Our leadership team is present on this call to discuss the results. We have with us today Mr.

Arun Jain, Chairman and Managing Director; Mr. Manish Maakan, Executive President, Chief Revenue Officer, and CEO of Wholesale Banking.

We have Mr. Rajesh Saxena, CEO of Consumer Banking; Mr.

Banesh Prabhu, CEO of IntellectAI; Ms. Vasudha Subramaniam, CFO; Mr.

Vikas Mishra, Chief Strategy Officer; and Mr. Deepak Dasala, CEO of Purple Fabric.

Besides, some of the other senior members of the Intellect management team, they are present in the call. Now, I hand it over to Manish to give his comments on the result.

This would be followed by the comments of Vasudha. Thereafter, we'll be in the Q&A session where your questions would be replied by the senior members of the management team.

Once the Q&A start, you can ask a question by clicking on the raise hand. Then we'll unmute you and you can talk to the management.

One safe harbor: I would like to remind you that anything which we say which refers to our outlook for the future is a forward-looking statement, which must be read in conjunction with the risks that company faces. With this, I request Manish to give his briefing.

Over to you, Manish.

Thank you, Praveen. Good evening, everyone.

Thank you for joining this Q1 FY '27 cascade. Our theme for this phase is Growth by Design.

I think that's what we introduced beginning of this year and how we're doing. I'm going to focus on giving you some evidence of what growth is, and then going to talk about the algorithm which makes that growth happen.

Our total income has reached ₹872 crore, growing 19% year-on-year. Our license-linked revenue has grown by 17% to ₹457 crore.

We've secured 19 strategic wins and expanded our pipeline to ₹13,000 crore. The number of destiny deals have crossed 100 for first time, and we have converted seven during this quarter.

None of these are isolated outcomes. They reflect a deliberate growth system connecting our research, platforms, priority markets, customers, and execution.

Today, I will explain the algorithm behind this growth and how we are working to make it increasingly repeatable and predictable. Go back to this.

The two platforms which are creating the unfair advantage for our growth journey: eMACH.ai and Purple Fabric, around which we have been making most of our investments and growing live. The data points of what each one of them are is being listed over here.

Our moat is not one technology; these are two different, distinct technologies. It's the combination of composable banking and AI, which is making the difference in the world.

It is our ability to reuse proven capabilities, reduce implementation complexity, lower total cost of ownership, and bring differentiated propositions to customers with greater speed and certainty. The question is whether this differentiation is producing commercial evidence.

Our Q1 performance demonstrate that it is making a difference. We go to what's our core strategy, which connects all of this value.

I think the first pivot of our strategy where we're making significant investments is AI-first. How this AI-first is making an impact to our lives is I look at it from two perspectives.

First is external monetization: how Purple Fabric is creating standalone enterprise AI opportunities, while increasing the differentiation of eMACH.ai in broader transformation decisions. We are focused in selling PF as a platform, and as AI-first in all our eMACH.ai stories.

Each of the wins you see would have not been possible without either one of them. Financial institutions need more than access to a language model, which we hear a lot out there.

They need an AI that can work with enterprise knowledge, established workflows, governance frameworks, security controls, and regulatory requirements. The second value we've seen from AI is internal transformation.

We are expanding AI adoption across engineering, testing, implementation, customer support, and business operations. Our objective is to increase execution capacity, shorten delivery cycles, and support operating leverage over time.

Our second growth engine is focused execution in strategic markets. North America has become one of our most important growth markets, and we're parallely pursuing our continued growth around Europe, Middle East, India, and APAC.

Our third growth engine is productizing our domain expertise. Our portfolio addresses across wholesale banking, core banking, digital banking, lending, wealth, insurance, and commerce.

Purpose-built propositions in each of these areas, such as Islamic banking, custody, and credit unions, allow us to address specialized opportunities with greater repeatability. This is power of true eMACH.ai.

Our fourth growth engine is strategic customer expansion. During Quarter 1, we secured 19 strategic wins and completed 16 transformations.

Over past 12 months, we have achieved 61 wins. You would see the average of 61 over 12 and 19 in the last quarter showing that the number of wins are growing.

A strategic win is only a beginning. Successful implementation creates customer value.

Customer value builds trust, and trust gives us the right to expand across additional products, business units, and geography. These are our four pillars of our growth algorithm.

In Q1, like I said, North America is helping us make an impact. One of Mexico's largest banks selected eMACH CBX, and this is a franchise of one of the largest global banks, where the digital engagement platform on the corporate banking, wholesale banking side across all lines of business was chosen.

We have six credit unions in Canada adopting our digital engagement platform. This further reinforces the investment we made about a year ago in Canada, and our wins are continuing across that.

It ratifies our investments and strategy consistently. Europe is where we have been winning enough before also.

Another large top five bank in Europe, for their investment services and asset management side, they looked at our eMACH CBX to make transformation over there. In Middle East, last quarter war had impacted us, but this quarter has been very large for us from ME—post-war for us over here.

The war has also forced banks to really think through the infrastructure and actually are putting more investments to solidify and upgrade their infrastructure. We saw number of wins in Middle East from that perspective.

