Capillary Technologies India Limited (CAPILLARY) share price

₹553.80 on NSE as of 2026-10-08. -4.24% on the day. 52-week range ₹448.95 to ₹732.15. Information Technology.

www.capillarytech.com

Capillary Technologies Q1 FY27: Revenue Up 43% to ₹257 Cr, a ₹33.4 Cr Fraud Loss in Czechia, and an 87x Multiple

At a glance

Capillary Technologies India Ltd sells the software that remembers which customer bought the coffee. Loyalty points, tier upgrades, and the nudge that says Gold is forty points away. The product is a ledger of shopping habits, running for more than 465 brands across 53 countries.

Revenue in the three months to June 2026 was ₹256.64 crore. That was 42.7 per cent above the same quarter a year earlier. Operating profit reached ₹40.30 crore, against ₹17.84 crore a year before. The bottom line was a net loss of ₹9.55 crore.

The company's own disclosure explains why those two lines point in different directions. Between 24 June and 2 July 2026, people impersonating the Group CEO and a lawyer from a global firm contacted the Czechia step-down subsidiary. A senior executive there was persuaded to wire money to third-party accounts in Hong Kong and Singapore. The sum was ₹33.4 crore, or 3.04 million euros. Capillary says it has provided for the full amount as an exceptional item, pending an insurance claim.

A company whose product is knowing exactly who the customer is lost three million euros to a caller claiming to be the boss.

Other income for the quarter was negative ₹27.68 crore. In the previous quarter the same line was positive ₹31.67 crore.

The board approved the results on 4 August. Capillary announced the acquisition of the CustomerGlu platform the same day.

Introduction

Capillary was incorporated in 2012 and works out of HSR Layout in Bengaluru. It listed on the BSE and the NSE on 21 November 2025, raising ₹877.50 crore. The fresh issue component of that offer was ₹345 crore. By 30 June 2026 the company had used ₹119.69 crore of the net proceeds. ₹34.68 crore went on cloud infrastructure and ₹85.01 crore towards inorganic growth and general corporate purposes. That leaves ₹203.22 crore unspent, held in fixed deposits and a monitoring account. The monitoring report filed on 4 August records no deviations.

The last eighteen months have been an acquisition programme. Kognitiv Solutions Inc of Canada closed on 1 May 2025 for 23.44 million Canadian dollars. SessionM Inc and SessionM Czech Republic s.r.o. were bought from Mastercard and closed on 1 May 2026. That deal was announced on 24 February 2026 at a base consideration of 20 million US dollars. SessionM had revenue of 50.5 million US dollars in the year to December 2025. The CustomerGlu platform and its intellectual property transferred from Marax AI, Inc. on 4 August 2026. Capillary has rebranded it as Experience+.

Earlier purchases include Persuade Group, which arrived in the year to March 2021. Brierley & Partners was also bought, and became Capillary Brierley Inc. The consolidated entity now runs twelve subsidiaries and step-down subsidiaries. They sit in Singapore, the United States, the United Kingdom and the United Arab Emirates. Further units are in China, Indonesia, Malaysia and Canada, with one more in the Czech Republic.

Recent filings cover the management bench. Sumit Kumar was appointed President for the Middle East, Africa and India, effective 2 April 2026. Ravi Jaswani, Head-Finance, resigned with effect from 5 June 2026. On 4 March 2026 the company announced a five-year contract with a Fortune 50 US retailer. It is worth over 20 million US dollars and covers Loyalty+ and aiRA. Forrester, a research firm, named Capillary a Leader in its Loyalty Platforms Wave for the final quarter of 2025.

Business model

Every retailer that tells a shopper they hold 2,340 points is running software that keeps score. Capillary is that software.

The stack has four named products. Loyalty+ runs the programmes themselves. Engage+ handles the messaging by text, email and push notification. Insights+ produces the analytics reports. Rewards+ connects to a global rewards network, so brands need not source their own toasters. Across all of it sits aiRA, an AI assistant. Management frames aiRA as a shift from a system of record to a system of intelligence, with dashboards queried in plain English.

Per the concall, the core Loyalty stack drives over 90 per cent of revenue. Engage accounts for about 5 per cent and Rewards for 5 to 7 per cent. More than 90 per cent of revenue comes from subscription contracts running three, five or seven years. Subscription revenue in the three months to June 2026 was ₹242.49 crore. That was 94.5 per cent of the total, against 89.4 per cent in the previous quarter. Management attributes the rise to the higher subscription mix in the acquired SessionM business.

Management puts the United States at around 60 per cent of revenue. Europe is about 15 per cent and Asia about 25 per cent. The client roster includes Tata Digital, ABFRL, Abbott and Puma India. Domino's Indonesia, Metro Brands and Vishal Mega Mart are also on it. Twenty-five Fortune 500 companies are customers. The platform holds 2.7 billion consumer profiles. That is more than the populations of China and India combined, so some are presumably one shopper with several email addresses.

Management's stated moat is boredom. The concall puts integration at an average of nine points per customer, which makes removal a project nobody wants to sponsor. The CEO describes acquisitions as a customer acquisition cost substitution story: buying contracted revenue rather than paying a sales team to win it. Acquired customers are then migrated onto Capillary's own platform. The company presentation says gross margins move from around 30 per cent to around 65 per cent on that migration. Product uptime in the quarter was 99.997 per cent.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Capillary Technologies India Limited.

Companies in the same industry as Capillary Technologies India Limited

Software Products

All listed companies