Strong quarter: revenue up 20.7% YoY and EBITDA/PAT up 24-28% YoY, though sequential profitability dipped on one-time acquisition costs and a sharp drop in forex gains. quarter Investor Presentation One-Pager? Jun 2026

Revenue

₹893.6 Cr

+20.7% YoY; +12.0% YoY in USD ($97mn)

EBITDA Margin

33.0%

+90bps YoY; -200bps QoQ; ex-ESOP margin 35.4%

PAT

₹193.7 Cr

+27.8% YoY; adjusted PAT ₹215.3 Cr, +28.0% YoY

Key Metric

Top-10 client revenue share 53.8%

Up from 43.4% YoY; Top-5 share rose to 42.1% from 31.7%

What Went Right

Revenue grew 20.7% YoY to ₹893.6 Cr, with USD growth of 12.0%, ahead of the US RCM market.
EBITDA grew 24.0% YoY to ₹294.9 Cr; EBITDA margin expanded 90bps YoY to 33.0%, or 35.4% excluding ESOP.
PAT grew 27.8% YoY to ₹193.7 Cr and adjusted PAT grew 28.0% YoY to ₹215.3 Cr.
Cash generation remained strong: OCF +20.5% YoY, FCF +26.9% YoY, and FCF yield 89.9% vs 84.5% last year.
Existing clients expanded materially: Advocate Health extended RCM/coding across its acute and ambulatory network; StrideCare extended RCM after an acquisition; new wins included a California health system and a national musculoskeletal leader.

What to Watch

Sequential profitability declined: EBITDA fell 1.8% QoQ and PAT fell 5.9% QoQ; EBITDA margin dropped 200bps QoQ and PAT margin dropped 230bps QoQ.
Forex gains collapsed from ₹35.2 Cr in Q4 FY26 to ₹1.2 Cr in Q1 FY27 — a ~₹34 Cr quarter-on-quarter swing that flattered YoY results.
One-time acquisition costs and ESOP costs hit expenses: other expenses rose 34.8% YoY and ESOP cost jumped 145.4% YoY.
ROE declined to 26.4% from 32.3% YoY and 31.3% QoQ, partly due to a larger equity base from Abridge revaluation, lower currency gains and one-off acquisition costs.
Client concentration intensified sharply: Top-10 client revenue share jumped 1,040bps YoY to 53.8%; Top-5 share rose to 42.1% from 31.7%.

Management Guidance

Medium-term financial outlook: FY30 EBITDA target of ₹3,000 Cr (INR 30,000mn) versus LTM Jun26 EBITDA of ₹1,148.5 Cr, implying roughly 30% CAGR; management committed to sustained EBITDA expansion without significant equity dilution.

Investor Lens

The core thesis remains intact: 20.7% YoY revenue growth, 33% EBITDA margin, 28% adjusted PAT growth and 5.76-year average top-10 client vintage show an entrenched RCM platform. However, reported profitability is clearly sensitive to non-operating swings: the ₹34 Cr forex swing and one-time acquisition costs caused QoQ EBITDA/PAT declines, so the 'clean' operating trend is less impressive than YoY headline numbers suggest. Concentration is the key risk — top-10 clients now contribute 53.8% of revenue, up from 43.4% a year ago, even as these relationships deepen. ROE deteriorating to 26.4% from 32.3% YoY needs monitoring, especially if Abridge-related equity continues to dilute returns. Next quarter, watch whether EBITDA margin can recover above 35% ex-ESOP without acquisition costs, and whether management gives more visibility on OCF after the ₹143 Cr upfront customer guarantee payment.

From investor presentation · AI-generated analysis · Not investment advice

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📈 STRONG Revenue up 20.8% YoY, PAT up 27.6%; margins steady at 32%

Revenue

Revenue grew 20.8% YoY to ₹894 crore and rose 4.2% sequentially. This indicates healthy demand and steady execution in the IT segment.

Profitability

Operating profit rose 21.8% YoY to ₹290 crore. PAT increased 27.6% YoY to ₹194 crore but fell 5.8% QoQ; EPS came in at ₹11.29 versus ₹8.83 a year ago.

Margins

Operating margin held flat YoY at 32%, but slipped from 34% in the March 2026 quarter. This suggests some quarterly cost or pricing pressure despite strong revenue growth.

Cash Flow

No cash flow data was provided in this quarterly update.

Balance Sheet

Debt-to-equity is low at 0.34, with ROCE at 36.9% and ROE at 40.3%. The balance sheet appears strong, though book value per share data is not available.

Key Risks

PAT declined 5.8% sequentially despite revenue growth, and OPM fell 200 bps from the prior quarter. The stock trades at a high PE of 41.73, leaving little room for earnings misses.

Outlook

Strong YoY growth and stable margins support continued earnings momentum. However, the recent QoQ margin dip should be watched for any further compression.

Generated by AI · Jun 2026 results · Not investment advice

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