Capillary Technologies International Pte. Ltd. (CTIPL), a promoter of capillary technologies , disposed of 3,292,428 equity shares through a block deal on August 10, 2026. The transaction, representing 4.14% of the company’s total paid-up equity share capital, reduces CTIPL’s stake from 48.92% to 44.78%. Although the sale marks a notable reduction in promoter holding, CTIPL retains its status as a promoter and maintains a controlling interest in the Bengaluru-based customer engagement technology firm. The disposal was executed on the National Stock Exchange of India Limited.

The disclosure was made under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, and Regulation 7(2) of the SEBI (Prohibition of Insider Trading) Regulations, 2015. Capillary Technologies India Limited received the intimation from CTIPL on August 10, 2026, and subsequently informed the stock exchanges on August 11, 2026. Gireddy Bhargavi Reddy, Company Secretary and Compliance Officer, signed the disclosure on behalf of the company.

Shareholding Structure Post-Transaction

Following the block deal, CTIPL’s shareholding has been adjusted as detailed below. The total paid-up equity share capital of Capillary Technologies India Limited remains unchanged at 79,471,983 equity shares.

CTIPL holds no encumbrances, pledges, or liens on its remaining shares. There are no warrants, convertible securities, or other instruments entitling the acquirer to receive additional shares carrying voting rights. The voting rights held by CTIPL are solely derived from its direct shareholding.

Promoter Status and Regulatory Compliance

Despite the reduction in stake, CTIPL continues to be classified as a promoter of Capillary Technologies India Limited. The disclosure confirms that there are no Persons Acting in Concert (PAC) with CTIPL involved in this transaction. The mode of acquisition/sale was explicitly stated as a sale through a block deal on the stock exchange.

The transaction does not alter the total diluted share capital, which stands at 79,471,983 equity shares, assuming full conversion of outstanding convertible securities. The ESOP pool is not considered in this calculation. Ramendra Kumar Pandey, Director of CTIPL, signed the disclosure document from Singapore on August 10, 2026.

Capillary Technologies India Limited reported a consolidated net loss of ₹95.5 million for the quarter ended June 30, 2026 (Q1FY27), primarily due to an exceptional cyber fraud loss of ₹333.9 million. Despite the headline loss, the company’s core operations showed significant strength, with revenue from operations surging 43% year-on-year to ₹2,566.4 million, driven by a 50% increase in subscription revenue. The Board of Directors approved the unaudited financial results on August 4, 2026, following a limited review by statutory auditors Walker Chandiok & Co LLP under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The divergence between the standalone profitability and consolidated loss highlights the isolated nature of the exceptional item. While the standalone entity posted a net profit of ₹77.65 million, the group-level results were heavily impacted by the one-time fraud expense and a deferred tax liability of ₹16.1 million. Excluding these non-operational items, the company’s normalized profit after tax (PAT) stood at ₹254.4 million, representing a 10% margin and a substantial year-on-year growth of 3,320% compared to the previous year’s normalized PAT.

Consolidated Financial Performance

Consolidated EBITDA rose 142% year-on-year to ₹460.1 million, with an EBITDA margin of 18%, up from 11% in Q1FY26. Adjusted EBITDA, which excludes ESOP expenses and finance income/gains, increased 132% to ₹440.2 million, maintaining a margin of 17%. Total expenses grew 32% to ₹2,126.5 million, reflecting higher investments in cloud infrastructure and employee benefits, including ESOP expenses of ₹36.9 million.

Subscription Revenue Growth

Subscription revenue, which constitutes the core of Capillary’s business model, grew by ₹809 million year-on-year to ₹2,424.9 million in Q1FY27, accounting for 94.5% of total revenue. This robust growth underscores the increasing adoption of the company’s customer engagement platform. Other services, including installation fees, contributed ₹122.4 million (4.8%), while campaign services added ₹19.2 million (0.7%). The shift towards a higher mix of recurring subscription revenue indicates improved business stability and predictability.

Capital Efficiency and Returns

The company demonstrated improved capital efficiency, with Return on Invested Capital (ROIC) rising to 7.3% in the trailing twelve months ended June 30, 2026, compared to 4.8% in FY26. Cash Return on Invested Capital (CROIC) also strengthened to 23.2%, up from 21.8% in FY26. Capital employed remained stable at ₹10,676.2 million, while invested capital increased to ₹5,986.2 million from ₹5,494.0 million in FY26, reflecting strategic deployment of funds towards growth initiatives.

What the Numbers Show

The key takeaway from Q1FY27 is the resilience of Capillary’s core business against exceptional headwinds. The normalized PAT of ₹254.4 million reveals a healthy underlying profitability that was obscured by the ₹333.9 million cyber fraud loss. The 50% growth in subscription revenue highlights successful execution of its go-to-market strategy and integration of recent acquisitions like SessionM. Investors should monitor the trajectory of adjusted EBITDA margins, which have expanded from 11% to 17% year-on-year, signaling operational leverage as the company scales. The heavy reliance on subscription revenue (94.5%) reduces volatility but requires continuous innovation to maintain high net retention rates.