Capillary Technologies India Limited announced its audited financial results for the fourth quarter and full year ended March 31, 2026. The Board of Directors approved the standalone and consolidated financial results at its meeting held on May 06, 2026, with statutory auditors M/s. Walker Chandiok & Co. LLP issuing an unmodified audit opinion. The company reported a 26% year-on-year increase in consolidated revenue for Q4 FY26 to ₹1,913.46 million and a 23% rise for the full year to ₹7,345.99 million. Profit after tax (PAT) for the full year surged 270% to ₹523.88 million from ₹141.54 million in FY25. The strong performance was driven by healthy expansion within the existing customer base, growth in new annual contract value contributions, and the focused integration of the Kognitiv business acquired effective May 1, 2025.

Q4 FY26 Key Performance Highlights

Capillary Technologies delivered strong profitability metrics for Q4 FY26. EBIT for the quarter stood at ₹314 million, compared to ₹250 million in Q3 FY26, reflecting quarter-on-quarter growth. EBIT margin expanded to 16.41% in Q4 from 13.6% in Q3 FY26, indicating improving operational efficiency. Adjusted EBITDA for Q4 FY26 grew 28% year-on-year to ₹357.2 million versus ₹278.4 million in Q4 FY25. Normalized PAT, adjusted for exceptional and one-off items, rose 51% year-on-year to ₹196.6 million for the quarter.

The table below summarises the Q4 FY26 key metrics compared to the prior quarter and prior year:

Consolidated Financial Performance

For the full year FY26, Adjusted EBITDA rose 43% year-on-year to ₹1,069.2 million from ₹745.1 million in FY25. Normalized PAT grew 128% to ₹322.8 million compared to ₹141.5 million in FY25. PAT for FY26 surged 270% to ₹523.88 million from ₹141.54 million. The exceptional income of ₹249.60 million recorded during the year was related to churn indemnity compensation received following a business acquisition, wherein the seller breached the Churn Indemnity Clause of the Purchase and Sale Agreement by exceeding the agreed threshold of customer contract terminations post-acquisition. Total comprehensive income for FY26 stood at ₹1,089.66 million. Earnings per share from continuing operations for FY26 were ₹6.94 (basic) and ₹6.87 (diluted).

The table below summarises the consolidated financial performance:

Consolidated Balance Sheet Highlights

On a consolidated basis, total assets stood at ₹13,002.42 million as at March 31, 2026, compared to ₹8,386.54 million as at March 31, 2025. Total equity increased to ₹10,234.93 million from ₹5,682.47 million. Goodwill rose to ₹3,095.76 million from ₹1,884.98 million, reflecting the Kognitiv acquisition. Cash and cash equivalents at the end of the year were ₹352.44 million on a consolidated basis. Net cash generated from operating activities for FY26 was ₹1,499.07 million.

Standalone Financial Results

On a standalone basis, total income for FY26 was ₹2,224.68 million, compared to ₹1,863.28 million in FY25. Revenue from operations increased to ₹2,118.90 million from ₹1,740.91 million. The standalone profit after tax for FY26 was ₹28.90 million, while Q4 standalone PAT was ₹98.95 million. Standalone basic EPS for FY26 was ₹0.38 per share and diluted EPS was ₹0.38 per share. Total standalone assets as at March 31, 2026 stood at ₹9,646.26 million versus ₹5,920.58 million in the prior year, with total equity at ₹8,232.04 million.

Business Developments and Corporate Actions

The company completed its Initial Public Offering (IPO) in November 2025, raising total proceeds of ₹8,775.01 million. Net proceeds received amounted to ₹3,229.08 million, of which ₹3,228.95 million remained unutilized as at March 31, 2026, held primarily in fixed deposits. The company completed the acquisition of Kognitiv Solutions Inc. effective May 1, 2025, for CAD 23.44 million (net of net working capital of CAD 0.56 million), and the acquisition of Session M Inc. from Mastercard International Incorporated effective May 1, 2026, for USD 20.00 million. The Board also approved the appointment of M/s. Protiviti India Member Private Limited as Internal Auditors for the Financial Year 2026-27. Capillary serves 115 customers including 20 Fortune 500 customers across 49 countries.

IPO Proceeds Utilisation

The following table details the utilisation of net IPO proceeds as at March 31, 2026:

Management Commentary

Commenting on the Q4 FY26 results, Aneesh Reddy Boddu, Founder, MD & CEO, said, "We delivered a strong quarter, driven by Net Retention Rate (NRR) expansion, the continued addition of large enterprise clients globally, and early integration synergies from the Kognitiv acquisition. The successful closure of the SessionM acquisition from Mastercard further strengthens our market position, providing access to a prestigious portfolio of Fortune 500 brands. Our proprietary AI platform, aiRA, is gaining traction, and we are actively leveraging AI to streamline customer migrations, and drive enterprise-wide productivity within Capillary. Moving forward, we remain committed to sustainable organic growth and profitability while prioritizing the seamless integration of SessionM's team and clientele."

Capillary Technologies India Limited has successfully completed its strategic acquisition of Session M Inc. and Session M Czech Republic s.r.o., marking a significant milestone in the company's expansion strategy. The acquisition was finalized on May 01, 2026, as per Indian Standard Time, following the completion of all closing conditions.

Acquisition Structure and Details

The acquisition involved the purchase of 100% shareholding in Session M Inc., which was previously a wholly owned subsidiary of Mastercard Inc., along with its wholly owned subsidiary Session M Czech Republic s.r.o. The transaction was structured through Capillary's wholly owned subsidiary, Capillary Pte. Ltd., and executed directly and through its step-down subsidiary, Capillary Technologies LLC.

Regulatory Compliance and Documentation

The completion follows the company's earlier disclosure filed on February 24, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company had previously received approval for the investment in its wholly owned subsidiary for the purpose of this acquisition.

All required details under Regulation 30 of the SEBI LODR Regulations and Para A of Part A of Schedule III, along with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, were submitted in the February 24, 2026 filing. The formal completion notification was signed by Gireddy Bhargavi Reddy, Company Secretary and Compliance Officer (Membership No. A17091), and filed with both BSE Limited and National Stock Exchange of India Limited.

Corporate Structure Impact

Following the completion of this acquisition, both Session M Inc. and Session M Czech Republic s.r.o. have become wholly owned subsidiaries of Capillary Technologies India Limited. This includes their classification as step-down subsidiaries where applicable, further strengthening the company's international presence and operational capabilities.

The acquisition represents Capillary's continued focus on expanding its global footprint in the customer engagement and loyalty management sector, leveraging Session M's established market presence and technological capabilities. The transaction enhances Capillary's portfolio by integrating Session M's expertise in loyalty and engagement solutions.