1. At a Glance
Capillary Technologies India Ltd is what happens when a global SaaS ambition meets Indian capital markets and decides to show up wearing a 450x P/E multiple like it’s a badge of honour. As of early February 2026, the company commands a market capitalisation of ₹4,820 Cr at a stock price of ₹608, after cooling off from a high of ₹799. Quarterly revenue for Q3 FY26 came in at ₹184.04 Cr, up 15.8% YoY, while quarterly PAT slipped 30% YoY to ₹7.99 Cr, because apparently profitability is optional in the short term if you’re a SaaS platform with AI in your pitch deck.
Margins are swinging like a pendulum: Q3 operating margin rebounded to 13.6%, after dipping in the previous quarter. ROE and ROCE are still stuck in single-digit purgatory (ROE 2.6%, ROCE 2.9%), which is awkward for a company priced like a future monopoly. Debt is modest at ₹100 Cr, cash is strong post-IPO, and promoter holding has dropped sharply to 52.3% (down 15.6% QoQ), which always makes retail investors squint at their screens.
So what’s the market paying for? Scale, global reach, sticky enterprise clients, and a belief that loyalty tech is the new CRM goldmine. Whether that belief justifies today’s valuation… well, that’s the masala we’re about to cook. Ready?
2. Introduction
Capillary Technologies is not a new kid anymore. Founded in 2012, nurtured in the private equity ecosystem, fed with acquisitions, and finally unleashed on Dalal Street in November 2025, this is a classic “global SaaS story, Indian listing edition”.
The company positions itself as an AI-first, cloud-native loyalty and customer engagement platform. Translation: it helps large brands track, nudge, reward, and emotionally manipulate you into buying that third coffee, fifth pair of sneakers, or renewing that subscription you forgot you had. And it does this at planetary scale—1.8 billion consumers on the platform, 0.16 million loyalty transactions per hour, across 47 countries.
The IPO raised ₹877.5 Cr, with ₹345 Cr fresh issue earmarked for cloud infrastructure, R&D, computers (yes, still buying computers), inorganic growth, and general corporate purposes—which in corporate language means “we’ll decide later”. Post listing, Capillary finds itself compared to mature IT names like Oracle Financial Services and Tanla Platforms, which is a bit like comparing a startup marathon runner
with seasoned Olympic athletes.
The real question investors are wrestling with:
Is Capillary a long-term SaaS compounder temporarily misunderstood by GAAP numbers, or a case of valuation running three fiscal years ahead of fundamentals?
Let’s dissect, scalpel in hand.
3. Business Model – WTF Do They Even Do?
Capillary sells loyalty, engagement, and analytics software to large enterprises. Not coupons. Not cashback. Software.
Its core offerings include:
- Loyalty Management Solutions – Fully configurable enterprise-grade loyalty programs.
- Customer Engagement & Marketing Automation – SMS, email, push notifications, campaigns.
- AI & Analytics (AIRA platform) – Predictive insights, personalization, fraud detection.
- Omnichannel CRM – One customer view across online and offline touchpoints.
The company operates on a subscription-heavy model, which is the holy grail of SaaS. In Q3 FY26, 89.2% of revenue came from subscriptions, growing 42% YoY. This is not a consulting shop pretending to be SaaS—this is actual recurring revenue.
Client base? Big boys only. 98.2% of revenue comes from enterprise customers. Think Tata Digital, Puma, Domino’s, Shell, ABFRL, global BFSI players, healthcare majors, and 20 Fortune 500 companies. Customer churn is contained at 5–10%, which is respectable in enterprise SaaS land.
Geographically, Capillary has gone full firang:
- North America: 56% of H1 FY26 revenue
- APAC: 25%
- EMEA: 19%
In short, Capillary doesn’t care about Indian GDP growth as much as it cares about US CIO budgets. That’s both a strength and a macro risk. Would you rather depend on American retail CIOs or Indian kirana stores? Exactly.
4. Financials Overview
Quarterly Performance Snapshot (₹ in Crores)
| Metric | Latest Qtr (Dec FY26) | YoY Qtr (Dec FY25) | Prev Qtr (Sep FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 184.04 | 159.00 | 179.33 | 15.8% | 2.6% |
| EBITDA | 24.98 | 22.96 | 18.65 | 8.8% | 33.9% |
| PAT | 7.99 | 10.26 | 0.29 | -30.0% | 2,655% |
| EPS (₹) | 1.01 | 1.40 | 0.04 | -27.9% | 2,425% |
