Capillary Technologies India Limited has announced its Q2 FY27 results, showcasing robust financial performance. The company reported a 51% year-on-year revenue growth to ₹2,713.5 million. Adjusted EBITDA saw a significant increase of 103% YoY to ₹448.6 million, with margins at 17%. Annual Recurring Revenue (ARR) also grew by 51% YoY to ₹10,854 million, underscoring the company’s sustained expansion and market leadership.
Capillary Technologies Announces Strong Q2 FY27 Performance
Capillary Technologies India Limited has released its financial results for the second quarter of fiscal year 2027 (Q2 FY27), highlighting substantial year-on-year growth across key financial metrics. The company reported a 51% increase in Revenue from Operations, reaching ₹2,713.5 million, up from ₹1,793.3 million in the same quarter last year. This strong top-line performance was complemented by a significant surge in profitability.
Significant Profitability Boost
Adjusted EBITDA demonstrated impressive growth, soaring by 103% year-on-year to ₹448.6 million in Q2 FY27, compared to ₹220.8 million in Q2 FY26. The Adjusted EBITDA margin stood at a healthy 17%. Profit After Tax (PAT) also saw a dramatic increase of 7505% YoY, reaching ₹219.2 million, indicating enhanced operational efficiency and strong financial management.
Sustained Growth Drivers
The company’s Annual Recurring Revenue (ARR) continued its upward trajectory, ending Q2 FY27 at ₹10,854 million, representing a 51% year-on-year growth. This growth is attributed to strong contributions from the SessionM acquisition, Net Revenue Retention (NRR) expansion, and new customer acquisition (New ACV), which grew by 79% YoY to ₹933 million. The presentation also highlighted an organic NRR of 116%, reflecting successful customer retention and expansion strategies.
Market Recognition and Strategic Focus
Capillary Technologies was recognized as a Leader in Loyalty Platforms by Forrester Wave™ in Q4 2025, achieving the highest scores in both Current Offering and Strategy. The company’s AI-first platform approach, robust program support, and positive customer feedback were cited as key strengths. Strategic hiring focuses on scaling AI & R&D for its AIRA platform and GenAI capabilities, alongside expanding sales leadership to drive Fortune 500 penetration.
Financial Highlights for H1 FY27
For the first half of FY27 (H1 FY27), consolidated revenue grew 47% YoY to ₹5,280.0 million. Adjusted EBITDA more than doubled, growing 116% YoY to ₹888.8 million, with a margin of 17%. PAT for H1 FY27 was ₹123.7 million, showing a 1097% YoY increase. The company’s cash and bank balance stood at ₹5,738.2 million as of September 30, 2026, with net cash generated by operating activities at ₹1,133.4 million for H1 FY27.
Source: BSE
