Capillary Technologies India Limited has filed a comprehensive investor presentation with BSE Limited and National Stock Exchange of India Limited, detailing its strategic acquisition of SessionM from Mastercard for USD 20.00 million base consideration. The presentation, filed on February 24, 2026, provides extensive insights into the company's acquisition strategy and market positioning.

Regulatory Filing and Strategic Communication

The company submitted the investor presentation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Gireddy Bhargavi Reddy digitally signed the filing from Bengaluru, making the presentation available on the company's investor relations website.

Market Leadership and Recognition

The presentation highlights Capillary's position as a Leader in The Forrester Wave™ Loyalty Technology Solutions Q4 2025, achieving the highest rankings among all vendors in both Current Offering and Strategy categories. The company scored 5/5 in 22 out of 27 criteria, reinforcing its market leadership position.

SessionM Business Overview and Strategic Rationale

SessionM, founded in 2011 and acquired by Mastercard in 2019, serves 40+ enterprise customers across 35+ countries with 800 million+ consumer profiles. The acquisition strengthens Capillary's footprint in North America and LATAM while adding to its APAC portfolio through multi-industry growth opportunities.

Proven M&A Integration Strategy

The presentation outlines Capillary's disciplined acquisition approach, demonstrating consistent 4-year cash payback periods and 20%+ ROIC across previous acquisitions including Persuade, Rewards+, Brierley, and Kognitiv. The company targets small-to-mid sized businesses with enterprise customers for seamless platform integration.

Long-term Growth Projections

The combined entity will serve 150+ customers including 25 Fortune 500 companies with approximately USD 115.00 million+ combined ARR. Capillary projects integrating approximately 60 customers from Kognitiv and SessionM acquisitions over 24-36 months, with completion estimated by end of CY 2028 and stable operations reflecting in CY 2029.

Capillary Technologies India Limited conducted its Q3 FY26 earnings conference call on February 06, 2026, presenting strong financial results and strategic updates to analysts and investors. The company, a global leader in loyalty and customer engagement platforms, demonstrated continued growth momentum across key financial metrics.

Financial Performance Highlights

The company delivered robust financial results for both the quarter and nine-month periods ending December 31, 2025.

For the nine-month period, revenue reached INR 543 crores, marking 22% year-on-year growth. Adjusted EBITDA for nine months stood at INR 71 crores, representing significant 53% growth compared to the previous year.

Key Business Metrics and Growth Drivers

Capillary Technologies maintained strong operational metrics that underpin its growth strategy. The company's net retention rate (NRR) for the trailing twelve months reached 111%, with organic business achieving an impressive 115% NRR. This places the company in the top 10 percentile of global SaaS companies.

The company added 12 new customers during the nine-month period, including three in the last quarter. Management outlined three key growth axes: net retention rate expansion from existing customers, new customer acquisitions, and strategic acquisitions of competitors.

Market Leadership and Product Innovation

Capillary Technologies reinforced its market-leading position through recognition in the latest Forrester Wave report for loyalty management platforms, released in December 2025. The company achieved the highest rating among 14-15 vendors, scoring 5 out of 5 on 22 of 27 evaluation criteria.

The company's AI-powered product, aiRA (AI-powered Research Assistant), continues gaining traction with customers. Management reported that 10-15 of their 115 customers are currently in proof-of-concept or post-POC phases with aiRA. The AI solution enables conversational analytics, campaign management, and customer support automation.

Profitability and Cash Generation

Despite strong EBITDA growth, PAT declined to INR 8 crores in Q3 FY26 from INR 11.4 crores in the previous year, primarily due to one-time expenses including INR 1.6 crores in gratuity costs and INR 2 crores in IPO-related expenses. Normalizing for these items, PAT remained flat year-on-year.

The company's depreciation and amortization increased to INR 19 crores from INR 13 crores, largely due to the Kognitiv acquisition completed in May 2025.

Strategic Outlook and Market Position

Management emphasized their competitive advantages in the loyalty management space, particularly against agency-based competitors. The company serves 410 brands across 115 customers, including 20 Fortune 500 companies, with operations spanning 47 countries. Their platform manages 1.8 billion consumer profiles with enterprise-grade uptime of five nines.

Looking ahead, Capillary Technologies continues focusing on expanding existing customer relationships, winning new enterprise clients, and integrating acquired platforms to drive margin expansion. The company's subscription-based model with long-term contracts provides revenue visibility and supports sustained growth.

Source: Capillary Technologies India Limited Q3 FY26 Earnings Conference Call Transcript