India, homegrown market, one of the largest financial services company picked up Purple Fabric as a complete enterprise open business impact AI platform. We've been in AI in eMACH.ai as well as individual platform deals.

That was a big. We had another three custody deals, which shows as wealth is coming into India, all such supporting the market strategy.

We won three large deals on custody side, further expanding our market leadership in India. From an APAC perspective, we had two deals across Southeast Asia and one deal in East Africa, further expanding our individual franchises over there.

You look at, it's been a very balanced portfolio across markets, winning across all five geographies where we operate out of that. Our pipeline, like I said, grew ₹13,000 crore, 15% year-on-year, and we've crossed 100-plus destiny deals.

This is giving us confidence that our investments are in the right direction. Our results are proving that execution is backing where our investments are going.

We had seven large strategic deal wins, which we had during the last year. This is statistics on our deal size band, above ₹50 crore, 49 deals.

We have a varied portfolio. We're not singularly dependent upon either large, medium, or small deals.

A balanced portfolio across markets, size of deals, and platforms. I think that balanced approach of what Arun has been consistently saying is, that's the arena—arena across products, arena across markets, arena across types of deals.

That's consistently making us remain consistent on that performance. The 20% promise, LTM basis, we're continuing to live up to that in that plus-minus 2% to 3%.

That's where our journey is currently. What are the other additional markers of the success?

Analysts consistently rank us number one, not across one platform. IBS is one of the most popular sales league table, which collects data from everyone.

This is where they showed us our leadership in the last 12 months period, who has been number one in winning deals across that. This is a sales matrix.

Going on to the next slide is a qualitative metric, where the analysts on our capabilities are commenting upon how we are, where we are in the Leadership Magic Quadrant. The industry awards confirm that our assets have been used and they've made an impact, business impact.

The industry rankings and customer recognitions, all these are proof points of why eMACH.ai has been adapted and why consistently recognition and around the globe we're getting these successes. This is the other proof point of if you look at over the last six, seven quarters, what our performance has been.

On an LTM basis, we have been from Q3 FY '25, we've been consistently growing. This consistent growth is what we are looking at.

I think we've always said, let's look at LTM basis. This is a proof point of that data being plotted to show on an LTM basis how our growth has been.

Our investments are being done on the LTM basis, our growth is around that, all proof points are around that. I think this would make each one of the investors feeling comfortable and confident that the support you extend to us is going into the right direction.

Additionally, to continue building the market momentum, there's enough market events we participate in along with our sales marketing teams to ensure our brand is visible and is consistently celebrated. These events are now also markers for me actually to close deals as well as to make those last-mile customer-to-customer references, who've been very successful from them across.

Again, you see, it's a well spread out across all markets. The balance of portfolio in all execution, you will evidence from this.

To continue supporting this, we are continuing to make again balanced investment in senior talent leadership around AI and our go-to-market capabilities and our technology capabilities of how we support and continue to extend our moat for Intellect being AI-first growth agenda. I would now request Vasudha to share the financial details.

Thank you, Manish. Good evening, everyone, for joining us.

Let me take you through our financial performance for the first quarter of 2026-2027, and then provide a broader perspective on our last 12 months of performance, which, in our view, is the best indicator of the structural progress we are making as a business. Q1 was another quarter of healthy growth, disciplined execution, and strong cash generation.

We reported a total income of ₹872 crore, representing a 19% year-on-year growth over Q1 of 2025-2026. Our license-linked revenue, comprising platform, license, and annual maintenance revenue, increased to ₹457 crore, up from ₹389 crore in the corresponding quarter last year, representing a 17 percentage year-on-year growth.

Moving to profitability, EBITDA increased to ₹194 crore compared with ₹176 crore in Q1, while PBT increased to ₹135 crore compared with ₹126 crore in the corresponding quarter last year. Our platform-led operating model continues to provide operating leverage even as we invest for future growth.

Next slide. Let me now turn to what we believe is the more meaningful perspective, the last 12 months.

On an LTM basis, our total income reached ₹3,299 crore compared with ₹2,690 crore in the previous corresponding period. License-linked revenue increased significantly to ₹1,734 crore compared with ₹1,324 crore a year ago.

Platform revenue nearly doubled to ₹595 crore, while license revenue increased to ₹554 crore and AMC to ₹585 crore. Our LTM EBITDA increased to ₹721 crore compared with ₹646 crore in the corresponding previous period, reinforcing our ability to scale profitably while continuing to invest for long-term growth.

Our LTM PBT has crossed ₹500 crore as of Q1. Another important highlight this quarter is our collection performance.

Collection for Q1 increased to ₹763 crore compared with ₹586 crore in Q1 of last year, representing a growth of approximately 30%. This reflects disciplined execution, healthy customer collections, and continued focus on our working capital management.

Looking at the broader picture, LTM collections increased to ₹3,221 crore compared with ₹2,401 crore in the previous corresponding period, representing a growth of approximately 34%. As of the end of the quarter, cash and cash equivalent stood at ₹1,269 crore compared with ₹976 crore in the corresponding period last year, representing an increase of 30%.

