Capillary Technologies India Limited — Audit Report / Information 2026

May 6, 2026

www.capillarytech.com

capillary

Date: May 06, 2026

To
BSE Limited
Listing Department
Phiroze JeeJeebhoy Towers, Dalal
Street Fort, Mumbai -400001
Scrip Code: 544614

To,
National Stock Exchange of India Limited
Listing Department
Exchange Plaza, Bandra Kurla Complex
Bandra (East), Mumbai -4000051
Symbol: CAPILLARY

Dear Sir/Madam

Subject: Outcome of Board Meeting held on May 06, 2026.

Pursuant to Regulation 30, 33 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), we wish to inform you that the Board of Directors of Capillary Technologies India Limited (“the Company”) at its meeting held today i.e., May 06, 2026, inter-alia, has considered and approved;

1. Audited financial results (standalone and consolidated) for the quarter and financial year ended March 31, 2026 (“Financial Results”) along with the Auditors’ Report issued by the Statutory Auditors, M/s. Walker Chandiok & Co. LLP, Chartered Accountants, (Firm Registration No. 001076N/N500013) with an unmodified opinion.

Please find enclosed herewith a copy of the Audited Standalone and Consolidated Financial Results of the Company for the financial year ended 31st March, 2026 along with the copy of the Auditors’ Report.

We are arranging to publish these results in the newspapers as per Regulation 47 of the Listing Regulations.

1. Appointment of M/s. Protiviti India Member Private Limited as Internal Auditors of the Company for the Financial Year 2026-27.

The additional information as required pursuant to Regulation 30 of Listing Regulations read with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026 is enclosed as Annexure.

The Meeting of the board of directors of the Company commenced at 10:00 AM (IST) and concluded at 12:00 PM (IST).

Further, in continuation to our earlier intimation dated March 26, 2026, regarding closure of trading window, we wish to inform you that trading window for dealing in the securities of the Company has been closed from April 01, 2026, and shall re-open after 48 hours from the declaration of the financial results of the Company.

This outcome of Board Meeting will also be made available on the website of the Company at: https://www.capillarytech.com/investors/

We request you to take the above information on records.

Yours faithfully,

For Capillary Technologies India Limited
GIREDDY Digitally signed by GIREDDY BHARGAVI
BHARGAVI IREDDY Date: 2026.05.06
REDDY 12:03:31 +IST:IST
Gireddy Bhargavi Reddy
Company Secretary and Compliance Officer
Membership No. A17091
Place: Bengaluru

Capillary Technologies India Limited
CIN- L72200KA2012PLC083060
Regd. Office - 360, bearing PID No: 101, 360, 15th Cross Rd, Sector 4,
HSR Layout, Bengaluru, Karnataka 560102
Email: secretariat@capillarytech.com
Website: www.capillarytech.com
Tel: 080-41225179

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Walker Chandiok & Co LLP

Walker Chandiok & Co LLP
5th Floor, 65/2, Block "A",
Bagmane Tridib, Bagmane
Tech Park, CV Raman
Nagar, Bengaluru 560093
Karnataka, India
T +91 80 4243 0700
F +91 80 4126 1228

Independent Auditor's Report on the Standalone Annual Financial Results of the Company pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To the Board of Directors of Capillary Technologies India Limited

Opinion

1. We have audited the accompanying standalone annual financial results ('the Statement') of Capillary Technologies India Limited ('the Company') for the year ended 31 March 2026, attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) ('Listing Regulations').

2. In our opinion and to the best of our information and according to the explanations given to us, the Statement:

(i) presents financial results in accordance with the requirements of Regulation 33 of the Listing Regulations, and
(ii) gives a true and fair view in conformity with the recognition and measurement principles laid down in the applicable Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013 ('the Act'), read with the Companies (Indian Accounting Standards) Rules, 2015, and other accounting principles generally accepted in India, of the standalone net profit after tax and other comprehensive income and other financial information of the Company for the year ended 31 March 2026.

Basis for Opinion

1. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Statement section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ('the ICAI') together with the ethical requirements that are relevant to our audit of the financial results under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.

Chartered Accountants

Offices in Ahmedabad, Bengaluru, Chandigarh, Chennai, Dehradun, Goa, Gurugram, Hyderabad, Indore, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune

Walker Chandiok & Co LLP is registered with limited liability with identification number AAC-2085 and has its registered office at L-41 Connaught Circus, Outer Circle, New Delhi, 110001, India

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Walker Chandiok & Co LLP

Responsibilities of Management and Those Charged with Governance for the Statement

1. This Statement has been prepared on the basis of the standalone annual financial statements and has been approved by the Company's Board of Directors. The Company's Board of Directors is responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profit and other comprehensive income and other financial information of the Company in accordance with the Ind AS specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

2. In preparing the Statement, the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

3. The Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Statement

1. Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standards on Auditing, specified under Section 143(10) of the Act, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Statement.

2. As part of an audit in accordance with the Standards on Auditing, specified under Section 143(10) of the Act, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

3. Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

4. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has in place an adequate internal financial controls with reference to financial statements and the operating effectiveness of such controls;

5. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors;

6. Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern; and

7. Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation.

8. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Chartered Accountants

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Walker Chandiok & Co LLP

1. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matters

1. The Statement includes the financial results for the quarter ended 31 March 2026, being the balancing figures between the audited figures in respect of the full financial year and the published unaudited year-to-date figures up to the third quarter of the current financial year, which were subject to limited review by us.

2. The Statement includes figures for the corresponding quarter ended 31 March 2025 which are the balancing figures between the audited figures in respect of the full financial year ended 31 March 2025 and the unaudited year-to-date figures up to the third quarter of the previous financial year, which have been approved by the Company's Board of Directors, but have not been subjected to audit or review.

