SAGILITY LIMITED analyst Q&A

Thank you, Srini. Participants who wish to ask a question can kindly click the raise hand icon at the bottom centre of your screen. We shall wait for a moment for the question queue to assemble. The first question comes from the line of Abhishek Kumar from JM Financial. Your line has been unmuted. I request you to go ahead.

Yes. Hi, good evening and thanks for taking my question. Congratulations on a good organic growth despite all the uncertainties. Now my first question is on your outlook. We did 14% plus growth on an organic basis. You still reiterated low to mid -teens. Ou r business looks very predictable. You're tracking above the upper end of your low to mid -teens outlook. Just conservatism on your part, or you think there are few things that you need to win during the year to achieve or to maintain this 15% plus growth?

Abhishek, good question, right? So it's not I mean, is the 15% growth already in the bag now. But, we are reasonably confident that the low to mid-teens will happen, given the state of our pipeline and given what we know about the seasonality to our business, right? So yeah beyond that, obviously there could be positive surprises. The growth could be higher. There could be negative surprises. But broadly, sitting where we are, we are reasona bly confident of this range, which is the low to mid-teens. And with the BroadPath like we said, 20% plus is something that we are reasonably confident about.

So, second question is, on the risk slide that you have put out, very useful, especially couple on two, three of these risks, the mitigation that you have talked about is higher outsourcing. So two part question. One, on the rising Medicare rates, I think this has already started pinching some of the insurers. So in response to that, have you seen some discussions around higher outsourcing already? That's question number one. Question number two is in your top accounts, how has been the or, what is the current level of outsourcing compared to the overall market? Overall market for payer, we understand is maybe early 20s to mid-20s. But compared to that, what is the outsourcing penetration for your top accounts? Because essentially, that will determine how much more they can outsource. Thanks.

So Abhishek, these questions have been asked and answered in the past also, relative outsourcing, right? So broadly, the top national payers are the ones who outsourced much more than the broader market. So we've always told you in the past as well that the mid and the lower end of the market is underpenetrated from an outsourcing point of view. Beyond that, the industry numbers in the low 20s is what industry analysts talk about. Any other numbers that I give is highly, what should I say speculative in the sense. I don't have a firm basis to say, client is outsourcing percentages X or Y. But broadly, we think that the top national payers would have somewhere in the 40s in terms of their current outsourcing. The question is not, is I mean what is the limit? Because there's obviously, there are risk issues because of which clients still want to retain some part of the operations in-house. But like I've mentioned in the past, with cost pressures mounting, payers are more and more open to looking at ways to reduce cost. And it's not just the labour arbitrage that clients are looking at. Clients are also looking at a more holistic solution in terms of partners who can not only run these operations seamlessly, but people who can also bring transformation and reduce cost of operations beyond the labour arbitrage, right? So that's one reason why we are very bullish because in this current environment, the cost pressures are severe. So we spoke about Medicare Advantage, but even outside of that across health care, both payers and providers, there's enormous cost pressure. A nd so all of the clients are looking at ways to lower cost. And that is forcing them to relook at some of even the traditional work that they've outsourced where they've retained some part of it in house. Is there someone who can take the whole thing and run it more efficiently for them? So there are lots of newer models that clients are exploring. And so we are very bullish that given, like I said, not only, do we have a stellar o perational performance over the years, but all of the investments that we've made in transformation is positioning us well in being the right partner for not only running those operations, but also effectively taking costs out.

Sure. Maybe on Medicare cost already impacting or including discussions and on outsourcing? Any evidence?

Yeah, all the clients. Like I said, this is just not I mean, Medicare was a topic spoken about. And this Medicare utilisation, we've spoken last year also, right? The Medicare utilisation is not a new phenomenon in '25. Couple of our large clients were im pacted by it in '24. And that trends continues to play through in '25. And we've seen those clients giving us more and more work, right? So as you've seen in even in FY '25, our top three, top five, top 10 clients grew in double digits. And a lot of that growth is essentially playing out to the same theme that I just spoke about.

Thank you so much, and all the best.

Thank you.

