Bengaluru-based SaaS company Capillary Technologies reported a consolidated net profit of ₹21.92 crore in Q2 FY27, compared with Rs 28.8 lakh in the year-ago quarter. Its operating revenue increased 51% YoY to ₹271.35 crore, supported by enterprise customer growth and contributions from its recent acquisition, SessionM.
Capillary Technologies has reported a great improvement in its financial performance for the September quarter, with revenue growth accompanied by a sharp rise in profitability.
According to the company's financial results announced on November 2, 2026, operating revenue stood at Rs 271.35 crore in Q2 FY27, against Rs 179.33 crore in the corresponding quarter last year.
On a sequential basis, revenue increased 5.7% from Rs 256.64 crore in Q1 FY27. The company also returned to profitability after reporting a net loss of Rs 9.55 crore in the previous quarter.
The latest results highlight improving operating performance as Capillary expands its enterprise software business across international markets.
Adjusted EBITDA More Than Doubles
Alongside revenue growth, Capillary recorded a significant improvement in its adjusted operating earnings.
Adjusted EBITDA increased 103% YoY to Rs 44.86 crore in Q2 FY27, compared with Rs 22.08 crore in the same quarter last year. Sequentially, it grew around 2% from ₹44.02 crore in Q1 FY27.
The adjusted EBITDA margin stood at approximately 16.5%, compared with 12.3% a year earlier.
Net profit increased to Rs 21.92 crore from Rs 28.8 lakh in Q2 FY26, marking a substantial improvement in the company's bottom line.
However, the half-year numbers provide a broader picture. For the first six months of FY27, Capillary reported operating revenue of ₹528 crore, up 47% YoY, while net profit stood at ₹12.37 crore.
This reflects the impact of the loss recorded in the June quarter despite the strong recovery in September.
SessionM Acquisition Adds to Growth Momentum
Capillary's latest performance comes amid its efforts to expand its global customer engagement and loyalty management business.
The company said revenue growth was supported by expansion across existing customers, higher contributions from new annual contract value (ACV) and the inclusion of revenue from SessionM, which it acquired from Mastercard in May 2026.
Management also highlighted that new ACV wins increased 79% year-on-year on a trailing 12-month basis, excluding an exceptional contract value associated with its entry into the healthcare vertical.
The company has also completed its first customer migration using its AI-powered migration technology, aimed at moving customers from acquired platforms onto Capillary's technology stack more efficiently.
What Does Capillary Technologies Do?
Founded in 2012, Capillary Technologies provides AI-powered, cloud-based software solutions that help businesses manage customer loyalty, engagement, rewards and consumer data.
Its platform enables enterprise brands to run loyalty programmes, understand customer behaviour and deliver personalised experiences across multiple channels.
The company serves 152 customers across 55 countries, according to its latest corporate results announcement.
For Indian SaaS businesses, Capillary's September-quarter performance highlights the importance of combining international expansion with improving operating efficiency.
While the acquisition-led revenue contribution and higher enterprise contract wins have supported growth, sustaining profitability and delivering organic growth will remain important as the company integrates acquired businesses and scales its AI capabilities.
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