Intellect Design Arena (INTELLECT) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue reached INR 789 crore, up 34% year-over-year, with EBITDA at INR 184 crore (up 68% YoY) and PAT at INR 102 crore (up 94% YoY), driven by eMACH.ai and Purple Fabric platforms.

• License-linked revenue grew 69% YoY to INR 423 crore, and ARR surpassed INR 1,080 crore, reflecting a shift to recurring income streams.

• Cash and cash equivalents rose to INR 927 crore, up from INR 755 crore YoY, reinforcing financial stability and strong working capital management.

• Secured 18 new deal wins and enabled 22 digital transformations in Q2, with a total of 35 deal wins and 37 digital transformations in H1, expanding global reach.

• Significant leadership hires, including Vivek Gupta as President & Head of Consulting and Rakesh Srivastava as President & CRO for the Americas, and major investment in a new 7.25 lakh sq. ft. facility for AI and innovation.

Financial highlights

• H1 FY26 revenue was INR 1,523 crore, up 26% YoY; H1 EBITDA at INR 360 crore, up 46% YoY; PAT at INR 197 crore, up 55% YoY.

• Gross margin for Q2: INR 448 crore (57%); EBITDA margin: 23% for Q2, 24% for H1, and 25% for LTM.

• LTM Q2FY26 total income: INR 2,892 crore; EBITDA: INR 721 crore; PAT: INR 402 crore.

• Collections improved 37% YoY to INR 753 crore in Q2; H1 collections at INR 1,339 crore.

• R&D and CapEx investments totaled close to INR 200 crore in H1, with R&D spend at INR 105 crore.

Outlook and guidance

• Deal funnel exceeds INR 12,000 crore, indicating robust pipeline and positive outlook for future growth.

• Management maintains a design for 20% annual growth, with visibility for continued expansion in core banking, wholesale banking, payments, and wealth platforms.

• EBITDA margin guidance remains in the 23–25% range despite ongoing investments in AI and platform innovation.

• Purple Fabric expected to contribute INR 200 crore in revenue this year, with a total addressable market for AI business estimated at INR 1,000–5,000 crore.

• Platform-led model and recurring revenue streams expected to drive continued margin expansion and financial resilience.