Capillary lifts FY27 revenue guidance 20% to ₹1,065 crore after strong Q1
The Bengaluru loyalty and customer-engagement SaaS provider raised its FY27 outlook from ₹890 crore after Q1 revenue grew 43% year-on-year. It expects about ₹172 crore in FY27 EBITDA and plans to deploy nearly ₹500 crore of cash for expansion, including SessionM-led growth.
What happened
Capillary Technologies raised FY27 revenue guidance to ₹1,065 crore after Q1 revenue grew 43%. The Bengaluru loyalty SaaS provider plans to deploy its ₹500
Key facts
- FY27 revenue guidance raised from ₹890 crore to ₹1,065 crore
- FY27 EBITDA guidance of about ₹172 crore
- Q1 FY27 revenue growth of 43% year-on-year
- Organic growth expected at around 23% for FY27
- Q1 EBITDA rose 132% year-on-year to ₹43-44 crore from about ₹19 crore
- Cash holdings of close to ₹500 crore
- Annual cash generation of over ₹200 crore
- 4.14% stake sale by Capillary Technologies Pte Ltd
- CTPIL holding reduced to just over 48% from 51%
- Avataar Ventures and affiliates hold slightly over 30% within CTPIL
- €3 million cyber fraud provision
- Share price ₹484.95
- Market capitalisation ₹3,860.85 crore
Why this matters
Nearly ₹500 crore of planned expansion capital, including SessionM-led growth, positions Capillary as a more aggressive buyer and partner in retail engagement technology.
What to watch
- Q2 and H1 revenue growth relative to the 43% Q1 year-on-year pace.
- Bookings, annual recurring revenue, net revenue retention and large-enterprise deal wins.
- Evidence that SessionM contributes cross-sell, international expansion or improved win rates.
- EBITDA margin progression versus the implied FY27 target of roughly 16%.
- Cash deployment pace, acquisition terms and whether expansion spending remains within the stated nearly ₹500 crore envelope.
- Retail IT-budget conditions, especially discretionary spending on loyalty, personalization and customer-data platforms.
- Client concentration, implementation timelines and renewal rates among major retail customers.
- Prioritize integration of SessionM data, loyalty and campaign capabilities into a unified omnichannel proposition for enterprise retail accounts.
- Deploy expansion capital toward high-retention verticals such as grocery, fashion, QSR and fuel retail, where loyalty frequency produces measurable ROI.
- Use the raised outlook to increase enterprise sales capacity and partner distribution with POS, payments, commerce and cloud vendors.
- Package AI-driven personalization, promotions optimization and customer-data activation as higher-margin add-ons rather than standalone point products.
- Maintain acquisition discipline by tying future deal activity to integration milestones, net-revenue-retention gains and cross-sell conversion targets.