CAPILLARY
Micro CapCapillary Technologies India Limited
IT
Capillary Technologies India Limited is a global market leader in loyalty and engagement management, offering AI-powered cloud-native products and solutions to large enterprise customers globally, monetized through long-term subscription contracts. It serves 415+ brands across 49 countries with 1.9 billion+ consumers on its platform.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Good · 67/100Rev +20% YoY · PAT +330% YoY · operating leverage · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹191 Cr | +20.1% | +3.8% |
| EBITDA | ₹31 Cr | +10.7% | +24.0% |
| Operating margin | 16.0% | -200 bps | +200 bps |
| PAT | ₹43 Cr | +330.0% | +437.5% |
| PAT margin | 22.5% | +1593 bps | +1816 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 revenue from operations grew 26% YoY to ₹1,913.5 Mn, with FY26 revenue up 23% YoY to ₹7,346.0 Mn. Adjusted EBITDA for FY26 increased 43% YoY to ₹1,069.2 Mn, reflecting improving unit economics and operating leverage.
The company delivered robust top-line growth and significant Adjusted EBITDA expansion, driven by strong organic NRR and strategic acquisitions. Focus on AI-led platform innovation and M&A integration positions it for continued growth, though inorganic NRR shows expected churn.
Revenue by Stream (Q4 FY26)
Latest issuer-disclosed distribution across 3 reported categories.
NRR Expansion
StrongOrganic NRR of 114% in FY26, driven by platform usage overages, product upgrades/upsells, and new brands/geographies/business units.
New Customer Wins
StrongAccelerating momentum with targeted Fortune 500 enterprise wins and larger deal sizes, including a 5-year, $20M+ deal with a US Fortune 50 retailer.
Strategic M&A
DevelopingAcquisition of SessionM closed on May 1st, adding $35Mn ARR from 40+ logos. Rapid upgrade of Kognitiv customers to Capillary platform for cross-selling.
AI-First Platform Approach
Strategic FocusCapillary was named a leader in Forrester Wave (Q4 2025) for Loyalty Platforms, excelling in AI-driven insights and genAI capabilities like aiRA.
Headcount Expansion
ControlledTotal headcount increased 1% YoY to 687 as of March 31, 2026, with strategic expansion in R&D for AI and delivery for acquired platform migrations.
Industry Recognition
PositiveNamed a Leader in The Forrester Wave™: Loyalty Platforms, Q4 2025, with highest scores in Current Offering and Strategy.
Operating Leverage
PositiveNon-COGS costs increased 14% YoY in FY26, compared to 23% revenue growth, leading to improved profitability.
Inorganic Portfolio Churn
ExpectedPlanned churn in the inorganic portfolio resulted in 94% NRR, offsetting some organic NRR gains.
Customer Concentration
MitigatingTop 10 client concentration declined in percentage terms, but absolute revenue from Top 5 clients grew from ₹2,593 Mn in FY25 to ₹2,784 Mn in FY26.
M&A Integration Complexity
ManagingMigration of acquired assets (Brierley/Kognitiv) involves expected churn and requires AI-powered migration capabilities to reduce time and effort.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both YoY and QoQ comparisons are relevant. YoY reflects the underlying business growth and annual performance trends, while QoQ highlights sequential momentum, particularly in subscription revenue and M&A integration progress.
Annual Recurring Revenue (ARR)
PositiveFY26 ends with an ARR of ₹7,654 Mn, a YoY growth of 26% from ₹6,083 Mn in FY25.
Net Revenue Retention (NRR)
MixedFY26 NRR was 110%, with organic NRR at 114% and inorganic NRR at 94%.
Subscription Revenue Growth
PositiveSubscription revenue grew 24% YoY to ₹1,709.5 Mn in Q4 FY26 and 36% YoY to ₹6,561.4 Mn in FY26.
Adjusted EBITDA Margin
PositiveAdjusted EBITDA margin for FY26 was 14.6%, up from 12% in FY25. Q4 FY26 margin was 19%.
AI-Led Platform Upgrade
Strategic FocusDeveloping an AI-led platform upgrade technology for rapid migration of Kognitiv and SessionM acquired customers to improve profitability and cash flow.
M&A as Cash Payback Engine
OutlookPost-upgrade, acquired customers move from ~30% gross margin to ~65%, making M&A a 4-5 year cash payback engine.
Deepening AI Capabilities
Investment AreaScaling engineering teams for aiRA platform development and GenAI capabilities, with AI-first loyalty for campaign design, forecasting, and fraud prevention.
Expanding Global Reach
Growth StrategyAdding enterprise sales leaders in US/EU to drive Fortune 500 penetration and expanding into new verticals.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Organic NRR | 114% in FY26 | Sustained expansion from existing customers and product upsells. |
| Inorganic NRR & Migration Progress | 94% in FY26, with most previous acquisitions migrated. | Successful and timely migration of Kognitiv and SessionM customers to Capillary platform, and improvement in inorganic NRR. |
| Adjusted EBITDA Margin | 14.6% in FY26, 19% in Q4 FY26 | Continued expansion driven by operating leverage and higher-margin incremental revenue. |
| New ACV Wins | ₹1,214 Mn in FY26 | Consistent acquisition of new Fortune 500 enterprise clients and larger deal sizes. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
43NeutralSMA20 -12.2% / mo · near 52W low
Technical chart
CAPILLARYdaily · 3Y-17.6%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 35.
- SMA20 falling (~8.6% over last month) — short-term momentum negative.
- RSI(14) at 35 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 37% off 52W high · 8% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 12/15 to the score.
- Growth contributes 15/25 to the score.
Main drags
- Fair-value margin of safety is negative at -110.4%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 3/30; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 38th percentile of the scored universe and 32nd percentile within IT. Main check: cash conversion is weak at 43/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Only 1 years of positive FCF.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · IT: 32nd pctile, median 68 · Micro: 21st pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸Debt/equity is 0.05.
Trust risks
- ▸Only 1 years of positive FCF.
- ▸ROCE is low at 3.6%.
- ▸ROE is low at 3.7%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 134.00
- P/B
- 3.88
- EV/EBITDA
- 23.99
- Market Cap
- 3976.00Cr
Profitability
- ROE
- 3.72%
- ROCE
- 3.62%
- ROA
- 4.00%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 34.00%
- EPS 5Y
- 27.00%
- Revenue 3Y
- 32.00%
- EPS 3Y
- 32.00%
Balance Sheet
- Debt/Equity
- 0.05
- Interest Coverage
- 18.60×
- Altman Z
- 8.17
- Book Value
- 129.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 1/5
- OCF
- 150.00 Cr
- EPS TTM
- 6.60
Shareholding
- Promoter Hold
- 52.23%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 11%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.