. So not reacting to the rates of 27, even if you go back, utilization rates were high, profitability pressures were high even 3/4 ago, 5/4 ago with some of our large clients. Right? This profitability pressure, especially on the Medicare Advantage plans is not something that is new. Right? And so, so, so that’s the environment that we’ve been managing all this while.
And so we’ll continue to keep you posted. But at this point in time, like we guided for the full year, we, we are reasonably confident of achieving those margins.
Abhishek Kayan — Deputy Chief Financial Officer
And one Final question on the broad path. Synergy. So what we thought a year back to integrate broadband in the city. It is portfolio. Are we running on time or is there some delay in the, you know, acquiring a clientele and create a common pool of offering combined services to a common client pool?
Unidentified Participant
Yeah, look, I mean internally, the synergies. We didn’t expect the synergies to all play out in, in, in, in the first year. Right. So whenever you acquire a business with about 2,000 plus people, it takes a while to integrate and so on. Most of the integration is over. The delivery side of the integration will happen effective April 1st. And as you know, Chris, who was the chief Sales officer at Broadpath, we elevated him to take over all of our sales operations, all of our sales across agility. So some of those movements have happened. And the cross sell, like I said in my opening comments, the cross sell, obviously in Q3 didn’t happen because of the AEP season, but there are at least a dozen opportunities that we are actively discussing as we speak and we are very confident that those conversations will result in some deals.
So the synergy is likely to play out over the next two to three years. But there is a lot of opportunity because like the whole thesis was, broadband was only delivering a narrow set of services, whereas we have a much broader offering to take to those clients.
Abhishek Kayan — Deputy Chief Financial Officer
Okay, thank you. All the very best.
operator
Thank you. We take the next question from the line of Rishi Junjunwala from iifl. Your line has been unmuted.
Abhishek Kayan — Deputy Chief Financial Officer
Yes, thanks for the opportunity. Ramesh, in your vast experience of doing business in this space in the past years, when there has been a pressure on profitability from your customers, is it fair to assume what you have experienced in the past is net, net at an operating profit level? It hasn’t ended up being deflationary to your business, given that either, you know, any pressure on volume and pricing has been offset by productivity or the other way around. And as a result, some of the concerns around how this will play out on our financials going forward should also not be very high.
Unidentified Participant
Yeah, Rishi, that’s, that’s the way it’s been so far. Right. So, so, and we’ve spoken about the delivers that we have at our disposal. Right. So productivity improvements year on year is a big factor that offsets any pricing reduction or any cost savings that our clients demand. Use of technology and transformation is another big lever that obviously that effectively drives the productivity. So that’s another big lever that helps keep a margin safe. And yes, whenever we get a Benefit of exchange rate. That also helps us drive in the long run. Right. So those are the levers that we have.
But to your question, profitability pressures, like I answered to the earlier question, I mean this has been, I mean there are periods when this is higher than others. And I would say over the last few quarters there’s been a heightened.
Abhishek Kayan — Deputy Chief Financial Officer
Pressure.
Unidentified Participant
Profitability pressure on our clients end, which is obviously translating to a lot of demand on cost takeouts and better efficiencies that they demand from us. And some of these larger constructs also gives us that flexibility to not look at it on an FTE basis or on a transaction basis. But it also helps us move the narrative to more an outcome based, in which case you delink it from headcount and that gives you a lot more opportunity to use technology and other levers to help maintain your margins.
Abhishek Kayan — Deputy Chief Financial Officer
Understood. And the second question is, through the course of the year, we have raised our revenue growth guidance from 20% plus to now 22.5%. Would you be able to provide some color on what has been the reason for this increase? Is it that we have been able to win a bigger share of the wallet from our customers or the underlying, you know, outsourcing penetration has actually increased a lot more than what you potentially were anticipating at the beginning of the year?
Unidentified Participant
Yeah, I mean like we’ve answered this question many times. Right. Wallet share gains. There are wallet share gains here and there. Right. But that doesn’t predominantly drive a growth. Most of the growth comes from the outsourcing penetration that you talk about, which we call white spaces. Things that clients haven’t done in the past where we have the advantage because we have the skill sets, we understand the domain, we have the end to end capabilities. So those are some of the things that give us an advantage in convincing clients that we are best positioned to deliver on those white spaces.