Thank you. We take the next question from Manik Taneja of Axis Capital. Your line has been unmuted, Manik.

Thank you for the opportunity. And Ramesh, congratulations for the steady performance, and good to see some incremental disclosures. I actually wanted to just pick your brains with regards to the typical seasonality that we have in our business. Given som e of these industry specific trends that you spoke about, do you think this drives some impact to the seasonality patterns as customers take longer to decide on some parts of their portfolio? And you also mentioned that, that some of these pre ssures are driving some profitability pressures. Some of these changes are driving productivity pressures while you've raise your -- while you're confident about your adjusted EBITDA margin outlook for the year. Do you think over the medium term, this could pour some risk to our current margin profile?

Good. So, Manik, let me take your questions one by one. The first part, the seasonality, like we've spoken in the past, it's not driven by buying cycles, but it's more driven by the open enrolment season. So that's the season when people get the opportunity to switch plans or renew their plans. And so there is a renewed effort by all of our clients to attract newer clients and support incoming new members. So the volume of transaction goes up in that period. And so that cycle is unlikely to change. So with the acquisition of BroadPath like we've mentioned in the past, BroadPath is also into Medicare advantage sales. So their peak season is likely to be in the Q3 of our fiscal year, which is the October through December time frame. And then we have the other seasonality of Q4. So Q3 and Q4 being the seasonally high quarters for us will continue, even into the future. So I don't think, that is likely to change. On your second question, that's a good question. So the pricing pressures, like I've mentioned in the previous calls, the pricing pressures are increasing because, like you said, as the client's profitability pressure increases, they want us to do more for less. And so that's not something that is new to us that's been going on for some time. The reason we are confident that our that we can still sustain these margins is because, the way to generate efficiencies for our clients is just not by reducing our l abour price. So it's more of how do we bring some of the transformational capabilities to play and how do we generate efficiencies. And so like I've mentioned in the past, when you generate efficiencies through transformation, you always have an opportunity to retain a part of those efficiencies which can go a long way in retaining the margins.

Sure. That's helpful. And, Ramesh, if I can ask one more. With regards to client interest from delivery location standpoint, if you could just talk about how are you seeing the interest from between India and Philippines, from a low-cost standpoint over the course of last 12 months.

So broadly, this discussion on let's explore new geographies. That's not as -- we're not seeing it as much as before because now the focus is shifted more to how can you transform, how can you eliminate interactions, how can you eliminate transactions over all and how can you bring about those efficiencies. So but from a pure labour point of view, India and Philippines continue to be the lower cost geographies. The one change that we are seeing is, people are more interested in exploring India as a geography for even the engagement transactions, especially the voice-based transactions. Previously, as you know, all of that used to be done in the Philippines and cl ients who wanted this new assure, we used to do it out of Jamaica and Columbia. But now clients are interested in exploring India also. There are newer technologies, like Sanas and so on, which harmonises accent and things like that. And so India is likely to benefit from some of those technologies. So but overall, I would still say India and Philippines will continue to be the geographies where we see most of the work moving when it comes to offshore locations.

Sure. Thank you. Appreciate the responses. I'll get back into the queue.

Thank you, Manik. We take the next question from Rishi Jhunjhunwala from IIFL Capital. Your line has been unmuted, Rishi.

Yes. Thanks for the opportunity. So while our peer growth has been fairly decent, what we have also seen is a pretty strong growth on the provider side, which has been growing at 35% plus year -on-year. Can you explain some of the drivers of that and what is the medium term strategy to expand this part of the business?

Yeah. So Rishi, one thing, I want to call out as, I mean, you're broadly right. But the revenue split between players and providers, also will vary by quarters because, for example, in the seasonally high quarters of Q3 and Q4, the seasonality is mainly o n the payer business. So the proportion of payer revenues will be higher than providers in those quarters. Whereas it'll be the other way. I mean, the proportions will be different in Q1 and Q2. But broadly, on an annual basis, you're right. Our provider business has been growing a little faster than the payer business. I wouldn't put that to any specific reason. One, like I've said in the past, it's a slightly it's a much smaller base to grow from. And two, we have some very strong relationships even on the provider side, right? So unlike many other competitors who work with smaller provider clients. We have some really sizable provider clients who continue to grow with us. We are also actively lo oking at expanding our portfolio of services, but I can't say that that has started to generate higher growth in the provider yet. But, we are hoping that we can continue this momentum on provider and even try and see if we can accelerate by expanding our service portfolio.