For Walker Chandiok & Co LLP

Firm Registration No.: 001076N/N500013

Aasheesh Arjun Singh
Digitally signed by
Aasheesh Arjun Singh
Date: 2026.05.06
12:11:34 +05'30'

Aasheesh Arjun Singh

Partner

Membership No. 210122

UDIN: 26210122GYVKHT7730

Bengaluru

06 May 2026

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capillary

Capillary Technologies India Limited

CIN Number - L72200KA2012PLC063060

Registered Office: #360 bearing PID No 101, 360, 15th Cross Rd, Sector 4, HSR Layout, Bengaluru 560 102, Karnataka, India

Phone No. +91 80 4122 5179 Website : www.capillarytech.com E-mail: investorrelations@capillarytech.com

(All amounts in Indian Rupees (₹) million, except per share data)

Statement of Audited Standalone Financial Results for the year ended 31 March 2026
Particulars	Quarter Ended			Year Ended
	31-Mar-26
(Audited)
(Refer note 3)	31-Dec-25
(Unaudited)
(Refer note 3)	31-Mar-25
(Unaudited)
(Refer note 4)	31-Mar-26
(Audited)	31-Mar-25
(Audited)
Income
Revenue from operations	650.23	579.80	494.74	2,118.90	1,740.91
Other income	56.18	28.73	37.52	105.78	122.37
Total income(I+II)	706.41	608.53	532.26	2,224.68	1,863.28
Expenses
- Professional and consultancy expenses	49.60	51.59	51.64	213.89	205.41
- Software and server charges	35.32	25.06	30.88	110.65	137.61
- Employee benefit expense (Refer note 6)	364.68	325.79	217.15	1,225.96	959.34
- Other expenses (Refer note 7)	39.44	77.46	41.60	174.24	105.09
Total expenses	489.04	479.90	341.27	1,724.74	1,407.45
Profit before finance costs, depreciation, amortization and tax expense (III-IV)	217.37	128.63	190.99	499.94	455.83
- Depreciation and amortisation expenses	110.50	108.23	110.25	434.56	354.71
- Finance costs	7.92	9.88	10.11	36.48	66.06
Profit before exceptional items and tax	98.95	10.52	70.63	28.90	35.06
Exceptional items	-	-	-	-	-
Profit before tax (VI-VII)	98.95	10.52	70.63	28.90	35.06
Tax expense/(credit)
- Current tax	-	-	-	-	-
- Deferred tax	-	-	-	-	-
Total tax expense	-	-	-	-	-
Profit after tax (VIII - IX)	98.95	10.52	70.63	28.90	35.06
Other comprehensive income/(loss)
(a) Items that will not be reclassified to profit or loss:
-Re-measurement gains/(losses) on defined benefit plan, net of tax	1.10	(0.91)	(0.27)	(1.19)	(4.24)
Other comprehensive income/(loss), net of tax	1.10	(0.91)	(0.27)	(1.19)	(4.24)
Total comprehensive income (X+ XI)	100.05	9.61	70.36	27.71	30.82
Paid-up equity share capital	158.81	158.62	146.65	158.81	146.65
Other equity				8,073.23	4,630.54
Earnings/(loss) per equity share (face value ₹ 2 each)*
(a) Basic (in ₹ per share)	1.25	0.14	0.96	0.38	0.48
(b) Diluted (in ₹ per share)	1.23	0.14	0.95	0.38	0.47

• Earnings per share data for the quarters is not annualised.
  See accompanying notes to the standalone financial results

for Capillary Technologies India Limited

ANEESH

REDDY

BODDU

Digitally signed

by ANEESH

REDDY BODDU

Date: 2026.05.06

12:00:16 +05'30'

Aneesh Reddy Boddu

Managing Director and CEO

DIN: 02214511

Place: Bengaluru

Date: 6 May 2026

---

capillary

Capillary Technologies India Limited

CIN Number - L72200KA2012PLC063060

Registered Office: #360 bearing PID No 101, 360, 15th Cross Rd, Sector 4, HSR Layout, Bengaluru 560 102, Karnataka, India

Phone No. +91 80 4122 5179 Website : www.capillarytech.com E-mail: investorrelations@capillarytech.com

(All amounts in Indian Rupees (₹) million)

Statement of Standalone Balance Sheet
Particulars	As at
31-Mar-26	As at
31-Mar-25
ASSETS
Non-current assets
(a) Property, plant and equipment	23.64	29.09
(b) Intangible assets	689.17	700.65
(c) Right-of-use assets	27.99	32.51
(d) Financial assets
(i) Investments	4,214.08	4,173.88
(ii) Other financial assets	234.53	225.84
(e) Other tax assets	134.40	79.88
(f) Other non-current assets	0.41	0.69
Total non-current assets (A)	5,324.22	5,242.54
Current assets
(a) Financial assets
(i) Trade receivables	768.31	444.53
(ii) Cash and cash equivalents	104.14	107.85
(iii) Bank balances other than (ii) above	3,232.40	-
(iv) Other financial assets	69.26	46.78
(b) Other current assets	147.93	78.88
Total current assets (B)	4,322.04	678.04
Total assets (A+B)	9,646.26	5,920.58
EQUITY AND LIABILITIES
Equity
(a) Equity share capital	158.81	146.65
(b) Other equity	8,073.23	4,630.54
Total equity (A)	8,232.04	4,777.19
Liabilities
Non-current Liabilities
(a) Financial liabilities
(i) Lease liabilities	6.06	12.02
(b) Provisions	105.59	67.55
Total Non-current Liabilities (B)	111.65	79.57
Current Liabilities
(a) Financial liabilities
(i) Borrowings	447.21	517.38
(ii) Lease liabilities	22.91	21.15
(iii) Trade payables
(a) total outstanding dues of micro enterprises and small enterprises	9.43	13.23
(b) total outstanding dues of creditors other than micro enterprises and small enterprises	646.73	398.98
(iv) Other financial liabilities	105.81	51.36
(b) Other current liabilities	51.51	45.89
(c) Provisions	18.97	15.83
Total current liabilities (C)	1,302.57	1,063.82
Total liabilities (B+C)	1,414.22	1,143.39
Total equity and liabilities (A+B+C)	9,646.26	5,920.58

for Capillary Technologies India Limit

ANEESH

REDDY

BODDU

Digitally signed by

ANEESH REDDY

BODDU

Date: 2026.05.06

12:00:40 +05'30'

