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Intellect Design Arena Ltd
NSE: INTELLECT BSE: 538835 INE306R01017 Information Technology IT 🔎 Screen
NIFTY 500 Smallcap 250
₹10,050 Cr
Market Cap
29.1
P/E
3.44
PEG
16.0%
ROCE
12.4%
ROE
0.05
D/E
19.0%
OPM
-41.5%
% from 52W High
29
α RS
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About

Incorporated in 2011, Intellect Design Arena Limited works globally in the fields of Financial Technology for Banking, Insurance and other Financial Services. The company has a comprehensive portfolio of products across Global Consumer Banking, Central Banking, Risk & Treasury Management, Global Transaction Banking and Insurance and is also engaged in the business of software development.

✓ Strengths 3
  • Company is almost debt free.
  • Company has been maintaining a healthy dividend payout of 24.1%
  • Company's working capital requirements have reduced from 70.7 days to 53.3 days
! Concerns

No concerns data yet.

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3-Statement Financial Model
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Mixed quarter: revenue grew 19% YoY with strong deal pipeline, but EBITDA/PAT margins contracted and profit growth lagged top-line. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹872 Cr
+19% YoY; revenue from operations ₹845 Cr (+20.6% YoY)
EBITDA Margin
22.3%
-170 bps YoY; EBITDA ₹194 Cr, +10% YoY
PAT
₹102 Cr
+8% YoY; PAT margin ~11.7% (-120 bps YoY)
Pipeline Value
₹13,012 Cr
+15% YoY; 101 Destiny deals (+6% YoY)
What Went Right
  • Total income grew 19% YoY to ₹872 Cr, with revenue from operations up 20.6% YoY to ₹845 Cr.
  • License revenue jumped 28% YoY to ₹166 Cr; license-linked revenue rose 17% YoY to ₹457 Cr.
  • Pipeline strength: ₹13,012 Cr pipeline (+15% YoY), 101 Destiny deals (+6% YoY), and 7 Destiny-class wins in Q1.
  • 19 strategic deal wins and 16 digital transformations in Q1; LTM totals reached 61 wins and 92 transformations.
  • Cash and cash equivalents rose 30% YoY to ₹1,269 Cr.
What to Watch
  • EBITDA grew only 10% YoY versus 19% revenue growth; EBITDA margin fell ~170 bps YoY to 22.3%.
  • SG&A expenses surged 31% YoY to ₹241.5 Cr, far outpacing revenue and compressing operating leverage.
  • PAT growth was just 8% YoY to ₹102.1 Cr; sequentially PAT fell 15% from ₹120.2 Cr in Q4FY26.
  • Total income declined 1.4% QoQ to ₹872.2 Cr, and revenue from operations also dipped from ₹851.7 Cr to ₹845.2 Cr.
  • Quarterly platform revenue grew only 12% YoY, a sharp slowdown versus the LTM platform growth of +98%.
Investor Lens
The strategic thesis remains largely intact: AI-first positioning is converting into quality pipeline and marquee wins, with pipeline at ₹13,012 Cr (+15% YoY), 101 Destiny deals, and cash at ₹1,269 Cr (+30% YoY). But Q1 exposed a cost-control problem: SG&A (+31% YoY) overshadowed revenue growth, and EBITDA margin compressed ~170 bps YoY. PAT grew just 8% YoY and fell 15% sequentially, so operating leverage is not yet showing up in profits. Watch whether license momentum (+28% YoY) and the large pipeline translate into sustained double-digit revenue growth and margin recovery. The next quarter's key test is EBITDA margin improvement while keeping revenue growth above 15%.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Revenue up 20.4% YoY but PAT drops 15% QoQ; margins flat at 20%.
Revenue
Revenue for Jun 2026 quarter came in at ₹845.0 Cr, up 20.4% YoY from ₹701.5 Cr in Jun 2025. However, on a sequential basis revenue was nearly flat, declining 0.2% from Mar 2026 quarter.
Profitability
Net profit rose 8.5% YoY to ₹102.0 Cr, but fell 15.0% QoQ. EPS stood at ₹7.28 versus ₹6.80 in the same quarter last year. PBT was ₹135.0 Cr with a tax rate of 25%.
Margins
Operating profit margin was 20%, unchanged YoY but down from 22% in Mar 2026. Operating profit grew 16.9% YoY, which lagged revenue growth of 20.4%, indicating some margin pressure.
Cash Flow
No cash flow data was provided in the results, so cash flow quality versus PAT cannot be assessed.
Balance Sheet
Debt-to-equity ratio is low at 0.05, indicating minimal leverage. ROCE stands at 16% and ROE at 12.4%, but no detailed reserves or asset data was shared.
Key Risks
Sequential net profit fell 15% despite flat revenue, signalling possible cost pressure or seasonality. Margins contracted from 22% to 20% QoQ. With a PE of 29.58, the valuation leaves limited room for any growth disappointment.
Outlook
YoY revenue growth remains strong at over 20%, but the flat sequential trend and margin dip need monitoring. Sustained order momentum and cost control will be key to maintaining profitability in coming quarters.
Generated by AI · Jun 2026 results · Not investment advice
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