SaaS firm Capillary Technologies announced its financial results for Q1 FY27 today, reporting a 42.6% year-on-year increase in revenue. However, the company slipped into losses during the quarter after reporting a Rs 33.4 crore exceptional loss related to acyber-enabled banking fraudat its Czech Republic subsidiary. The Bengaluru-based company’s revenue from operations increased to Rs 256.6 crore in Q1 FY27 from Rs 179.9 crore in the same quarter last year, according to its financial statement sourced from BSE. Founded in 2008 by Aneesh Reddy, Krishna Mehra, and Ajay Modani, Capillary Technologies offers cloud-native loyalty, CRM, and customer engagement solutions to more than 465 brands across 53 countries. Its clientele includes Tata Digital, Aditya Birla Fashion and Retail, and Abbott Laboratories. The company earned Rs 242.4 crore from subscription services, which contributed 94.5% of its operating revenue, while installation and campaign services brought in the remaining Rs 12.2 crore. It also reported Rs 5.7 crore as other income, which took its total income to Rs 262.3 crore in Q1 FY27. On a quarterly basis, the firm’s operating revenue grew 34% fromRs 191 crorein Q4 FY26. Employee benefits remained the company's largest expense, rising 40% year-on-year to Rs 119.8 crore and accounting for more than half of its total expenditure. Software and server charges stood at Rs 45 crore, while professional and consultancy fees came in at Rs 34 crore. Overall, total expenses increased 31.6% to Rs 237.5 crore during the quarter. In the end, the company slipped into the red during the quarter due to a Rs 33.4 crore exceptional charge related to a cyber-enabled banking fraud at its Czech Republic subsidiary. Its adjusted EBITDA more than doubled to Rs 44 crore. As of 2:10 PM today, shares of Capillary Technologies rose over 15% to Rs 571, taking its total market capitalization to Rs 4,539 crore (about $477 million). Bareback Media has recently raised funding from a group of investors. Some of the investors may directly or indirectly be involved in a competing business or might be associated with other companies we might write about. This shall, however, not influence our reporting or coverage in any manner whatsoever. You may find a list of our investorshere.
