Capillary Technologies India Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Capillary Technologies India Ltd filed with BSE on 10 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Capillary Technologies reported Q1 FY27 revenue of INR256 crores, up 43% year-on-year, with EBITDA of INR44 crores, a 132% improvement over the prior year quarter. Management attributed growth to organic net revenue retention of 111%, new customer wins, and the SessionM acquisition completed on May 1st. The company also reported a normalized PAT of INR25 crores after adjusting for a one-time cyber-fraud loss and a deferred tax liability.
Numbers mentioned
Revenue: INR256 crores (Q1 FY27)
p. 8
“We closed the quarter at INR256 crores revenue, which is 43% growth over Q1 last year.”
Anant Choubey, page 8 of the filed PDF · View the filing
EBITDA: INR44 crores (Q1 FY27)
p. 8
“the EBITDA for Q1 stands at INR44 crores that's a 132% improvement over Q1 last year.”
Anant Choubey, page 8 of the filed PDF · View the filing
PAT: -INR9.5 crores (Q1 FY27)
p. 8
“PAT stands at -INR9.5 crores for the quarter.”
Anant Choubey, page 8 of the filed PDF · View the filing
Normalized PAT: INR25 crores (Q1 FY27)
p. 8
“the normalized PAT for the quarter stands at INR25 crores.”
Anant Choubey, page 8 of the filed PDF · View the filing
ARR: INR1,026 crores (Q1 FY27)
p. 8
“It has consistently grown from INR608 crores in FY25 to INR765 crores in FY26 to INR1,026 crores in Q1 FY27.”
Anant Choubey, page 8 of the filed PDF · View the filing
Net Revenue Retention: 111% (Q1 FY27)
p. 4
“I think, on NRR, we've had roughly a 111% expansion from our, existing customer cohort.”
Aneesh Reddy, page 4 of the filed PDF · View the filing
Net Revenue Retention excluding largest customer: 116% (Q1 FY27)
p. 4
“if you take them out, then the NRR has actually been 116%”
Aneesh Reddy, page 4 of the filed PDF · View the filing
New ACV growth (trailing 12 months, ex-large healthcare customer): 75% (TTM)
p. 5
“our new ACV, which is the new annual recurring contract value that we've signed up, has grown about 75% year-on-year, excluding that one large healthcare customer that we had won the year before.”
Aneesh Reddy, page 5 of the filed PDF · View the filing
Trailing 12 month new ACV: INR92 crores (TTM Q1 FY27)
p. 8
“Now, trailing 12 months new ACV, if we exclude one large healthcare customer, we see a growth of about 75% year-on-year to about INR92 crores.”
Anant Choubey, page 8 of the filed PDF · View the filing
Organic gross margin: 75% (Q1 FY27)
p. 5
“Our organic gross margins are upwards of 75% now.”
Aneesh Reddy, page 5 of the filed PDF · View the filing
Subscription gross margin (overall): 66% (Q1 FY27)
p. 5
“Our subscription gross margin for the entire business, including the organic part and the inorganic part, is today at 66%.”
Aneesh Reddy, page 5 of the filed PDF · View the filing
Organic revenue growth: 17% (Q1 FY27 year-on-year)
p. 13
“Now, if we remove that and just look at remove that, as well as Kognitiv, like any of the inorganic revenue, the organic growth is at 17% versus same time last year.”
Anant Choubey, page 13 of the filed PDF · View the filing
Currency benefit to growth: 6% (Q1 FY27 year-on-year)
p. 13
“The other question you asked is, is the benefits through currency, that's about that's about 6% on it.”
Anant Choubey, page 13 of the filed PDF · View the filing
aiRA ARR run rate: $2 million to $2.5 million (current)
p. 10
“we are right now, I would say at like $2 million, $2.5 million in terms of revenue run rates on aiRA.”
Aneesh Reddy, page 10 of the filed PDF · View the filing
SessionM acquired ARR: $32 million (at acquisition)
p. 7
“we had projected about a $32 million ARR of customer contracts that we had acquired through this.”
