Capillary Technologies India Limited – Investor Presentation Summary

Key Operational Highlights

  • Organic Net Revenue Retention (NRR) at 116% (109% constant currency) driven by three expansion levers: platform usage overages and inflationary increases, product upgrades and service upsells, and new brands/geographies/business units
  • TTM New ACV grew by 79% YoY (excluding one large healthcare customer) largely driven by new wins anchored on AI stack - aiRA
  • SessionM acquisition completed on May 1st performing as planned and achieved break-even for Q2/H1
  • Employee strength: 2,044 total employees with functional mix of 47% Technology & Product, 25% Sales & Marketing, 19% Delivery, and 9% Corporate

Key drivers of operational performance:

New product launches (aiRA AI platform), geographic expansion across North America, LATAM and APAC, and successful integration of acquired entities

Segment-wise Performance

Performance primarily reported through revenue streams rather than business segments:

  • Subscription Revenue: ₹4,976.7 Mn (94.3% of total), +55% YoY
  • Other Services (Installation): ₹299.1 Mn (5.6% of total), seasonal fluctuation
  • Campaign Services: ₹4.2 Mn (0.1% of total), reducing trend

Explanation of significant changes in segment performance:

Growth driven by higher recurring revenue mix in new annual contract values and deliberate shift away from one-time service revenue

Financial Highlights

Revenue: ₹5,280.0 Mn (H1 FY27)

EBITDA: ₹915.4 Mn (H1 FY27)

Adjusted EBITDA: ₹888.8 Mn (H1 FY27)

PAT: ₹123.7 Mn (H1 FY27, includes ₹333.9 Mn exceptional loss on cyber fraud)

EPS: Basic EPS ₹1.56, Diluted EPS ₹1.54 (H1 TTM FY27)

Margins: Adjusted EBITDA margin 17% (H1 FY27 vs 11% H1 FY26), PAT margin 2% (H1 FY27)

YoY/QoQ comparison: Q2 FY27 revenue grew 51% YoY to ₹2,713.5 Mn, 6% QoQ growth from Q1 FY27

Drivers of financial performance: Higher-margin revenue from existing customers, operating leverage on non-COGS costs, margin uplift from migrated customers

Comparison to market estimates: Not specified

Key Risks: Cyber fraud incident (₹333.9 Mn provided for pending insurance settlement), client concentration (Top 5: 37% of revenue, Top 10: 48% of revenue)

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not specified

Regional Breakdown: Global reach across multiple regions with enterprise relationships across North America, LATAM and APAC

Balance Sheet Snapshot

Net Debt/Equity: Net cash position of ₹5,291.0 Mn (Cash: ₹5,738.2 Mn, Borrowings: ₹447.2 Mn)

Reserves: Not specified

Current Assets/Liabilities: Not specified

Working Capital/Leverage Metrics: Not specified

Financial Health Insights: Strong cash flow generation with H1 FY27 operating cash flow of ₹1,133.4 Mn

Capex & Cash Flow Health

Capital Expenditure: Not specified

Free Cash Flow: 506% of PAT (H1 FY27)

Operating Cash Flow: ₹1,133.4 Mn (H1 FY27)

Net Debt Movement: Net cash position improved

Investment Rationale: Focus on AI platform development, migration capabilities, and geographic expansion

Strategic & R&D Initiatives

Investments in Innovation: AI-first platform approach with aiRA (AI assistant) and Nudge Framework, GenAI capabilities

Expected impact on growth: AI capabilities increasingly differentiate in enterprise evaluations, driving higher win rate

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

Industry Trends & Business Environment

Macro/Industry Trends: Market recognition as Leader in Loyalty Platforms by Forrester Wave Q4 2025, supporting complex programs including coalition, subscription, and gamified formats

Impact on Company: Customers praise usability, AI enablement, and promotion flexibility, supporting revenue growth

Management Commentary & Growth Outlook

Strategic Outlook: Business on track to deliver FY27 guidance of ₹10,650 Mn revenue and ₹1,720 Mn Adjusted EBITDA

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

Market Share Targets: Not specified

Risks and Opportunities: Continuing to reduce concentration risk by widening logo base and expanding into new verticals while deepening key account relationships

ESG Updates

Not specified

Digital Transformation

AI-powered migration capabilities successfully deployed with first customer migration completed prior to September 30, 2026