Slides
Page 1
Copyright © 2026 Capillary Technologies India Limited Investor PresentationQ2 FY 27November 2, 2026
Page 2
Today’s Presenters Aneesh Reddy BodduFounder, Managing Director and CEO Anant ChoubeyWhole-time Director, CFO and COO
Page 3
Safe Harbour & DisclaimerSpecific forward-looking topics covered in this document include, but are not limited to: revenue projections, EBITDA forecasts, Net Revenue Retention (NRR) trends, gross margin trajectories, migration timelines for acquired entities, acquisition integration milestones, market growth assumptions, product roadmaps (including AI/AIRA platform developments), competitive positioning, customer retention rates, regulatory compliance status, cash flow expectations, working capital dynamics, and capital allocation plans.These statements are based on current beliefs, plans, and expectations and are subject to inherent risks and uncertainties. Actual results may differ materially from those expressed or implied due to factors including changes in client demand, competitive landscape, technology shifts, and regulatory environments. The Company assumes no obligation to update these statements to reflect subsequent events or circumstances. Forward-Looking StatementsThis presentation contains forward-looking statements relating to the business, financial performance, strategy, and results of Capillary Technologies India Limited ("the Company"). These statements are identified by words such as "aim," "anticipate," "believe," "expect," "estimate," "intend," "will," "project," "plan," "seek," and similar expressions. Non-GAAP Financial MeasuresThis presentation includes certain non-GAAP financial measures, but are not limited to Adjusted EBITDA, Annual Recurring Revenue (ARR), and Net Revenue Retention (NRR). These measures are supplemental and not defined under Ind AS, IFRS, or U.S. GAAP. They should not be considered in isolation or as alternatives to financial measures prepared in accordance with applicable accounting standards. The Company believes these non-GAAP measures provide useful information to investors regarding operating performance and liquidity, aligned with how management evaluates the business. Data Accuracy & RoundingCertain data contained in this presentation, including market size and competitive position, has been obtained from third-party sources and reports (e.g., Zinnov, Forrester). While the Company believes these sources to be reliable, it has not independently verified such data. Financial figures have been rounded to the nearest decimal or integer for presentation purposes; consequently, sums of figures may not exactly match the totals presented. Presentation & Offering InformationThis presentation is for information purposes only and does not constitute an offer, solicitation, or invitation to sell or issue any securities. No part of this presentation shall form the basis of, or be relied upon in connection with, any contract or investment decision. Recipients should conduct their own independent investigation and analysis of the Company. This document does not constitute a prospectus or offer document under the Companies Act, 2013, or SEBI ICDR Regulations.
Page 4
Global Market Leader in Loyalty and Engagement Management 1. Capillary was named a leader in the Forrester Wave ( ):Loyalty Platforms, Q4 2025 DallasUKSaudi ArabiaUnited Arab EmiratesBengaluru (HQ)MalaysiaSingaporeIndonesiaThailandPhilippinesGermanyMinneapolis Vietnam Hong Kong Canada Mumbai 462+Brands Global reach tapping into the unique needs and preferences across regions Awards & Recognitions 752Employees Worldwide2.9 Billion+Consumer Profileson the Platform 19Global Offices 55Countries Select Countries and Cities with Offices or Customer Presence 99.998%Product Uptime Australia New Zealand Offering AI-powered Cloud-native Products and Solutions to Large Enterprise Customers Globally monetized through long term subscription contracts. * As of September 30, 2026 Czechia
Page 5
Independent Recognition – Forrester Wave Capillary has extensive genAI capabilities, including its aiRA (AI assistant) and Nudge Framework, to help marketers build and optimize promotions conversationally Capillary Technologies named a Leader in Loyalty Platforms— The Forrester Wave( ): Loyalty Platforms, Q4 2025* Highest among all vendors in both Current Offering and Strategy* 5/5 Score in 22 out of 27 Criteria AI-First Platform Approach Supports Complex Program Customer Feedback The Forrester wave ( ): Loyalty Platforms, Q4 2025 Capillary excels across most capabilities including program flexibility, UX, and AI-driven insights. Its platform supports complex programs, including coalition, subscription, and gamified formats.Customers praise Capillary’s usability, AI enablement, and promotion flexibility.While some customers aren’t ready to take on full genAI features today, they appreciate Capillary’s forward-leaning approach to innovation.Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. For more information, read about Forrester’s objectivity hereࣟ What We Think Got Us Here:
