SaaS company Capillary Tech slipped into the red in the first quarter of FY27, reporting a net loss of ₹9.6 Cr against a net profit of ₹74.5 Lakh in the previous year’s quarte and ₹43.4 Cr in the preceding March quarter
Operating revenue surged 42% YoY and 34% QoQ to ₹256.6 Cr during the quarter under review
The company incurred an exceptional loss of ₹33.4 Cr during the quarter, adjusting for which its normalised profit stood at ₹25.4 Cr
SaaS company Capillary Tech slipped into the red in the first quarter of FY27, reporting a net loss of ₹9.6 Cr against a net profit of ₹74.5 Lakh in the previous year’s quarter. The company had posted a profit of ₹43.4 Cr in the preceding March quarter.
Operating revenue surged 42% YoY and 34% QoQ to ₹256.6 Cr during the quarter under review. Including other income of ₹5.7 Cr, total income for the quarter stood at ₹262.4 Cr.
Total expenses stood at ₹216.4 Cr in Q1 FY27. The company incurred an exceptional loss of ₹33.4 Cr.
Adjusting for exceptional and one-off items, the company’s normalised profit stood at ₹25.4 Cr during the quarter, up 332% YoY.
The exceptional loss stemmed from a cyber-enabled banking fraud at one of Capillary’s step-down subsidiaries in the Czech Republic.
During the quarter, unauthorised bank transfers amounting to about ₹33.4 Cr (€3.04 Mn) were made from the subsidiary’s bank account, which the company recognised as an exceptional expense in Q1 FY27.
Capillary said banking authorities have since frozen beneficiary accounts holding about ₹4.7 Cr (€0.43 Mn) as part of recovery efforts.
The company has also filed an insurance claim, informed law enforcement agencies and initiated an independent forensic investigation. It added that the final financial impact could change depending on the outcome of the investigation, recovery proceedings and any insurance payouts.
The company’s adjusted EBITDA stood at ₹44 Cr in Q1 FY27, up 132% YoY from ₹19 Cr. Capillary said that the improvement was driven by scale and integration synergies across inorganically acquired businesses led by early optimisation in functions below gross margin.
“We delivered a strong quarter, driven by net retention rate (NRR) expansion, the continued addition of large enterprise clients globally, and the successful closure of the SessionM acquisition from Mastercard,” CEO Aneesh Reddy Boddu said.
On the operational front, Capillary strengthened its AI-powered loyalty platform with the acquisition of CustomerGlu’s software platform and associated intellectual property from Marax AI.
The acquisition added an interactive engagement layer to Capillary’s existing AI-led loyalty stack, allowing enterprise customers to launch gamified experiences such as challenges, streaks and rewards without significant engineering effort.
Shares of Capillary ended today’s trading session 8.13% higher at ₹535.60 on the BSE.
Source: Inc42 - Startups