But yes, that falls into your definition of outsourcing penetration increasing. That’s what drives most of the growth. Like I said, some of these constructs, new constructs would basically take some of the work that we are already doing from our clients, add additional components to it, but be defined through a different business model rather than a FT or a transaction pricing model. So in that case also there is a marginal increase in the outsourcing penetration, but then that also changes the whole construct of the deal.
Abhishek Kayan — Deputy Chief Financial Officer
Understood. Thank you so much.
Abhishek Kayan — Deputy Chief Financial Officer
Thank you.
operator
May I request the participants to limit the initial questions to one per participant as there are a lot of participants in the queue, time permitting, will come back to you. We take the next question from the line of Srinik Mehta from Indo Alps wealth. Shanik, your line has been unmuted. Your line has been unmuted.
Abhishek Kayan — Deputy Chief Financial Officer
Can you hear me now?
Unidentified Participant
Yes, yes please. Okay, great. I just wanted a medium term picture.
Abhishek Kayan — Deputy Chief Financial Officer
Of how you’re looking at gliding towards an ROE number which would be at least over the cost of your capital.
Unidentified Participant
15, 20% range.
Abhishek Kayan — Deputy Chief Financial Officer
Do you see this happening in the next one or two years to three years or do you see that this will be much longer?
Unidentified Participant
So I’ll ask Abhishek to answer that question. Right, so, so there is, there are adjustments that you need to do to any of the return matrices that you compute.
Abhishek Kayan — Deputy Chief Financial Officer
Right.
Unidentified Participant
So want to understand on what basis you’re computing first. But broadly the guidance that we’ve given both from a, from a profitability and from a revenue growth for getting the, the FY26 guidances, we continue to believe that we can grow in the, in the low to mid teens organically and, and any acquisitions that we do will be on top of that. And we still think while 25 and 26 are impressive numbers, we traditionally guide in the 24% EBITDA range. Right. So, so, so that, I mean even over the medium term will continue to retain that guidance.
Obviously at the end of next quarter we’ll give you a better guidance for FY27. But if you ask me for the medium term from a, from a top line growth and a profitability perspective, those will still continue to be our guidance at this point in time. And Abhishek, can you respond to the specific ROE question? You’re on mute. I think. We can’t hear you.
Abhishek Kayan — Deputy Chief Financial Officer
Abhishek, you hear me now?
Unidentified Participant
Yes, yes, yes, yes.
Abhishek Kayan — Deputy Chief Financial Officer
So sh. Let me step back and give you a background on how this company was formed. Essentially Sagility was a carve out from a predecessor company wherein the predecessor company sold the healthcare business in form of asset transfer to, to our promoter. Right. And the, the net purchase consideration was significantly higher than the assets, physical assets acquired as part of this process. Now there was huge goodwill and intangible that got created on our books. So these are not goodwill that if you look at our balance sheet, the goodwill and intangible that you see on our balance sheet is not because of the acquisitions we have done post our formation, but it is because of the way we were created as part of carve out from our predecessor company and obviously because of such high amounts on balance sheet because of could be an intangible.
So the equity is Very high.
Abhishek Kayan — Deputy Chief Financial Officer
Right.
Unidentified Participant
And yeah, Sorry Abhishek, you went offline again. So yeah, we can hear you now.
operator
We can hear you now.
Abhishek Kayan — Deputy Chief Financial Officer
I don’t know where I got cut off, but what I was saying was if you, I mean if you do a plain vanilla roe calculation just on the reported numbers, you will end up with a low roe. But if you make these adjustments for the high balance, high intangibles and Google that sits on our books because of the way we were created, you will end up with a high two digit number on roe. Happy to connect with you offline to explain you this. Also I request you to read our rhp wherein we have explained this.
Abhishek Kayan — Deputy Chief Financial Officer
So you mean the ROCE would be a much better measure for, for you rather than the roe. But ROCE is also just in initial single double digit.
Abhishek Kayan — Deputy Chief Financial Officer
Right. Maybe I’ll request you to look at slide 13 in our investor deck wherein we have given an adjusted ROC number which is at 50%. And we’ve explained the way we have calculated this. We have made an adjustment for, we’ve made an adjustment for the high goodwill that sits in our books. I can take it offline. I can explain you how we.
operator
Okay, thank you.
