Capillary Technologies India Ltd (CAPILLARY)

Information Technology · IT - Software · NSE · Updated 2 September 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹493.55

🎯 Key Takeaways

Capillary Technologies is in a high-growth phase with emerging profitability pressures, marked by strong top-line expansion and increasing strategic investments in AI and international markets. The company has demonstrated robust revenue and EBITDA growth in FY2025-26, but recent quarterly performance shows volatility due to one-time financial events and cyber-related losses.
Revenue grew 34.1% QoQ to ₹257 in Q1FY27.
⚠️ 1) Cybersecurity vulnerabilities in international subsidiaries pose operational and reputational risks, as evidenced by the ₹333.86 crore fraud loss i

Market Cap

₹3,922

P/E Ratio

92.1

P/B Ratio

3.83

ROE

4.1%

ROCE

4.4%

Debt/Equity

0.04

Promoter

51.5%

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📖 The Story

Capillary Technologies is in a high-growth phase with emerging profitability pressures, marked by strong top-line expansion and increasing strategic investments in AI and international markets. The company has demonstrated robust revenue and EBITDA growth in FY2025-26, but recent quarterly performance shows volatility due to one-time financial events and cyber-related losses. Management is actively pursuing global expansion through acquisitions and R&D, signaling a shift from domestic scaling to international market penetration.

📰 What's Happening

In Q3 FY2026, the Board approved unaudited consolidated financial results showing revenue decline to ₹689.52 crores and profit before tax drop to ₹77.65 crores, primarily due to a ₹333.86 crore cyber-fraud loss in its Czech subsidiary and a ₹249.60 crore gain from a churn indemnity breach. Despite this, management approved the strategic acquisition of Kognitiv Solutions Inc. in Canada and the US to expand loyalty services, funded via IPO proceeds for cloud infrastructure and R&D. The AGM on August 28, 2026, will formalize FY2025-26 results, with CEO Aneesh Reddy highlighting 23% revenue growth to Rs 7,436 million and 43% EBITDA growth to Rs 1,069 million, driven by AI initiatives and market leadership.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue	179	184	191	257
Operating Profit	-0	6	12	20
OPM %	-0.3%	3.2%	6.2%	7.9%
Net Profit	0	8	43	-10
EPS	₹0.04	₹1.05	₹5.47	₹-1.20

Revenue grew from ₹179 crore in September 2025 to ₹257 crore in June 2026, reflecting strong sequential expansion, but profitability remains inconsistent — swinging from a ₹43 crore profit in March 2026 to a ₹10 crore loss in June 2026. This volatility is attributed to non-recurring items, including cyber-fraud losses and indemnity gains, which management acknowledges as one-time disruptions. The company is investing heavily in R&D and global infrastructure, aligning with its acquisition strategy to scale beyond India, though margins remain under pressure from these growth-oriented expenditures.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance in the latest filings beyond operational updates on AI initiatives and market leadership. However, strategic priorities are clear: expansion into North America via the acquisition of Kognitiv Solutions Inc., leveraging IPO proceeds for cloud and R&D investments. The focus remains on scaling international loyalty services, with no mention of profitability targets or margin improvement plans in the near term, suggesting continued reinvestment over near-term earnings stability.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	Mar 2025	Mar 2026	Mar 2026
Equity Capital	15	15	16
Reserves	554	582	1,008
Borrowings	106	100	45
Total Liabilities	839	712	1,300
Fixed Assets	9	163	460
Investments	0	35	136
Total Assets	839	712	1,300

The balance sheet shows a strong equity base of ₹16 crore with growing reserves of ₹1,008 crore as of March 2026, indicating healthy capitalization despite modest total assets of ₹1,300 crore. Borrowings remain low at ₹45 crore, suggesting minimal debt reliance. The company is not deleveraging but is instead using retained earnings and IPO proceeds to fund strategic acquisitions and infrastructure, reflecting a capital allocation strategy focused on growth rather than financial engineering.

💰 Cash Flow Statement (₹ Cr)

Item	Mar 2026
Operating	+150
Investing	-614
Financing	+271
Net Cash Flow	-194

👥 Shareholding Pattern

Category	Q3FY26	Q4FY26	Q1FY27
Promoters	52.3%	52.2%	51.5%
FII	3.9%	3.4%	3.3%
DII	17.8%	18.6%	19.4%
Public	5.0%	4.7%	4.8%
# Shareholders	20,521	16,620	16,688

Institutional investor interest is rising, with FII holdings increasing from 3.34% in Q1FY27 to 3.93% in Q3FY26, while DII holdings also grew from 17.75% to 19.38% over the same period, indicating accumulation by foreign and domestic institutional investors. Promoter holding remains stable above 51%, with no signs of dilution or selling pressure. The growing number of shareholders (16,688) and stable promoter stake suggest broadening retail and institutional participation without significant governance concerns.

⚖️ Peer Comparison — IT - Software

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
TCS	8.56 L Cr	17.2	63.2%	46.7%	0.00
INFY	4.68 L Cr	15.6	44.9%	32.7%	0.00
HCLTECH	3.67 L Cr	21.0	31.6%	23.2%	0.00
WIPRO	1.80 L Cr	14.4	18.1%	15.1%	0.19
TECHM	1.60 L Cr	28.2	24.8%	17.4%	0.00
LTM	1.37 L Cr	26.1	30.5%	21.6%	0.00
OFSS	1.06 L Cr	30.9	60.3%	43.6%	0.00
PERSISTENT	91,416	47.0	32.7%	24.5%	0.00
COFORGE	87,786	40.3	25.6%	20.7%	0.04
MPHASIS	47,828	25.0	22.3%	17.8%	0.17

🔗 Peer Stock Analyses

TCS INFY HCLTECH WIPRO TECHM

⚠️ Risk Factors

1) Cybersecurity vulnerabilities in international subsidiaries pose operational and reputational risks, as evidenced by the ₹333.86 crore fraud loss in the Czech unit. 2) Integration risks from the Kognitiv Solutions acquisition could strain financials if synergies are not realized. 3) Margin compression is emerging due to rising R&D and infrastructure costs outpacing revenue growth in certain quarters. 4) High P/E multiple of 92.2 reflects elevated valuation expectations that may be vulnerable to earnings volatility or delayed ROI from strategic initiatives.

📋 Recent Filings

🧠 Analyst's Read

Capillary Technologies is transitioning from a high-growth domestic player to an internationally scaling tech firm, supported by strong revenue momentum and institutional accumulation, but profitability remains volatile due to one-time events and strategic reinvestments. Investors should monitor the integration progress of Kognitiv Solutions and the recovery of international operations post-cyber incidents, as near-term earnings may continue to be uneven.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-02.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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