Intellect Design Arena Ltd (INTELLECT) AI Stock Analysis

• Market Cap: ₹97.20B
• Dividend Yield: 0.69%
• Average Volume (3M): 15.60K
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.76
• 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: 139,403,030
• 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: 62 Neutral
• Price Target: ₹747.00 ▼(-22.13% Downside)
• Action: Downgraded Date: 02/03/26
• Date: Action: Downgraded 02/03/26

The score is supported primarily by strong financial performance (growth, profitability, solid balance sheet, and healthy cash generation). This is meaningfully offset by weak technicals (price below key moving averages and negative MACD) and a relatively high P/E with a modest dividend yield.

Positive Factors

Consistent Revenue Growth

Sustained multi-year revenue growth signals expanding product adoption across clients and geographies. For a software firm with license, subscription and services streams, this trend supports recurring revenue scale, steadier cash flow and stronger leverage for continued product investment and sales expansion.

Strong Cash Generation

Consistent positive operating and free cash flow demonstrates efficient cash conversion and prudent capex control. Durable cash generation funds R&D, go-to-market and implementation work internally, lowers refinancing needs and gives the firm flexibility to invest in product enhancements and scale service delivery.

Healthy Balance Sheet & Low Leverage

A strong equity position and low leverage provide financial resilience, enabling the company to absorb project timing, pursue strategic investments, and support multi-year client implementations. This capital structure underpins long-term stability and reduces vulnerability to external funding stress.

Negative Factors

Recent Decline in Gross Profit

A recent drop in gross profit can signal margin pressure from higher delivery costs, unfavorable pricing or product-mix shifts. If persistent, it can erode operating margins and free cash flow, forcing tougher trade-offs between pricing, investment in products, and margins over the medium term.

Rising Total Liabilities

Growing total liabilities, even from a low-leverage base, can reduce financial flexibility and raise financing or covenant risk if growth of liabilities outpaces earnings or cash flow. Continued increases would need to be funded or managed to avoid constraining strategic investments or elevating refinancing costs.

Concentration in Financial-Services Clients

Heavy exposure to banks and financial institutions concentrates revenue to one sector whose tech budgets, regulatory cycles and capital dynamics can be cyclical. That concentration increases sensitivity to sector-specific slowdowns and lengthens sales cycles, which can reduce revenue visibility over time.

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

Strong overall fundamentals: consistent revenue growth, healthy profitability, low leverage, and positive operating/free cash flow. Key watch items are the recent decline in gross profit and rising total liabilities.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Positive
• RSI: Positive
• 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 782.11, above the 50-day MA of 893.78, and below the 200-day MA of 1016.41, indicating a bearish trend. The MACD of -61.86 indicates Positive momentum. The RSI at 27.64 is Positive, neither overbought nor oversold. The STOCH value of 30.31 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
DATAPATTNS	68 Neutral	₹162.26B	65.67	―	0.30%	77.99%	26.08%
LATENTVIEW	68 Neutral	₹81.30B	40.06	―	―	31.50%	11.32%
NEWGEN	65 Neutral	₹75.54B	24.63	―	0.59%	11.47%	12.41%
INTELLECT	62 Neutral	₹97.20B	26.89	―	0.69%	15.87%	39.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TEJASNET	57 Neutral	₹59.79B	-7.66	―	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.