Sabre(US:SABR) The Economic Timesยท2025-10-27 13:41Core Insights - The company reported $514 million in new deals for the September quarter, marking the fifth consecutive quarter with total contract value (TCV) above $500 million [1][9] - Revenue grew by 4.5% sequentially to $462.1 million, significantly outperforming tier I peers [4][9] - The company has a strong outlook in key verticals such as banking, insurance, and travel, leading to raised earnings estimates by analysts [8][9] Financial Performance - The 12-month executable order book reached $1,635 million, the highest to date, indicating improved revenue visibility [1][9] - In rupee terms, revenue increased by 8.1% to Rs3,985.7 crore, while net profit rose by 18.4% to Rs375.8 crore [4][9] - Operating margin (EBIT margin) expanded by 260 basis points to 14% [4][9] Client Concentration - The concentration of revenue from the top 10 clients increased to 30.8% in the September quarter, up from 29.3% in the previous quarter [2][9] - This concentration has decreased significantly from over 40% seven years ago [2][9] Workforce and Attrition - The company expanded its headcount to 34,896 in the September quarter, up from 31,991 a year ago [6][9] - The attrition rate was stable at 11.4%, slightly higher than the previous quarter's 11.3% [6][9] Market Outlook - Analysts have raised the FY26 earnings per share estimate by 2.3% and FY27 estimate by 5.2%, with a 12-month stock price target increase of 5% to Rs2,030 [7][9] - Elara Capital raised earnings estimates by 4-7% for FY26 and FY27, increasing the 12-month target price to Rs2,010 from Rs1,850 [8][9]