Capillary Technologies Reports Strong FY26 Growth Driven by Acquisitions and AI

Capillary Technologies India Limited has reported its financial results for fiscal year 2026, showing operating revenue climbing 23% year-on-year to ₹7,346.0 Mn (₹734.60 crore). The company also posted a significant 270% surge in profit after tax (PAT), reaching ₹523.9 Mn (₹52.39 crore).

Key Financials for FY26

The company's performance for the fiscal year ending March 31, 2026, showed substantial growth.

• Operating revenue increased 23% year-on-year to ₹7,346.0 Mn. The fourth quarter (Q4 FY26) revenue was up 26% year-on-year to ₹1,913.5 Mn.
• Adjusted EBITDA rose 43% year-on-year for FY26, reaching ₹1,069.2 Mn. Q4 FY26 Adjusted EBITDA increased 28% to ₹357.2 Mn.
• Profitability surged, with PAT for FY26 jumping 270% year-on-year to ₹523.9 Mn. Normalized PAT for the full year increased 128% to ₹322.8 Mn. Q4 PAT grew 233% to ₹433.6 Mn.

Growth Drivers: Acquisitions and AI Adoption

Capillary Technologies' strong performance was fueled by the successful integration of key acquisitions and the increasing adoption of its proprietary AI platform, aiRA.
The company operates a cloud-based customer engagement and commerce platform, offering AI-powered solutions for loyalty, personalization, and marketing to retail and consumer brands.
Strategic acquisitions played a crucial role: Kognitiv, acquired in May 2025, expanded the company's global footprint and enhanced loyalty program capabilities. The integration of the SessionM business, acquired from Mastercard, further bolstered its suite of loyalty and engagement tools. The expanding use of its AI platform, aiRA, also contributed to the company's growth.

Investor Outlook

These results highlight Capillary Technologies' effectiveness in integrating acquisitions and leveraging its technology for significant revenue and profit expansion. The sustained revenue growth and substantial jump in profitability suggest improved operating leverage and potential for future value creation. The strong traction of its AI platform signals a move towards advanced, automated customer solutions and indicates healthy demand for its AI-driven engagement tools in a competitive market.

Potential Risks

Forward-looking statements in the company's reports are subject to risks and uncertainties, including government actions, economic developments, and industry-specific challenges that could affect future performance.

Competitor Landscape

While direct listed peers in India with identical business models are scarce, companies like Affle (India) Ltd operate in related digital customer engagement and ad-tech spaces. Affle (India) Ltd has also reported growth in its digital advertising and marketing solutions business, though comparative scale and focus differ.

Looking Ahead

Investors will be tracking the company's ability to:

• Continue seamless integration of the SessionM team and its client base.
• Further develop and achieve widespread adoption of the aiRA AI platform.
• Maintain sustained organic growth alongside profitability improvements.
• Announce future acquisition or expansion plans.