Page 6
Our Product Suite that helps brands stay consumer ready!Capillary Platform with aiRA[AI-powered Research Assistant]Capillary’s AI/ML-powered platform captures data and creates a customer single view — from loyal & other customers — for information, insights, engagement and personalised experiencesBuild aRelationship Loyalty+Increase CustomerRetention Efficiently Keep ThemEngaged Engage+Personalized CustomerCommunication UnderstandThem Insights+In-depth Analysis WithAutomated Reports Reward &Incentivise Rewards+Extensive GlobalRewards Network Gamify &Delight Experience+Gamified LoyaltyCampaigns in Days ExampleData SourcesTransactionalProduct LedMobile AppSocial MediaThird-party dataSearch & click data Simplified Bulk & APIIntegration usingConnect+Platform featureextensibility usingNeoCustom UIs usingVulcanCapillary Web SDK& Mobile SDKCampaign integrationwith paid mediaCapillary Platform
Page 7
aiRA: The AI Growth Agent For Enterprise BrandsConnects to all of a brand's customer data, finds the growth, and does the work across the customer lifecycle.UnderstandsEvery customer signal Capillary Salesforce Snowflake Databricks Google Ads Meta+ any other source, via connectors Does the workIn their tools, with a person approving Engage+ Braze Adobe WhatsApp Slack Power BI+ any other tool, via connectors DecidesWhere the growth is ACROSS THE CUSTOMER LIFECYCLEAcquireBuilds lookalike audiences and shifts ad spend to what works.ConvertTurns sign-ups into members, and first buys into repeat.RetainSpots members drifting before they lapse.ReactivateWins back lapsed customers, inside the margin.FOR EVERY TEAM THAT DRIVES GROWTH CRM Marketing Growth E-commerce Digital Data & BI Rewards Partnerships
Page 8
Our Growth levers1. NRR ExpansionFY27 Q2 Organic NRR at 116%(CC 109%) from our three levers of expanding existing customer revenue, viz.,: ●platform usage overages and inflationary increases,●product upgrades and service upsells, and●new brands, geographies and business unitsNRR expansion is further supported by customers from our earlier acquisitions that have now fully migrated to our platform, opening up expansion opportunities across our product suite.2. New Customer winsAccelerating momentum with targeted enterprise wins and larger deal sizes across global markets.FY 27 Q2 TTM New ACV grew by 79% YoY(excl. 1 large healthcare customer*) largely driven by new wins, the majority of which are anchored on our AI stack - aiRA.3. M&AThe SessionM acquisition, completed on May 1st,is performing as planned and has achieved break-even for Q2/H1. Integration remains on track, and we continue to build on SessionM enterprise relationships across North America, LATAM and APAC.* The TTM Q2 FY26 base excludes an exceptional new contract value from our first entry into the healthcare vertical.
Page 9
Our Profitability levers1. NRR-linked margin expansionIncremental revenue from existing customers comes at higher gross margin, improving profitability. Expansions leverage hosting and customer support capacity already in place, with these costs not scaling in proportion to incremental revenue. Subscription GM% is at a stable 67% in FY27 H1 (67% in FY27 Q2) led by NRR-linked expansion at higher margins; this is despite SessionM revenues added at lower GMs.2. Leverage on non-COGS~60% of our costs are linked to non-COGS - technology, S&M, Corporate functions, which do not grow linearly with revenues.YoY Non-COGS costs increased in FY27 H1 by only 34% compared to the 47% increase in revenue from operations.. Further a large majority of the Non-COGS cost growth came from the SessionM acquisition.3. Upgrade of Customers from M&APost upgrade to our platform customers move from a ~30% gross margin to a ~65% margin, leading to better profitability and cash flow generation, making our M&A a 4-5 year cash pay back engine.In FY27 Q2 we completed our first customer migration leveraging our AI-powered migration capabilities, laying the groundwork for a growing number of migrations in the quarters ahead.
