Capillary Technologies Releases Q3 Financial Results; Consolidated Profit Suffers Due to Fraud Expense

Capillary Technologies Releases Q3 Financial Results; Consolidated Profit Suffers Due to Fraud Expense​

Capillary Technologies India Limited has announced its unaudited financial results for the quarter ended June 30, 2026 (Q3 FY26). The standalone results show profitability, while the consolidated statement reflects a net loss primarily due to an exceptional expense related to a cyber-enabled banking fraud in one of its subsidiaries.

The Board of Directors reviewed and approved the unaudited financial results for both the company and its group at its meeting held on August 4, 2026. The trading window for dealing in the securities of Capillary Technologies has been closed as of July 1, 2026, and will reopen after 48 hours from the declaration of these financial results.

Key Financial Highlights (Q3 FY26)​

The company reported performance metrics across its standalone operations and consolidated group figures. The following table summarizes the key income and expense details for Q3 FY26:

Operational Updates and Business Activities​

The consolidated results include financial information from the company and its various subsidiaries across multiple international markets, including those in Singapore, UAE, United States of America, United Kingdom, China, Indonesia, Malaysia, Canada, and Czech Republic.

Several strategic business combinations were noted:

• Kognitiv Solutions Acquisition: Capillary Technologies LLC entered into an Asset Purchase Agreement to acquire customer contracts and relationships from Kognitiv US LLC, a subsidiary of Loyalty Solutions Holdings US Inc. This acquisition, effective May 1, 2025, was intended to enhance the loyalty business operations in the United States and establish a presence in Canada.
• European Entity Acquisition: On February 24, 2026, Capillary Technologies LLC executed a Stock Purchase Agreement with Mastercard International Inc. to acquire 100% equity interest in Session M Inc., a Delaware-incorporated company, and its wholly owned subsidiary, Session M Czech Republic s.r.o.

Exceptional Items Reported​

The consolidated results detailed two significant exceptional items:

• Exceptional Expense: A cyber-enabled banking fraud occurred during the quarter ended June 30, 2026, in a step-down subsidiary located in the Czech Republic, resulting in unauthorized bank transfers totaling ₹ 333.86 million. This loss was recognized as an exceptional item in the consolidated unaudited financial results.
• Exceptional Income: The Group received compensation of ₹ 249.60 million from the seller related to a breach of a Churn Indemnity Clause following the acquisition of a business in the United States, specifically when customer contract terminations exceeded the agreed threshold.

IPO and Funding Utilization​

Regarding Initial Public Offering (IPO) activities detailed in FY 25-26, the company raised a total of ₹ 8,775.01 million through a fresh issuance of 5,982,635 equity shares and an Offer for Sale of 9,228,796 Equity Shares.

The net proceeds received were ₹ 3,229.08 million (net of Company's share of IPO expenses amounting to ₹ 220.92 million). Of this amount, ₹ 1,196.91 million has been utilized as of June 30, 2026. The utilization breakdown by purpose is detailed below:


The unaudited financial results are available on the company’s website, alongside the National Stock Exchange of India Limited (NSE) and BSE Ltd websites.

CAPILLARY Stock Price Movement​

Shares of Capillary Technologies India Limited are edging higher to ₹568.45 as of 2:11 PM today, surging by 14.71%. The stock has seen substantial trading activity in the live market, with 4.43 million shares changing hands so far.