Got it. And second question is, in the past, you have said that look at our growth on a 1H over 1H and 2H over 2H basis rather than quarterly Y -o-Y. Of course, Q-o-Q, there is clear seasonality, but even, on a Y-o-Y basis at times, 1Q, 2Q could have those aberrations. Last two years, we had seen 1Q having an extended decline versus what you've delivered this year. It could probably be a function of you actually doing better or accelerated growth. But do we expect that to spill over in 2Q in terms of relatively lower growth? So, again, on a 1H basis, how do we look at growth there?

Look, it's a tough thing at this point to say exactly where Q1 will be with respect to -- Q2 will be with respect to Q1. But to your point, yes, we ideally would want people to look at H1 versus H1 year -on-year. But if you were to take our H1 in FY '26 over H1 of FY '25, I still, think we will fall in the low-to-mid teens, kind of a number. So there is momentum starting the year. Like I said, the pipeline both from new clients and existing client continues to be healthy. I don't see, why, th ere should be a drop in Q2. But broadly, if you look at H1 versus H1, we will still be in that broad low-to-mid teens from an organic point of view.

Okay. Thank you so much. All the best.

Thanks, Rishi.

Thank you, Rishi. We take the next question from the line of Ruchi Mukhija from ICICI Securities. Your line has been unmuted, Ruchi.

Thank you for the opportunity, and congratulations, Ramesh, on the steady performance. In the deal wins, you announced about GCC win. Could you talk more about how this came to us, and do you see more such deals in the market? And if you could also talk about the scope and the tenure of this deal that we have bagged?

Sure, Ruchi. It is an existing client of ours, right? So, while we are setting up, like I said, while we are helping them set up a GCC, it isn't to move any of the work that we currently do for them. So these are work with clients that they have, who have restrictions in terms of giving it to third parties. And so they want to take the advantage of lower cost geographies in delivering some of the work that they are currently doing onshore. So the deal construct is a little fluid. They have a right to, like I said, it's a build operate transfer model. They have a right to take it back over a period of time. It could be, anywhere between two to four years. So we are helping them in the whole process. We're helping them set up their centres. We're helping them hire. We're helping them train. We're helping them run the business before handing it over back to them. But then, the size, the maximum scale it will reach before they move it in -house and the time frame at which they'll move it in-house, that's a little fluid contractually. They could do it, like I said, anywhere between two to four years.

Thank you. Appreciate that. All the best.

Thanks. Thanks, Ruchi.

Thank you, Ruchi. We take the next question from the line of Bhavik Mehta from JPMorgan. Your line has been unmuted, Bhavik. Bhavik, you may go ahead.

Hey, thank you. Just one question. Over the last three months or so, what's happening with the market both of our funding perspective from macro perspective. Have you seen any change in pace of deal conversions or revenue ramp up?

Bhavik if I understood your question, you're asking the deal flow, have we seen any change, right? So, in fact, like I said, because of the pressures on margins, people are more keen to look at ways to reduce cost. And so we don't see any negative impact on deal cycles or deal flows. Obviously, the core operational deals being co mplex, they typically take three to six months from start to finish. But that's been the case even in the past. But, otherwise, we're not seeing any delays or any disruption to the deal cycles.

And also in terms of conversion of deals to revenues, is that pace also broadly unchanged?

Sorry? I didn't get that.

The conversion from deals to revenues, the revenue ramp up of the deals, what you have called is that…

Yeah, that also remains unchanged. Yeah. I mean, most of our deals have a have a ramp up cycle because, as I've mentioned in the past, we don't keep a bench. So we have to hire and staff up for the new deals. And so that takes, a while to ramp up to full capacity. So there's no change to those timelines.