This healthy cash position provides us with the flexibility of continuing to invest in AI, product innovation, strategic market expansion, and long-term growth opportunities, while maintaining a strong and resilient balance sheet. In closing, we believe the financial performance this quarter reinforces the structural strength of our business model.

Thank you.

Thank you, Vasudha. Now, we open it for the Q&A session.

Please click on raise your hand to ask a question. Once again, I say please click on raise your hand to ask a question.

First, we have Mr. Meet Mehta.

Meet Mehta from Prasun Exponential. Meet Mehta.

Hi. Am I audible?

Meet Mehta.

Meet, you are audible.

Yeah. The platform business saw quarter-on-quarter and how should we look at the

Meet, your voice is breaking. Can you repeat the question, please?

Meet, can you come again?

Hello. Am I audible now?

Yes, you are audible now.

You can ask your question.

[unclear] Still he is not audible. Maybe we can

Praveen, Meet audio is not audible. You can move to the next person.

I'm going to the next person. Second, we have Rucheeta Kadge.

Rucheeta Kadge from [Sinjesha?] .

Rucheeta? Audible,

sir? Hello.

Am I audible?

Yeah. Ruchita, please go on.

Yeah. Basically I wanted to ask on the platform revenue side.

We've usually seen a Q-on-Q growth because it's a recurring kind of business. This quarter, there has been a degrowth in that, Q-on-Q.

What led to that, and how do we see that number going ahead? See,

first of all, the same thing that we've been saying in every investor call, not to measure us on a quarterly basis. Because last quarter was the last quarter of the financial year, previous quarter.

There had been some true-up in some of our deals, and so you'll see some spikes. There is nothing like a degrowth.

It's still continuing

I understand on the license part of it, right, because it's kind of a bulk revenue. I'm talking more on the platform revenue side, right, which is recurring in nature.

If you get that, it has to come, right? Incrementally, it has to get added, which has gone down.

See,

if you look at the quarter-on-quarter numbers, say for example, if you look at the first quarter of last year, it was about ₹135 crore, and then it was ₹137 crore. We are still in the same line.

We are about ₹140 crore this quarter. It's not significantly changed.

Just that in the last quarter, we were able to get some additional revenue because of the true-up of some of the subscription deals that we had contracted. That is the reason.

Is it like some of those subscriptions have now ended, and further we'll now have to add more customers?

No, Rucheeta. It's not like that.

See, many of our contracts are based upon the transactions, especially the subscriptions space. Take a case of Magic Submission, where totally depends upon how many transactions or how many policies are being processed by the platform.

Like Vasudha said, last quarter was the final quarter of the financial year, we did see a good spike in the transaction volume for the last quarter. Nothing to worry about.

This is a consistently growing platform revenue. Yes, last quarter was a spike, so that's the reason perhaps you've seen average.

Let's look at LTM basis. It's close to ₹600 crore.

It's double of what it was 12 months ago. The growth average rate is

We should not look at it quarter-on-quarter. We should look at it more annually or same, okay.

Absolutely.

This is not customers run off. There are spikes.

Some contracts, if usage goes up, we get that spike in. Over a 12-month period, if you average that out, that will give you what the average is.

If you look at on a 12-month basis, it's close to ₹595 crore.

Okay. That should grow at whatever the company is growing at, right?

Annually 15%, 20% of growth. That's how we should look at.

That's where we are investing and moving towards.

Got it. On the expenses side, do we see a gradual reduction in it?

Because we still see around ₹120 crore, ₹130 crore above what we were doing earlier, right? Earlier, it was ₹550 crore, which we used to do quarterly.

When do you see that scaling down, the expense part?

Expenses increased by only about ₹14 crore from last quarter to this quarter. It has not

Quarterly, yes. Earlier, right, we were at a run rate of ₹550 crore.

Then we increased it for AI, and employee cost had gone up because of the calibration of a new segment which we took from a particular company, right? The Canada-based.

That's why I was asking, do we see that it should reduce, or you see that incrementally now the addition should be lower? See,

last quarter, we specifically made some investments in Purple Fabric that we called out in the beginning of the last financial year itself. We made an investment of close to about ₹72 crore.

This quarter, we have not made any incremental investment. In fact, out of the increase of ₹14 crore from last quarter to this quarter, ₹7 crore is on account of ESOP cost.

The remaining is anyway the BAU cost. We don't see any major increase in the cost.

Of course, we do have some plans to make some investments.

Thank you, ma'am. That's all from me.

Thank you, Rucheeta. Next, we have Mr.

Rahul Jain. Mr.

Rahul Jain from Daulat Capital. Rahul Rahul, please unmute yourself.

Yeah.

Hi. Thanks for the opportunity.

Congratulation on strong license win during this quarter. Can you just talk about how we are seeing the momentum right now?

Are we seeing there is an increased demand toward license-based deal wins, or we are seeing incremental trend toward subscription-based demand coming within our customer base? That is part one of the question.

Secondly, just on the cost side of it, we are seeing a cost increase quarter-on-quarter. I understand we are investing into the business, but is there a point beyond which we think the operating leverage should start playing out with this kind of a growth?

