Negative other income pushed Capillary to a Q1FY27 net loss
Operating profit was positive, but a Rs 27.68 cr loss under other income and Rs 20.04 cr depreciation pulled profit before tax into the red.
Filed 04 Aug 2026, 13:59 IST · Capillary Technologies India Ltd (CAPILLARY)
Key takeaways
- Capillary reported a consolidated net loss of Rs 9.55 cr despite operating profit of Rs 40.3 cr in Q1FY27.
- Negative other income of Rs 27.68 cr and depreciation of Rs 20.04 cr more than offset operating profit.
- The 15.7% operating margin was 2.05 percentage points below the 17.75% median for 25 reported IT peers.
Price around the results
Operating profit did not translate into net profit
Capillary's consolidated operating profit of Rs 40.3 cr did not cover the Rs 27.68 cr negative other-income line and Rs 20.04 cr depreciation charge. Profit before tax was therefore a loss of Rs 8.59 cr, followed by a net loss of Rs 9.55 cr and EPS of -Rs 1.20. The reported tax rate was -11.22%, reflecting a Rs 0.96 cr tax charge rather than a tax benefit.
Q1 margin trails the reported IT peer median
The company's 15.7% operating margin was 2.05 percentage points below the 17.75% median among 25 IT peers that had reported the quarter. Capillary ranked fifth from the bottom on this measure. With no sequential or year-on-year comparison supplied, the main read-through is the gap to the sector group rather than a directional margin trend.
SessionM adds footprint while management retains FY27 guidance
Management said Capillary remains on track for FY27 revenue guidance of Rs 10,650 Mn and Adjusted EBITDA guidance of Rs 1,720 Mn. The company said the SessionM acquisition, completed on May 1, 2026, expanded its presence across North America, LATAM and APAC, while Kognitiv customers acquired in May 2025 are being upgraded to its platform. Management also said AI-led upgrades for Kognitiv and SessionM customers are intended to deliver organic-level efficiencies faster, while noting that migration dynamics can push net revenue retention for acquired customers below 100%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹257 cr |
| Other income | ₹-28 cr |
| Expenses | ₹216 cr |
| Operating profit | ₹40 cr |
| Operating margin (%) | 15.70% |
| Interest | ₹1 cr |
| Depreciation | ₹20 cr |
| Profit before tax | ₹-9 cr |
| Tax | ₹1 cr |
| Net profit | ₹-10 cr |
| EPS (₹) | ₹-1.20 |
Operating margin of 15.70% compares with a Information Technology sector median of 17.75% across 25 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company is on track to deliver FY27 revenue guidance of ₹10,650 Mn and Adjusted EBITDA guidance of ₹1,720 Mn.
Expansion
- SessionM was acquired on May 1, 2026, expanding Capillary's footprint across North America, LATAM and APAC.
- The company is fast-tracking upgrades of Kognitiv customers acquired in May 2025 to its platform to expand growth.
New initiatives
- The company plans to use AI-led technology to upgrade Kognitiv and SessionM customers and achieve organic-level efficiencies faster.
Problems & risks
- IT dependencies hinder marketing agility, creating a challenge that Experience+ is intended to address.
- NRR for inorganically acquired customers can fall below 100% during migration dynamics.
What to watch
- Whether operating margin moves closer to the 17.75% median reported by 25 IT peers.
- Whether profit before tax improves from the consolidated loss of Rs 8.59 cr.
- Progress against management's FY27 guidance of Rs 10,650 Mn revenue and Rs 1,720 Mn Adjusted EBITDA.