Capillary Technologies India Limited — Q3 FY26
Capillary Technologies reported Q3 FY26 revenue of 184 crore, up 16% YoY, with adjusted EBITDA of 30 crore (16.4% margin).
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
90%Questions answered0Evaded / deflected10Questions audited
Answered
High priority
Impact of AI developments on Capillary's offerings
Asked by Rishi Junjunwala, Capital
Management directly addressed the question with a detailed breakdown of AI impact and insulation factors.
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Question
what will be helpful is to get some color around the noise that we are seeing on the last one week on AI... how do we see that in the overall scheme of things and whether our offerings can potentially get either impacted or augmented
Anish (CEO)
I think all enterprise software is not equal... we tend to be more a system of record... we are fairly insulated... our pricing is linked to number of transactions... loyalty is very niche... a lot of proprietary data
Answered
High priority
Impact of US healthcare payer pressure on Capillary
Asked by Rishi Junjunwala, Capital
Management clearly stated no exposure to the pressured segments and provided positive growth specifics.
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Question
given that you also cater to one of the large US healthcare payer... can you give some color if that impacts you at all and how do we think about growth in that account
Anish (CEO)
we don't have any exposure to the Medicare and the Medicaid books of business... we've had some major go lives happen on the 1st of Jan this year... member base for the specific customers actually gone up by roughly 50%
Answered
High priority
Reason for sharper increase in DNA expense and impact on EBIT margins
Asked by Rishi Junjunwala, Capital
Management provided specific numbers and attributed the increase to the acquisition, directly answering the question.
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Question
there seems to be a sharper increase in our DNA expense and as a result EBIT margins have not necessarily expanded at the same pace. can you elaborate how much of that is driven by amortizable intangibles from acquisition versus tech costs
Anand (CFO)
our DNA for Q3 last year versus Q3 this year has gone from about 13 crores to about 19 crores majority of this increase is actually coming from the acquisition that we did in May this year called cognitive
Answered
Medium priority
Typical 5-year customer journey and how AI changes it
Asked by Sri Nasu K.
Management described the customer journey in detail and explained how AI opens new opportunities.
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Question
could you tell us how a typical a 5-year customer journey how it starts and how actually you're converting them into NR... how it is changing with current AI developments
Anish (CEO)
most of our customers are fortune 2000 type companies... they tend to run an RFP... once you sign someone up it takes 3 to 7 months to go live... with AI we are able to get into analytics insights... we quite excited about that
Answered
High priority
Whether Forester reports translate to wins against global majors
Asked by Sri Nasu K.
Management provided specific order book growth numbers and confirmed positive impact.
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Question
your forester web reports says highest on both current offerings as well as strategy. So is it actually translating to win deals against global majors?
Anish (CEO)
our new order book has gone up from 53 crores to 66 crores in the same period of the 9 months... there's definitely a positive impact of leads and some of these conversations
Answered
High priority
Usage of AI workflows in install base and monetization plans
Asked by Sri Nasu K.
Management gave a specific number of customers using IRA and confirmed monetization plans.
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Question
how much of your current install base is actively using this AI kind of workflows and do you intend to monetize this separately or is it actually planning to upsell to the existing customers
Anish (CEO)
we will obviously monetize this actively but we'll stay in the loyalty space only... out of our 115 customers today we at least have 10 or 15 who are in a P or a post PC type place with IRA now
Answered
Medium priority
Revenue model: subscription or GMV
Asked by Hal Sani, Pioner Invest Corp
Management clearly stated it is subscription-based and not GMV.
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Question
I would like to understand the categories loyalty platform business model so specifically are this revenue being monetized from subscription or GM model
Anish (CEO)
it's a subscription model... customers sign up with us for three five more years... it's an annual recurring subscription fee... it's not a GMV model at all
Answered
Medium priority
How Capillary is a system of record and defensibility against AI agents
Asked by Nikil Chri
Management explained the system of record nature with specific examples of data ownership.
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Question
I just wanted to understand how are we a system of record here... what must retain with us so as to remain the system of record
Anish (CEO)
the entire ledger for all the earn and burn... that entire ledger like a bank ends up sitting on our side... the customer profile also is kind of built on us and sits with us
Partial answer
Medium priority
Scaling of fixed costs over time
Asked by Rohan Npal
Management gave historical context but did not provide a specific forward-looking growth rate for costs.
no specific growth rate givendeferred to inflation plus a few points
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Question
since 60% of your cost is fixed not later revenue how should one think about the scaling of that cost over time like maybe near-term and medium-term
Anand (CFO)
60% of the cost is non COGS which is largely towards tech and product and sales and marketing... this cost is growing at a much lower rate... the EBITDAs have moved from minus 4% to about 12% in FY25 and has continued to improve
Partial answer
High priority
IRA monetization potential and impact on NRR
Asked by Rohan Npal
Management acknowledged monetization plans but provided no concrete numbers or timelines.
deferred to future quartersno specific pricing details
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Question
how do you see IRA in terms of its potential to monetize within each user? have you thought about monetization or is it too early?
Anish (CEO)
IRA is a force multiplier on improving our win rates... we've started experimenting with pricing... it's still early days hopefully in a couple of quarters we'll know the right way to price this
Answered
Low priority
Difference between Capillary and agency competitors
Asked by Sumuk
Management clearly explained the difference between agency model and software model.
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Question
you mentioned about agencies and they are your competitors. So can you please explain how are they different from what you guys do?
Anish (CEO)
the primary model tends to be that we will charge you for x number of people to run this program... while ours is more you're buying a software... each program is run by 30 people very people heavy while you can do a lot with software
Answered
Low priority
Problem points Capillary solves for an FMCG company
Asked by Sumuk
Management described the full stack of solutions including front-end and analytics.
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Question
what are the problem points that you're going to solve for them? Is it like you're going to nudge the customers to come in... or you are just a guy who maintains the ledger?
Anish (CEO)
the front-end interface... are also extensions that come from the capillary platform... we allow retargeting those customers... there's some amount of targeting you can do on the platform