Okay. Thank you.

Thank you. We take the next question from the line of Chirag Kachhadiya from Ashika Stock Broking. Your line has been unmuted. Chirag, you may go ahead.

So, Ramesh, I have a question on the strategy part, as somewhere the intent of U.S. government is to look on the outsourcing and so in this environment, how do we -- the strategy in our way to remain strong player in the value chain in the U.S. market? And also, the conversation with for your top client, this is still what like, what will the situation one year or two year down the line? We need more consolidation amongst our peer group, or are we going to remain resilient and we'll gain more market share from the competitors?

I'm not sure I understood you completely, but let me try to answer because the consolidation are you talking about consolidation of vendors? Are you talking about consolidation of in the peer market?

Yes, I'm talking about consolidation of vendors? Yeah.

Vendors. Yeah. The consolidation of vendors is happening. So I might have spoken about this in the past also. Especially with some of our larger clients, when they realise that they have a long tail in the vendor list, they want to consolidate into a few vendors. That doesn't mean, like I've said, big national payers are not going to work with just one vendor. They'll definitely have three or four vendors across their different areas. For every major process, they are most likely to have at least a couple. But having said that, sometimes they have many more than a few. So and so, consolidation of work from the long tail, into these chosen few vendors is something that, most of the large clients are looking at. And we've gained wallet share on that basis even in the last few years. In terms of your other question, in terms of the overall market environment like I said. Health care cost is a big concern and that continues to remain a big concern. So overall health care costs are growing. The pressure on our clients is continuing to increase. Margins are highly strained. Utilisation with an aging population, utilisation rates are only likely to go up. So, essentially, the cost pressures are not going to go away. Obviously, they're likely to be higher in some quarters, some years, than o ther years for our clients. But the overall trend in terms of increasing cost pressures, that is unlikely to go away. And so ability to not only deliver lower cost, but do similar or exceptional service at lower cost and using all of the transformation capabilities is going to be a very significant task in the future.

Yeah. In continue to this pricing and all, in future, let's say we command a relatively high market share in coming years. So at that time, will we have a pricing power because ultimately it's an outsourcing service. So we think that, if the scope of price increase will prevail in coming years.

Like I said, I don't think, at least for the national payers, it is not going to be, that they're going to have one vendor who can start to call the shots. So there'll always be multiple vendors. While, I wouldn't say, as service providers, we'll have the leverage to increase prices. But what I can say is, the more transformation we can do, the more we can help our clients take out cost. We can also start to see some upside, in terms of retaining Manik's questions like I mentioned, retaining some part of th ose efficiencies for ourselves. But the ask at this point is, how can you reduce my cost? Not working with vendors who want to increase their prices.

And one final question on headcount. So three, four years down the line, let's say, we double our revenues. So headcount will remain in the same range or slightly higher than what it should be?

So with the transformational work, the growth will start to become non-linear at some point. So but broadly, it'll -- I mean, will headcount increase if my revenues increase? Will it increase at the same proportion? Unlikely. Because a lot of the deals where we are signing with clients today, not too many of them are on a pure FTE model. Even on a transaction model, if I can deliver those transactions with fewer humans, the clients want a portion of those savings, but the clients are not con cerned about how many people I have to deliver those transactions. So as we start to increase the level of transformation in the work that we do, the relationship between revenue and headcount will start to diminish. And so, it is slightly to become more non-linear as we go forward.

Thank you so much. All the very best.

Thank you.

Thank you. We will take the next question from Mohit Motwani from Tara Capital. Your line has been unmuted. Mohit?

Thanks for the opportunity. I had a question on BroadPath. You mentioned about, you are in the discussion to cross -sell proposals with BroadPath clients. And I think you mentioned that you have already cross -sold to one client. So just want to understand, are these new areas of work, which was not getting outsourced previously or, you are trying to replace some existing vendors which were there doing the work for them?

