Home / Business and Economy / Capillary Tech Sees Profit Dip Amid Revenue Surge
Capillary Tech Sees Profit Dip Amid Revenue Surge
6 Feb
Summary
- Capillary's net profit fell 23% YoY to Rs 7.9 crore.
- Revenue climbed 16% YoY to Rs 184 crore, driven by acquisitions and client expansion.
- The company serves over 115 enterprise clients in 47 countries.
Software-as-a-service (SaaS) firm Capillary Technologies experienced a 23% year-on-year decline in net profit, settling at Rs 7.9 crore. This occurred even as the company's operating revenue saw a significant 16% year-on-year increase, reaching Rs 184 crore for the quarter ending December 31, 2025. The revenue growth was primarily fueled by expanding services to its existing customer base, acquiring new enterprise clients, and incorporating contributions from Kognitiv, a martech firm acquired last year.
Capillary, which made its stock market debut on November 21, 2025, now supports over 115 enterprise customers across 47 countries. Total expenses rose by 17% to Rs 159 crore, with employee benefit costs, accounting for 57% of total expenses, increasing by 22% year-on-year to Rs 89.9 crore. For the nine-month period ending December 31, 2025, adjusted EBITDA stood at Rs 71.2 crore, a 53% year-on-year increase, after accounting for IPO-related expenses.
Founder Aneesh Reddy Boddu highlighted plans to leverage AI for productivity and migration optimization, aiming to accelerate customer migration. Capillary intends to continue investing in research and development, go-to-market initiatives, and potential inorganic growth opportunities. The company's Initial Public Offering (IPO) raised Rs 345 crore, with a reduced offer-for-sale component.
