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    Intellect Design Arena Limited

    INTELLECTGood
    Information Technology·6 Feb 2026
    Management Summary

    Intellect Design Arena Limited reported strong LTM performance for Q3 FY26, with total income crossing ₹3,000 Crs. and robust growth across platform, license-linked, and annual recurring revenues. While Q3 profitability was impacted by one-time provisions, the company maintained a positive outlook, emphasizing its strategic growth engines, AI-first platform, and continued investments in capacity and market expansion. Management expressed confidence in achieving full-year targets and future revenue milestones.

    Highlights

    9

    • LTM total income crossed ₹3,000 Crs., reaching ₹3,025 Crs., representing a 23% year-on-year growth.

    • LTM Platform revenue stood at ₹497 Crs., showcasing a strong 128% year-on-year growth.

    • LTM License-linked revenue grew to ₹1,595 Crs., delivering a robust 37% year-on-year growth.

    • LTM Annual Recurring Revenue stood at ₹1,118 Crs., representing a strong 60% year-on-year growth.

    • LTM EBITDA stood at ₹709 Crs., showcasing a 33% year-on-year growth, with an LTM EBITDA margin of 23.8%.

    • Q3 Total income for the quarter stood at ₹753 Crs., reflecting a 21% year-on-year growth.

    • Q3 EBITDA was ₹122 Crs., translating to a margin of 16%.

    • Q3 Profit after tax stood at ₹28 Crs., impacted by a one-time gratuity provision of ₹30.84 Crs. and deferred tax of ₹7.8 Crs.

    • Cash position as of December '25 was ₹1,198 Crs., delivering a 49% year-on-year growth.

    What Changed3

    vs Q4 FY26

    Guidance items6 → 8 (+2)Risks discussed4 → 2 (-2)Q&A highlights8 → 3 (-5)
    Key financials

    Metrics

    13

    Periods

    3

    Headline

    1
    • Cash Position
      ₹1,198 Cr
      YoY+49%

    Q3

    6
    • Total Income
      ₹753 Cr
      YoY+21%
    • License-linked Revenue
      ₹391 Cr
      YoY+34%
    • EBITDA
      ₹122 Cr
    • EBITDA Margin
      16%
    • PAT
      ₹28 Cr

    LTM

    6
    • Total Income
      ₹3,025 Cr
      YoY+23%
    • Platform Revenue
      ₹497 Cr
      YoY+128%
    • License-linked Revenue
      ₹1,595 Cr
      YoY+37%
    • Annual Recurring Revenue
      ₹1,118 Cr
      YoY+60%
    • EBITDA
      ₹709 Cr
      YoY+33%

    Segment breakdown

    • Wholesale Banking (LTM Revenue)₹1,400 Cr48.3%
    • Consumer Banking (LTM Revenue)₹1,000 Cr34.5%
    • IntellectAI (LTM Revenue)₹500 Cr17.2%
    Donut· Share of Revenue

    Guidance & targets

    8
    CategoryTargetPriority
    Revenue
    Purple Fabric Revenue
    ₹200 Crs.
    		High
    Revenue
    LTM Revenue Growth
    20%
    		High
    Revenue
    Quarterly Revenue
    cross ₹800 Crs.
    		High
    Revenue
    North America Revenue
    touching ₹1,000 Crs.
    		Medium
    Profitability
    Full Year EBITDA Margin
    20% plus
    		High
    Profitability
    Gross Margin
    57%
    		Medium
    Capacity
    SG&A Investment Level
    current level
    		High
    Capacity
    SG&A Investment Level
    add more
    		High

    Risks & concerns

    4
    RiskSeverity

    Economic factors causing slower ramp-up in particular markets.

    An analyst inquired if Q3's growth dip was due to economic factors, to which management responded that their business design accounts for such headwinds. — Analyst acknowledged

    medium

    AI adoption is still in early stages with associated ROI challenges.

    Management noted that AI adoption is still at an early stage, and ROI challenges are common for new business models, but expressed confidence in their positioning. — Management acknowledged

    medium

    Areas of Evasion(2)

    • Specific split of incremental investments in SG&A
    • Commitment to share buyback

    Q&A highlights

    3

    “Mihir, we are on track for what we are forecasting for the 200 Crs. number. I think we're reasonably confident of coming close to that number for the year.”

    Analyst sought clarity on the revenue contribution of the new growth engine, Purple Fabric, and management confirmed confidence in achieving the full-year target, while also addressing the competitive landscape for AI.

    asked by Mihir Manohar

    2 min read6 chapters

    Detailed Narrative

    01

    Q3 FY26 Financial Performance Overview

    Intellect Design reported a total income of ₹753 Crs. for Q3 FY26, reflecting a 21% year-on-year growth. License-linked revenue for the quarter grew 34% year-on-year to ₹391 Crs. EBITDA for Q3 stood at ₹122 Crs., translating to a margin of 16%. Profit after tax was ₹28 Crs., impacted by a one-time📎 gratuity provision of ₹30.84 Crs. and a resultant deferred tax of ₹7.8 Crs. Collections for the quarter were strong at ₹913 Crs., up 65% year-on-year.

    02

    Robust LTM Growth and Key Milestones

    The company highlighted its Last Twelve Months (LTM) performance, with total income crossing ₹3,000 Crs. for the first time, reaching ₹3,025 Crs., a 23% year-on-year growth. Platform revenue for LTM surged 128% year-on-year to ₹497 Crs., while license-linked revenue grew 37% to ₹1,595 Crs. Annual recurring revenue in LTM was ₹1,118 Crs., up 60% year-on-year. LTM EBITDA stood at ₹709 Crs., a 33% year-on-year growth, with an LTM EBITDA margin of 23.8%.

    03

    Strategic Business Engines and Diversification

    Intellect's growth is driven by three scale business engines: Wholesale Banking, contributing approximately ₹1,400 Crs. to LTM revenues; Consumer Banking, contributing close to ₹1,000 Crs.; and IntellectAI (including wealth and insurance), which has scaled to ₹500 Crs. in LTM revenue. A fourth engine, Purple Fabric (Open Business Impact AI Platform), is being built from 2024 onwards, with a full-year FY26 revenue target of ₹200 Crs. This diversified portfolio across products and geographies provides downside protection.

    04

    Purple Fabric and AI-First Strategy

    Purple Fabric, the company's AI-first composable platform, is increasingly embedded in production environments, with 14 new value discovery partners joining its ecosystem in Q3. Management highlighted its differentiation through end-to-end orchestration, enterprise-level AI deployment, and an ethical AI stack for governing digital experts. The platform aims to help customers achieve business impact by improving costs, productivity, revenue, and customer experience.

    05

    Investments and Capacity Building

    Intellect made incremental investments of ₹10-15 Crs. in Q3, primarily in SG&A and product development, for capacity building and distribution expansion, particularly in North America. The company also added 27 senior leaders in the last 12 months to strengthen global consulting, delivery, product, and go-to-market capabilities. These investments are part of a deliberate strategy to support future growth and achieve revenue milestones like crossing ₹800 Crs. in Q4/Q1.

    06

    Leadership and Market Recognition

    Manish Maakan was elevated to Executive President and Group Chief Revenue Officer, while Mr. D. Shivakumar was appointed as an independent director. The company received significant market recognition, including Time Magazine recognizing Chairman Arun Jain as a global growth architect, Datos Insights awarding a Gold Medal for Innovation, and Euromoney naming Intellect the world's best Transaction Banking Software Provider 2025. Gartner and IDC also acknowledged Intellect's core banking and corporate loan systems.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.