Intellect Design Arena (INTELLECT) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 revenue reached INR 749 crore, up 19% year-over-year, driven by new customer acquisitions and deeper client engagements on eMACH.ai and Purple Fabric platforms.

• Full-year FY25 revenue was INR 2,577 crore, with license-linked revenue contributing 50% (INR 1,247 crore); annual recurring revenue (ARR) based on Q4 run rate was INR 870 crore.

• Board recommended a final and special dividend totaling Rs.7 per share, double the previous year, reflecting confidence in future cash flows.

• 43 new customer wins and 53 digital go-lives were achieved in FY25, including a landmark INR 200 crore AI transformation deal and a multi-country wholesale banking deal.

• Recognized as a leader in open finance and AI-driven solutions, serving over 500 customers in 57 countries, including top global banks.

Financial highlights

• Q4 FY25 total income rose 19% year-over-year to INR 749 crore; EBITDA up 48% YoY to INR 227 crore (30% margin).

• FY25 total income reached INR 2,577 crore, with gross margin at 59% and EBITDA at INR 608 crore (24% margin); PAT for FY25 was INR 333 crore, excluding a one-off MAT credit write-off.

• Cash and cash equivalents at March 31, 2025 were over INR 1,000 crore.

• DSO improved to 137 days as of March 31, 2025.

• Basic EPS for FY25 was Rs. 24.29, up from Rs. 23.72 in FY24.

Outlook and guidance

• Targeting 15% annual growth, with a focus on increasing license-linked revenue to 60% over the next 2-3 years.

• Margin guidance for FY26 is 24-25%, with a long-term goal of 30% as license-linked revenue grows.

• Strong funnel progression with INR 10,234 crore in active opportunities and consistent growth in high-value Destiny Deals.

• Board recommended a final and special dividend for FY25, indicating confidence in future cash flows.

• Purple Fabric ARR is expected to grow substantially, with a three-year target of INR 1,000 crore and a long-term ambition of INR 5,000 crore.