According to the latest financial results, Capillary Technologies reported FY26 revenue of ₹734.6 crore ($88.5 million), representing a robust 38% year-on-year growth. The company achieved EBITDA of ₹106.6 crore with an adjusted EBITDA margin of 14.6%, demonstrating strong operational leverage. The net revenue retention reached 110% and customer retention stood at 80%, indicating strong customer stickiness and successful AI-driven campaign automation. The company has targeted the SaaS 'Rule of 40' benchmark and is pursuing outcome-based pricing models that align vendor incentives with customer outcomes. The acquisitions of Kognitiv (2025) and SessionM (2026) are expected to deliver 40-45% contribution margins, as reported by multiple industry sources.
According to the latest financial results, Capillary Technologies reported a net loss of ₹9.6 crore in Q1 FY27, marking a significant deterioration from the net profit of ₹74.5 lakh in the corresponding quarter of the previous financial year. The company had posted a profit of ₹43.4 crore in the preceding March quarter. However, the exceptional loss of ₹33.4 crore during the quarter has masked the underlying operational performance. When adjusted for exceptional and one-off items, the company's normalized profit stood at ₹25.4 crore during the quarter, representing a substantial 332% year-on-year growth. The consolidated PBT reached ₹25 crore in Q1 FY27, reflecting a strong sequential growth of approximately 42.86% from ₹17.5 crore in Q4 FY26. As per Simply Wall St analysis, the company's earnings per share (EPS) stands at ₹6.59 with current share price at ₹534.95, showing stable performance despite recent challenges.
According to the latest financial results, Capillary Technologies reported a consolidated Profit Before Tax (PBT) of ₹25 crore in Q1 FY27, representing a strong sequential growth of approximately 42.86% from ₹17.5 crore in Q4 FY26. This sequential improvement reflects operational leverage and scaling of SaaS subscriptions, demonstrating the fundamental viability of the company's core business model. The full-year FY26 consolidated net profit stood at ₹52.39 crore, showing a strong turnaround from ₹13.28 crore in FY25. The company has maintained a debt-free balance sheet post its IPO, with substantial cash reserves of approximately ₹483 crore as of March 31, 2026, which acts as a buffer against near-term operational challenges. The consolidated revenue surged 43% to ₹2,566.44 crore compared to the previous year, driven by the integration of SessionM.
According to the latest financial results, Capillary Technologies reported operating revenue of ₹256.6 crore in Q1 FY27, marking a strong 42% year-on-year growth and 34% quarter-on-quarter growth. Including other income of ₹5.7 crore, total income for the quarter stood at ₹262.4 crore. The company's total expenses stood at ₹216.4 crore during the quarter. The consolidated revenue surged 43% to ₹2,566.44 crore compared to the previous year, driven by the integration of SessionM. The operating profit margin (OPM) improved to 15.70% in Q1 FY27 from 9.91% in the previous year quarter, while PBDT (Profit Before Depreciation and Tax) surged 151% to ₹44.84 crore compared to ₹17.83 crore in the corresponding quarter last year. By securing high-value multi-year contracts—such as the $20 million deal with a Fortune 50 US retailer—the company is building a highly predictable recurring revenue stream.
The company has initiated a voluntary forensic audit by KPMG following a cyber heist that siphoned €3 million from an overseas subsidiary on July 6, 2026. Management has ordered the independent forensic audit to focus on tightening internal financial controls and transaction authorization protocols across newly acquired step-down subsidiaries. The consolidated net loss of ₹9.55 crore in Q1 FY27 was primarily due to this exceptional cyber fraud expense recorded at the group level. However, the consolidated PBT surge to ₹25 crore demonstrates that the core business operations remain highly profitable despite the fraud incident. The deepfake-led cyber fraud highlights the growing need for robust security frameworks within multi-geography corporate structures, particularly as companies scale through cross-border acquisitions. The current share price of ₹534.95 reflects market confidence in the company's fundamental business model despite the recent fraud incident.
The company has accepted the resignation of Sunil M Jain, Head of Corporate Development, effective July 31, 2026. Additionally, Capillary Technologies allotted 1,16,748 equity shares under its ESOP scheme on July 23, 2026. The company has utilized ₹1,196.91 million of its ₹3,229.08 million IPO proceeds as of June 30, 2026, with the primary utilization for funding inorganic growth through acquisitions, where ₹850.13 million was deployed. An additional ₹346.78 million was used for cloud infrastructure costs, with no funds yet allocated to research and development or computer system purchases. The remaining unutilized balance of ₹2,032.17 million is invested in fixed deposits (₹1,986.90 million) and monitoring bank accounts. The company serves diverse industries including retail, healthcare, banking, financial services, insurance, telecommunications, consumer packaged goods, travel, automobile, hospitality, energy retail, apparel, departmental stores, CPG/FMCG, luxury and lifestyle, conglomerates, airline companies, and food and beverages industries.
The company's financial results were announced on August 4, 2026, with the quarter ending in June 2026. The Board of Directors approved the unaudited standalone and consolidated financial results during a meeting held on August 4, 2026. Statutory auditors Walker Chandiok & Co LLP conducted a limited review of the results in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The trading window for directors was closed from July 1, 2026, and will reopen 48 hours after the declaration of these results. The impressive earnings update demonstrates that vertical SaaS can achieve both high growth and meaningful profitability when AI is baked into the core product, as evidenced by the 110% net revenue retention indicating that AI-driven campaign automation is delivering tangible ROI. While the core operations remain highly profitable, investors will closely monitor the KPMG audit report's findings to assess if there are any lingering material gaps in internal controls or if any further provisions are required for unrecovered siphoned funds. The company has outlined ₹1,000–1,050 crore revenue guidance for FY27, demonstrating confidence in its growth trajectory despite the cyber fraud incident.
