Intellect Design Arena Ltd (INTELLECT) AI Stock Analysis

• Market Cap: ₹127.05B
• Dividend Yield: 0.69%
• Average Volume (3M): 15.60K
• Price to Earnings (P/E): 35.2
• Beta (1Y): 1.72
• Revenue Growth: 15.87%
• EPS Growth: 39.55%
• Country: IN
• Employees: 6,075
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 2.00
• Shares Outstanding: 139,315,460
• 10 Day Avg. Volume: 8,543
• 30 Day Avg. Volume: 15,602
• PEG Ratio: 12.07
• Price to Book (P/B): 3.46
• Price to Sales (P/S): 3.86
• P/FCF Ratio: 37.18
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹1,017.00 ▲(6.01% Upside)

Intellect Design Arena Ltd's strong financial performance and positive technical indicators are offset by its high valuation. The stock's bullish momentum is a positive sign, but the high P/E ratio suggests caution. Investors should monitor the company's ability to address the recent decline in gross profit and increase in liabilities.

Positive Factors

Sustained revenue growth

A ~22% reported revenue growth indicates durable demand for Intellect's fintech platforms. Consistent top-line expansion supports continued reinvestment in product development, geographic expansion and sales capacity, strengthening long-term competitive positioning versus legacy vendors.

Strong cash generation

Positive operating and free cash flow demonstrate the company converts earnings into cash effectively, enabling organic investment in R&D, match capacity for implementations, and a buffer to weather cyclical slowdowns without needing disruptive external financing.

Low leverage, solid balance sheet

A low debt-to-equity ratio and strong equity base provide financial flexibility for strategic M&A, product investment, or working-capital needs. Prudent leverage management reduces bankruptcy risk and supports multi-year investments in platform enhancements and global expansion.

Negative Factors

Rising total liabilities

An increase in total liabilities can erode liquidity and constrain capital allocation if it continues. Persistently higher liabilities may raise financing costs, limit flexibility for strategic investments, and necessitate tighter working-capital management over the medium term.

Decline in gross profit

A recent drop in gross profit suggests margin pressure potentially from higher delivery costs, pricing erosion, or unfavorable contract terms. If structural, this can impair operating leverage and reduce free cash flow available for R&D and scaling the SaaS components of the business.

Services-heavy revenue mix

Heavy reliance on implementation and professional services makes revenue more project-driven and lumpy, limiting high-margin recurring revenue growth. This model increases dependence on delivery capacity, ties margins to utilization rates, and can slow scalable SaaS margin expansion.

Intellect Design Arena Ltd Business Overview & Revenue Model

Company Description

Intellect Design Arena Limited provides software development and related services for banking, insurance, and other financial services in India and internationally. It offers platforms and products, such as iGTB, a suite of transaction banking solutions that includes digital transaction banking, trade and supply chain finance, liquid management, payment, and virtual account management solutions; iGCB, an end-to-end contextual banking suite for retail and corporate banking solution, which consists of digital core, digital lending, quantum core, and cards; iRTM, a risk, treasury, and capital markets platform that supports straight-through processing (STP) and various asset classes over a configurable and scalable platform; Intellect SEEC, an insurance solution; and Intellect WealthQube, a solution for wealth managers, private bankers, advisory firms, and financial advisors. The company was incorporated in 2011 and is based in Chennai, India.

How the Company Makes Money

Intellect Design Arena generates revenue primarily through the sale of software licenses, subscription-based services, and consulting fees. The company's revenue model is based on a combination of one-time licensing agreements and recurring subscription fees for its software solutions. Key revenue streams include the implementation of its digital banking platforms, customization services, and ongoing support and maintenance contracts. Additionally, INTELLECT has established strategic partnerships with financial institutions and technology providers, which enhance its market reach and contribute to its earnings through collaborative projects and joint ventures.

Intellect Design Arena Ltd Financial Statement Overview

Summary

Intellect Design Arena Ltd exhibits strong financial performance with consistent revenue and profit growth, a solid balance sheet with low leverage, and healthy cash flows. However, the recent decline in gross profit and increase in liabilities require attention.

Income Statement

Intellect Design Arena Ltd has shown consistent revenue growth over the past five years, with a particularly strong increase from 2021 to 2022. The company maintains healthy gross and net profit margins, indicating strong profitability. However, there was a notable decline in gross profit in the most recent year, which might need attention. The EBIT and EBITDA margins remain robust, reflecting efficient cost management and operational efficiency.

Balance Sheet

The balance sheet of Intellect Design Arena Ltd demonstrates solid financial health with a strong equity position. The debt-to-equity ratio is low, indicating prudent leverage management, and the equity ratio is high, suggesting that the company is well-capitalized. Return on equity has been stable, reflecting consistent profitability. However, there has been an increase in total liabilities, which needs monitoring to maintain financial stability.