Yeah. So we've discussed this. So in the sense let me reiterate, right? BroadPath's client base is other than a couple of clients which are national payers, bulk of the clients are in the mid and the small market segment range, right? And like I've said in the past, the penetration of outsourcing in that bucket is very, very small. So most of the times when we are having these cross sell conversations with clients, we are typically not talking about replacing existing vendor. It's almost always work being done in-house, which we are trying to get them to outsource. So there is that initial hurdle that we need to cross in terms of do I really want to outsource or not? But like I keep saying, the cost pressures are increasing across the board, right? It's just not the national payers who are facing cost pressures. The cost pressures are even higher for the mid-market and the smaller clients. And so even though they may not have done that in the past, the propensity to start to listen to, some of these proposals has increased. And that's what makes us bullish that, some of these cross sell conversations will result in revenues in the future.

Sure. And your guidance of adjusted EBITDA margin at 24%. So, does it bake in any improvements in margins of BroadPath? I understand it's just been, I think three to four months few months since we closed the acquisition. But any operational initiative tha t you have already undertaken to optimise cost on the BroadPath side and any improvement that we should expect in the future quarters?

Yeah. So like I mentioned in the past, there are multiple initiatives at play. So on the core operations front, yes, while there might be some efficiency, the focus is more on how do I cross sell and how do I increase the revenue base. And if some of these cross sell BroadPath for the most part other than a very small component, which was done offshore, almost three quarters or more of that revenue came from onshore. If some of these cross sell are for delivery from a different offshore geographies, then by that very nature, the margins will improve. But, also what we've started doing is to look at the SG&A, so mostly on the G&A side, and we had started to see what kind of synergies we can get in the G&A costs. So vendor contracts, personnel, we've started to look at all of those. And so optimising the G&A spend will also give a boost to the EBITDA of BroadPath. So broadly, we are expecting, like I guided in the past, we are expecting BroadPath's EBITDA margin to improve from high -single -- low-double digits to mid-double digits over the next couple of years.

Thank you so much for these answers and the best for future endeavours.

Thank you.

Thank you, Mohit. We will take the next question from the line of Fawaaz Sheriff from White Whale Capital. Your line has been unmuted.

Hi, thank you for taking my question. I wanted to ask how is the revenues recognised in your business? Is it contract based or time based? And if so, can you give me a split as to how it's been recognised this quarter?

Sorry. We may not have spoken with you in the past, but our business, we do core operations work for clients. So this is not a contract or a project. It is regular operations. It's a recurring revenue model for us. So all of the revenue is recognised based on the work that is delivered during the month.

Okay. And so it's 100% is towards transactional, if I'm right, if that's the way it is.

Yes.

Okay. Got it. Thank you.

Okay, 100%, almost 100%. So we might do some time and material based work, especially on the transformation side if the client is separately paying us for some of those transformational initiatives, we might build them on a project basis. But that given the overall re venue of Sagility, I would say that's more like a small single-digit number.

So on a transactional basis, so it's outcome based if I'm not wrong. So if the hospital or the vendor does well, we do well. Is my understanding right over there?

No, not all of our revenues are outcome based. Most of our revenues are effort based, right? So even if it's a transaction based billing, it is the number of transactions that I process. So that's the predominant way. There are some outcome based billing models but not, when you talk of outcome not that if my client overall does well I do well, right? So it's outcome on the specific process. For example, if I'm working for a provider, trying to collect age receivables, I'll get paid based on the cash that I collect for my client, right? So it's very specific to the outcome of that process. Similarly, if I'm doing payment integrity work, I get paid based on the recoveries that I make on the claims that are paid. So again, it's linked to the outcome of that specific process.

All right. Thank you for answers.

Thank you. We'll take the next question from Harshit Sachdeva from Columbus Capital. Your line has been unmuted, Harshit.

Hi, thank you. Great set of numbers. Just wanted to get clarity on any margin levers and client expansion. What does the outlook look for the rest of the year and deal pipelines? And on margins, especially, how do you look to improve margins and any levers that you can pull? You might have talked about it in the past. So thank you.

