Capillary Tech. Q1 FY27 Results (NSE: CAPILLARY)
Signal: Slipped to loss
The read
The operating inflection is positive: consolidated revenue reached ₹2,566.44 million, +42.7% YoY, and EBITDA margin expanded to 17.9% from 10.6% on the filing's comparable quarter, but reported earnings are not yet clean because a ₹333.86 million exceptional charge turned ₹247.98 million pre-exceptional PBT into a ₹95.52 million loss; standalone PAT of ₹77.65 million confirms the drag sits below the operating business and/or in subsidiaries.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹256.64 Cr | +42.7% | +34.1% |
| EBIT | ₹25.96 Cr | +1410.1% | |
| Net profit | ₹-9.55 Cr | -1382.0% | |
| EPS | ₹-1.2 | -1300.0% | |
| EBIT margin | 17.9% |
P&L walk
Revenue increased to ₹2,566.44 million, +42.7% YoY and +34.1% QoQ, while EBITDA rose +142.2% YoY to ₹460.06 million and margin expanded to 17.9%; depreciation increased +16.0% YoY, but a ₹333.86 million exceptional charge converted ₹247.98 million of pre-exceptional PBT into a ₹95.52 million loss.
Segments
The company reports one operating segment, CRM services; the material divergence is basis-level, with standalone PAT of ₹77.65 million versus consolidated PAT of ₹-95.52 million after the group-level ₹333.86 million exceptional charge.
Key positives
- Consolidated revenue was ₹2,566.44 million, +42.7% YoY and +34.1% QoQ, a sharp acceleration from the ₹1,913.46 million Q4FY26 base.
- EBITDA increased +142.2% YoY to ₹460.06 million versus revenue growth of +42.7%, and EBITDA margin expanded to 17.9% from 10.6% YoY.
- Employee cost intensity improved to 46.7% of revenue from 47.7% YoY, while professional consultancy cost intensity fell to 13.3% from 18.8%.
- Standalone EBITDA margin reached 30.7% versus 14.4% YoY and standalone PAT turned positive at ₹77.65 million from ₹-51.21 million.
- ₹2,032.17 million of IPO proceeds remained unutilised at quarter-end, providing funding capacity for cloud infrastructure, product development and acquisitions.
Key concerns
- A ₹333.86 million exceptional charge overwhelmed ₹247.98 million of pre-exceptional PBT and produced consolidated PAT of ₹-95.52 million.
- Consolidated EPS was ₹-1.20 versus ₹0.10 YoY despite EBITDA growth of +142.2%, making reported profit conversion dependent on the nature and recurrence of the exceptional charge.
- Consolidated software and server charges rose +47.4% YoY to ₹450.54 million, faster than revenue growth of +42.7%, limiting the margin benefit from scale.
- Standalone PAT of ₹77.65 million versus consolidated PAT of ₹-95.52 million indicates substantial group-level earnings drag that requires monitoring across subsidiaries and acquisition accounting.
Research and educational content only. Not investment advice.