Capillary Technologies Q2 Profit Hits Rs 219 Million

Consolidated revenue climbed to Rs 2,713.55 million while net profit surged to Rs 219.16 million.

Reader Takeaway: Strong revenue growth and Big Four audit appointment signal scaling, though Czech subsidiary recovery remains outstanding.

What just happened

Capillary Technologies India Ltd reported a robust financial performance for the quarter ended September 30, 2026. Consolidated revenue grew significantly to Rs 2,713.55 million, up from Rs 1,793.25 million in the same period last year. Profit after tax saw a substantial improvement, reaching Rs 219.16 million compared to Rs 2.88 million previously. On a standalone basis, the company achieved a turnaround, posting a profit of Rs 294.31 million.

Why this matters

The appointment of Deloitte Touche Tohmatsu India LLP as the new internal auditor signals a shift toward more rigorous global governance standards. As the company manages cross-border operations, the transition from Protiviti India is aimed at reinforcing internal controls and risk management frameworks.

The backstory

The company previously disclosed an exceptional loss of Rs 333.86 million in the June 2026 quarter due to unauthorized bank transfers at a Czech subsidiary. Current disclosures confirm that a forensic investigation into the incident has concluded with no further adverse findings, and the firm is now working with its insurance provider to recover the funds.

What changes now

Management is focusing on scaling operations while optimizing the remaining IPO proceeds. As of September 30, 2026, the company has utilized Rs 1,470.53 million of its net IPO proceeds, with a balance of Rs 1,758.55 million still available for deployment.

What to track next

Investors should closely watch the recovery progress regarding the insurance claim for the Czech subsidiary. Additionally, the efficiency of IPO fund utilization will be a critical indicator of future growth capacity.