Aneesh Reddy Boddu

Managing Director and CEO

DIN: 02214511

Place: Bengaluru

Date: 6 May 2026

capillary

Phone No. +91 80 4122 5179 Website: www.capillarytech.com E-mail: investorrelations@capillarytech.com

(All amounts in Indian Rupees (₹) million)

Statement of Standalone Cash Flows
Particulars	For the year ended 31-Mar-26	For the year ended 31-Mar-25
A. Cash flow from operating activities
Profit before tax	28.90	35.06
Adjustments to reconcile profit before tax to net cash flows
Depreciation and amortisation expenses	434.55	354.70
Loss allowances under expected credit loss model	(2.89)	(1.12)
Share-based payments	41.85	41.91
Liabilities no longer required, written back	1.89	-
Profit on sale of investments	-	(50.13)
Net gain on sale of property, plant and equipment	0.03	0.24
Unrealized exchange loss/(gain) on foreign currency translations (net)	36.75	18.10
Interest income on income tax refund	-	(2.05)
Interest income on corporate deposit	-	25.18
Interest income on bank deposit	(83.09)	(11.87)
Finance costs	31.71	60.84
Operating profit before working capital changes	489.70	470.86
Working capital adjustments :
Increase in trade receivables	(310.50)	(28.25)
(Increase)/decrease in other assets and other financial assets (current and non-current)	(91.25)	0.44
Increase in trade payable	242.06	140.39
Increase in other liabilities	5.62	(18.55)
Increase in other financial liabilities and Provisions	94.42	(11.74)
Cash generated from operations	430.05	553.15
Direct taxes paid	(54.52)	(34.77)
Net cash generated from operating activities (A)	375.53	518.38
B. Cash flow from investing activities
Purchase of property, plant and equipment including intangible assets	(386.46)	(477.29)
Proceeds from sale of property, plant and equipment	1.83
Sale of current investment, net	-	749.37
Corporate deposits placed	-	(400.00)
Proceeds from redemption of corporate deposits	-	799.99
Investments in subsidiary	-	(1,282.05)
Investment in fixed deposits	(3,158.00)	-
Change in other bank balances	-	(92.81)
Net cash used in investing activities (B)	(3,542.63)	(702.79)
C. Cash flow from financing activities
Proceeds from issue of share capital, (including security premium)	3,345.08	49.92
Repayment of Non Convertible Debentures (NCDs)	-	(352.48)
Payment of principal and interest portion of lease liabilities	(35.67)	(28.90)
(Repayment)/proceeds from current borrowings (net)	(27.26)	14.55
Finance costs paid	(28.71)	(58.06)
Surrender /re-purchase of share based options, net	-	(32.02)
Net cash generated from/(used in) financing activities (C)	3,253.44	(406.99)
Net decrease in cash and cash equivalents (A+B+C)	86.34	(591.40)
Cash and cash equivalents at the beginning of the year	12.13	603.53
Cash and cash equivalents at the end of the year	98.47	12.13
Components of cash and cash equivalents
Balances with banks
- On current accounts	104.14	107.85
Less: Bank overdraft	(5.67)	(95.72)
Total cash and cash equivalents (net of bank overdraft)	98.47	12.13

for Capillary Technologies India Limited

ANEESH

REDDY

BODDU

Digitally signed

by ANEESH

RECEIY BODDU

12:00:58 +03'30'

capillary

Phone No. +91 80 4122 5179 Website : www.capillarytech.com E-mail: investorrelations@capillarytech.com

Notes:

1. The audited standalone financial results, which are published in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard (Ind AS), prescribed under Section 133 of the Companies Act, 2013 ("The Act") read with relevant rules issued thereunder and other accounting principles generally accepted in India.

2. The above audited standalone financial results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at their respective meetings held on 6 May 2026.

3. The above results of the Company has been audited by the statutory auditors and have issued an unqualified audit opinion on the same. The figure for the quarter ended 31 March 2026 is a balancing figure between the audited figure of the full financial year and the unaudited year to date figure up to the third quarter of the financial year. Also, the figures up to the end of the third quarter were only reviewed.

4. The unaudited standalone financial results for the quarter ended 31 March 2025 included above are prepared based on the information compiled by the management in accordance with Ind AS 34 and have not been subjected to a separate audit or review by the statutory auditors.

5. The Chief Operating Decision Maker ('CODM') evaluates the performance of the Company based on the single operative segment as cloud based intelligent customer engagement software solutions. Therefore, there is only one reportable segment called CRM services in accordance with the requirement of Ind AS 108 "Operating Segments".

6. On 21 November 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Company has considered restructured compensation of its employees with effect from 1 April 2026, and assessed the impact of the changes, consistent with the Labour Codes, draft rules, FAQs and legal opinion.

The Company has recorded an amount of ₹ 2.10 million and ₹ 18.24 million in the standalone statement of profit and loss for the quarter and year ended 31 March 2026 respectively, where as for the nine month period ended 31 December 2025 it is ₹ 16.14 million. The Company continues to monitor the finalisation of Central / State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect on the basis of such developments as needed.

1. During the year ended 31 March 2026, the Company has completed its Initial Public Offering (IPO) comprising a fresh issuance of 5,982,635 equity shares with a face value of INR 2 each and Offer for Sale of 9,228,796 Equity Shares of face value of INR 2 each. These shares were offered at an issue price of ₹ 549-577 per share, which also included 38,095 equity shares reserved for eligible employees. The Company raised a total of ₹ 8,775.01 million (including ₹ 3,450 million with respect to fresh issuance of Equity Shares) and the Company's equity shares were subsequently listed on the BSE Ltd. and National Stock Exchange of India Limited with effect from 21 November 2025. Consequently, the Company received an amount of ₹ 3,229.08 million (net of Company's share of IPO expenses amounting to ₹ 220.92 million*). The Company has utilised an amount of ₹ 0.13 million for the year ended 31 March 2026. The net proceeds received pending utilisation as at 31 March 2026 (invested in fixed deposits to the extent of ₹ 3,228.90 million and balance ₹ 0.05 million of balance in monitoring bank account).