Page 10
43% YoY CC 51% YoY Headline results Revenue from Operations₹ 2,713.5Mn Adjusted EBITDA₹ 448.6Mn Profit After Tax (PAT)₹ 219.2 Mn₹ 5,280.0 Mn₹ 888.8MnQ2 FY 27H1 FY 27* Includes ₹ 333.9 Mn. of exceptional loss on cyber fraud incident (provided for by the Company pending potential insurance settlement) ₹ 123.7*Mn 38% YoY CC 47% YoY 17% margins 103% YoY 17% margins 116% YoY 8% margins 7505% YoY 2% margins 1097% YoY
Page 11
Revenue and profitability growth Revenue growth₹ in Mn.Adjusted EBITDA growth₹ in Mn. ●Consolidated revenue grew 47% YoYto ₹5,280 Mn.in H1 FY27, with Organic revenue up 23% YoY(15% YoY CC) to ₹3,180 Mn.This reflects consistent performance of our organic and inorganic growth engines.●●Adjusted EBITDA more than doubled, growing 116% YoYto ₹889 Mnin H1 FY27 at a 17% margin(H1 FY26: 11%), signalling improving unit economics and operating leverage at scale. This results from our improved margins through NRR expansion, operating leverages on non-COGS costs and from M&A synergies.
Page 12
ARR and New ACV trendAnnual Recurring Revenue (ARR)₹ in Mn. New ACV ●TTM New ACV (excl. 1 large healthcare customer*) grew 79% YoY to ₹933 Mn. further supplementing our growth and efficiencies. The new ACV growth reflects a higher win rate as our AI capabilities increasingly differentiate us in enterprise evaluations●Q2 FY27 ends with an ARRof₹10,854 Mn.at a YoY growth of 51% with strong contribution from the SessionM acquisition, NRR and New ACV, establishing a significantly larger recurring revenue base. ₹ in Mn. * The TTM Q2 FY26 base excludes an exceptional new contract value from our first entry into the healthcare vertical.
Page 13
Profitability metrics ●Our H1 FY27 Adj. EBITDA grew YoY at 116% to ₹889 Mn.at 17% margins.●The 3M Adj. EBITDA at 103% YoY growth closed at ₹449 Mn. at 17% margins.●PAT increased to ₹ 219 Mn. in Q2 FY27 at YoY growth of 7505% and to ₹ 124 Mn.* in H1 FY27 at YoY growth of 1097%●These increases reflect higher-margin revenue from existing customers, operating leverage on non-COGS costs, and margin uplift as acquired customers move to our platform. Q2 FY27 Performance H1 FY27 Performance₹ in Mn. ₹ in Mn. 0.2% * H1 FY27 includes ₹ 333.9 Mn. of exceptional loss on cyber fraud incident (provided for by the Company pending potential insurance settlement) recorded in Q1 FY27.
Page 14
Drivers of margin expansion Organic business incl. the contribution from migrated customers contribute more than 90% of the margin growth Migrated to organic - H1 FY 26 →H1 FY 27From migration of customers from Persuade, Brierley and Rewards, an incremental ₹ 226 Mn.margins are generated in the last year. Consolidated Adj. EBITDA: H1 FY 26 → H1 FY 27₹ in Mn. Contribution margins (‘CM’) do not include CAC, R&D and G&A expenses; consolidated costs of these are included in the pure organic businessInorganic - H1 FY 26 →H1 FY 27Turnaround of ₹ 25 Mn.comes primarily from low margins on new SessionM and Kognitiv revenues Pure organic business - H1 FY 26 →H1 FY 27₹ 227 Mn.reflects a sharp rise in Adj. EBITDA along with significant expansion in margins led by our operational efficiencies.44%H1 FY 27Every ₹ 100of new organic revenue has generated ₹ 44of Adj. EBITDA due to our operating leverage
Page 15
Cash and conversion efficiency H1 FY 27 FCF *** / PAT506%H1 FY 27 OCF / Adj. EBITDA128%Net cash generated by operating activities (H1 FY 27 OCF) **₹1,133.4 Mn. 30th September, 2026 cash and bank * ₹5,738.2 Mn. OCF = Net cash generated/(used in) by operating activities in H1 FY 27* Includes cash and cash equivalents, bank and demand deposits and short term investments** H1 FY 27 OCF computed as OCF plus exceptional loss of ₹ 333.9 Mn in Q1 FY 27*** H1 FY 27 FCFcomputed as OCF minus Capital expenditures# Return on Capital Employedcomputed as EBIT divided by Capital Employed, where EBIT = Profit before exceptional items and tax plus Finance costs and Capital Employed = Total Equity plus Borrowings. ROCE is computed on returns in trailing twelve months ended September 30, 2026.## Cash Return on Invested Capitalcomputed as Adj. EBITDA divided by average Invested Capital (average of invested capital as of September 30, 2026 and September 30, 2025), where Invested Capital = Capital Employed minus cash and cash equivalents, bank and demand deposits and investments. CROIC is computed on cash returns in trailing twelve months ended September 30, 2026.CROIC## 29%ROCE # 7% 30th September, 2026 borrowings₹447.2 Mn.
