Capitalnumbers Infotech Ltd (544343)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Capitalnumbers Infotech's revenue was ₹52.0 Cr (+4.0% year on year, -1.9% on the previous half-year), and net profit ₹11.0 Cr (-8.3% year on year); the operating margin was 21.2%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹52.0 | +4.0% | -1.9% |
| Operating profit | ₹11.0 | -8.3% | -21.4% |
| Net profit | ₹11.0 | -8.3% | -26.7% |
| EPS (₹) | 4.41 | -10.9% | -27.7% |
| Operating margin | 21.2% | — | — |
📢 Recent Corporate Announcements
Capitalnumbers Infotech shareholders have approved variations in the objects of its IPO at the AGM held on September 29, 2026. The company reallocated ₹1,146.46 Lakhs of unutilized issue expenses toward the 100% acquisition of Epitome Cloud Inc. and its Indian subsidiary, valued at approximately ₹40 Crore (~19.5% of TTM revenue). Additionally, ₹500 Lakhs originally earmarked for Capital Numbers LLC can now also fund Epitome Cloud entities. The acquisition and investments are scheduled for completion by September 2028.
- Shareholders approved reallocation of ₹1,146.46 Lakhs from unutilized issue expenses to fund acquisition
- Acquisition of 100% of Epitome Cloud Inc. (and Indian subsidiary) valued at approximately ₹40 Crore
- Scope of ₹500.00 Lakhs subsidiary investment object expanded to include Epitome Cloud Inc.
- Proposed acquisition and investments are scheduled for completion by September 2028
- Acquisition value of ₹40 Crore represents ~19.5% of TTM revenue (₹205 Cr)
Capitalnumbers Infotech's Board approved variations in its IPO proceeds deployment, subject to shareholder approval on September 29, 2026. An unutilised amount of Rs 11.46 Cr from issue expenses will be reallocated towards acquiring 100% of Epitome Cloud Inc. (and its Indian subsidiary) for an aggregate consideration of approximately Rs 40 Cr (~19.5% of TTM revenue of Rs 205 Cr). Additionally, Rs 5.00 Cr allocated for subsidiary investment has been broadened to cover Epitome Cloud. The Board also appointed Anand V Varanasi as Senior Managerial Personnel to lead enterprise technology initiatives.
- Reallocating Rs 11.46 Cr of unutilised IPO issue expenses towards the acquisition of Epitome Cloud Inc.
- Total acquisition consideration of approximately Rs 40 Cr, with the remainder funded via internal accruals.
- Rs 5.00 Cr subsidiary investment object modified to include Epitome Cloud Inc. and its subsidiaries.
- Appointed Anand V Varanasi (30+ years enterprise technology/Salesforce experience) as Senior Management Personnel.
- Shareholder approval scheduled for the 14th Annual General Meeting on September 29, 2026.
Capitalnumbers Infotech's Board has approved a variation in its IPO proceeds utilization, subject to shareholder approval on September 29, 2026. An unutilised amount of ₹1,146.46 Lakhs (₹11.46 Cr) from issue expenses is being reallocated to fund the 100% acquisition of Epitome Cloud Inc. and its Indian subsidiary for a total consideration of ~₹40 Crore (~19.5% of TTM revenue). Additionally, ₹500 Lakhs previously earmarked for subsidiary Capital Numbers LLC is now also permitted for deployment into Epitome Cloud Inc. The company also appointed Mr. Anand V Varanasi as Senior Management Personnel (Senior VP).
- Reallocated ₹1,146.46 Lakhs of unutilised IPO issue expenses towards the acquisition of Epitome Cloud Inc.
