Capillary Technologies India Ltd(CAPILLARY)

NSE: CAPILLARYBSE: 544614

₹ 571+4.17%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 4,545 crWebsite: www.capillarytech.comUpdated: 24 Oct 2026

About

Capillary Technologies is an enterprise SaaS company providing loyalty and customer engagement software to large retailers, QSR chains, airlines, and other consumer brands globally. It reported FY26 revenue of ₹734.6 Cr, growing at a 53% CAGR over four years, with ARR reaching ₹10,266 Mn in Q1 FY27 following the May 2026 acquisition of SessionM. Named a Leader in the Forrester Wave for Loyalty Technology Solutions Q4 2025, scoring highest among all vendors on both current offering and strategy.^[1][2][3][4]

Key operating metrics

ARR was ₹10,266 Mn in Q1 FY27, up 43% YoY, following the addition of SessionM's ~$32M ARR.^[2]
Organic NRR was 111% in TTM Q1 FY27 (116% excluding one large healthcare customer); blended NRR was 113%.^[2]
Organic NRR was 114% for full-year FY26; blended NRR was 110% for FY26.^[3]
TTM new ACV grew 75% YoY to ₹926 Mn in Q1 FY27, excluding a prior-year healthcare outlier.^[2]
Subscription revenue reached 94.5% of total revenue in Q1 FY27, up from 89.4% in Q4 FY26 and 89.2% in Q3 FY26.^[2][4]
Headcount was 761 in Q1 FY27, up from 687 at March 31, 2026 and 703 at December 31, 2025.^[2][3][4]

Revenue mix and subscription margins

Subscription revenue grew 50% YoY to ₹2,425 Mn in Q1 FY27; blended subscription gross margin was 66%, with organic subscription gross margin above 75%.^[2]
Subscription gross margin was 67% for FY26, up 1 percentage point from 66% in FY25.^[3]
FY26 full-year revenue was ₹7,346 Mn (+23% YoY), representing a 53% CAGR over four years.^[3]
Consolidated revenue grew 43% YoY to ₹2,566 Mn in Q1 FY27; organic revenue was ₹1,551 Mn (+17% YoY), with ~11% growth on a constant-currency basis.^[2]

Adjusted EBITDA and cash conversion

Adjusted EBITDA grew 132% YoY to ₹440 Mn in Q1 FY27 at a 17% margin, up from 11% in Q1 FY26.^[2]
Q4 FY26 adjusted EBITDA margin reached an all-time high of 19%; full-year FY26 margin was 14.6%, up from 12% in FY25.^[3]
FY26 free cash flow of ₹1,106 Mn exceeded reported PAT by 2.1x; OCF was ₹1,499 Mn versus adjusted EBITDA of ₹1,069 Mn, driven by upfront annual subscription billing.^[3]
Cash return on invested capital (CROIC) was 22% in FY26, up from 17.4% in FY25.^[3]

Products and platform

The core Capillary platform provides loyalty programme management, customer engagement, and campaign execution to large consumer enterprises across retail, QSR, airlines, hospitality, and energy retail.^[4]
aiRA, Capillary's AI stack, includes campaign execution, decision intelligence, analytics, and creative studio; ~$2 - 2.5M ARR with 26 live customers and just under 10 paying customers as of Q1 FY27.^[2][3]
Experiences+ (formerly CustomerGlu) is a low-code/no-code SDK enabling marketers to launch front-end loyalty experiences without IT dependency, acquired via acqui-hire of Marax AI Inc. for under $100K.^[2]
Capillary was named a Leader in the Forrester Wave for Loyalty Technology Solutions Q4 2025, scoring 5/5 in 22 of 27 criteria, highest among all vendors on both current offering and strategy.^[4]

Acquisitions and M&A integration

SessionM (Mastercard's merchant loyalty business) was acquired on May 1, 2026 for a net consideration of ₹169 Mn; it brought 40+ enterprise logos including 5 Fortune 500 companies and ~$35M ARR.^[2][3]
SessionM turned cash-generative within two months of acquisition, generating approximately ₹5 - 6 Cr of free cash; all $32M ARR customer contracts agreed to migrate to the Capillary platform.^[2]
Kognitiv (~16 - 17 customers) is being migrated to the Capillary platform using an AI migration tool; the first customer is scheduled to fully migrate on September 1, 2026, with all migrations targeted by September 2027.^[2]
The AI-led migration platform compresses the typical 3 - 5 year upgrade cycle to 18 - 24 months, with a 2 - 4 week UAT per customer.^[2][3]
Capillary's M&A strategy targets assets at 0.5x - 1.5x revenue with a 20%+ ROIC hurdle; SessionM was acquired at approximately 0.5x revenue.^[3]

Customers and distribution

In March 2026, Capillary signed a 5-year strategic partnership with a US Fortune 50 retailer worth $20M+.^[3]
Approximately one-quarter of Capillary's customers were piloting or paying for the aiRA AI stack as of Q4 FY26.^[3]
New customers added in 9M FY26 spanned travel, automobile, hospitality, healthcare, and energy retail verticals; 12 new customers were added in total over that period.^[4]

Expansion targets

FY27 consolidated revenue guidance is above ₹10,650 Mn; adjusted EBITDA guidance is above ₹1,720 Mn; management indicated confidence in exceeding both numbers.^[2]
Management targets aiRA reaching 5 - 10% of total revenue in FY27 as enterprise budgeting cycles align and POC-to-billing conversions progress.^[2]
Completing Kognitiv migrations by September 2027 is expected to add ₹10 - 20 Cr of incremental EBITDA on approximately ₹80 Cr of revenue.^[2]
SessionM is targeted to reach ~15% EBITDA margin within one year and 35 - 40% EBITDA margin within two years, eventually contributing ~$15M annual EBITDA once fully integrated.^[2][3]
Steady-state EBITDA margin target for the core organic Capillary platform is 25 - 30%; projected FY30 group adjusted EBITDA post full integration is ₹398 Cr.^[3][4]

Market Cap

₹4,545 Cr

High / Low

₹799 / 438

Stock P/E

86.5

Price / Book

4.4

Book Value

₹129

EPS

₹6.6

No. of Shares

7.94 Cr

ROCE

2.9%

ROE

5.1%

OPM

4.2%

Debt / Equity

0.04

Sales

₹735 Cr

Net Profit

₹52 Cr

Promoter holding

47.2%

Loading chart…

Signal history

AI Deep Dive

The analysis Screener can't give you

Our models read the latest earnings call, annual report, and financials end-to-end - then grade management, value the business, and flag the risks. Unlock all of it for this company:

Verdict
The headline call - descriptive label, conviction, and the synthesis behind it.
Valuation
Guidance-anchored P&L bridge - worst / average / best multiple cases.
Walk the talk
Did management deliver on past guidance? A commitment-by-commitment scorecard.
Red flags
Forensic and governance risk pointers, severity-ranked.
Balance sheet
Solvency and earnings-quality score.
Concall briefs
Quarter-by-quarter earnings-call briefs - what changed and why.

₹49 unlocks this company for 90 days, ₹299 for a full year - bundles bring it lower. Built on public disclosures - educational, not investment advice.

AI Deep Dive

Verdict

Locked

The headline call - descriptive label, conviction, and the synthesis behind it.

Company data

Financials