Capillary Technologies India (CAPILLARY) Q4 25/26 earnings summary
Event summary combining transcript, slides, and related documents.
Q4 25/26 earnings summary
6 May, 2026Executive summary
Achieved 23% year-on-year revenue growth in FY26 and 26% in Q4, driven by strong organic NRR (114%), new customer wins, and strategic acquisitions including SessionM and Kognitiv Solutions Inc.
Adjusted EBITDA grew 43% year-on-year to ₹1,069.2 Mn in FY26, with margin improvement from scale, M&A synergies, and AI-powered platform adoption.
Annual Recurring Revenue (ARR) expanded to ₹7,654 Mn, with a customer base including 20 Fortune 500 companies.
Auditors issued unqualified opinions on both standalone and consolidated annual financial results for FY26, confirming compliance with Indian Accounting Standards and SEBI regulations.
Significant progress in migrating acquired customers to the core platform, supported by AI-led migration technology.
Financial highlights
FY26 revenue reached ₹7,346 Mn (INR 734 crore), up 23% year-on-year; Q4 FY26 revenue was ₹1,913.5 Mn (INR 191 crore), up 26% year-on-year.
Adjusted EBITDA for FY26 was ₹1,069.2 Mn (15% margin), up 43% year-on-year; Q4 FY26 Adjusted EBITDA was ₹357.2 Mn (19% margin), up 28% year-on-year.
Normalized PAT for FY26 at ₹322.8 Mn (INR 32 crore); Q4 normalized PAT at ₹196 Mn (INR 19.6 crore), excluding a one-time gain.
Free cash flow to PAT at 200%–211%; cash return on invested capital at 22%.
Cash and bank balances as of March 31, 2026, stood at ₹5,069.9 Mn; OCF/Adj. EBITDA conversion was 140%.
Outlook and guidance
Revenue for FY27 expected to exceed ₹10,000 Mn (INR 1,000 crore), driven by SessionM integration and platform expansion.
Core organic business expected to maintain 2–3% margin expansion annually; steady-state EBITDA margin target of 25–30%.
Margin growth may moderate in the short term due to recent large acquisition, but absolute EBITDA expected to rise.
Continued focus on expanding NRR through platform usage, upsells, and new geographies.
AI-led platform upgrades expected to accelerate migration and margin expansion for acquired customers.