- Acquisition consideration of Epitome Cloud Inc. is approximately ₹40 Crore, representing ~19.5% of TTM revenue (₹205 Cr)
- Allowed ₹500.00 Lakhs subsidiary investment object to include Epitome Cloud Inc. and its subsidiaries
- Appointed Anand V Varanasi (30+ years tech experience, Salesforce specialist) as Senior Vice President
- Shareholder voting on IPO object variations scheduled for the 14th AGM on September 29, 2026
Capitalnumbers Infotech's Board approved variations in the utilization of its IPO proceeds to fund the acquisition of 100% ownership in Epitome Cloud Inc. for approximately Rs 40 Crore (~19.5% of TTM revenue). Specifically, Rs 1,146.46 Lakhs (Rs 11.46 Cr) of unutilized issue expenses will be reallocated toward this acquisition, alongside widening the scope of Rs 500 Lakhs subsidiary investment proceeds. The board also appointed Mr. Anand V Varanasi as Senior Management Personnel to strengthen enterprise technology delivery.
- Reallocating Rs 1,146.46 Lakhs of unutilized IPO issue expenses toward acquiring 100% of Epitome Cloud Inc. for ~Rs 40 Crore
- Expanded scope of Rs 500.00 Lakhs subsidiary investment proceeds to include Epitome Cloud Inc. and its subsidiaries
- Acquisition includes indirect takeover of Indian subsidiary Epitomecloud Technology Private Limited
- Appointed Mr. Anand V Varanasi (30+ years enterprise experience) as Senior Management Personnel effective August 31, 2026
- Shareholder approval scheduled for the 14th Annual General Meeting on September 29, 2026
CapitalNumbers Infotech's Board has approved variations in its IPO proceeds utilization, subject to shareholder approval at the AGM on September 29, 2026. The company plans to reallocate ₹11.46 Cr (₹1,146.46 Lakhs) of unutilised IPO issue-related expenses to fund its ₹40 Cr acquisition of 100% of Epitome Cloud Inc. and its Indian subsidiary. Additionally, a ₹5.00 Cr (₹500 Lakhs) investment object is expanded to include funding for Epitome Cloud. The balance acquisition consideration (~₹28.54 Cr) will be financed via internal accruals.
- Reallocating ₹1,146.46 Lakhs of unspent IPO issue expenses towards the ₹40 Cr acquisition of Epitome Cloud Inc.
- Modified ₹500.00 Lakhs subsidiary investment object to include funding for Epitome Cloud Inc. and its subsidiaries.
- Balance consideration of ~₹28.54 Cr to be funded through internal accruals/other permissible sources.
- Appointed Mr. Anand V Varanasi (30+ years technology experience) as Senior Management Personnel.
- AGM scheduled for September 29, 2026, to seek shareholder approval for the object variations.
Capitalnumbers Infotech Ltd has scheduled a meeting of its Board of Directors on Monday, August 31, 2026. The key agenda item is to consider and approve a variation in the objects of its Initial Public Offer (IPO) to deploy the proceeds for other specific purposes. Specific details regarding the reallocated amounts and target uses are expected post the meeting and will require subsequent shareholder approval.
- Board of Directors meeting scheduled for August 31, 2026.
- Meeting agenda includes considering and approving variation in IPO proceeds utilization.
- Proposed reallocation targets 'other specific purposes' not yet detailed in the filing.
Capitalnumbers Infotech has completed the 100% acquisition of New Jersey-headquartered Epitome Cloud Inc. for a transaction value of ₹40 crore. The deal size represents ~19.5% of the company's TTM revenue of ₹205 crore and utilizes its previously earmarked M&A fund. Epitome Cloud brings specialized expertise in Salesforce, Revenue Cloud, CPQ, CLM, and enterprise workflow platforms, strengthening Capital Numbers' presence and client footprint in the US market.
