Capillary Technologies India (CAPILLARY) Q1 26/27 earnings summary

Executive summary

• Achieved 43% year-over-year revenue growth in Q1 FY27, reaching INR 2,566.44 million, with EBITDA up 132% to INR 460.06 million and normalized PAT at INR 254.4 million after adjusting for a one-time cyber fraud loss.

• SessionM acquisition integrated smoothly, contributing $32 million ARR and turning profitable within two months, with all customers agreeing to migrate.

• AI-led products, especially aiRA, are gaining traction, with a revenue run rate of INR 2–2.5 million and a target to reach 5–10% of total revenue this year.

• Organic business grew 17% year-over-year with 23% EBITDA margin, while overall Rule of 40 metric stands at 60 (43% growth + 17% EBITDA).

• The Group reported a consolidated net loss of INR 95.52 million for Q1 FY27, compared to a net profit of INR 7.45 million in Q1 FY26, due to a one-time cyber fraud loss.

Financial highlights

• ARR increased from INR 608 crore in FY25 to INR 10,266 million in Q1 FY27, a 43% year-over-year rise, driven by SessionM, NRR, and new ACV.

• Adjusted EBITDA improved from INR 35 crore to INR 460.06 million year-over-year, despite annual hikes and increased amortization from acquisitions.

• Subscription revenue grew 50% YoY to INR 2,425 million, now 94.5% of total revenue.

• Normalized PAT improved from INR 19 crore to INR 254.4 million quarter-on-quarter.

• TTM New ACV (excluding a large healthcare customer) grew 75% YoY to INR 926 million.

Outlook and guidance

• Management expects to exceed previous revenue and EBITDA guidance (INR 10,650 million revenue and INR 1,720 million EBITDA), but will not revise guidance yet.

• Anticipates continued strong organic growth (15–20%) and ongoing inorganic expansion through acquisitions.

• aiRA expected to contribute 5–10% of revenue in FY27, with high gross margins (80%+).

• Platform upgrades for acquired customers expected to drive further efficiencies and retention.