Capillary Technologies Reports Growth in Q2 FY27

Capillary Technologies, a leading SaaS firm, has disclosed a remarkable 51.4% year-on-year increase in its operating revenue for the second quarter of the current fiscal year (Q2 FY27). The Bengaluru-based company also highlighted a profit of Rs 22 crore during this quarter, a notable increase compared to a slight profit recorded in the same period last year.

Revenue and Performance Overview

According to financial reports sourced from the NSE, Capillary Technologies saw its revenue from operations rise to Rs 271 crore in Q2 FY27, up from Rs 179 crore in the corresponding quarter the previous year. Established in 2008 by Aneesh Reddy, Krishna Mehra, and Ajay Modani, the company provides cloud-based loyalty, CRM, and customer engagement solutions to over 465 brands across 53 countries. Notable clients include Tata Digital, Aditya Birla Fashion and Retail, and Abbott Laboratories.

Revenue Sources and Financial Breakdown

Capillary primarily generates its revenue through subscription services, which represented 95% of its operating revenue this quarter. The remaining revenue came from installation and campaign services. Additionally, Rs 6 crore in other income brought the total income to Rs 277 crore for Q2 FY27. Sequentially, the company’s operating revenue experienced a 5.5% growth from Rs 257 crore recorded in Q1 FY27.

Expenditure Analysis

Employee benefits emerged as the largest expense for the company, rising 57% year-on-year to Rs 134 crore. Other significant costs included software and server charges at Rs 42 crore and professional and consultancy fees totalling Rs 39 crore. Overall, Capillary Technologies’ total expenses surged by 44% to Rs 232 crore during this quarter.

Profit Insights and Historical Context

In terms of profitability, the firm reported a profit of Rs 22 crore for Q2 FY27, a significant increase from Rs 0.3 crore in the corresponding quarter the previous year. Previously, Capillary Technologies had recorded a loss of Rs 9.5 crore in Q1 FY27.

For context, Capillary Technologies previously announced a 42.6% year-on-year growth in operating revenue reaching Rs 256.6 crore in Q1 FY27, although its profitability was affected by an exceptional loss of Rs 33.4 crore related to a cyber-enabled banking fraud at its Czech Republic subsidiary.

Stake Changes and Market Performance

In a separate development, Capillary Technologies Pte Ltd, the promoter entity of the company, sold a 4.14% stake through a bulk deal on the BSE in August 2026. This transaction involved the sale of 32.92 lakh shares valued at Rs 171.5 crore. Prior to this deal, the promoter entity held a 48.92% stake in the firm.

As of 12:46 PM, shares of Capillary Technologies are trading at Rs 504 each, resulting in a market capitalisation of approximately Rs 4,023 crore.