Capillary Technologies India Q2 FY27 results: net profit ₹21.92 crore

How did Capillary Technologies India perform in Q2 FY27?

Capillary Technologies India reported consolidated revenue of ₹271.36 crore for Q2 FY27, up from ₹256.64 crore in Q1 FY27. Total income was ₹277.41 crore, while total expenses were ₹257.47 crore. The company reported EBITDA of ₹39.48 crore, with an EBITDA margin of 14.5%, against ₹40.30 crore and a 15.7% margin in the previous quarter. On a standalone basis, revenue was ₹84.26 crore and profit after tax was ₹29.43 crore.

The company reported a net profit of ₹21.92 crore in Q2 FY27, compared with a net loss of ₹9.55 crore in Q1 FY27. Basic EPS was ₹2.75, compared with EPS of -₹1.2 in the previous quarter. Profit before tax was ₹19.94 crore, while there was no exceptional item in Q2 FY27; Q1 FY27 included an exceptional charge of ₹33.39 crore. The filing also reported H1 FY27 revenue of ₹528.0 crore, total income of ₹539.77 crore and profit after tax of ₹12.36 crore.

What do the balance sheet and cash flow show?

As on 30 September 2026, total assets were ₹1,571.28 crore, compared with ₹1,300.24 crore as on 31 March 2026. Total equity was ₹1,059.32 crore, compared with ₹1,023.49 crore. Borrowings were ₹44.72 crore at both balance-sheet dates, while cash and cash equivalents were ₹67.46 crore, compared with ₹35.81 crore. Trade receivables were ₹239.98 crore and trade payables were ₹90.07 crore.

For the first half of FY27, operating cash flow was ₹79.96 crore, investing cash flow was negative ₹50.61 crore and financing cash flow was negative ₹12.91 crore. Capital expenditure was ₹17.35 crore. The filing data provided does not include a year-earlier first-half cash-flow comparison.

Inventories were ₹0 crore at both 30 September 2026 and 31 March 2026. The balance-sheet figures compare the Q2 FY27 position with the previous balance-sheet date of 31 March 2026.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, and took on record the statutory auditors’ limited review report. The board also approved Deloitte Touche Tohmatsu India LLP as internal auditor in place of Protiviti India Member Private Limited, effective from 2 November 2026. The company said the change was made to engage a firm with a global network covering its expanding scale and international operations.

The company also filed an intimation that Capillary Technologies (Shanghai) Co., Ltd. had completed voluntary deregistration and ceased to exist as a step-down subsidiary. The filing said the entity was not carrying on business operations, was not a material subsidiary and its cessation had no impact on the group’s business operations, revenue or financial position. The same-day investor presentation was filed for the quarter and half year ended 30 September 2026. No dividend or fund-raising matter was stated in the provided same-day filings.

What did Capillary Technologies India's management say?

Management maintained its guidance for approximately 20% organic growth over the next few quarters despite 23% organic growth in the first half of FY27. It said existing FY27 guidance was expected to be met or slightly exceeded and retained Ira’s US$10m ARR objective for FY27-end. Management also cited an Ira pipeline of US$8-9m, while the company’s presentation reported FY27 Q2 organic NRR of 116% and constant-currency NRR of 109%.

Management said SessionM reached break-even in Q1 and Q2 and that server costs were being optimised. It targeted SessionM server costs falling from approximately 50% to 25% of revenue by March/April 2027, with full customer migration expected over two to three years and the bulk in FY28 and FY29. For Cognizant, management said all customers were expected to migrate by September 2027.

Management said new ACV excluding the large healthcare win rose about 79% year on year at constant currency, and that Experience Plus had been adopted by three customers, with nine proposals. Management identified risks including continued SessionM server costs during migration, migration discounts and roughly 10% acquired-platform churn reducing revenue retention to 66-70%, difficulty replicating the large healthcare contract and possible non-conversion of Ira’s US$8-9m pipeline.

How did Capillary Technologies India shares react?

The stock moved lower in the first 30 minutes after the filing, falling 2.1% after 5 minutes, 0.9% after 15 minutes and 3.1% after 30 minutes. On the reaction day, it closed up 0.2% from the previous close of ₹504.00. By the next day’s close, it was up 1.2% from that pre-results close. The industry median moved up 1.9% on the reaction day and 2.3% by the next day’s close, so Capillary Technologies India underperformed the industry by 1.7 percentage points and 1.1 percentage points, respectively.

Earlier results-day moves were up 8.1% on 4 August 2026, up 4.7% on 6 May 2026 and down 1.1% on 6 February 2026. The provided reaction data does not include a five-session move.

How did other Software Products companies do?

Ten Software Products companies were compared for the quarter, and their median revenue growth was 10.2%. The number of peers growing faster than Capillary Technologies India and the number growing slower are not provided in the available peer data, so they cannot be stated without adding figures outside the source.

Eight of the 14 peers for which profit was compared reported higher profit. The peer comparison was as on 4 November 2026.