Capillary Technologies India Limited – Investor Presentation Summary

Key Operational Highlights

  • Global market leader in loyalty and engagement management with presence across multiple regions
  • Named a Leader in The Forrester Wave™: Loyalty Platforms, Q4 2025 with 5/5 score in 22 out of 27 criteria
  • Customer base now includes 25 Fortune 500 companies
  • Closed SessionM acquisition successfully on May 1, 2026, strengthening North America, LATAM footprint and adding to APAC portfolio
  • Completed CustomerGlu acqui-hire, rebranded as Experience+ by Capillary as extension of Loyalty+

Key drivers of operational performance:

  • AI-first platform approach with genAI capabilities including aiRA (AI assistant) and Nudge Framework
  • Three growth levers: NRR expansion, new customer wins, and M&A activities
  • Platform supports complex programs including coalition, subscription, and gamified formats

Financial Highlights

Revenue: ₹2,566.4 Mn

Adjusted EBITDA: ₹440.2 Mn

PAT: (₹95.5) Mn (including exceptional items)

Normalised PAT: ₹254.4 Mn

EPS: Not Specified

Margins: Adjusted EBITDA margin 17% (Q1 FY26: 11%), Normalised PAT margin 10%

YoY comparison: Revenue growth 43% YoY, Adjusted EBITDA growth 132% YoY

QoQ comparison: Revenue growth 34% QoQ, Adjusted EBITDA growth 23% QoQ

Drivers of financial performance:

  • Subscription revenue grew 50% YoY to ₹2,425 Mn in Q1 FY27
  • Organic revenue up 17% YoY to ₹1,551 Mn
  • Improved margins through NRR expansion and operating leverage on non-COGS costs
  • Non-COGS costs increased by only 32% YoY compared to 43% revenue growth

Key Risks:

  • Cyber fraud incident in SessionM Czech Republic s.r.o. resulting in ₹333.9 Mn exceptional loss
  • Raw material price fluctuations and regulatory risks not specified

Revenue Stream Breakdown

Subscription Revenue: ₹2,424.9 Mn (94.5% of total)

Other Services (Installation): ₹122.4 Mn (4.8% of total)

Campaign Services: ₹19.2 Mn (0.7% of total)

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified

Regional Breakdown: Not Specified

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: Not Specified

Current Assets/Liabilities: Not Specified

Working Capital/Leverage Metrics: Not Specified

Financial Health Insights:

  • Capital Employed: ₹5,986.2 Mn as of Q1 FY27
  • Invested Capital: ₹5,986.2 Mn as of Q1 FY27
  • Return on Capital Employed: 5.2% in Q1 FY27
  • Cash Return on Invested Capital: 23.2% in Q1 FY27

Capex & Cash Flow Health

Capital Expenditure: Not Specified

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified

Investment Rationale:

  • Focus on capacity expansion and technology upgrades through AI/ML platform development
  • Platform migration of acquired customers to achieve organic-level efficiencies

Strategic & R&D Initiatives

Investments in Innovation: AI/ML-powered platform capturing data and creating customer single view, AI-led technology for rapid platform upgrade

Expected impact on growth: AI platform multiplies what the platform can do, shifting marketing from segment to individual level

Strategic Rationale: Expanding into high-growth markets through acquisitions, reducing operational costs through platform integration

Industry Trends & Business Environment

Macro/Industry Trends: Growing demand for loyalty and engagement management platforms, increasing adoption of AI in marketing

Impact on Company: Enabling expansion into new verticals including healthcare, travel, automobile, hospitality, and food & beverages

Management Commentary & Growth Outlook

Strategic Outlook: Business growth momentum remains robust with dual engine of organic and inorganic growth

FY Guidance: ₹10,650 Mn revenue and ₹1,720 Mn Adjusted EBITDA for FY27

Market Share Targets: Not Specified

Risks and Opportunities: Cyber fraud incident recovery proceedings ongoing, insurance claim process expected to conclude in 5-6 months

ESG Updates

Not Specified

Digital Transformation

AI-powered platform with three layers: System of Record (loyalty platform), System of Intelligence (aiRA Analytics Agent), and System of Actions (aiRA Action Agents)