Capital Numbers Infotech Navigates Growth and Strategic Investments in H1 FY26

Capital Numbers Infotech Limited, a premier software solutions company, has reported a robust performance for the first half of the financial year 2026 (H1 FY26), demonstrating consistent execution amidst global market volatility. The company, which went public on the BSE in 2025, posted a total revenue of INR 59.12 crores, marking a 14.5% year-on-year growth. This growth was underpinned by strategic investments aimed at long-term capacity building and capability enhancement. Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) stood at INR 20.45 crores, an 8.3% increase over H1 FY25, while Profit After Tax (PAT) reached INR 14.80 crores, up 8.1% from the previous year. These results align with management's expectations, reflecting a deliberate investment phase.

The company's revenue streams are primarily driven by project-based work, with a significant portion coming from Time & Material contracts. In H1 FY26, Time & Material projects accounted for 90% of the revenue breakup, while Fixed Cost Projects contributed 10%. This structure allows for flexibility and adaptability in project execution. Geographically, Capital Numbers maintains a balanced revenue distribution, with the USA contributing 40.90%, Europe+UK 31.81%, India 10.16%, the Middle East 8.88%, and the Rest of the World (ROW) 8.25%. This diversification across 13+ countries helps mitigate regional economic fluctuations. The company's service offerings span high-demand areas such as AI/ML/GenAI, Platform Engineering, Data Engineering and Analytics, Cloud Engineering, Digital Engineering, and UI/UX Design, positioning it well for future technological shifts.

Strategic Thrusts and Operational Highlights

Capital Numbers is actively pursuing several strategic initiatives to fuel its growth trajectory. A key focus is on strengthening its sales capacity and expanding its global sales footprint. The company participated in four major international conferences across the Middle East, UK, and Europe, generating over 500 qualified leads and a pipeline of over $600,000. This proactive market engagement is expected to translate into significant deal flows in the coming quarters. The Gurgaon Development Center has been expanded to an 80+ seater capacity, currently operating at 90% occupancy, to meet new demand and onboard niche talent, particularly in AI, data engineering, and analytics. The company has also made strategic leadership appointments, including a Director for its AI Center of Excellence and a Head of Demand Generation.

In terms of client acquisition, Capital Numbers secured a significant INR 4 crore product engineering contract with a US-based company. Furthermore, two new marquee enterprise clients have been added, both currently in paid pilot phases: an FTSE-listed global real estate organization for Salesforce consulting and a NYSE-listed medical technology company for data engineering and analytics consulting. These strategic accounts are expected to yield multiple future opportunities. The company's commitment to quality is underscored by its maintained ISO 9001, ISO 27001, and SOC 2 Type II certifications, ensuring exceptional service quality.

Financial Prudence and Future Outlook

Capital Numbers maintains a robust financial position, characterized by a debt-free balance sheet and strong liquidity. Cash and investments stood at INR 147.49 crores as of September 30, 2025, with a current ratio of 30.55. This strong liquidity provides the financial muscle for both organic and inorganic growth. The company has earmarked INR 40 crores for strategic acquisitions, focusing on companies that align with its strengths in Salesforce, Cloud, AI, or digital engineering. While the M&A process has taken longer than initially anticipated, management emphasizes a disciplined approach to find the right partners.

Management has reaffirmed its full-year guidance of at least 15% revenue growth for FY 2026 in INR terms. The long-term vision includes doubling revenue in three years, establishing leadership in AI-driven delivery models, expanding its global footprint with a local presence in key markets, and maintaining industry-leading profitability metrics. The board's approval of a 10% interim dividend, coupled with the promoter's recent acquisition of 72,000 shares, underscores confidence in the company's growth trajectory and commitment to shareholder value. Capital Numbers is strategically investing ahead of the curve to secure larger, higher-margin deals, anticipating a gradual expansion in revenue momentum and margins in future quarters.

Conclusion

Capital Numbers Infotech Limited is navigating its post-IPO journey with a clear strategic roadmap focused on disciplined investment, capability enhancement, and market expansion. Despite some short-term margin compression due to growth investments and M&A timeline adjustments, the company's strong financial fundamentals, marquee client wins, and unwavering focus on high-growth technologies position it for sustained long-term value creation. The emphasis on strengthening its global presence and leadership in AI-driven solutions reflects a forward-looking approach, instilling confidence in its future prospects.