Capillary Technology Posts Rs 184 Cr Revenue in Q3 FY26; Profit Falls 20%
•February 6, 2026
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Companies Mentioned
Why It Matters
The results highlight Capillary’s ability to grow revenue in a competitive SaaS market while grappling with rising cost structure, a key signal for investors evaluating post‑IPO sustainability.
Key Takeaways
- •Revenue rose 16% YoY to Rs 184 crore.
- •Profit fell 20% to Rs 8 crore.
- •Employee benefits cost 22% increase, half of expenses.
- •Market cap reached Rs 4,857 crore after debut.
- •Stock rose to Rs 612, trading above issue price.
Pulse Analysis
Capillary Technologies’ third‑quarter FY26 earnings illustrate a classic growth‑versus‑profitability trade‑off common among fast‑scaling SaaS firms. Revenue climbed to Rs 184 crore, driven by expanding loyalty and CRM contracts across 390 brands in 46 countries. However, the profit margin contracted as employee benefit expenses—now Rs 90 crore—rose 22% and consumed roughly 50% of total outlays. This cost profile reflects the company’s aggressive talent acquisition strategy, a necessary investment to sustain product innovation and global customer support, but it also pressures bottom‑line performance.
The Indian SaaS sector continues to attract capital, with enterprises seeking cloud‑native customer engagement platforms to boost retention. Capillary’s focus on loyalty and omnichannel CRM positions it well against rivals such as Zoho and Freshworks, especially as retailers and FMCG firms accelerate digital transformation. The 22% nine‑month revenue growth to Rs 543 crore signals robust demand, yet the firm must balance scaling costs with margin improvement to compete on both price and functionality. Analysts are watching whether Capillary can leverage its international footprint to diversify revenue streams and achieve economies of scale.
Capillary’s market debut was modest, listing at a 3% discount to the issue price and closing the day at Rs 612, lifting its market cap to Rs 4,857 crore. The post‑IPO price action suggests cautious optimism among investors, who are weighing the company’s top‑line traction against its widening expense base. Going forward, sustained revenue acceleration, disciplined cost management, and strategic upselling to existing clients will be critical for the firm to justify its valuation and deliver shareholder value.
Capillary Technology posts Rs 184 Cr revenue in Q3 FY26; profit falls 20%
SaaS firm Capillary Technologies has announced its financial results for Q3 FY26 after debuting on Indian stock exchanges last quarter.
The firm’s revenue increased by 16% during the third quarter, while its profit fell to single digit in the quarter.
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New Update
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SaaS firm Capillary Technologies has announced its financial results for Q3 FY26 after debuting on Indian stock exchanges last quarter. The firm’s revenue increased by 16% during the third quarter, while its profit fell to single digit in the quarter.
The company’s revenue from operations increased to Rs 184 crore in Q3 FY26 from Rs 159 crore in the same quarter last year, according to its financial statement sourced from NSE.
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Founded in 2008, Capillary provides cloud‑native loyalty, CRM, and customer engagement solutions to over 390 brands across 46 countries.
Other income contributed an additional Rs 4 crore, which drove its total income of Rs 188 crore for the quarter. For the nine‑month period ending December 2025, the firm’s revenue increased 22% to Rs 543 crore from Rs 446 crore a year earlier.
The company’s employee benefit expense accounted for half of the total cost. This expense rose 22% to Rs 90 crore in Q3 FY26 from Rs 74 crore in Q3 FY25. Its software and server charges stood at Rs 33 crore for the quarter. Overall, the company’s total expense rose 19% to Rs 179.5 crore in Q3 FY26 from Rs 150.5 crore in Q3 FY25.
Capillary Technologies’ profit decreased by 20% to Rs 8 crore in Q3 FY26 from Rs 10 crore in Q3 FY25. On a sequential basis, the company’s profit spiked from Rs 30 lakh in Q2 FY26.
Capillary Technologies made a muted debut on the bourses, listing at Rs 560 per share on the BSE, a 3% discount to its issue price of Rs 577. On the NSE, the stock opened slightly higher at Rs 571.9.
At the end of today’s trading session, Capillary Technologies’ share price stood at Rs 612, giving the firm a total market capitalization of Rs 4,857 crore ($535 million).
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