Aneesh Reddy, page 7 of the filed PDF · View the filing
SessionM net acquisition cost: INR17 crores (at closing)
p. 7
“Net of all the adjustment, we've actually paid about INR17-odd crores for buying the business”
Aneesh Reddy, page 7 of the filed PDF · View the filing
Depreciation and amortization: INR20 crores (Q1 FY27)
p. 8
“depreciation and amortization is at INR20 crores for Q1 this year, which is up from INR17 crores for same time last year.”
Anant Choubey, page 8 of the filed PDF · View the filing
Rule of 40 score: 60 (Q1 FY27)
p. 8
“On this metric, Capillary today stands at 60, which is 43% growth and 17% EBITDA.”
Anant Choubey, page 8 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
aiRA revenue contribution — 5% to 10% of revenue · this year
stated as an aspiration by Aneesh Reddy
p. 10
“I think my hope is that we'll try and get to probably at least 5% to 10% of our revenue coming from aiRA this year.”
Aneesh Reddy, page 10 of the filed PDF · View the filing
Full-year organic growth — 20% to 23% · FY27
stated firmly by Aneesh Reddy
p. 18
“So even this year, we will do roughly a 20% - 23% organic growth this year.”
Aneesh Reddy, page 18 of the filed PDF · View the filing
Full-year organic growth including currency impact — 17% · FY27
stated firmly by Aneesh Reddy
p. 18
“So, you will see about a 17%-odd full-year organic growth for the business.”
Aneesh Reddy, page 18 of the filed PDF · View the filing
Kognitiv customer migration completion — September 2027
stated as an aspiration by Aneesh Reddy
p. 11
“the goal is that can we can we close, like can we get the upgrades done by latest September of next year, right, 2027.”
Aneesh Reddy, page 11 of the filed PDF · View the filing
First Kognitiv customer migration — September 1st
stated firmly by Aneesh Reddy
p. 11
“I think the first customer will fully migrate on September 1st.”
Aneesh Reddy, page 11 of the filed PDF · View the filing
SessionM EBITDA margin trajectory — 15% in a year, then 35%-40% · next two years
stated as an aspiration by Aneesh Reddy
p. 23
“my gut is the journey from roughly a break-even now will be to a 15%-odd in a year, and then over another year, we will get to that 35%-40% margin.”
Aneesh Reddy, page 23 of the filed PDF · View the filing
New ACV growth for full year — at least 30%-40% more than last year · FY27
stated as an aspiration by Aneesh Reddy
p. 23
“we will definitely do like at least 30%-40% more OV more new ACV than last year, for sure.”
Aneesh Reddy, page 23 of the filed PDF · View the filing
Full-year revenue and EBITDA guidance — INR1,065 crores revenue and INR172 crores EBITDA · FY27
stated firmly by Aneesh Reddy
p. 24
“We will definitely beat our INR1,065 crores and revenue and INR172 crores number.”
Aneesh Reddy, page 24 of the filed PDF · View the filing
ESOP expenses — 1% to 2% of top line · this year and going forward
stated firmly by Anant Choubey
p. 14
“We would typically like we look to maintain it between 1% to 2% of the top line, and that's been the trend, we are looking to continuing on that.”
Anant Choubey, page 14 of the filed PDF · View the filing
ESOP expense amount — INR12 crores to INR15 crores · this year
stated firmly by Anant Choubey
p. 14
“our ESOP expenses for this year would be about INR12 crores to INR15 crores”
Anant Choubey, page 14 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Migration will not start until end of this year or early next year, though a few customers are being fast-tracked; margin gains from operational efficiencies are expected before any migration.
Answered by Aneesh Reddy
Asked by Vinay Menon: What percentage of SessionM clients have migrated and what run rate is expected across FY27?
p. 9
“So, we will not start any SessionM migrations till probably end of this year, early next year, right.”
Aneesh Reddy, page 9 of the filed PDF · View the filing
aiRA is at $2-2.5 million in ARR with a target of 5-10% of revenue this year, subject to enterprise budget cycles.
Answered by Aneesh Reddy
Asked by Vinay Menon: What is the aiRA monthly run rate and how will it scale in FY27?
p. 10
“But, look, it is a new AI product. The adoption is very good.”
Aneesh Reddy, page 10 of the filed PDF · View the filing
The first migration goes live September 1st using an AI platform, with the full ~16-17 customer base expected to migrate over 18-24 months and deliver additional EBITDA.