Particulars	Amount to be utilised as per prospectus	Utilisation up to 31 March 2026	Unutilised as at 31 March 2026
Funding our cloud infrastructure cost	1,430.00	-	1,430.00
Investment in research, designing and development of our products and platform	715.81	-	715.81
Investment in purchase of computer systems for our business	103.42	-	103.42
Funding inorganic growth through unidentified acquisitions and general corporate purposes	979.85	0.13	979.72
Net proceeds (net of IPO expenses)	3,229.08	0.13	3,228.95

• Of the total IPO expenses, an amount of ₹ 137.85 million adjusted with securities premium and ₹ 12.59 million and ₹ 32.36 million charged off to profit and loss for the quarter and year ended 31 March 2026 respectively, where as it is ₹ 19.77 million for the nine month period ended 31 December 2025.

Place: Bengaluru
Date: 6 May 2026

for Capillary Technologies India Limited

ANEESH
REDDY
BODDU

Digitally signed by
ANEESH REDDY
BODDU
Date: 2026.05.06
12:01:19 +05'30'

Aneesh Reddy Boddu

Walker Chandiok & Co LLP
5th Floor, 65/2, Block "A",
Bagmane Tridib, Bagmane
Tech Park, CV Raman
Nagar, Bengaluru 560093
Karnataka, India
T +91 80 4243 0700
F +91 80 4126 1228

Independent Auditor's Report on the Consolidated Annual Financial Results of the Company pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To the Board of Directors of Capillary Technologies India Limited

Opinion

1. We have audited the accompanying consolidated annual financial results ('the Statement') of Capillary Technologies India Limited ('the Holding Company') and its subsidiaries (the Holding Company and its subsidiaries together referred to as 'the Group'), for the year ended 31 March 2026, attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) ('Listing Regulations').

2. In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of other auditors on the separate audited financial statements of the subsidiaries, as referred to in paragraph 12 below, the Statement:

(i) includes the annual financial results of the entities listed in Annexure 1;
(ii) presents financial results in accordance with the requirements of Regulation 33 of the Listing Regulations; and
(iii) gives a true and fair view in conformity with the recognition and measurement principles laid down in the applicable Indian Accounting Standards ('Ind AS') prescribed under Section 133 of the Companies Act, 2013 ('the Act') read with the Companies (Indian Accounting Standards) Rules, 2015, and other accounting principles generally accepted in India, of the consolidated net profit after tax and other comprehensive income and other financial information of the Group, for the year ended 31 March 2026.

Basis for Opinion

1. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Statement section of our report. We are independent of the Group, in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ('the ICAI') together with the ethical requirements that are relevant to our audit of the consolidated financial results under the provisions of the Act, and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us together with the audit evidence obtained by the other auditors in terms of their reports referred to in paragraph 12 of the Other Matters section below, is sufficient and appropriate to provide a basis for our opinion.

Offices in Ahmedabad, Bengaluru, Chandigarh, Chennai, Dehradun, Goa, Gurugram, Hyderabad, Indore, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune

Walker Chandiok & Co LLP is registered with limited liability with identification number AAC-2085 and has its registered office at L-41 Connaught Circus, Outer Circle, New Delhi, 110001, India

Responsibilities of Management and Those Charged with Governance for the Statement

1. The Statement has been prepared on the basis of the consolidated annual financial statements and has been approved by the Holding Company's Board of Directors. The Holding Company's Board of Directors are responsible for the preparation and presentation of the Statement that gives a true and fair view of the consolidated net profit or loss, other comprehensive income and other financial information of the Group in accordance with the Ind AS prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The Holding Company's Board of Directors are also responsible for ensuring accuracy of records including financial information considered necessary for the preparation of the Statement. Further, in terms of the provisions of the Act, the respective Board of Directors of the companies included in the Group, covered under the Act, are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding of the assets of the Group, and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively, for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial results, that give a true and fair view and are free from material misstatement, whether due to fraud or error. These financial results have been used for the purpose of preparation of the Statement by the Directors of the Holding Company, as aforesaid.

2. In preparing the Statement, the respective Board of Directors of the companies included in the Group, are responsible for assessing the ability of the Group, to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the respective Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

3. Those respective Board of Directors are also responsible for overseeing the financial reporting process of the companies included in the Group.

Auditor's Responsibilities for the Audit of the Statement

1. Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standards on Auditing specified under Section 143(10) of the Act will always detect a material misstatement, when it exists. Misstatements can arise from fraud or error, and are considered material if, individually, or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Statement.

2. As part of an audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

3. Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

4. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Holding Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls;

5. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors;

Walker Chandiok & Co LLP

• Conclude on the appropriateness of Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group, to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern;

• Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation; and

• Obtain sufficient appropriate audit evidence regarding the financial statements of the entities within the Group, to express an opinion on the Statement. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the Statement, of which we are the independent auditors. For the other entities included in the Statement, which have been audited by the other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

• We communicate with those charged with governance of the Holding Company, regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

• We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

• We also performed procedures in accordance with circular issued by the SEBI under Regulation 33 (8) of the Listing Regulations, to the extent applicable.

Other Matters

1. We did not audit the annual financial statements of three subsidiaries included in the Statement whose financial information reflects total assets of ₹ 182.13 million as at 31 March 2026, total revenues of ₹ 234.41 million, total net profit after tax of ₹ 3.24 million, total comprehensive income of ₹ 3.24 million, and net cash inflows of ₹ 60.78 million for the year ended 31 March 2026, as considered in the Statement. These annual financial statements have been audited by other auditors whose audit reports have been furnished to us by the management, and our opinion in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the audit reports of such other auditors.