- Completed 100% acquisition of US-based Epitome Cloud Inc. for ₹40 crore
- Acquisition value of ₹40 crore represents ~19.5% of Capitalnumbers' TTM revenue of ₹205 crore
- Expands enterprise capabilities across Salesforce, Revenue Cloud, CPQ, CLM, and workflow platforms (Conga, Agiloft, Onit)
- CEO of Epitome Cloud, Anand Varanasi, retained to lead US client engagements
Capitalnumbers Infotech has completed a payment of INR 23.40 crore (USD 2.45 million) towards the 100% acquisition of US-based Epitome Cloud Inc. and its Indian subsidiary. The total deal value is approximately INR 40 crore, representing a significant 19.5% of the company's TTM revenue of Rs 205 crore. This acquisition utilizes the company's previously earmarked INR 40 crore M&A fund to bolster its cloud engineering capabilities. The remaining consideration will be paid according to the terms of the Stock Purchase Agreement.
- Total acquisition consideration of approximately INR 40 crore for 100% ownership.
- Initial payment of INR 23.40 crore (USD 2,451,288.49) successfully disbursed to sellers.
- Acquisition includes Epitome Cloud Inc (USA) and its subsidiary Epitomecloud Technology Private Limited (India).
- Deal size accounts for ~19.5% of TTM revenue and ~20.9% of the company's Net Worth (Rs 191 Cr).
- Execution aligns with the company's strategy to double revenue over three years through strategic M&A.
Financial Performance
Revenue Growth by Segment
Total revenue for H1 FY26 reached INR 59.12 Cr, a 14.5% YoY increase from INR 51.67 Cr. Revenue from operations grew by 4.95% in H1 FY26, while 90% of the business is recurring and 10% is project-based. The company maintains a guidance of >=15% YoY revenue growth for the full year FY26.
Geographic Revenue Split
Not explicitly disclosed in percentage terms, but the company operates a development center in Gurgaon (expanded to 80+ seats), an office in the Netherlands, and is establishing a new office in Saudi Arabia to capture regional demand.
Profitability Margins
Profit After Tax (PAT) for H1 FY26 was INR 14.80 Cr, up 8.1% YoY from INR 13.69 Cr. Net margins have seen a temporary compression to approximately 25-26% in H1 FY26 compared to historical levels of 30%+ due to front-loaded investments in senior leadership and AI capabilities.
EBITDA Margin
EBITDA for H1 FY26 stood at INR 20.45 Cr, representing an 8.3% YoY growth from INR 18.88 Cr. The EBITDA margin is currently impacted by deliberate investments in a new AI Center of Excellence and a 14% increase in total income driven by other income sources.
Capital Expenditure
The company has earmarked INR 40 Cr specifically for strategic acquisitions. Additionally, it invested in expanding the Gurgaon development center to an 80+ seater capacity and established a Netherlands office in 2025 to support global delivery.
Credit Rating & Borrowing
The company maintains a zero-debt balance sheet as of H1 FY26. It holds cash investments of INR 147.49 Cr, providing significant liquidity for organic and inorganic growth without incurring interest costs.
Operational Drivers
Raw Materials
The primary 'raw material' is human capital (IT talent), specifically senior architects, developers, and leadership in AI, Salesforce, and Cloud engineering, which constitute the bulk of the operational cost base.
Import Sources
Talent is primarily sourced from India, with a major development hub in Gurgaon and a presence in Bangalore. Global sales talent is being onboarded in the Netherlands and planned for Saudi Arabia.
Key Suppliers
Not applicable as a service-based IT company; however, the company utilizes technology platforms from partners like Salesforce, Oracle, and SAP (though currently lacking a formal SAP/Oracle practice).
Capacity Expansion
Current capacity includes a newly expanded 80+ seater development center in Gurgaon. The company is investing in 10 key technological areas, with 3 areas (AI, Salesforce, Cloud) being prioritized in the current fiscal year.
Raw Material Costs
Employee benefit expenses and talent acquisition costs are the primary drivers. Management noted that salaries have averaged out across India (e.g., Gurgaon vs. Bangalore), and they are investing 'ahead of the curve' to win higher-margin deals.