Page 16
●High amortisation reflects recent acquisitions (Rewards, Brierley, Kognitiv, SessionM).●Exceptional loss in Q1 FY27 reflects a loss on cyber fraud incident provided for by the Company pending potential insurance settlement. PAT to Adj. EBITDA reconciliation₹ Mn. H1 FY 26H1 FY 27Q2 FY 26Q1 FY 27Q2 FY 27Particulars10.3123.72.9(95.5)219.2Profit/(loss) after tax0.3%2%0.2%-4%8%PAT margin-333.9-333.9-Exceptional loss / (income)(5.2)(10.1)(3.2)9.6(19.7)Total tax expense/(credit)363.7445.0191.0200.4244.5Depreciation and amortisation expenses29.423.017.711.711.4Finance costs398.2915.4208.3460.1455.4EBITDA 11%17%12%18%17%EBITDA margin34.387.222.936.950.3ESOP expenses(21.9)(113.9)(10.4)(56.8)(57.0)Finance income, asset disposal profits, fair valuation and foreign exchange gains410.6888.8220.8440.2448.6Adjusted EBITDA11%17%12%17%17%Adjusted EBITDA margin
Page 17
Copyright © 2026 Capillary Technologies India Limited Frequently Asked Questions Management answers to investor questions on performance, growth drivers, margin trajectory, M&A integration, and corporate governance. Growth & Performance Margins & Profitability M&A & Integration Governance & ESG Geo & Vertical Mix
Page 18
Q1How has overall business growth and profitability performance been?• Business growth momentum remains robust with 47% YoY revenue growthin H1 FY27.• This is driven by a combination of NRR (116% organic, 111% overall)and strategic acquisitions:◦The organic growth is a result of our:▪NRR growth through three levers of expansion - (i) platform usage overages and cost of living adjustments, (ii) product and service upsells and cross-sells, and (iii) expansion through new geographies, brands or business units of customers;▪this is supplemented by revenue contribution from new logo acquisitions in travel, automobile & hospitality and food & beverages verticals.◦The inorganic growth comes from the Kognitiv & SessionM acquisitions.• This dual engine of growth has expanded our Annual Recurring Revenue (ARR) to ₹10,854 Mn, up 51% YoY over Q2 FY26. •Adjusted EBITDAhas expanded significantly, growing 116% YoY to ₹889 Mn. in H1 FY27. The company has achieved substantial improvement driven by scale and integration synergies across inorganically acquired businesses led by early optimisation in functions below gross margin. This is resulting in revenue growth outpacing operating expenses with the latter growing YoY at 38% in H1 FY27 against the 47% revenue growth.The business is on track to deliver our earlier FY27 guidance: ₹10,650 Mn. revenue and ₹1,720 Mn. Adjusted EBITDA H1 FY 27 Revenue Growth47%▲ YoY vs H1 FY26 ARR Expansion₹10,854 Mn▲ 51% YoY vs Q2 FY26 Organic NRR116%✓Best-in-class Retention
Page 19
Q2What is the NRR for H1 FY27 and what does the Organic vs Inorganic breakdown show?NRR Breakdown: H1 FY27 ActualsTrailing 12 Months Ending September 30, 2026 The majority of our business is from organic revenue. Performance DivergenceOrganic NRR of 116% (CC 109%)remains strong, reflecting healthy expansion within our existing customer base and deepening adoption of the core Capillary product suite.Customer cohorts from our most recent acquisitions (Kognitiv, SessionM) can be expected to deliver retention metrics comparable to the organic business only once their respective platform upgrades conclude.This makes Organic NRR, which measures revenue retention of customers already on the Capillary platform, the clearest retention metric for how our NRR expansion levers are performing.Inorganic NRR (94%)reflects expected migration dynamics from inorganically acquired customers which result in NRR below 100%.Across past acquisitions, ~70% of revenue has been retained post-migration, with margins on the retained base improving from loss-making or break-even to ~40%.Total NRR (Blended) 111%Organic 116%Inorganic 94%*Definitions: Organic = All revenue from customers on Capillary platform; Inorganic = Acquired assets not yet migrated or in the process of migration; TTM = Trailing Twelve Months.