Further, these subsidiaries, are located outside India, whose annual financial statements have been prepared in accordance with accounting principles generally accepted in their respective countries, and which have been audited by other auditors under generally accepted auditing standards applicable in their respective countries. The Holding Company's management has converted the financial statements of such subsidiaries from accounting principles generally accepted in their respective countries to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Holding Company's management. Our opinion, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries located outside India, is based on the report of other auditors and the conversion adjustments prepared by the management of the Holding Company and audited by us.

Our opinion is not modified in respect of this matter with respect to our reliance on the work done by and the reports of the other auditors.

1. The Statement includes the annual financial information of one subsidiary, which has not been audited and whose annual financial information reflect total assets of ₹ 0.55 million as at 31 March 2026, total revenues of ₹ nil, total net profit after tax of ₹ nil, total comprehensive income of ₹ nil for the year ended 31 March 2026, and net cash inflow/outflows of ₹ nil for the year then ended. This financial information has been furnished to us by the Holding Company's management. Our opinion, in so far as it relates to the amounts and disclosures included in respect of aforesaid subsidiaries, are based solely on such unaudited financial information. In our opinion, and according to the information and explanations given to us by the management of the holding company, this financial information is not material to the Group.

Our opinion is not modified in respect of this matter with respect to our reliance on the financial information certified by the Board of Directors.

1. The Statement includes the consolidated financial results for the quarter ended 31 March 2026, being the balancing figures between the audited consolidated figures in respect of the full financial year and the published unaudited year-to-date consolidated figures up to the third quarter of the current financial year, which were subject to limited review by us.

2. The Statement includes consolidated figures for the corresponding quarter ended 31 March 2025 which are the balancing figures between the audited figures in respect of the full financial year ended 31 March 2025 and the published unaudited year-to-date figures up to the third quarter of the previous financial year, which have been approved by the Holding Company's Board of Directors, but have not been subjected to audit or review.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm Registration No.: 001076N/N500013

Aasheesh Arjun Singh
Digitally signed by
Aasheesh Arjun Singh
Date: 2026.05.06
12:12:18 +05'30'

Aasheesh Arjun Singh
Partner
Membership No.: 210122
UDIN: 26210122VHUTTR1910

Bengaluru
06 May 2026

Annexure 1

List of entities included in the Statement

Name of the entity	Country of incorporation	Relationship
Capillary Pte. Ltd	Singapore	Subsidiary
Capillary Technologies DMCC	Dubai, United Arab Emirates	Step-down subsidiary
Capillary Technologies LLC	United States of America	Step-down subsidiary
Capillary Technologies Inc.	United States of America	Step-down subsidiary
Capillary Technologies Europe Limited	United Kingdom	Step-down subsidiary
Capillary Brierley Inc.	United States of America	Step-down subsidiary
Capillary Technologies (Shanghai) Co. Ltd	People's Republic of China	Step-down subsidiary
PT Capillary Technologies Indonesia	Indonesia	Step-down subsidiary
Capillary Technologies (Malaysia) Sdn.Bhd.	Malaysia	Step-down subsidiary
Kognitiv Solutions Inc.(w.e.f. 1 May 2025)	Canada	Step-down subsidiary

(All amounts in Indian Rupees (% million, except per share data)

Statement of Audited Consolidated Financial Results for the year ended 31 March 2026
Particulars	Quarter Ended			Year Ended
	31-Mar-26 (Audited) (Refer note 3)	31-Dec-25 (Unaudited) (Refer note 3)	31-Mar-25 (Unaudited) (Refer note 4)	31-Mar-26 (Audited)	31-Mar-25 (Audited)
Income
Revenue from operations	1,913.46	1,840.35	1,520.82	7,345.99	5,982.59
Other income	67.06	36.83	25.09	137.34	136.10
Total income(I+II)	1,980.52	1,877.18	1,545.91	7,483.33	6,118.69
Expenses
- Professional and consultancy expenses	258.17	203.81	268.11	1,076.59	994.93
- Software and server charges	326.99	326.33	226.81	1,292.19	921.85
- Employee benefit expense (Refer note 7)	895.68	899.51	665.32	3,538.58	2,955.20
- Other expenses (Refer note 11)	118.63	160.95	85.23	510.12	460.98
Total expenses	1,599.47	1,590.60	1,245.47	6,417.48	5,332.96
Profit before finance costs, depreciation, amortization and tax expense (III-IV)	381.05	286.58	300.44	1,065.85	785.73
- Depreciation and amortisation expenses	195.21	190.80	164.97	749.71	601.03
- Finance costs	10.69	14.59	15.97	54.64	77.88
Profit before exceptional items and tax	175.15	81.19	119.50	261.50	106.82
Exceptional income (Refer note 9)	(249.60)	-	-	(249.60)	-
Profit before tax (VI-VII)	424.75	81.19	119.50	511.10	106.82
Tax expense/(credit)
- Current tax	28.61	8.64	(8.16)	45.04	(12.90)
- Deferred tax	(37.50)	(7.36)	(2.50)	(57.82)	(21.82)
Total tax expense	(8.89)	1.28	(10.66)	(12.78)	(34.72)
Profit after tax from continuing operations (VIII - IX)	433.64	79.91	130.16	523.88	141.54
Profit/(loss) before tax from discontinued operations (Refer note 10)	-	-	(31.69)	-	(8.54)
Tax expense of discontinued operations	-	-	0.05	-	0.20
Loss after tax from discontinued operations	-	-	(31.74)	-	(8.74)
Profit for the period (X + XI)	433.64	79.91	98.42	523.88	132.80
Other Comprehensive income
(a) Items that will be reclassified to profit or loss:
-Exchange differences on translating financial statements of foreign operations	296.65	72.52	46.95	566.97	72.74
(b) Items that will not be reclassified to profit or loss:
-Re-measurement gains/(losses) on defined benefit plan, net of tax	1.10	(0.91)	(0.27)	(1.19)	(4.24)
Other comprehensive income, net of tax	297.75	71.61	46.68	565.78	68.50
Total comprehensive income (XII + XIII)	731.39	151.52	145.10	1,089.66	201.30
Paid-up equity share capital	158.81	158.62	146.65	158.81	146.65
Other equity				10,076.12	5,535.82
Earnings per equity share from continuing operations (face value ₹ 2 each)*
(a) Basic (in ₹ per share)	5.47	1.05	1.77	6.94	1.93
(b) Diluted (in ₹ per share)	5.40	1.04	1.76	6.87	1.91
Earnings/(Loss) per equity share from discontinued operations (face value ₹ 2 each)*
(a) Basic (in ₹ per share)	-	-	(0.43)	-	(0.12)
(b) Diluted (in ₹ per share)	-	-	(0.43)	-	(0.12)
Earnings per equity share from continuing and discontinued operations (face value ₹ 2 each)*
(a) Basic (in ₹ per share)	5.47	1.05	1.34	6.94	1.81
(b) Diluted (in ₹ per share)	5.40	1.04	1.33	6.87	1.79

