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Revenue
₹184 Cr
verified against source
Revenue YoY
16%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Capillary Technologies reported Q3 FY26 revenue of 184 crore, up 16% YoY, with adjusted EBITDA of 30 crore (16.4% margin). PAT was 8 crore, impacted by one-time costs of 3.6 crore. Growth was driven by strong net retention (NRR 111% overall, 115% organic), new order book of 66 crore in 9M (up from 53 crore YoY), and M&A. Management highlighted AI product IRA as a key differentiator, with 10-15 customers in pilot. Guidance points to continued operating leverage as non-COGS costs grow slower than revenue. Risk: potential disruption from AI agents in enterprise software, though management believes their system-of-record positioning and outcome-based pricing provide insulation.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects non-COGS costs (60% of total) to grow at inflation plus a few points, while revenue grows faster, driving margin expansion.
- IRA is currently in free pilot with 10-15 customers; management expects to start billing for annual licenses linked to usage in a couple of quarters.
- Management has several letters of intent for acquisitions, continuing the strategy of buying competitors at 0.5-1.5x revenue and migrating customers.
Risks flagged
- New AI agents (e.g., Claude) could replace workflow and intelligence systems, potentially impacting Capillary's expansion into adjacent spaces.
- Concerns about rate pressures in US healthcare could affect a top-5 client, though management clarified no exposure to Medicare/Medicaid and noted member growth of ~50%.
- D&A increased from 13 crore to 19 crore YoY due to the cognitive acquisition, pressuring EBIT margins despite EBITDA expansion.
Key quotes
- If you needed 30 people at an agency to run a loyalty program, you will need five on Capillary.
- Our pricing is linked to number of transactions or number of customers or number of members... slightly more outcome linked. And that insulates us from any of these seat-based pricing shocks.
- The business generates more cash... 9 months operating cash flow stands at about 101 crore... ratio stands at about 142%.
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