Unidentified Participant
Thank you.
operator
We take the next question from the line of Ridans Chandak from Unifi AMC Ridansh. Your line has been unmuted.
Unidentified Participant
Congratulations on a good set of numbers.
Abhishek Kayan — Deputy Chief Financial Officer
I actually had a general question on.
Unidentified Participant
The broader market within the US if.
Abhishek Kayan — Deputy Chief Financial Officer
Outsourcing penetration is already, say high within.
Abhishek Kayan — Deputy Chief Financial Officer
The larger clients, how do you, how do you see.
Abhishek Kayan — Deputy Chief Financial Officer
This trajectory? How far can it go in terms of headroom?
Unidentified Participant
Could you just give some color on that, please? Yeah, Vedant. Yeah. This question we’ve answered in the past, but like I said, the only anecdotal we can give is our top five clients have been with us for 18 odd years and we still, last year the top five grew in high single digits still. Right. So when people ask us, is there headroom to grow, which is what I tried answering in the previous questions, there are still white spaces in these clients that we are still growing. The large clinical opportunity that we want in Q3 was from a top five client.
Right. And so if you look at our set of numbers at the end of FY26, you will see that our top clients will still grow at a very high rate. And some of the larger managed services deal constructs that I was talking about are also constructs with some of the large clients. Right. So the question that keeps coming, what is the headroom to grow? We continue to show year on year that our top clients continue to grow at the higher rate. Which is one reason why our concentration also doesn’t come down as rapidly as everybody would like to see it.
But we are very confident that there is still enough room to grow in our top accounts.
Abhishek Kayan — Deputy Chief Financial Officer
Apologies, I think I misfreezed that question over there. What I intended to ask was on.
Unidentified Participant
The lines of what percentage do the larger clients do outsourcing is, how would.
Abhishek Kayan — Deputy Chief Financial Officer
I say this, better outsourcing penetration in the larger clients. Could you put a percentage to that?
Unidentified Participant
Yeah, I would. Roughly. I mean, I mean it’s a very difficult number. But look, the Everest report in our RSP decks at the industry penetration is in the 20s. So we would think that the larger clients would be closer to 50 to 60%. Right. But there are still spaces there where we think we can, we can get more work and we continue to explore those areas. But yeah, I mean if you were to ask me to put a number, I would probably think 50, 60%.
Abhishek Kayan — Deputy Chief Financial Officer
Thanks for taking the question.
Unidentified Participant
All the very best. Thank you. Thank you.
operator
We take the next question from the line of Nandan from GM Financial. Nandan, your line has been unmuted.
Abhishek Kayan — Deputy Chief Financial Officer
Hi, thank you for taking my question and great set of numbers. So my question is on the net new ACV number, this has seen a slight drop this quarter from the previous quarter. So is this due to some sort of productivity passback that we are seeing some near term bookings go down a little bit and do we expect, you know, lumpiness in our bookings because of the large managed services contracts that we’re talking about? And what, what, how should we look at the net new ACV number going forward? Yeah, thanks.
Unidentified Participant
Good, good, good question. Right, so, so yes, depending on, on some of those contract wins, there will be some lumpiness to our acv. To your question. The ACB win numbers have got nothing to do with giving efficiencies back. Right. Because these are deal wins that have just happened during the quarter. And so the execution on those deals is, would have just started or in some cases may not even have started in the same quarter. Right. So that’s got no relation to that. The reason there was a marginal dip, obviously the AEP season is a season where clients are very busy with their new enrollments.
So the discussions on a lot of opportunities don’t proceed as fast as it proceeds in the other quarters. So, so we are confident that that number will pick up. But your broader question, yes, there will be some lumpiness depending on, on which quarters we’ve been what size of deals. But we, we hope to see these numbers go up even otherwise gradually inch up over the coming quarters.
Abhishek Kayan — Deputy Chief Financial Officer
Yeah.
Unidentified Participant
Okay.
Abhishek Kayan — Deputy Chief Financial Officer
My second question is on the medium term outlook. So we have maintained that we’ll do low double digits. So in the context of let’s say the productivity that we’re giving back to clients, cost pressures and also the outcome based models that we’re looking at, do we see any sort of risk to those that medium term outlook?