• Earnings per share data for the quarters is not annualised.
  See accompanying notes to the consolidated financial results

ANEESH

REDDY

BODDU

Digitally signed by

ANEESH REDDY

90/03/01

12:01:46 +01'00'

Statement of Consolidated Balance Sheet
Particulars	As at
31-Mar-26	As at
31-Mar-25
ASSETS
Non-current assets
(a) Property, plant and equipment	37.78	34.27
(b) Goodwill	3,095.76	1,884.98
(c) Other intangible assets	1,385.57	1,030.39
(d) Right-of-use assets	82.63	59.84
(e) Financial assets
(i) Investments	118.27	-
(ii) Other financial assets	272.50	256.09
(f) Deferred tax assets (net)	16.27	5.62
(g) Other tax assets	134.40	79.88
(h) Other non-current assets	649.38	853.25
Total non-current assets (A)	5,792.56	4,204.32
Current assets
(a) Financial assets
(i) Investments	1,246.23	-
(ii) Trade receivables	1,808.35	1,611.21
(iii) Cash and cash equivalents	358.11	2,140.71
(iv) Other bank balances	3,232.40	-
(v) Other financial assets	93.16	33.93
(b) Other current assets	471.61	396.37
Total current assets (B)	7,209.86	4,182.22
Total assets (A+B)	13,002.42	8,386.54
EQUITY AND LIABILITIES
Equity
(a) Equity share capital	158.81	146.65
(b) Other equity	10,076.12	5,535.82
Total equity (A)	10,234.93	5,682.47
Liabilities
Non-current Liabilities
(a) Financial liabilities
(i) Borrowings	-	12.82
(ii) Lease liabilities	40.34	32.54
(iii) Other financial liabilities	-	-
(b) Provisions	125.57	80.71
(c) Deferred tax liabilities (net)	27.37	71.04
Total Non-current Liabilities (B)	193.28	197.11
Current Liabilities
(a) Financial liabilities
(i) Borrowings	447.21	988.12
(ii) Lease liabilities	48.52	30.78
(iii) Trade payables
(a) total outstanding dues of micro enterprises and small enterprises	9.43	13.23
(b) total outstanding dues of creditors other than micro enterprises and small enterprises	734.41	492.52
(iv) Other financial liabilities	220.55	145.39
(b) Other current liabilities	1,038.95	810.98
(c) Provisions	31.06	18.21
(d) Current tax liabilities (net)	44.08	7.73
Total current liabilities (C)	2,574.21	2,506.96
Total liabilities (B+C)	2,767.49	2,704.07
Total equity and liabilities (A+B+C)	13,002.42	8,386.54

ANEESH Digitally signed

by ANEESH

REDDY REDDY BODDU

BODDU 110208 J0730

Phone No. +91 80 4122 5179 Website : www.capillarytech.com E-mail: investorrelations@capillarytech.com