Manufacturing Efficiency
Efficiency is measured by the 'land and expand' strategy, where the company starts with smaller pilot projects for FTSE and NYSE listed clients to build trust before scaling to larger digital transformation contracts.
Logistics & Distribution
Distribution is handled via digital delivery models and global sales offices. Sales capacity is being strengthened to improve 'pipeline quality' and 'win velocity'.
Strategic Growth
Expected Growth Rate
15%
Growth Strategy
Growth will be driven by doubling revenue over three years through a three-pronged strategy: expanding the global sales team, deepening AI/ML and data engineering capabilities, and executing strategic M&A using the INR 40 Cr earmarked fund. The company is targeting companies with strengths in Salesforce and Cloud to enhance market reach.
Products & Services
End-to-end software development solutions, digital consulting, IT engineering, AI-driven delivery models, Salesforce implementation, and cloud engineering services.
Brand Portfolio
Capital Numbers
New Products/Services
Launched AI Center of Excellence and specialized practices in Salesforce and Cloud engineering, which are expected to contribute to a gradual expansion in revenue momentum in H2 FY26.
Market Expansion
Expanding global footprint with a new office in Saudi Arabia and leveraging the existing Netherlands office to target European and Middle Eastern enterprise clients.
Market Share & Ranking
Positioned as a premier SME IT services provider; differentiates from large-cap peers like Infosys and Wipro by offering more 'nimble and agile' services for smaller, high-trust contracts.
Strategic Alliances
The company is actively screening over 20 companies for M&A and is in discussions with multiple targets to enhance digital engineering capabilities.
External Factors
Industry Trends
The industry is shifting toward AI-driven delivery and cloud-native engineering. Capital Numbers is positioning itself by hiring a new Director for its AI CoE and focusing on high-growth technology practices to maintain industry-leading profitability.
Competitive Landscape
Competes with other SME IT firms on credentials and with large-cap firms on agility and price-to-value ratio for mid-sized digital transformation projects.
Competitive Moat
Moat is built on high-tier credentials (SOC 2 Type 2, ISO 27001) which are rare for SME-sized IT firms, allowing them to win trust from NYSE/FTSE listed entities that typically only hire large-cap firms.
Macro Economic Sensitivity
Sensitive to global IT spending trends and regional economic shifts in the US and Europe, which currently show 'softer demands' in certain sectors.
Consumer Behavior
Enterprise clients are increasingly seeking 'nimble' partners for smaller, specialized AI and cloud pilots rather than massive, multi-year legacy contracts.
Geopolitical Risks
Global market volatility is cited as a factor, though the company maintains consistent execution despite these headwinds.
Regulatory & Governance
Industry Regulations
Compliance with international data security standards (SOC 2 Type 2, ISO 27001) is critical for maintaining its license to operate in global enterprise markets.
Environmental Compliance
Not a high-impact area for IT services, though the company adheres to international ISO standards.
Taxation Policy Impact
The company's effective tax rate is reflected in the difference between EBITDA (INR 20.45 Cr) and PAT (INR 14.80 Cr).
Legal Contingencies
No specific pending court cases or high-value legal disputes were disclosed in the provided H1 FY26 documents.
Risk Analysis
Key Uncertainties
The primary uncertainty is the timing of the margin realignment; management expects margins to expand as new practices scale, but front-loaded costs currently impact short-term profitability by approximately 4-5%.
Geographic Concentration Risk
While expanding, the company still has a significant delivery concentration in India (Gurgaon/Kolkata), making it sensitive to local labor market inflation.
Third Party Dependencies
Dependency on global cloud platforms (AWS, Azure, Salesforce) for service delivery.
Technology Obsolescence Risk
Risk of falling behind in AI/ML; mitigated by the establishment of a dedicated AI Center of Excellence and hiring senior leadership from the industry.
Credit & Counterparty Risk
Strong receivables quality indicated by a current ratio of 30.55 and a high percentage (90%) of recurring revenue from marquee listed clients.
