SaaS firm Capillary Technologies reported a strong performance in Q4 FY26, with revenue rising 26% year-on-year to ₹191 crore, while net profit surged over fourfold to ₹43 crore, aided by a one-time exceptional gain.
The company’s revenue from operations increased from ₹152 crore in Q4 FY25, driven largely by its subscription led business model. Subscription income contributed ₹171 crore, accounting for nearly 90% of total operating revenue, while installation and campaign services added ₹20 crore. Including ₹6.7 crore in non-operating income, total income for the quarter stood at ₹198 crore.
Founded in 2008 by Aneesh Reddy, Krishna Mehra, and Ajay Modani, Capillary Technologies provides cloud native loyalty, CRM, and customer engagement solutions to over 390 brands across 46 countries. Its client base includes Tata Digital, Aditya Birla Fashion and Retail, and Abbott Laboratories.
On the cost front, employee expenses remained the largest component, accounting for 56% of total expenditure and rising 35% to ₹89.6 crore. Software and server costs stood at ₹32.7 crore, while professional and consultancy expenses reached ₹25.8 crore. Overall, total expenses grew 28% to ₹181 crore in the quarter.
Despite rising costs, profitability saw a sharp uptick, largely due to a one-time compensation of ₹24.96 crore received following a breach of customer retention commitments in a US acquisition deal.
For the full fiscal year FY26, Capillary reported 23% growth in revenue to ₹735 crore, while annual profit declined 61% to ₹5.2 crore, indicating pressure on margins over the longer term.
Earlier this year, the company approved a $20 million investment in its overseas subsidiary to acquire US-based loyalty platform Session M Inc., signalling continued focus on global expansion.
Following the results, Capillary’s shares rose 8% to ₹574.75, taking its market capitalisation to approximately ₹4,568 crore ($481 million).
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