Page 20
Q3What is the subscription revenue performance in H1 FY27 vs H1 FY26? H1 Performance (6 Months)₹3,211 MnH1 FY26 Subscription Revenue₹4,977 MnH1 FY27 Subscription Revenue+₹1,766 MnAbsolute Growth+55%YoY Growth % Performance TREND% OF TOTALH1 FY27 REVENUEREVENUE STREAMIncreased mix94.3%₹4,976.7 MnSubscription RevenueSeasonal fluctuation5.6%₹299.1 MnOther Services (Installation)Reducing0.1%₹4.2 MnCampaign ServicesSubscription revenue grew 55% YoYto ₹4,977 Mnin H1 FY27. The 94.3%share of total revenue also increases from 89.4% in H1 FY26 led by higher recurring revenue mix in new annual contract values. Key Drivers of Change Organic Expansion:Core platform adoption driving recurring revenue. Migration Success:Converting legacy service contracts to subscription models. Mix Improvement:Deliberate shift away from one-time service revenue.
Page 21
Q4What is Top-10 client concentration and how do you mitigate risk? Trend Data The percentage decline occurred alongside absolute growth in Top 5 revenuefrom ₹1,386 Mn in H1 FY26 to ₹1,957 Mn in H1 FY27and in Top 10 revenue from ₹2,001 Mn in H1 FY26 to ₹2,553 Mn in H1 FY27. This reflects reduced concentration driven by faster growth in the broader portfolio. Risk Mitigation:We will continue reducing concentration risk by widening our logo base and expanding into new verticals while deepening relationships with key accounts.
Page 22
Q5What is our employee strength and functional mix? Total Headcount (Sep 30, 2026)752-1% QoQOngoing operational efficiencies continue to streamline our headcount Functional Breakdown Composition Strategic Hiring FocusAI & R&D Expansion:Scaling engineering teams for AIRA platform development and GenAI capabilities.Sales Scaling:Adding enterprise sales leaders in US/EU to drive Fortune 500 penetration. Operational StrategyDelivery Strengthening:Ramping up implementation teams to accelerate migration of acquired customers.
Page 23
Q6What are the Basic & Diluted EPS and other profitability metrics for H1 FY27? H1 FY26H1 FY27FINANCIAL METRIC₹0.14₹1.56Basic EPS(₹ per share)₹0.14₹1.54Diluted EPS(₹ per share) FY25FY26H1 TTM FY27FINANCIAL METRIC3.0%7.4%8.6%RONW(Return on Net Worth)₹6,683.4 Mn₹10,682.2 Mn₹11,040.4 MnCapital Employed2.8%3.0%6.8%ROCE(Return on Capital Employed)₹4,318.5 Mn₹5,494.0 Mn₹5,181.8 MnInvested Capital3.2%4.8%10.4%ROIC(Return on average Invested Capital)17.4%21.8%28.5%CROIC(Cash Return on average Invested Capital) PerformanceBasic and Diluted EPS improved to₹1.56and₹1.54respectively in H1 FY27 (versus ₹0.14 in H1 FY26), notwithstanding the one-time exceptional expense inQ1 FY27, while RONW increased to8.6%in H1 TTM FY27 from 7.4% in FY26. Excluding exceptional items, Basic and Diluted EPS stands at₹5.75and₹5.70respectively in H1 FY27 and RONW at9.7%in H1 TTM FY27. Capital Employed increased to ₹11,040.4 Mn versus ₹10,682.2 Mn in FY26. Underlyingprofitability trends remain healthy — ROCE improved to6.8%from 3.0%, and ROIC advanced to10.4%from 4.8%. CROIC strengthened further to28.5%from 21.8%, reflecting healthier cash conversion relative to invested capital.
