Capillary Technologies India Ltd

Promoter-entity transaction clarification

• CTIPL, Singapore-based promoter, sold ~4% of Capillary Technologies' equity on Aug 10, 2026.
• Sale was part of a secondary liquidity exit for Peak XV Partners.
• The transaction is not an exit by operational founders nor a reduction in promoter commitment.
• Post-transaction, other institutional/private equity investors hold aggregate equity >30% in CTIPL.
• Regulatory disclosures were made per applicable requirements; no change to core business operations.

Acquisition details

• Target: Capillary Technologies India Ltd.
• Acquirer and PAC: Kotak Mahindra Mutual Fund.
• Acquirer is not part of promoter group.
• Stock exchanges: BSE and NSE.
• Pre-acquisition holding: 3,954,446 shares, 4.9759%.
• Acquisition: 93,281 shares, 0.1174%.
• Mode: via mutual fund schemes.
• Date of event: 14 August 2026.

Promoter share disposal

• Target Company: Capillary Technologies India Limited.
• Disclosing Party: Capillary Technologies International Pte. Ltd. (Promoter).
• Transaction Type: Disposal of equity shares via block deal.
• Pre-Transaction Holding: 38,881,247 shares (48.92%).
• Transaction Details: Sold 3,292,428 equity shares (4.14%) via block deal on exchanges.
• Post-Transaction Holding: 35,588,819 shares (44.78%).
• Date of Transaction: August 11, 2026.

Transaction details

• Target Company: Capillary Technologies India Limited.
• Disclosing Party: Capillary Technologies International Pte. Ltd. (Promoter; PAC: None).
• Transaction Type: Disposal of equity shares by CTIPL.
• Pre-Transaction Holding: 38,881,247 shares (48.92%); encumbrances Nil.
• Transaction Details: Sold 3,292,428 voting shares (4.14%), equity instrument, via Block Deal.
• Post-Transaction Holding: 35,588,819 shares (44.78%).
• Date of Transaction: August 10, 2026.
• Share Capital Context: Before/After: 79,471,983 equity shares; diluted after: 79,471,983.

Financial Performance

• Q1 FY27 revenue INR 256 crores, up 43% YoY.
• Q1 FY27 EBITDA INR 44 crores; up 132% YoY.
• PAT for the quarter negative INR 9.5 crores; normalized PAT INR 25 crores.
• ARR at INR 1,026 crores in Q1 FY27.
• Trailing 12-month new ACV excluding healthcare: INR 92 crores, up 75% YoY.
• Organic revenue grew 17% YoY with about 23% EBITDA.
• Rule of 40: 43% growth plus 17% EBITDA equals 60.
• SessionM ARR around $32 million; two months integration completed.
• SessionM profitability: first two months generated INR 5–6 crores free cash.
• Migration start: first SessionM migrations to Capillary target Sep 1st.
• Geography mix: US ~60%, Europe 15%, Asia 25%.

Operating / Segment Update

• 465 brands globally; 25 Fortune 500 customers.
• 7 billion consumer profiles; 19 offices; 750 employees.
• Loyalty revenue >90% from long-term subscriptions (3–7 year contracts).
• aiRA live with 26 customers; 10 paying; ARR ~USD 2–2.5 million.
• New ACV excludes SessionM; trailing 12-month ACV about INR 92 crores.
• Kognitiv migration starts Sep 1; expected 18–24 month upgrade cycle.
• NRR 111% overall; 116% excluding largest customer.
• ESOP expense 12–15 crores; about 1–2% of topline.
• Currency tailwind of about 6%.

Q&A Highlights

• Migration pace: 2–3 years; first live Sep 1; upgrades to aiRA and Engage.
• aiRA run-rate about USD 2–2.5 million; aim 5–10% of revenue this year.
• Migration-driven upgrades may add 10–15% annual revenues via higher NRR.
• New ACV excludes migrations; organic growth remains core metric.
• Churn around 5%.
• Insurance claim exists; recovery amount unclear and work in progress.
• aiRA margins around 80%+, comparable to other products.

Outlook and Guidance

• No guidance revision; expect to beat INR 1,065 crores revenue and INR 172 crores.
• SessionM payback within a few quarters; business already break-even.
• FY27 organic growth target around 17%; currency tailwind about 6%.

Forensic audit initiation

• Audit Committee approved initiation of a forensic audit into suspected fraudulent and unauthorised banking transactions.
• Auditor appointed: KPMG Assurance and Consulting Services LLP.
• Scope includes review of suspected unauthorised banking transactions, records and processes.
• Also assesses internal financial controls, determines root cause, and recommends corrective measures.
• Initiated by Capillary Technologies India Limited through its Audit Committee.
• Not initiated by a regulatory or enforcement agency.
• Company will disclose material developments under SEBI LODR upon completion.
• Follow-up to earlier intimation dated July 06, 2026.

Meeting Details

• Date and time: August 4, 2026, 04:00 PM IST.
• Meeting type and mode: group earnings conference call, virtual.
• Event/organiser: Earnings Conference Call – Q1 FY27, Capillary Technologies India Ltd.
• Agenda: Q1 FY27 earnings results presentation.

Participants

• CFO (Director - Finance) listed as key speaker for results discussion.
• Company Secretary & Compliance Officer also involved in governance oversight.

Purpose

• Purpose: discuss Q1 FY27 results and interact with analysts and investors.
• Expected: Q&A session with questions from analysts.

Meeting Details

• Meeting scheduled for August 04, 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve unaudited standalone and consolidated financial results for quarter ended June 30, 2026.

Other Notes

• Trading window closed from July 01, 2026; reopens 48 hours after results declaration.