Capillary Technologies Reports Financial Results for Q1 FY27

SaaS firm Capillary Technologies has revealed its financial performance for the first quarter of FY27, showcasing a remarkable 42.6% increase in revenue compared to the previous year. Despite this impressive growth, the company encountered losses during the quarter due to a one-time charge of Rs 33.4 crore linked to a cyber-enabled banking fraud incident at its subsidiary in the Czech Republic.

The Bengaluru-based organisation’s operational revenue surged to Rs 256.6 crore in Q1 FY27, up from Rs 179.9 crore in the same quarter the previous year, as stated in the financial report released via BSE.

About Capillary Technologies

Founded in 2008 by Aneesh Reddy, Krishna Mehra, and Ajay Modani, Capillary Technologies provides cloud-native loyalty, customer relationship management (CRM), and customer engagement solutions to a diverse portfolio of over 465 brands across 53 countries. Notable clients include Tata Digital, Aditya Birla Fashion and Retail, and Abbott Laboratories.

Revenue Breakdown

During this quarter, the company generated Rs 242.4 crore from subscription services, making up 94.5% of its operational revenue, while installation and campaign services contributed an additional Rs 12.2 crore. Capillary Technologies also recorded Rs 5.7 crore as other income, leading to a total income of Rs 262.3 crore for Q1 FY27.

Quarterly Growth Comparison

In comparison to the previous quarter, the firm saw a 34% growth in operating revenue, which was Rs 191 crore in Q4 FY26.

Expenditure Analysis

Employee benefits represented the largest expense, rising by 40% year-on-year to reach Rs 119.8 crore, which accounted for over half of the total expenditure. Other major expenses included software and server charges at Rs 45 crore and professional consultancy fees at Rs 34 crore. Total expenses increased by 31.6%, amounting to Rs 237.5 crore during this quarter.

Impact of Exceptional Charge

Ultimately, the company faced losses this quarter due to the Rs 33.4 crore exceptional charge associated with the cyber-focused banking incident at its Czech subsidiary. However, its adjusted EBITDA saw significant improvement, more than doubling to Rs 44 crore.

Market Performance

As of 2:10 PM today, shares of Capillary Technologies had risen by over 15% to reach Rs 571, which brought its total market capitalisation to Rs 4,539 crore (approximately $477 million).