Yeah. So Harshit, I think like, we guided. So we had guided a 23% to 24% EBITDA and we're saying we're likely to do slightly better than that 24% plus EBITDA numbers, right? In our kind of business, the margin levers are essentially the efficiencies that we generate. Efficiencies can be through technology, efficiencies can be through, operational efficiencies, reducing redundancies, better manpower utilisation. All of those are levers for us. And all of that, in a way that we have to generate consistently on a year-on-year basis because, most of the geographies where we operate, there is a cost inflation. And our contracts are longer term contracts where there is no price inflation. So given that, it's a part of our system to generate efficiencies on a year-on-year basis. And so those levers are pretty much the same except that the technology lever is essentially now opened up to give us a much larger array of opportunities to improve efficiencies. And that's what we've been talking about, right? Clients realise that, clients want us to use those opportunities to reduce the cost for them. So rather than a COLA (Cost of Living Adjustment) , most of the contracts now ask us to reduce price on a go forward basis. And the lever to do that is basically using technology.

And the second part of my question was any, what does the client pipeline look like and more expansion during the year, I mean, onboarding new clients with strategies with that?

Well, like I said, pipeline looks healthy. Our historical growth has been a mix of growth from existing clients as well as new logos. In the given year, most of the growth will come from existing logos because new logos, like I said, one, the deal cycles three to six months and two, the ramp up times that required. So any new wins that I generate in a year is unlikely to give me a large revenue in the same year. And so most of this revenue will get pushed out to the subsequent year. So any growth that you see in a given year is basically the logos that I have onboarded the previous year and the continued growth that I see from my existing clients. And like I mentioned in the opening statement, we won new deals or additional work from 18 of our 77 clients. And that's been the historical trend. So we'll continue to pursue a number of opportunities with our existing clients. And that is the healthy pipeline that gives us the confidence to say that, we will still continue to deliver low to mid-teens for the full year.

Thank you so much. Thank you.

Thank you.

Thank you. We'll take the next question from the line of Seema Nayak from ICICI Securities. Your line has been unmuted, Seema. Seema, you may go ahead. Seema?

Yeah. Thanks for taking my question. My question is regarding intangible asset amortisation. It is the highest in last four quarters. So is it led by BroadPath, and how do we see that going forward? And my second question is regarding provider segment growth. Th is segment has been growing 35% plus for the past three quarters. So are we pivoting more towards provider led growth? Yeah. Those are my questions.

Srini, you want to take that?

Yeah. On the intangibles amortisation, Seema, it has always been, we had created intangibles when the business had got carved out. So it had two components. So it's not probably the highest. In FY '24, we had the highest number where one of the intangibles had got completed. So what you see now is the intangibles on amortisation, with respect to the business that got carved out plus the new businesses that we had acquired and where we had created intangibles. We have shown the split of those in the forward -looking slides as well. And the rest is just an exchange rate adjustment when we convert , because the intangibles that got created in The United States is for the business that was for towards customer relationships. It was a 16 year deal that ₹140 crores of number that you see on the forward -looking table is just adjusted for the exchange. So otherwise, there are no yoyos to the intangibles like you see. So if you still have any questions, you can connect wit h me separately. I can explain that to you.

On the provider, Seema, we discussed, right? So provider is only 10% of our overall revenues. So the growth numbers on that is also a result of the smaller base that we have, right? Are we aggressively looking to grow the provider business? Yes. We are aggressively looking to grow the provider business. Like I've mentioned, our broad provider footprint is with large providers, not just health systems, but also ancillary providers. But broadly, what we deliver to them is, the extended revenue cycle operations as a portfolio. But what we are also trying to see is, are there other capabilities that we have on the payer side that can be leveraged from the provider side? So our attempt is to try and grow our portfolio of services on the provider side, which will if we do successfully, we'll also further accelerate the growth on the provider side. But today to your question, the growth is higher because of the smaller base and because of the fact, like I said, just like on the payer side, we have some very large relationships on the provider side, which continue to grow for us.

Thanks and all the best.

Thank you.

Thank you. We will take the next question from the line of Raj Vyas of TM Investment Technologies. Your line has been unmuted, Raj.

