Capillary Technologies returned to profitability in the September quarter, reporting a consolidated net profit of ₹21.9 crore. The SaaS firm, which specializes in cloud-based customer engagement and loyalty software, saw its earnings grow significantly compared to the ₹28.8 lakh profit recorded during the same period last year.
Revenue Growth and Financial Turnaround
The company’s operating revenue reached ₹271.4 crore for the second quarter of fiscal year 2027, marking a 51.3% increase from the ₹179.3 crore reported a year ago. This performance represents a recovery from the previous quarter, when Capillary Technologies posted a net loss of ₹9.6 crore. Sequentially, revenue rose by 5.7% from the ₹256.6 crore recorded in the first quarter.
Total income for the quarter reached ₹277.4 crore, supported by other income which climbed to ₹6.1 crore from ₹2.2 crore in the prior year. The firm reported a pre-tax profit of ₹19.9 crore, a shift from the marginal pre-tax loss seen in the second quarter of the previous fiscal year. A net tax credit of ₹2 crore further bolstered the final net profit figures.
Operational Costs and Market Scope
While revenue expanded, the company’s total expenses also rose, increasing 41.8% year-over-year to reach ₹271.4 crore. Capillary Technologies provides digital tools that assist businesses in managing customer relationships and loyalty programs.
Why it matters: The company’s return to profitability highlights the growing demand for digital customer engagement tools. As businesses globally, including those in the Middle East and Egypt, increasingly prioritize loyalty programs to retain customers, firms like Capillary demonstrate the financial scalability of the SaaS sector in managing these complex consumer data needs.