Statement of Consolidated Cash Flows

Particulars	For the year ended 31-Mar-26	For the year ended 31-Mar-25
A. Cash flow from operating activities
Profit for the year from continuing operations before exceptional items and tax	511.10	106.82
Profit/ (loss) for the year from discontinued operations before tax	-	(8.54)
Adjustments to reconcile profit before tax to net cash flows
Depreciation and amortisation expenses	749.71	621.98
Loss allowances under expected credit loss model	25.88	78.42
Share based payments	107.29	80.94
Profit on sale of investments	(16.30)	(76.53)
Interest income on income tax refund	-	(2.05)
Profit on sale of property, plant and equipment	(0.03)	(0.62)
Property, plant and equipment written off	1.36	0.81
Interest income on corporate deposit	-	(25.18)
Provision / liabilities no longer required, written back	(9.08)	(0.18)
Unrealised exchange (gain)/ loss on foreign currency transactions (net)	48.92	9.76
Interest income on bank deposits and security deposit	(87.62)	(13.92)
Churn indemnity compensation received (Refer note 9)	(249.60)	-
Finance costs	43.52	68.53
Operating profit before working capital changes	1,125.15	840.24
Working capital adjustments :
Increase in trade receivables	(252.04)	(242.89)
Increase in other financial assets	(46.27)	(12.40)
Decrease/(increase) in other assets	128.63	(166.51)
Increase/(decrease) in trade payable	247.17	(222.33)
Increase in provision	56.52	9.24
Increase/(decrease) other financial liabilities	75.16	(77.97)
Increase/(decrease) in other liabilities	227.97	(551.04)
Cash generated/(used in) from operations	1,562.29	(423.66)
Direct taxes paid, net	(63.22)	(38.33)
Net cash generated/(used in) by operating activities (A)	1,499.07	(461.99)
B. Cash flow from investing activities
Purchase of property, plant and equipment, intangible assets	(393.74)	(474.58)
Proceeds from sale of property, plant and equipment	0.57	0.62
(Purchase)/sale of current investment, net	(1,229.93)	775.78
Corporate deposits placed	-	(400.00)
Proceeds from redemption of corporate deposits	-	799.99
Interest income on bank deposits	66.00	13.92
Interest income on corporate deposits	-	25.18
Investment in bank deposits (net)	(8.95)	(105.13)
Investment in fixed deposits	(3,232.40)	-
Payment for investment in equity shares	(118.27)	-
Churn indemnity compensation received (Refer note 9)	249.60	-
Payment towards acquisition of subsidiary	(1,472.33)	-
Net cash (used in)/inflow from investing activities (B)	(6,139.45)	635.78
C. Cash flow from financing activities
Proceeds from issue of share capital, (including security premium)	3,450.90	49.92
Offer issue expenses	(137.85)	-
Repayment of Non Convertible Debentures (NCDs)	-	(352.48)
Repayment of long-term borrowings	(13.54)	-
Proceeds from short-term borrowings (net)	(497.28)	485.34
Repayment of principal and interest portion of lease liabilities	(61.70)	(33.04)
Finance costs paid	(35.52)	(64.62)
Surrender of employee stock options and re-purchase, net	-	(48.25)
Net cash generated from financing activities (C)	2,705.01	36.87
Net (decrease)/increase in cash and cash equivalents (A+B+C)	(1,935.37)	210.66
Cash and cash equivalents at the beginning of the year	2,044.99	1,806.68
Effect of exchange differences on cash and cash equivalents held in foreign currency	242.82	27.65
Cash and cash equivalents at the end of the year	352.44	2,044.99
Components of cash and cash equivalents
Balances with banks
- On current accounts	358.11	2,140.71
Less: Bank overdraft	(5.67)	(95.72)
Total cash and cash equivalents (net of bank overdraft)	352.44	2,044.99

ANEESH

REDDY

12:02:33 +05'30'

Notes:

1. The audited consolidated financial results, which are published in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard (Ind AS), prescribed under Section 133 of the Companies Act, 2013 ("The Act") read with relevant rules issued thereunder and other accounting principles generally accepted in India.

2. The above audited consolidated financial results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at their respective meetings held on 6 May 2026.

3. The above results of the Group has been audited by the statutory auditors and have issued an unqualified audit opinion on the same. The figure for the quarter ended 31 March 2026 is a balancing figure between the audited figure of the full financial year and the unaudited year to date figure up to the third quarter of the financial year. Also, the figures up to the end of the third quarter were only reviewed.

4. The unaudited consolidated financial results for the quarter ended 31 March 2025 included above are prepared based on the information compiled by the management in accordance with Ind AS 34 and have not been subjected to a separate audit or review by the statutory auditors.

5. The consolidated audited financial results include the financial results/information of the Company and the subsidiaries ("The Group") as below:

S.No	Name of the entity	Relationship with the Company	Ownership % as of 31 March 2026
(i)	Capillary Pte Ltd., Singapore	Subsidiary	100%
(ii)	Capillary Technologies DMCC, UAE	Step-down subsidiary	100%
(iii)	Capillary Technologies (Malaysia) Sdn. Bhd., Malaysia	Step-down subsidiary	100%
(iv)	PT Capillary Technologies Indonesia, Indonesia	Step-down subsidiary	100%
(v)	Capillary Technologies Europe Limited (formerly known as Brierley Europe Limited)	Step-down subsidiary	100%
(vi)	Capillary Brierley Inc. (formerly known as Brierley & Partners, Inc.)	Step-down subsidiary	100%
(vii)	Capillary Technologies Inc,USA	Step-down subsidiary	100%
(viii)	Capillary Technologies LLC (formerly known as 'Persuade Loyalty LLC'), USA	Step-down subsidiary	100%
(ix)	Capillary Technologies (Shanghai) Co. Ltd, China	Step-down subsidiary	100%
(x)	Kognitiv Solutions Inc.	Step-down subsidiary (w.e.f. 1 May 2025)	100%

1. The Chief Operating Decision Maker ("CODM") evaluates the performance of the Group based on the single operative segment as cloud based intelligent customer engagement software solutions. Therefore, there is only one reportable segment called CRM services in accordance with the requirement of Ind AS 108 "Operating Segments".

2. On 21 November 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Group has considered restructured compensation of its employees with effect from 1 April 2026, and assessed the impact of the changes, consistent with the Labour Codes, draft rules, FAQs and legal opinion.

The Group has recorded an amount of ₹ 2.10 million and ₹ 18.24 million in the consolidated statement of profit and loss for the quarter and year ended 31 March 2026 respectively, where as for the nine month period ended 31 December 2025 it is ₹ 16.14 million. The Group continues to monitor the finalisation of Central / State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect on the basis of such developments as needed.

1. On 31 March 2025, Capillary Technologies LLC, a step-down subsidiary of the Company, entered into a Purchase and Sale Agreement with Loyalty Solutions Holdings US Inc. (LSI) to acquire 100% equity interest in Kognitiv Solutions Inc., a company incorporated in Ontario, Canada which is a wholly owned subsidiary of LSI and to purchase the rights, title and interest of the intellectual property.

As part of the transaction, Capillary Technologies LLC also entered into a separate Asset Purchase Agreement with Kognitiv US LLC (another wholly owned subsidiary of LSI) to acquire customer contracts, customer relationships, and associated receivables. These agreements jointly constitute a business combination in accordance with the principles of Ind AS 103 w.e.f. 1 May 2025 for a consideration of Canadian dollar 23.44 million (net of net working capital amounting to Canadian dollar 0.56 million). This strategic acquisition is expected to enhance the Company's loyalty business operations in the United States and establish a presence in the Canada location.