Thank you.

Rahul, the if you look at license as well as platform, in the revenue for that in this quarter as well as on an LTM basis, it's consistently close to each other, those numbers are. Different quarters, different models are pursued.

Different segments of customer, either platform or license. That balanced approach is keeping us The intent is to grow the platform revenue.

That's why if you will see on an LTM basis, it's doubled up from that perspective. License used to be a stable revenue for us.

Platform revenue is growing, and that's where we are making investments on AI to support all of this.

To respond second question, I think Rucheeta asked the same question to Vasudha on cost side, ₹550 crore to ₹677 crore. Total cost this quarter is ₹677 crore versus ₹663 crore last quarter.

Those costs are now inherent in the cost. If Purple Fabric investments are done, those mainly in technology business the people cost, people cost remains constant.

It doesn't come down on quarter-on-quarter. We'll not come back to ₹550 crore cost base, if that is the expectation which is there.

The operating leverage which Rahul is asking will come in that this quarter we didn't have any salary increase, or the cost of head count increase, which remained constant. ₹7 crore went into RSU, ESU, ESOP, and RSU.

Remaining ₹7 crore went into additional event, marketing, travel. Those are the costs which went into.

Good news is that head count cost and whatever the salary increase cost is there, it got accommodated into the same cost structures. That's a very positive news from that perspective that operating leverage can start coming now.

Sir, just to conclude from your remark which you just mentioned, is it safer to assume, given that we have decent growth momentum thought process, on an annual basis we should be improving the EBITDA margin on a FY '27 to FY '26 basis?

Sure. You can assume that.

Rahul, you've seen last two quarters are above close to an ₹850 crore mark. From a ₹700 crore mark to ₹850 crore mark, the needle has changed.

I think where we need wishes is how soon we can get to the ₹900 crore mark. That's what we are driving.

Yeah. I'm sure you would achieve it soon.

Thank you. Best wishes.

Thanks, Rahul. Next, we have Mr.

Neel Chhabra from Recite Ventures.

Hi. Good evening, everyone.

Am I audible?

Yeah. Please go on.

Largely if we think about on a run-rate basis, we are at ₹3,000 crore of revenue right now with over 6,000 employees. If we look at revenue per employee, we are roughly at ₹50 lakh.

If we look at our peers like Oracle, they are doing roughly ₹1 crore per employee, or Temenos, they are at 1.5 cr, or even nCino, they are at 2.5 cr per employee. I understand partly this is because we have a service mix in our business as well.

Directionally, where do you see this moving over let's say next 3, 4 years as our platform and license-linked revenue increases? Where this number could grow?

How internally as a management you're looking at this number?

Yes, I think it depends on the investment a company is making. We have a 1,200 people research team in the company to sustain this growth.

If you cut down those ₹1,200 crore, 1,200 people, we can increase the margin by ₹400 crore per year. The question is a lot of time company doesn't invest sufficiently for keeping the momentum.

We grew from ₹600 crore to ₹3,300 crore in last 10 years. Let's see revenue growth number from last 10 years is not the same percentage-wise.

Obviously, operating leverage will come in. Your question and Rahul questions are same, that operating leverage on the per-headcount.

We have a good metric is that ₹50 lakh per employee. We'll move towards ₹60 lakh or ₹70 lakh or ₹80 lakh, but I think we don't measure that.

We measure what is required for strategic business. We invest that way.

We are not running on this metrics of a headcount metrics or a revenue metrics. Those metrics are not our part of the business agenda.

Yes, to respond, this will improve definitely.

If we look at division-wise, obviously iGTB has a different kind of maturity, iGCB has a different kind of maturity, and the economics would look completely different given the life cycle or the stage the business is in. If it is possible for you to just showcase at scale, I think I'm sure iGTB must be doing over 40% operating margins given their scale.

If you can just give a breakup, if possible, of division-wise if management is comfortable doing that in coming quarters?

Neel, that's a number we usually talk about during the annual thing because it won't be right to talk on a quarterly basis. Your point is very valid.

Definitely each of the businesses are at different stage of maturity. Usually we do not go ahead and disclose this at a quarterly level, but definitely when we have the annual call, we will talk about it.

The last quarter, we did that. Give the shape of

it.

Headcount is not what we looked at.

Not on the headcount basis. I'm just saying maturity basis.

iGTB is mature. At mature stage, what margin it is making?

iGCB is a young growth company, at what margin they are making? Purple Fabric could be completely new.

They might be loss-making as well, which is completely fine given the life cycle of the business. I was just asking how do we look at as the business matures, what does sales and economics look like?

If you can give breakup of that in coming on annual basis only, if you can do that in coming years. That would be helpful to gauge.

The only thing you can look at it, you're perfectly right. iGTB will be operating at a much higher margin than per headcount.

Revenue from iGTB will be much higher than the ₹50 lakh average. That'll be at least 30%, 40% higher than what current numbers are.

iGCB will be in the same range, or AI will be in the slightly middle range. That indication we can give that all the three maturity index what you're plotting is perfectly in line.