Page 24
Q7What is the status on migrations of acquisition accounts? All customers from previous acquisitions (Persuade, Brierley, Rewards+) have successfully migrated to the Capillary stack, with no continuing customers from these acquisitions remaining off the Capillary platform. Migration of the first cohort of Kognitiv customershas been successfully aligned and commenced with the first customer’s migration successfully completed in this quarter. Our first customer migration using our AI-powered migration capabilitieswas completed just prior to September 30, 2026, with a substantial pipeline scheduled for the coming quarters.
Page 25
Summary Financials: YoY and SequentialYoYH1 FY 26H1 FY 27QoQQ1 FY 27YoYQ2 FY 26Q2 FY 27Consolidated Summary Statement ofProfit and Loss47%3,592.25,280.06%2,566.451%1,793.32,713.5Revenue from operations38%3,193.14,395.07%2,126.543%1,583.92,268.5Total expenses-66%11.53.91100%0.311.53.6Other operating income38%3,181.64,391.27%2,126.344%1,572.42,264.9Total operating expense116%410.6888.82%440.2103%220.8448.6Adj. EBITDA11%17%17%12%17%Adj. EBITDA %154%34.387.236%36.9120%22.950.3ESOP expenses420%21.9113.90%56.8448%10.457.0Finance income, asset disposal profits, fair valuation and foreign exchange gains130%398.2915.4-1%460.1119%208.3455.4EBITDA11%17%18%12%17%EBITDA %22%363.7445.022%200.428%191.0244.5Depreciation and amortisation expenses-22%29.423.0-3%11.7-36%17.711.4Finance costs8504%5.2447.4-20%248.0(0.4)199.4Profit/(loss) before tax and exceptional items94%(5.2)(10.1)9.6516%(3.2)(19.7)Tax expenses (net)-333.9333.9--Exceptional loss / (income)1097%10.3123.7(95.5)7505%2.9219.2Profit/(loss) after tax from continuing operations
Page 26
GlossaryDefinitionNon GAAP MetricsRevenue from retainershipSubscription RevenueRevenue generated by our company which is recurring in nature from sources such as subscriptions, including committed revenue from signed contracts and directly reflects the health of the core businessAnnual Recurring RevenueRevenue from Operations for the trailing twelve month period from all customers existing at the start of the trailing twelve month period divided by Revenue from Operations generated from the same customers in the previous trailing twelve month period multiplied by 100Net Revenue RetentionBusiness from all customers on the Capillary platformOrganic BusinessBusiness from all customers who have not yet migrated to Capillary platformInorganic BusinessSubscription Revenue minus server hosting costs, software subscription costs and customer support costs divided by Subscription RevenueSubscription Gross MarginProfit after tax from continuing operations plustotal tax Expense / (credit) plusdepreciation and amortisation expenses plusfinance costs minus exceptional gains / (losses)EBITDAEBITDA plusESOP expenses minusfinance income, asset disposal profits / (losses), fair valuation gains / (losses) and foreign exchange gains.Adjusted EBITDAProfessional and consultancy expenses plussoftware and server charges plusemployee benefit expense (ex. ESOP expenses) plusother operating expensesOperating ExpenseOther income minusfinance income, asset disposal profits / (losses) and fair valuation gains / (losses)Other Operating IncomeTotal Equity plusNon-current and Current BorrowingsCapital EmployedEBIT divided by Capital Employed as of the end of the respective fiscal, where EBIT equals Profit before Exceptional Items and Tax plus Finance CostsReturn on Capital EmployedCapital Employed minus Cash and Cash Equivalents, Bank and Demand Deposits and InvestmentsInvested CapitalNet Operating Profit after Tax divided by average Invested Capital, where Net Operating Profit after Tax equals EBIT multiplied by (1 - effective tax rate), and where average Invested Capital equals the average of Invested Capital as of the beginning and as of the end of the respective fiscalReturn on Invested CapitalAdjusted EBITDA divided by average Invested CapitalCash Return on Invested Capital
Page 27
Copyright © 2026 Capillary Technologies India Limited Thank YouFor any queries, please reach out to investorrelations@capillarytech.com