Congratulation on a good set of numbers. My questions is basically, a general type. So, with the anticipated increase of outsourcing opportunities, what are the major operational changes as we as a company are addressing currently? And looking at the curre nt macroeconomic changes and with respect to inflations and other changes as well. So are we looking on with the newer geographies and verticals, that should typically help expand the market for Sagility in the near term?

Okay. So let me try and answer the question on the operational front. Yes, so today, a lot of, like I said, lot of effort goes into transformation of these operations, using all of the technologies available including AI, right? So like some of the examples that I gave in terms of nurse, appeals assistant, so on. There is always a human in the loop, but AI is doing a lot of the work that previously humans used to do, right? So it means a different set of training. It means a different set of, working for our associates, which is something that we are rewiring and training the whole organisation. And secondly, like I said, we're also introducing AI in some of our internal oper ations. I mean, just as an example, I said we hire 100s of people every month. We train people for six to eight weeks. And typically, even today, it's either an instructor led training or if it is even self-training, it is more linear. So everybody goes through the same modules. What we are also trying to attempt with Agentic AI and so on is how do I personalise this training based on the capabilities of each of the individuals that we hire. So the training doesn't have to be a cookie cu t for all of the people that we hire. How do we also tailor the kind of people that we hire for a specific client and for a specific process? Ability, all of the tools available today, Agentic AI and so on gives us that opportunity to personalise to a high degree, right? So that's going to change the way we hire, we train, and we deploy people into operations. So to your question on operationally, how we are adapting to the new environment, a lot of those changes are in play as we speak. To your broader question on macro and markets, I've spoken about this in the past. So we today, in fact our performance stands out compared to a large part of the market is because of our differentiated positioning in health care. So we like the vertical where we operate. We like the space we are in. And so we're going to continue to pla y in the health care vertical. In the health care, the work that we do for payers and providers is there more work that we can do that, than we currently do. I already spoke to you about providers. We're constantly looking at expanding our service portfolio, and so that's something that we'll attempt. Within the larger health care ecosystem, are there other entities, that we can service? That is also something that we are keen to explore. While payers and providers is 100% of our revenues today, can we expand that to a different segment within health care is also something that we look at. But broadly, where we'll operate at least for the foreseeable future will be in the larger health care space and not in any other vertical.

Last question from my side. The slide, in the starting highlighted that there is no tangible impact from the tariff thing. But are there any proactive risk assessment, we are looking or so that we try to mitigate the risk or in case tariff impacts, like tariff impacts, in the future?

So I don't know how to answer the question. So I'm saying there's no direct impact. So we've done our analysis, and we don't see tariffs impacting us. Tariffs on the way, the tariffs are structured today and the goods on which tariffs are imposed. We don't see it impacting us. If, as situation changes and if the rules of the game change, we will continue to assess and see how it impacts us and we will let you know in the subsequent calls.

Okay. Understood. Thank you for answering my questions. Thank you.

Thank you. We will take the last question of the day from the line of Manik Taneja of Axis Capital. You've been unmuted, Manik.

Yeah. Hi, thank you once again for the follow -up opportunity. Ramesh, I just wanted to check with you on this adjusted EBITDA margin outlook that you have provided. Earlier, our adjusted EBITDA margin was inclusive of other income. In this quarter's presentation, you basically excluded the other income out of it. So just wanted to wanted to confirm the outlook of 24% plus is X of other income with the way we are reporting now.

Yes. That is correct. But we started, excluding other income from the last quarter also, right? Srini, just…

Correct, correct, Ramesh. This was a request from the investor community not to include. So that's the reason why we have shown all the quarterly, we have included a slide, showing the last nine quarters performance as well.

Sure. And if you could just also help us with the contribution of BroadPath in the current quarter, if you can call that out.

In terms of EBITDA.

So organic and inorganic numbers, Manik.

Sure. I understood that. Thank you.

Thank you. That was the last question for the day. Thank you. Members of the management on behalf of Sagility India Limited, that concludes our webinar for the day, and you may log off the event. Thank you, everyone.

Thank you, everyone.

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