As of now, we don't declare that number to unnecessarily make one business look smaller than other business. It gives a feeling to the employee that whether I am performing better than other.

It's not a practice we want to create that observation in our employee community, because results are seen by employee community also. That is not a appropriate metrics, but from your perspective as an investor.

I'm giving you indicator that every mature business can go to same number at skew numbers. If that is the number you're looking for, GTB will be closer to in next 2, 3 years look closer to the skew profit margin number.

All right. Thank you so much.

Thanks, Neel. Next, we have Mr.

Arvind Arora from A-Square Capital. Arvind, you are there?

Mr. Arvind Arora?

Yeah. Hello.

Am I audible?

Yeah. Please go on.

Yeah.

Sir, what's our R&D budget for the current year and the next year, if you can throw some lights on that? When can we expect magics in the numbers of this hard work that we are putting?

What is it? First is simple that we spend $20 million in R&D.

Each year-on-year, dollar and gives you more budget for us. We have ₹160 crore last year.

It will be ₹180

to

₹200 crore will be the R&D budget for this year. Up to 200, it can go up to ₹200 crore for this year, ₹180 to ₹200.

What is the second question you asked?

What's the area of the focus on this R&D that we are where we are spending?

We are spending in AI, the two platform which is Manish has highlight: eMACH and Purple Fabric. Purple Fabric is a core area.

It's a huge potential which is there. We have filed 28 8 patents in Purple Fabric.

This is the area where, as a investor, after multiple conversation, still your focus is on lag indicator. As an investor, you are not looking lead indicators.

Your questions are not on the lead indicator; your question is on the lag indicators. If somebody Silicon Valley investor would be there, then he will be looking as a lead indicator investment rather than a lag indicator investment.

I shared two levers of AI. One is externally.

Second is internally.

That's where I think we are very bullish about what the potential is Purple Fabric is going to offer for the R&D's expense, which is peanut compared to the AI space where people are investing $200 million a year. We are investing $20 million a year, which is across multiple lines of business.

That's our current state, but AI is a core area of investment.

Understood. Sir, earlier you used to mention our focus is on incremental ₹100 crore.

Now, if you look at our base, it's increased drastically. Now, how we are looking internally, still we are looking incremental ₹100 crore, or is there any shift on the target part?

No shift. Every three-quarter, ₹100 crore increase.

Okay. Then, sir, our growth would not be at a 20% at least if we are focusing only on ₹100 crore.

You

don't ask last-point question, huh?

You right now seeing 19% LTM basis. You're seeing last 6, 7 quarters consistent.

23% LTM. Yeah,

23% LTM. The last two quarters comes to ₹850 crore operating income.

Let's just state less and focus on performance.

Okay. Thank you, sir.

All the best.

Thank you.

Thanks, Arvind. Next, we have Mr.

Kushal Goenka from Mangal Keshav Financials. Kushal, you there?

Hello.

Kushal? Hello, sir.

Am I audible?

Please go ahead. Please go on.

Sir, my question was more on the gross margin side. As per my limited understanding is that once if you're moving up the value chain, I'm extrapolating from the likes of say manufacturing companies, when those companies move up the value chain, the gross margin should inherently increase.

If we are moving up the value chain to Purple Fabric and eMACH.ai, shouldn't our gross margins, which is around 58%, 59%, should increase, and that should lead to an increase in EBITDA margin also? I just wanted to know a thought on this.

Also coming under numbers, if we see to we did around ₹350 crore of PAT, and I think so still we are on a like-to-like basis, I think so we would cross that number this year after say 4 years. Just wanted to understand if we are moving up the value chain, shouldn't the gross margins and then the EBITDA margins and hence the PAT should have increased?

Are the ROIC of the investments that we are doing, the R&D investment, that generating a higher returns? I just wanted I think

this is a mistake of Indian investor. Are you comparing tech company

with a

manufacturing company? Now, definitely this margin should go up.

One day it will go up so much that you'll find excitement over there. The question is not about which metrics we are tracking.

As analyst, you track all the metrics. As a business leadership here, we don't track these metrics.

We look at it market trends, forward-looking patterns which is coming in a market, what is the right investment to be made. If we have to make the company for next 20 years survival, 20 years is a institution which should grow year-on-year for next 20 years, our focus is that.

Our focus is whether headcount is so much, per-headcount revenue, per gross margin 56% become 58% or not. Those are very micro-focus numbers.

Those numbers will automatically come if we cut down the investments. Last year was a major investment.

Rahul has asked a question, if my headcount cost remain at ₹680, ₹600, ₹700 crore is cost will remain there, then whatever revenue growth will come, it will come to the bottom line. You just extrapolate from that perspective as a lead indicator perspective.

If ₹900 crore is a number, ₹950 crore is a number, and my cost remain ₹700 crore, it will give you ₹250 crore EBITDA. It's not a rocket science to look at it that number which will coming through at next 2, 3 quarter.

We don't want to drive our business towards that. Our driving is towards what is right for the customer, right for the market, and right for the sustainability of our growth.

Growth by design is the point Manish has mentioned. Our focus is how many companies in India grown and crossed ₹3,000 crore revenue?