Answered by Aneesh Reddy
Asked by Shaurya Yadav: What is the status of the Kognitiv customer migration and expected incremental margins?
p. 11
“So, then you could accelerate the next 10 in probably like a 2-3 quarter time frame.”
Aneesh Reddy, page 11 of the filed PDF · View the filing
No customer or employee data was exposed; it was a banking fraud affecting a subsidiary's bank account.
Answered by Anant Choubey
Asked by Shaurya Yadav: Was there any customer or employee data breach from the cyber fraud incident?
p. 12
“No, there was no exposure to any customer or employee data. It was just it was a banking fraud where the bank account of one of our subsidiaries was impacted.”
Anant Choubey, page 12 of the filed PDF · View the filing
Yes it is covered, but the amount and timing of recovery are still being determined with the insurance provider.
Answered by Anant Choubey
Asked by Jayesh Sagar: Is the fraud loss fully covered by insurance?
p. 12
“So, in short, yes, it is covered by insurance, but how much and when it would be recovered, I think that we don't have clarity on”
Anant Choubey, page 12 of the filed PDF · View the filing
No, the ACV figure excludes SessionM.
Answered by Aneesh Reddy
Asked by Rishi Jhunjhunwala: Does the reported ACV include SessionM contribution?
p. 13
“It doesn't include any SessionM, Rishi.”
Aneesh Reddy, page 13 of the filed PDF · View the filing
There is a natural hedge since roughly half of cash is held in USD given the US accounts for 60% of business.
Answered by Anant Choubey
Asked by Rishi Jhunjhunwala: Does the company hedge currency exposure?
p. 14
“So, if you look at half of our cash actually is in USD and about half is in INR.”
Anant Choubey, page 14 of the filed PDF · View the filing
Full-year organic growth including currency impact is expected at about 17%, and upsell/cross-sell does not hamper economics since migrated revenues retain similar NRR.
Answered by Aneesh Reddy
Asked by Sanjay Kumar Elangovan: How should organic growth be understood in a year without acquisitions, and does upsell/cross-sell affect margin economics?
p. 18
“So even this year, we will do roughly a 20% - 23% organic growth this year.”
Aneesh Reddy, page 18 of the filed PDF · View the filing
Management confirmed it will beat existing guidance figures but declined to revise the numbers at this stage.
Answered by Aneesh Reddy
Asked by Kumar Saurabh: Will the company revise its full-year guidance given strong performance?
p. 24
“I don't think we want to revise any guidance right now.”
Aneesh Reddy, page 24 of the filed PDF · View the filing
Risks flagged
Cyber-banking fraud incident causing a one-time exceptional loss
p. 8
“Now, adjusting this for one-time exceptional loss which happened due to a cyber-fraud incident and a one-time deferred tax liability, the normalized PAT for the quarter stands at INR25 crores.”
Anant Choubey, page 8 of the filed PDF · View the filing
Enterprise customers have long, cautious budgeting and decision cycles affecting AI product adoption speed
p. 10
“I think the thing that we have to deal with here is that these are all large enterprises we work with, so they really are very this thing about their budgeting cycles..”
Aneesh Reddy, page 10 of the filed PDF · View the filing
Large enterprises are risk-averse, slowing AI adoption generally
p. 17
“like even today enterprise AI adoption is abysmal, because it's risky.”
Aneesh Reddy, page 17 of the filed PDF · View the filing
Loyalty market is highly competitive, described as a red ocean
p. 18
“Yeah, so Sanjay, the loyalty space is a red ocean, right.”
Aneesh Reddy, page 18 of the filed PDF · View the filing
Uncertainty on timing and amount of insurance recovery from the fraud incident
p. 12
“So, in short, yes, it is covered by insurance, but how much and when it would be recovered, I think that we don't have clarity on, so that work is in progress at this point in time.”
Anant Choubey, page 12 of the filed PDF · View the filing
SessionM's server infrastructure was poorly architected, requiring cost remediation
p. 15
“At SessionM, their server costs are 50% of revenue. Because it's just a badly architected platform, right.”
Aneesh Reddy, page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.