Capillary Q2 revenue rises 51% as adjusted EBITDA doubles

Capillary Technologies India Limited reported operating revenue of Rs 271.35 crore for Q2 FY2027, a 51% year-on-year increase, while adjusted EBITDA more than doubled to Rs 44.86 crore. Profit after tax reached Rs 21.92 crore, compared with Rs 29 lakh a year earlier, as revenue expanded across customers, new contracts and SessionM.

How did Capillary perform in Q2 FY2027?

Capillary delivered higher revenue, adjusted EBITDA and profit in Q2 FY2027, the quarter ended September 30, 2026. Operating revenue rose to Rs 271.35 crore from Rs 179.33 crore in Q2 FY2026, while adjusted EBITDA increased to Rs 44.86 crore from Rs 22.08 crore. The company reported that the revenue increase was 51% in reported currency and 43% in constant currency.

Profit after tax, or PAT, was Rs 21.92 crore in Q2 FY2027, against Rs 29 lakh in the corresponding quarter a year earlier. Capillary described adjusted EBITDA as EBITDA adjusted for employee stock option plan cost, finance income, asset disposal profits, and fair valuation and foreign-exchange gains. The reported year-on-year increase in PAT was 7,505%, reflecting the low prior-year base as well as the higher quarterly result.

The Q2 comparison shows revenue growing by Rs 92.02 crore year on year, while adjusted EBITDA grew by Rs 22.78 crore. This means adjusted EBITDA increased at a faster reported rate than operating revenue, 103% versus 51%, during the quarter ended September 30, 2026. Capillary attributed the result to expansion within existing customers, contributions from new annual contract value and SessionM revenue.

What changed from Q1 FY2027?

Capillary’s operating revenue rose 6% sequentially in Q2 FY2027 to Rs 271.35 crore from Rs 256.64 crore in Q1 FY2027. On a constant-currency basis, the company said quarterly revenue grew 5%. Adjusted EBITDA increased 2% quarter on quarter to Rs 44.86 crore from Rs 44.02 crore, showing that both measures were above the preceding quarter.

PAT moved into profit in Q2 FY2027, reaching Rs 21.92 crore after a loss of Rs 9.55 crore in Q1 FY2027. The source did not provide a separate explanation for the sequential PAT movement. It did disclose that SessionM, acquired from Mastercard in the prior quarter, had achieved breakeven and that its integration was progressing according to plan.

The sequential revenue increase was Rs 14.71 crore, whereas adjusted EBITDA rose by Rs 84 lakh. Capillary’s reported figures therefore show a smaller quarter-on-quarter increase than its year-on-year change, with operating revenue rising 6% sequentially compared with 51% from Q2 FY2026. The company also reported 5% sequential constant-currency revenue growth, compared with 43% year-on-year on that basis.

What drove Capillary’s Q2 FY2027 growth?

Capillary said Q2 FY2027 growth reflected expansion across existing customers, rising revenue from new annual contract value and the inclusion of SessionM revenues. SessionM was acquired in May 2026 from Mastercard, according to management’s November 2, 2026 statement. Management said the acquired business was performing as planned and had reached breakeven during the quarter.

Management also cited expansion in net revenue retention, which measures revenue retained and expanded from customers, and new enterprise wins across global markets. It said new annual contract value wins supported by aiRA and wider artificial-intelligence capabilities were up 79% year on year on a trailing 12-month basis. That figure excludes what management called an exceptional new contract value from Capillary’s first entry into the healthcare vertical.

Capillary completed its first customer migration using its artificial-intelligence-powered migration technology in Q2 FY2027, management said. According to management, the technology is intended to help move acquired customers onto the Capillary platform faster and more efficiently. The company also said it was seeing momentum in its order book across geographies, although the announcement did not disclose an order-book value or number of contracts.

What does H1 FY2027 show for Capillary?

Capillary reported operating revenue of Rs 528 crore for H1 FY2027, up 47% from Rs 359.22 crore in H1 FY2026. On a constant-currency basis, H1 revenue increased 38%. Adjusted EBITDA rose 116% to Rs 88.88 crore from Rs 41.06 crore, extending the faster rate of adjusted EBITDA growth seen in the second quarter.

H1 FY2027 PAT was Rs 12.37 crore, compared with Rs 1.03 crore in H1 FY2026, a reported increase of 1,097%. The half-year PAT was lower than Q2 FY2027 PAT of Rs 21.92 crore because Q1 FY2027 included a loss of Rs 9.55 crore. The announcement identifies the six months ended September 30, 2026 as H1 FY2027.

Capillary said it serves 152 customers across 55 countries. Its product suite includes Loyalty+, Engage+, Insights+, Rewards+, Experience+ and a customer data platform. The company describes these as cloud-native software-as-a-service products and solutions for enterprises seeking to manage consumer and channel-partner loyalty programs.

Conclusion

Capillary’s Q2 FY2027 figures show reported operating revenue growth of 51% to Rs 271.35 crore, a 103% increase in adjusted EBITDA to Rs 44.86 crore and PAT of Rs 21.92 crore. The H1 result of Rs 528 crore in operating revenue and Rs 88.88 crore in adjusted EBITDA indicates that the quarter’s higher revenue and profitability formed part of a broader six-month increase.

The next items to watch are management’s stated plans to pursue sustainable organic growth and profitability, scale artificial intelligence across its platform and operations, and continue customer migrations. SessionM’s future contribution will also be relevant after its May 2026 acquisition and reported breakeven in Q2 FY2027, although Capillary provided no financial target for the business.