Most of the companies stuck at ₹800 crore, ₹900 crore just because the investments are not complete. This is the core strategy as a investor you need to understand Intellect theory.

Theory of Intellect is ₹4,000 crore, ₹1,000 crore. We mentioned about 2 years back or 1 year back, 1.5 year back that we will be ₹4,000 crore by '28.

₹4,000 crore and ₹1,000 crore. I think we are running on those milestones, and ₹4,000 crore and ₹1,000 crore is a good number for us to look at investment thesis today.

Predictability and quality is what we are focused on, and we continue to drive that.

Quarter, if you compare quarter-to-quarter, platform to this, I think all are so market is so variable. No, and we don't want to get stuck in those areas.

Some of the companies when 3 years back you ask the question, platform revenue should be more, what happens to license revenue? We mentioned that it will be hybrid model.

It will never be a total platform and many questions were asked. This company has stopped giving a license revenue.

If understand the customer behavior, we react as per design thinking to the customer behavior and act accordingly. We don't get by the patterns of trend, and that's a very myopic view of driving the business, sustained business growth.

Thank you so much, sir. That's helpful.

Thanks, Kushal. Next, we have Mr.

Vivek Turaga. Mr.

Vivek Tergaonkar from [Bestpals Advisory?] .

Vivek, you are there?

Am I audible?

Vivek. Please go on.

Arun ji, you even earlier in the concall, 2, 3 concalls back, there was mention about tailwinds in mainframe to modernization. Then you are building up the capacity for it, can you just comment on that?

I just announced also a senior leader with mainframe background we have added in the team. That's why investments are happening.

We are working with cloud partners also, hyperscalers, to bring from mainframe to cloud.

Are we winning or are we confident, or if you can

We have multiple wins we have announced where we're moving from mainframe to cloud. How do you move it at scale is what we are looking at.

Second question is you mentioned in the first slide, Manish ji, that you have an unfair advantage in the last 5, 6 years of eMACH.ai plus Purple Fabric. If you can go deeper, because of these two, how has our deal wins rate or vis-a-vis the competition?

If you can explain us why should we think it is an unfair advantage? I understand that technology part, but when you compare in the market, what are the kind of deals, or what is that unfair advantage helping us?

Is sales cycle becoming lesser or so if you can explain, sir.

Good question. I'll give you example of two of our young platforms, trade finance and lending.

They're far more mature platforms out there who have been ahead, in some platforms I am ahead of everyone else. Our win rate suddenly over there is growing because we're starting with AI-first.

Rather than conventional battle, we are able to demonstrate modern, new technology with AI-first. That's driving wins for us.

That's what you're continue to see. Embedding all number of CBX you are seeing, AI-first in there is making that difference.

EMACH just as an architecture, which is composable, hyperscalable, plus AI-first, and then Purple Fabric as a platform, which is significant in North America for my insurance as well as individual platform deals. They are dual engine right now.

You you think the what way, is it like is it like convert I I don't know if I'm able to is my like is it like only in two, three products or across the products we are finding an unfair advantage vis-a-vis

Across the products we are implanting. I was giving you examples of some of my young platforms where I would have taken much longer to win at the rates I'm looking to win.

The mature platforms are continuing to create an expansion because AI-first is there. You saw a number of Middle East deals I have announced.

My dominance over there, why is it continuing? Not just because of what I had before, is the AI capabilities which is making that industry-specific innovations.

Okay. My third question is this may be repetitive, but please for the greater clarity because Arun ji mentioned we will conduct some concall for investors on AI, and we couldn't do it.

Whenever we speak to many institutions like Bajaj Finance or HDFC or even Equitas when we went for analyst day, many were mentioning that there's a lot of software that they're trying to build in-house more than before because of people call it vibe coding, whatever. What is your view, what part of the software are they doing more in-house?

I understand few people can do, not everybody can do. How are you seeing this trend that build versus buy?

Are you seeing any pricing pressure because of it? Because it's a little bit confusing.

This part is confusing because there are institutions which are still buying, but there are institutions which are saying, 'No, we understand our business better than the vendors.' We have allocated to the technology guy and he will make sure So, what are they actually trying to build?

Is it the system of record that you play or on the top of it? If you can give any clarity on it.

This trend is happening. There are some of the adventurous banks are doing this.

This adventurous bankers comes in every now and then. When internet started, they started building their own digital platforms.

They start knowing that I can build digital application. Then after 10 years of their failure, they started going to YONO is spending ₹500 crore.

Before YONO, State Bank of India was building their own internet platform. They believed that anybody can build application.

I think this trend of Anthropic giving a promise or Claude giving the promise that you can build your own applications, to me few banks will succeed, but they will be spending more money than the buying decisions. Anybody who is building their own platform will have to spend more money, because they have to maintain the technology, they have to upgrade the technology, the cost of technology upgrade in a long run.

Those capacities are available in large adventurous company and a big pockets for them to spend on money. Is the past 30-year trend, all in-house development processes led to the translation to the some product companies.

That's a

You are not finding it a problem for winning deals or pricing or so, sir?

