Intellect Design Arena (INTELLECT) Q1 25/26 earnings summary

Executive summary

• Q1 FY25-26 achieved total income of INR 734 crore, up 18% YoY, with EBITDA at INR 176 crore (+28% YoY) and PAT at INR 94 crore (+27% YoY).

• 17 new deals were won and 15 digital transformations went live, with major traction in the U.S., Canada, and global markets for eMACH.ai and Purple Fabric.

• Purple Fabric, the AI platform, rapidly built a strong pipeline and is gaining traction with global banks and insurers.

• Leadership team expanded with key hires to support global scale, credit unions, GRC, consumer banking, and marketing.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were approved by the Board on July 25, 2025.

Financial highlights

• Total income: INR 734 crore (+18% YoY); EBITDA: INR 176 crore (+28% YoY); PAT: INR 94 crore (+27% YoY).

• Cash and cash equivalents at INR 976 crore as of June 30, 2025.

• ARR at INR 1,041 crore; license-linked revenues at INR 389 crore, over 50% of total revenue.

• Gross margin for Q1FY26 at INR 415 crore (56% margin); EBITDA margin at 24%.

• Consolidated revenue from operations for Q1 FY26 was ₹7,016.89 million, with net profit after tax at ₹936.94 million.

Outlook and guidance

• AI-driven revenue from Purple Fabric expected to reach INR 200 crore for the full year.

• Incremental investment in AI and marketing to reach INR 130 crore in FY26, with margins managed within 20%-25%.

• Targeting 20% annual revenue growth and 30% profit growth over three years, aiming for INR 4,000 crore revenue and INR 1,000 crore PBT.

• Sales funnel at INR 11,300 crore in active opportunities, with average deal size at INR 62 crore.

• High-value deal pursuits (>INR 50 crore) increased to 26 in Q1FY26.