Results · Enterprise Software & IT

Capillary Technologies reports strong Q4 FY26 results with significant profit growth

What they do

Capillary Technologies provides cloud-based loyalty and customer relationship management solutions for large enterprises

The company reported a 341% year-on-year increase in fourth-quarter profit after tax to approximately ₹43.4 crore

Operating revenue grew by 25-26% to around ₹191 crore, driven by strong subscription revenue performance

Capillary Technologies posted ₹43.3-43.4 crore profit after tax for Q4 FY26.
This represents a 341% year-on-year increase from the previous year's profit of ₹9.8 crore.
Operating revenue reached ₹191.3 crore, marking a 25-26% growth compared to last year.
Subscription services contributed ₹171 crore, accounting for nearly 90% of total operating revenue.
Installation services generated ₹18.7 crore while campaign services brought in ₹1.8 crore.
Non-operating income added ₹6.7 crore to the financials for the quarter.
Total expenditure rose by 28% year-on-year to approximately ₹159.9 crore.
Employee benefits accounted for 56% of total expenditures at ₹89.6 crore.

Profit growth was significantly boosted by an exceptional gain from a past acquisition dispute.
The company received between ₹24.96 crore and ₹25 crore as compensation for a breach.
Net retention rate stood at 110%, indicating strong customer stickiness and expansion.
Organic net retention was particularly strong at 114% for the fiscal year.
The stock price jumped 4.5% to close at ₹566.25 following the announcement.

Capillary Technologies offers cloud-native loyalty and customer engagement platforms.
Solutions include CRM tools designed specifically for large enterprise clients.
The company serves over 390 brands across 46 countries globally.
Key clients include Tata Digital, Aditya Birla Fashion, and Abbott Laboratories.
Revenue is primarily driven by subscription-based software service models.
Additional revenue streams include installation and campaign management services.
The business model focuses on helping brands manage customer relationships effectively.
Technology infrastructure includes significant spending on software and server charges.
Professional consultancy fees amounted to ₹25.8 crore during the quarter.

The company approved a $20 million investment for overseas expansion in February 2026.
Funds are allocated to acquire US-based Session M Inc. through its wholly owned arm.