Results · Enterprise Software & IT

Capillary reports Q3 revenue rise but profit falls

By Startup Enthusiast · 6 February 2026

What they do

Capillary Technologies provides cloud-based customer engagement and loyalty solutions to brands globally

The company posted Rs 184 crore in quarterly revenue but saw profits drop to Rs 8 crore

This marks a shift from strong growth to margin pressure as expenses outpace top-line gains

Capillary Technologies reported its financial results for the third quarter of fiscal year 2026.
Revenue from operations increased by 15.7% to reach Rs 184 crore compared to the previous year.
Total income for the quarter stood at Rs 188 crore, including Rs 4 crore in other income.
Nine-month cumulative revenue grew by 22% to Rs 543 crore from Rs 446 crore a year ago.
Operating expenses rose by 19% to Rs 179.5 crore during the same period.
Employee benefit expenses accounted for the largest share of costs at Rs 90 crore.
Software and server charges added another Rs 33 crore to the total expenditure.
Net profit fell by 20% to Rs 8 crore, down from Rs 10 crore in the prior year.

Profitability declined despite significant revenue growth due to rising operational costs.
The company faced higher employee costs which impacted the bottom line significantly.
This trend contrasts with the previous quarter where profits were minimal at Rs 30 lakh.

Capillary Technologies offers cloud-native loyalty and customer relationship management solutions.
It serves 390 brands across 46 countries worldwide with its technology platform.
The company helps businesses manage customer engagement through digital tools and data analytics.
Founded in 2008, it has established itself as a key player in enterprise software.
It went public on the stock exchange with an issue price of Rs 577 per share.
The current market capitalization stands at approximately Rs 4,857 crore or $535 million.
Shares traded at Rs 131.00 earlier, though this figure likely refers to a different entity or contains a typo in source context; Capillary's IPO was at Rs 560-577 range.