Cash Flow

The company has maintained positive operating and free cash flow, with a positive trend in free cash flow growth, which highlights strong cash generation capability. The operating cash flow to net income ratio is healthy, indicating efficient cash conversion from profits. The free cash flow to net income ratio is also favorable, underscoring effective capital expenditure management. The company should continue to focus on optimizing its cash flow to support growth and investment.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.95B	25.00B	25.06B	22.31B	18.78B	14.97B
Gross Profit	10.13B	9.69B	11.56B	10.74B	9.57B	6.89B
EBITDA	4.33B	3.97B	4.25B	3.31B	3.90B	2.96B
Net Income	3.53B	3.33B	3.21B	2.67B	3.49B	2.63B
Balance Sheet
Total Assets	0.00	38.82B	34.05B	28.87B	25.94B	20.44B
Cash, Cash Equivalents and Short-Term Investments	5.31B	5.31B	3.03B	1.27B	4.08B	2.49B
Total Debt	0.00	717.78M	443.03M	271.28M	204.19M	824.61M
Total Liabilities	-28.17B	10.65B	9.54B	8.19B	7.72B	6.39B
Stockholders Equity	28.17B	27.86B	24.39B	20.58B	18.09B	13.93B
Cash Flow
Free Cash Flow	0.00	2.60B	2.37B	85.09M	3.24B	3.50B
Operating Cash Flow	0.00	4.31B	4.10B	1.74B	4.53B	4.63B
Investing Cash Flow	0.00	-2.45B	-2.55B	-1.77B	-3.99B	-1.90B
Financing Cash Flow	0.00	-633.06M	-490.26M	-495.42M	-521.01M	-2.25B

Intellect Design Arena Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 959.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INTELLECT, the sentiment is Negative. The current price of 959.35 is above the 20-day moving average (MA) of 919.09, below the 50-day MA of 991.74, and below the 200-day MA of 1019.90, indicating a bearish trend. The MACD of -24.79 indicates Negative momentum. The RSI at 43.86 is Neutral, neither overbought nor oversold. The STOCH value of 58.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INTELLECT.

Intellect Design Arena Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LATENTVIEW	74 Outperform	₹84.09B	44.02	―	―	31.50%	11.32%
INTELLECT	73 Outperform	₹127.05B	35.17	―	0.69%	15.87%	39.55%
NEWGEN	67 Neutral	₹82.74B	26.98	―	0.59%	11.47%	12.41%
DATAPATTNS	64 Neutral	₹149.52B	64.06	―	0.30%	77.99%	26.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TEJASNET	57 Neutral	₹60.51B	-7.89	―	0.55%	-17.23%	-185.73%

Intellect Design Arena Ltd Corporate Events

Intellect Design Arena Posts Q3 FY26 Earnings Call Recording Online

Intellect Design Arena Limited has announced that the audio and video recording of its Q3 FY26 investors’ earnings conference call, held on January 30, 2026, has been made available on the company’s website. By publishing the recording, the company is reinforcing its investor communication practices and providing stakeholders with greater transparency and access to its quarterly financial discussions.

Intellect Design Arena Wins Canadian GRC AI Mandate with Carte Financial Group

Intellect Design Arena Ltd has secured a multi-year mandate with Canada’s Carte Financial Group to deploy its Purple Fabric-powered Governance, Risk & Compliance (GRC) AI platform across the wealth manager’s regulatory, onboarding and governance workflows. The strategic deal, Purple Fabric’s first GRC-led transformation mandate in Canada, positions Intellect to deepen its North American presence while providing Carte with an adaptive, intelligence-led regulatory framework designed to move compliance from a reactive function to proactive, AI-driven governance, reducing operational risk and friction in an increasingly complex, highly scrutinised regulatory environment.

Intellect Design Arena Wins Favorable Tax Ruling, Reducing Liabilities

Intellect Design Arena Limited announced a favorable ruling from the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Chennai, which set aside a significant service tax demand of ₹36.77 crore, including interest and penalties. This decision significantly reduces the company’s contingent liabilities and validates its tax positions, positively impacting its financial standing.

Intellect Design Arena Ltd. Cancels UK Joint Venture Due to Market Changes

Intellect Design Arena Limited has announced that it will not proceed with a joint venture with ITIXA Limited to provide AI-enabled bookkeeping and business support services for SMEs in the UK. This decision follows a strategic reassessment of the UK market, where recent regulatory changes have created an unfavorable economic climate for SMEs, making the original business case for the joint venture unviable. The cancellation of the MOU will not impact Intellect Design’s existing operations or growth strategy in the UK and Europe, as the company remains committed to its core strategy of delivering technology solutions to the financial sector.

Intellect Design Arena Elevates Manish Maakan to Executive President and GCRO

Intellect Design Arena Ltd has announced a significant change in its senior management, with Manish Maakan being elevated to the position of Executive President and Group Chief Revenue Officer. This strategic move is expected to enhance the company’s global revenue governance and strengthen its market position in the financial technology industry, reflecting its commitment to expanding its global footprint and improving its operational capabilities.

Intellect Design Arena Engages with Investors at G-200 Summit

Intellect Design Arena Ltd participated in the Anand Rathi Annual Flagship Conference G-200 Summit, where company representatives met with a variety of investors, including institutional and retail investors, to discuss potential opportunities and strategies. This engagement highlights the company’s proactive approach in strengthening investor relations and potentially expanding its market influence through strategic partnerships and investments.