SaaS company Capillary Technologies has published its financial results for Q4 FY26. The report shows that the company achieved a remarkable 26% year-on-year revenue growth during this quarter while profits increased more than fourfold to Rs 43 crore, bolstered by a one-time exceptional gain. The Bengaluru-headquartered firm’s operational revenue rose to Rs 191 crore for Q4 FY26, compared to Rs 152 crore in the same period last year, as per its financial statement obtained from NSE.
Founded in 2008 by Aneesh Reddy, Krishna Mehra, and Ajay Modani, Capillary Technologies provides cloud-native customer engagement, loyalty, and CRM solutions to over 390 brands in 46 countries. The company serves clients such as Tata Digital, Aditya Birla Fashion and Retail, and Abbott Laboratories.
During the quarter, Capillary Technologies generated Rs 171 crore from subscriptions, making up approximately 90% of its operational revenue, while installation and campaign services added Rs 20 crore. Additionally, Rs 6.7 crore was earned from non-operating sources, resulting in a total income of Rs 198 crore for the quarter.
For the fiscal year ending March 2026, the operational revenue increased 23% year-on-year to Rs 735 crore, although profits declined by 61% to Rs 5.2 crore during the same timeframe.
On the expenditure side, employee benefit expenses constituted 56% of the company’s total outgoings. This cost saw a 35% increase, reaching Rs 89.6 crore in Q4 FY26 from Rs 66.5 crore in the comparable quarter last year. Software and server charges stood at Rs 32.7 crore, while professional and consultancy fees were Rs 25.8 crore for the quarter. Overall, total expenses rose by 28% to Rs 181 crore during this period.
While Capillary Technologies noted a similar rise in both revenue and expenses, profits skyrocketed more than fourfold to Rs 43 crore in Q4 FY26. This surge was primarily aided by a one-time payment of Rs 24.96 crore from a seller due to a breach of customer retention agreements in a US acquisition transaction.
Earlier this February, the company sanctioned an investment of $20 million into its wholly owned international subsidiary for the acquisition of US-based loyalty and engagement platform Session M Inc.
As of 1:00 PM today, Capillary Technologies’ shares increased by 8%, reaching Rs 574.75, which has resulted in a market capitalization of Rs 4,568 crore (approximately $481 million).