It will happen. I think this trend will happen and they will come back up.

They will come back after 2 years, after 1.5 year, they will come back. Few people will succeed, which is very good for them, because they have a deep pocket to invest in a money.

Today, JPMorgan Chase spent for some $6 billion, $5 billion. Should they be spending $5 billion for running a technology?

$20 billion technology budget, $2 billion just on AI.

$20 billion. Now, $20 billion for JPMC, why should they spend?

If they buy the technology, they shouldn't. Even their technology budget is bigger than any technology company itself.

Those are the things which makes that some decision, once you do it yourself, then obviously the cost goes up. I will also add, Arun, one more thing.

If we rewind ourselves 18 months back, when new technology came, we were also very bullish. Cursor, we will just write the code overnight.

We realize it's not writing the code overnight. The discipline which is required to make things deterministic, putting guardrails, guiderails.

Each one of us write the same query on OpenAI ChatGPT, we get different answers. Why?

Even if make minor search, it can't give consistently. All of us go through that.

I personally went through that. Now we've invested very significantly with Purple Fabric to ensure deterministic remains there.

Financial world is not probabilistic. You can do some of your surrounding applications, productivity, those things very good.

These are core infrastructures of banks.

Got it. No, I understand, but I just wanted Sir, last question is Sorry, Arun ji, you were explaining something, please.

I'm saying a lot of service companies are going to bank now because they're saying, 'I'll help you build the bank products.' There's another trend we are heard in a market, because they're repositioning the service business to a product business.

Just to bring to your notice, you will hear that thing from the service company that we will build products.

Got it. Despite this, we can continue around 15% to 20% growth with all this, because this keeps happening, in your view.

We are in eight markets here. Some markets will go up, some markets will come down.

Now only two markets we are not present: one is Eastern Europe, one is Latin America. Ninth and 10th market will either add over a period of time.

Whenever we are going to add those markets

We have no room in Japan.

Japan and Australia, we have to invest money. We are present there, but we are not invested money.

Those are next four markets: Japan, Australia, Eastern Europe, and Latin America. Latin America just announced a deal in Mexico, it's adjacent to US.

We'll keep going adjacent markets to where our core markets are.

I'm sorry repeating the same question. We will do a 15% to 20% growth even with these trends, right?

Yeah.

Last question, Arun ji. You have carved out a Purple Fabric as separate entity, and then you also mentioned when you were doing the first Purple Fabric investor meeting that the pace of addition of clients would be drastically different in Purple Fabric because it can be more horizontally done.

Any reasoning why you carved out, and are you seeing any big traction over there? Or is there any financial reason to do that?

Like that.

We are working on three, four technologies in Purple Fabric, and that is a right question I would have expected today in the first question, that what are you doing in AI? Why we are so bullish about AI, and why do we need a separate LOB?

These are the three questions which you are asking after half an hour. I found that that is a lag indicator investor circle versus lead indicator, because that is where the underlying future value of gold mine is sitting there, because there is a tailwind for AI.

One of the important point is Manish has looked at it, multiple technologies in last 9 months. We have cracked complete deterministic knowledge grid, because AI accuracy in industry is less than 80%.

A lot of time, copilots are used for only value of grid, Cursor are used for this coding, but none of them is delivering the value. Today, we have designed a technology which has got substantial accuracy, which will be launching in next 2 months.

This product has a ability to reduce 3 months effort to 3 weeks effort. That is under the marketing GTM we are working on.

We are testing this technology within Intellect. This technology has been tested in 78 different projects at Intellect.

We piloted the technology on 15th of May. Between 15th of May to 15th of July, we have reached 78 projects using this technology.

Very early signs are effort can come down by 60% total for the same project size. Now suddenly as an investor, you will jump on to point, what is the headcount reduction?

I'm saying the lead indicator shows that this is happening. It will take another 3 months for this technology to reverse engineer our processes and systems, which is designed on SDLC.

How do we move SDLC to AIDLC? That is where many transition in our company we are working on that new methodology will evolve.

New methodology will be more participating with the customer. This technology is so magical that within 2 hours, I can show to the customer his spatial graph of his application, which nobody in the world has able to do it.

It's beyond Anthropic, which is doing using Claude. That is where the significant potential is sitting there in AI world at Intellect.

You've carved out because we are looking at new technologies, is there any other reason, or is it just that it is going to address a different

It's a completely different company altogether. It's a technology company.

Purple Fabric is a technology LOB, while this is a product LOB. So

Got it. Okay.

Sir, and Arun ji, it's a request that you told you'll conduct a concall for investors explaining these things,

if you can do it. In the next 2 months, we'll do the AI concall, and then I think we should look at an investor meet also before end of the year.

Concall we can do early.

It's pending on me. We'll do it.

Last just one small clarification. With all this given the future outlook, we are confident of 15% to 20% growth, right?

You will continue to get the same answer.

Thank you. All the best, Arun ji, and thank you very much.

Thanks, Vivek. Next, we have Mr.

Ravi Mehta. Ravi Mehta from One Up.

Ravi, please ask your question.

Yeah. Hi.

