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Intellect's Profit Dips Amidst Strategic AI Investment
30 Jan
Summary
- Net profit for Q3 FY26 was ₹28 crore, down from ₹70 crore in Q3 FY25.
- Total income grew 21% to ₹753 crore in Q3 FY26, driven by platform revenue.
- Company secured 53 new deals and enabled 82 digital transformations last year.
Intellect Design Arena announced a net profit of ₹28 crore for the third quarter of fiscal year 2026, a notable decrease from ₹70 crore reported in the same quarter of fiscal year 2025. This decline was attributed to an exceptional item of ₹31 crore related to gratuity following new labor codes.
Despite the profit dip, the company's total income saw a robust 21% increase, reaching ₹753 crore in Q3 FY26 compared to ₹621 crore in Q3 FY25. Platform revenue experienced a significant boost, rising to ₹155 crore from ₹50 crore year-over-year. The company also crossed ₹3,000 crore in Last Twelve Months (LTM) revenue, with a 33% year-on-year increase in EBITDA and cash reserves of ₹1,198 crore.
Arun Jain, Chairman and Managing Director, highlighted that Intellect Design Arena is making strategic investments in Artificial Intelligence and capacity-building, aiming to capture trends through its wholesale banking, consumer banking, and IntellectAI businesses. In the past twelve months, the company secured 53 new deal wins and facilitated 82 digital transformations across global financial institutions.
Further strengthening its leadership, the Board reappointed Anil Kumar Verma as Whole-time Director for five years and appointed D. Shivakumar as an Additional Director designated as Independent Director for the same term. Intellect Design Arena's shares closed at ₹911.95 on Friday, marking a 1.23% increase.