Unidentified Participant
Not really. Right. The cost pressures, like I said, cost pressure is only going to translate to clients asking for more commitments on efficiency improvements from our side. So that’s more of a question on how much it’s going to impact our margins and how do we manage it with all delivers that I just spoke about the cannibalization because of some of these efficiencies, that’s part and parcel of our business. And I’ve answered this question in the past. Even today, I would say about 150, 200 basis points of cannibalization happens. And cannibalization happens in multiple ways. One of the cannibalization that mostly we talk about is technology based cannibalization.
But in our business there’s also cannibalization when work moves from one geography to another geography. Right. So for the same volume of work, if I’m delivering it in the US and tomorrow, the client wants me to deliver from a different geography, there is a cannibalization in revenue. So that typically plays out during the life cycle of an sow or with a client relationship when they’re first comfortable and they want us to do work onshore versus later, they want us to move the same work offshore. But all of this put together, the level of cannibalization is only likely to increase.
So that’s a statement that we’ve made in the past also. But our low to mid teen growth that we’re talking about or the low teen growth that we’re talking about is obviously net of all of these cannibalizations. And yes, we, we need to work harder for the, for the same level of growth, that’s for sure.
Abhishek Kayan — Deputy Chief Financial Officer
Yeah. Just, just a clarification to this. So, so are we expecting this, okay, this, this, this medium term outlook we have given for the organic, if I’m not wrong. So for the inorganic portion as well, do we expect the same level of growth or are we higher?
Unidentified Participant
Lower? Yeah. Broadband was acquired in January. Right. All of this becomes organic from next year onwards.
Abhishek Kayan — Deputy Chief Financial Officer
Understood. Yeah.
Unidentified Participant
Thank you.
Abhishek Kayan — Deputy Chief Financial Officer
Very helpful. Thank you.
operator
We take the next question From Arvind. Arora. Arvind, your line has been unmuted.
Abhishek Kayan — Deputy Chief Financial Officer
Am I audible?
operator
Yes, please go ahead.
Abhishek Kayan — Deputy Chief Financial Officer
Okay, so sir, how much we have spent for automation or innovation kind of things for the current year and what is our plan? What is we are budgeting for next year?
Unidentified Participant
Look, we don’t give out specific numbers, right? But broadly we have a large tech and transformation team. We were just looking at it. We have over 400 heads in our tech and transformation team. While they may do some direct billing to clients on specific technology or transformation work, a bulk of what they do is building some of these Genai use cases. The bulk of what they do is the transformation that helps in generating those tech based efficiencies that we pass on to the clients. We are continuing to invest in that capability.
Abhishek Kayan — Deputy Chief Financial Officer
Any person like roundup, round of numbers, like percentage of revenue that we are intend to spend. Because this is the things with which can save us, correct?
Unidentified Participant
Yeah, I mean I, I don’t know if I don’t have a number off the top of my head but Abhishek, we can come back to you.
Abhishek Kayan — Deputy Chief Financial Officer
Okay, understood.
Abhishek Kayan — Deputy Chief Financial Officer
And sir, since you mentioned about JNI AI so how this JNI theme is panning out and are we also getting any farmer farming opportunities due to this or are we also expecting any increase in mark margin going forward or like due to this gen AI or automation client is also coming and asking organ share or something like that is happening. Like how these themes are like panning out if you can throw some light on.
Unidentified Participant
I mean I’ve been saying the same thing over the last 45 minutes, right? The outcome based constructs, the managed service constructs, there is an expectation of higher cost takeouts because of higher efficiencies and a lot of times those efficiencies are delivered through Genai and other transformational initiatives. So obviously that’s what is the expectation from the client and that’s one of the growth levers that we spoke about. To answer your question, yes, those are all things that help us position ourselves as someone who can help clients take costs out.
Abhishek Kayan — Deputy Chief Financial Officer
So then sir, protection for us going forward from margin perspective would be like as you mentioned, delivery on time and delivery with quality. Correct. And that part can be done by automation or improving the learning curves, something like that. Is my understanding correct or.
Unidentified Participant
Yeah. So what’s your question?
Abhishek Kayan — Deputy Chief Financial Officer
No, I got, got your answer.
Unidentified Participant
Thank you. Okay, thank you, thank you.
operator
Thank you. That was the last question for the day. We thank the members of the management for today’s call and on behalf of Sagility limited. This concludes the webinar for the day. You may now log off the event. Thank you.
Unidentified Participant
Thank you, everyone.