Capillary Technologies' Q3 profit down 23% to Rs 8 crore; revenue up 16%
Software-as-a-service ( SaaS) firm Capillary Technologies reported a 23% year-on-year (YoY) decline in net profit, at Rs 7.9 crore, even as revenue grew on the back of a seasonally strong December quarter.
The customer loyalty and engagement-focussed company’s operating revenue rose 16% YoY to Rs 184 crore during the quarter .
Capillary, which made its stock market debut on November 21, 2025, had a muted listing at Rs 560 per share on the BSE, nearly 3% below its issue price of Rs 577. The stock has since recovered and was trading at Rs 607.3 on Thursday.
The company said revenue growth was driven largely by expansion within its existing customer base, addition of new enterprise clients, and contributions from martech solutions provider Kognitiv, which it acquired last year. Capillary currently serves more than 115 enterprise customers across 47 countries.
Total expenses for the quarter stood at Rs 159 crore, up 17% from Rs 136 crore a year earlier. Employee benefit costs, which accounted for 57% of total expenses, increased 22% on-year to Rs 89.9 crore.
Capillary noted that for the nine-month period ended December 31,2025, its adjusted Ebitda stood at Rs 71.2 crore, marking a 53% YoY increase. The figure includes one-time IPO-related expenses of Rs 1.9 crore and a Rs 1.6 crore impact related to the Direct Labour Code.
"We are unlocking AI-led productivity improvements across the business and building AI-powered migration capabilities that are designed to significantly optimise migration efforts," said the firm’s founder Aneesh Reddy Boddu. "We plan to accelerate customer migration to leverage the benefits from our core platform."
He added that Capillary would continue to invest in research and development, go to market initiatives, and inorganic opportunities.
The company raised Rs 345 crore through a fresh issue of shares in its IPO, lower than the Rs 430 crore initially planned. It also halved its offer-for-sale component to 9.2 million shares from 18.3 million shares.
The customer loyalty and engagement-focussed company’s operating revenue rose 16% YoY to Rs 184 crore during the quarter .
Capillary, which made its stock market debut on November 21, 2025, had a muted listing at Rs 560 per share on the BSE, nearly 3% below its issue price of Rs 577. The stock has since recovered and was trading at Rs 607.3 on Thursday.
The company said revenue growth was driven largely by expansion within its existing customer base, addition of new enterprise clients, and contributions from martech solutions provider Kognitiv, which it acquired last year. Capillary currently serves more than 115 enterprise customers across 47 countries.
Total expenses for the quarter stood at Rs 159 crore, up 17% from Rs 136 crore a year earlier. Employee benefit costs, which accounted for 57% of total expenses, increased 22% on-year to Rs 89.9 crore.
Capillary noted that for the nine-month period ended December 31,2025, its adjusted Ebitda stood at Rs 71.2 crore, marking a 53% YoY increase. The figure includes one-time IPO-related expenses of Rs 1.9 crore and a Rs 1.6 crore impact related to the Direct Labour Code.
"We are unlocking AI-led productivity improvements across the business and building AI-powered migration capabilities that are designed to significantly optimise migration efforts," said the firm’s founder Aneesh Reddy Boddu. "We plan to accelerate customer migration to leverage the benefits from our core platform."
He added that Capillary would continue to invest in research and development, go to market initiatives, and inorganic opportunities.
The company raised Rs 345 crore through a fresh issue of shares in its IPO, lower than the Rs 430 crore initially planned. It also halved its offer-for-sale component to 9.2 million shares from 18.3 million shares.
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