9 Exceptional income:

The Group acquired a business in the United States through one of its subsidiaries (refer note 8 above), wherein the Purchase and Sale Agreement ("PSA") included a Churn Indemnity Clause — a contractual assurance by the seller that existing customers of the acquired business would continue their association beyond the acquisition date up to an agreed threshold. However, the seller failed to adhere to this commitment, as customer contract terminations during the post-acquisition period exceeded the agreed threshold, thereby constituting a breach of the said clause. Consequent to this breach, the Group received a compensation of ₹ 249.60 million (CAD 3.88 million) from the seller in accordance with the terms of the PSA.

1. (i) The Company vide its Board resolution dated 27 January 2025, decided to discontinue its operations in the Anywhere Commerce Platform ('ACP') effective from 1 October 2024. The Revenue amounted to ₹ Nil and ₹ 62.78 million for the quarter and year ended 31 March 2025 respectively. The total expenses for the ACP business amounted to ₹ Nil and ₹ 72.25 million for the quarter and year ended 31 March 2025 respectively, resulting into a loss of ₹ Nil and ₹ 9.47 for the quarter and year ended 31 March 2025 respectively.

(ii) The Company vide its Board resolution dated 12 March 2025, decided to discontinue its operations in the Digital business effective from 31 March 2025. The (Loss)/profit from the Discontinued Operations for the periods/year are as mentioned below:

Particulars	For the quarter ended 31 March 2025 (Unaudited)	For the year ended 31 March 2025 (Audited)
I. Revenue from operations	19.11	270.05
II. Other income
III. Total income (I+II)	19.11	270.05
IV. Total expenses	50.80	269.12
V. (Loss)/profit before tax for the period/year (III-IV)	(31.69)	0.93
VI. Tax expense (net) from discontinued operations	0.05	0.20
VII. (Loss)/profit for the period/year (V-VI)	(31.74)	0.73

11 During the year ended 31 March 2026, the Company has completed its Initial Public Offering (IPO) comprising a fresh issuance of 5,982,635 equity shares with a face value of INR 2 each and Offer for Sale of 9,228,796 Equity Shares of face value of INR 2 each. These shares were offered at an issue price of ₹ 549-577 per share, which also included 38,095 equity shares reserved for eligible employees. The Company raised a total of ₹ 8,775.01 million (including ₹ 3,450.00 million with respect to fresh issuance of Equity Shares) and the Company's equity shares were subsequently listed on the BSE Ltd. and National Stock Exchange of India Limited with effect from 21 November 2025.

Consequently, the Company received an amount of ₹ 3,229.08 million (net of Company's share of IPO expenses amounting to ₹ 220.92 million*). The net proceeds received pending utilisation as at 31 March 2026 (invested in fixed deposits to the extent of ₹ 3,228.90 million and balance ₹ 0.05 million of balance in monitoring bank account). The Company has utilised an amount of ₹ 0.13 million for the year ended 31 March 2026.

Particulars	Amount to be utilised as per prospectus	Utilisation up to 31 March 2026	Unutilised as at 31 March 2026
Funding our cloud infrastructure cost	1,430.00	-	1,430.00
Investment in research, designing and development of our products and platform	715.81	-	715.81
Investment in purchase of computer systems for our business	103.42	-	103.42
Funding inorganic growth through unidentified acquisitions and general corporate purposes	979.85	0.13	979.72
Net proceeds (net of IPO expenses)	3,229.08	0.13	3,228.95

• Of the total IPO expenses, an amount of ₹ 137.85 million adjusted with securities premium and ₹ 12.59 million and ₹ 32.36 million charged off to statement of profit and loss for the quarter and year ended 31 March 2026 respectively, where as it is ₹ 19.77 million for the nine month period ended 31 December 2025.

12 On 24 February 2026, Capillary Technologies LLC entered into a Share Purchase Agreement with Mastercard International Incorporated for the acquisition of all issued and outstanding common stock of Session M Inc. (Delaware, USA), together with its wholly owned subsidiary, SessionM Czech Republic s.r.o., for a total consideration of USD 20.00 million. As part of the transaction, SessionM Czech Republic s.r.o. has been transferred to Capillary Pte. Ltd. The transaction is completed with effect from 1 May 2026.

Place: Bengaluru
Date: 6 May 2026

ANEESH
REDDY
BODDU

Digitally signed by
ANEESH REDDY BODDU
Date: 2026.05.06
12:03:00 +05'30'

Aneesh Reddy Boddu
Managing Director and CEO
DIN: 02214511

www.capillarytech.com

Additional details as required under Regulation 30 and other relevant provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Reason for change viz. appointment	Appointment of M/s. Protiviti India Member Private Limited as Internal Auditors of the Company for the Financial Year 2026-27.
Date of appointment & term of appointment	The Board, at its meeting held on May 06, 2026, based on the recommendation of the Audit Committee has approved the appointment of M/s. Protiviti India Member Private Limited for financial year 2026-27.
Brief profile	Protiviti is one the largest independent global consulting firm and is subsidiary of Robert Half International (NYSE Listed and Part of S&P 500 Index), their core areas of expertise are Risk Management and Process Advisory and are solely focused on Risk and Process Advisory services like Internal Audits, ICFR, Compliance Audits, SOX, Technology Consulting and Business Consulting.
In India, Protiviti has 150+ companies as clients (listed as well as non-listed) for Internal audit and other related services. 3000+ professionals (CAs, Engineers, Data Scientist, MBAs) are associated with the firm.
Disclosure of relationships between directors (in case of appointment of a director).	Not Applicable
Information required pursuant to BSE Circular no. LIST/COMP/14/2018-19 and NSE Circular No. NSE/CML/2018/24 dated 20 June 2018.	Not Applicable

CIN- L72200KA2012PLC063060

Regd. Office - 360, bearing PID No: 101, 360, 15th Cross Rd, Sector 4,

HSR Layout, Bengaluru, Karnataka 560102

Email: secretariat@capillarytech.com

Website: www.capillarytech.com

Tel: 080-41225179