Thanks. Just wanted to know if the newer deals where you are embedding Purple Fabric with eMACH, is there more customization as a new norm?

How does these deals happen?

Can you repeat the question, Ravi, please?

Yeah. See, what sense I got is that Purple Fabric is getting embedded in a lot of eMACH deals.

It's kind of a blended offering. In such kind of deals, is more customization a new norm, or how is No,

no. Just think of what is business operations.

The operations flow is taken care of by eMACH. The intelligence flow over there is being taken care of Purple Fabric.

As the intelligence flow consumption will increase, you will see magic happen. The hockey stick you are asking for, it will start returning there, because the units of intelligence flow are different from license.

Okay. It's not like every deal has to be customized as per the requirements.

The platforms work in sync, basically.

You're right, Ravi. We don't have to customize everything, because even in Purple Fabric, we have very well-defined solutions that sit on top of our eMACH.ai platform and they work seamlessly with that.

There is no need for us to go back to the customers and undertake the customization exercise.

Sure. Also, I had a question on the internal use of Purple Fabric.

What I was given to understand that lot of internal piloting is also happening. What is a kind of I think you were just explaining about in the previous question about the efficiency cutdown.

What is your take on the internal use of Purple Fabric in terms of efficiency and cost savings? What have you experienced?

This effort saving will be there. As of now, again, our focus is not headcount cut.

Our focus is not about immediate cost saving. Our focus is how do we deliver customer faster.

If I deliver the project earlier to the customer, if I can deliver 6 weeks before the delivery date and make a customer happy, that's the first focus for us. I'm saying from a product perspective, I given an indication it can have a potential to save 60% of development effort.

Now,

that will come into action maybe two quarter later. It may come in next quarter later.

Those kind of potential is there. That risk is there for all the IT services company that if development efforts comes down by 60%, then it's a major risk for the industry.

See, I'm looking at number of waterfall go-lives. Can I do them in Quarter 3?

The realization of revenue faster, delivering it first time right. Our portfolio, 80%, 85% comes from existing customer.

We can actually start cleaning out everyone else.

Yeah. I think I had a related question, which is partly getting answered, that implementation revenue has been historically close to 45% of our revenue.

Even we've grown to this level. Now, if this thing pans out, then that can shrink meaningfully if the rollouts are faster and your go-lives are faster and the revenue recognition is happening.

Is that a fair understanding of the revenue mix changing?

Don't think of that. We're not in a time and material business that if it happens faster, our revenue could reduce or things like that.

It's a fixed-price work we do quite a bit of that from an implementation, and we drive productivity with that. Like Arun said, two primary focus: deliver first time right, deliver 6 weeks ahead of what you have committed.

That's where focus is.

Faster go-live means faster revenue recognition also. I'm saying your license and subscription also grow faster than the implementation because of the speed.

That is Q.E.D. Sure,

sure. Okay.

Just one follow-up, just a little bit number specific. Sorry for bothering this, but this quarter, we had an exceptional license revenue flows, which still had a kind of lower gross margins.

Are there any direct spends on the tech side or AI side which we are recognizing in the software development line item? I just want to understand that are the spends for the future which are getting recognized here and hence we are seeing a gross margin which is not as good given a I think

we answered this question. We answered this.

Repeat the call, you'll find the answer.

This

is usually it is answered, and this maybe you're not paid attention to that.

I was there. I think somebody was asking about higher technology and all those things.

My limited point was only higher license historically tend to flow down, but this quarter it hasn't, if I just look at. Are there any incremental spends that we are reporting software development item?

Now, simple thing is, don't analyze the numbers. You need to look at if the growth of 23% is good for you as an investor or not.

This analysis of number that license should flow here, should flow there. We explained it's ₹14 crore cost increase in this quarter: ₹7 crore is for RS ESOP, ₹7 crore is for business development and travel.

That's the cost increase which have happened. See, 23% LTM basis revenue growth, 31% license-linked revenue growth, which is higher margin, close to 20% gross margin growth.

These are all leading indicators, which says we are in a healthy. I think the management confidence of investing and delivering those investments to deliver this, I think that's what matters, right?

Few quarters between few crores between the quarters, if you look at the LTM growth, it's about 19 percentage growth in the gross margin. If you look at the current quarter's gross margin, it's 57%.

Maybe if you had listened to some three, four quarters before, we had said that we would like to hover around 56%, 57 percentage of gross margin. We are anyway within our target.

Sure, sure. Okay.

Thanks. Thanks.

Thank you.

Thanks, Ravi. Next, we have Mr.

Vipulkumar Shah from Sumangal Investments.

Praveen, this will be the last question.

Last question. Mr.

Vimal Vipulkumar Shah?

Yeah. Am I audible?

Yeah. Please go on.

What is the cumulative spend we have done on for developing Purple Fabric till date?

Sorry.

Sorry, come again, please.

Cumulative investment.

What is the total spend we have done for developing Purple Fabric till date?

Till date, we would have been over 700 ₹700, ₹800 crore over the last 8 years. Almost ₹100 crore per year we are spending, yeah.

All have been charged to P&L, sir?

Charged to P&L, yeah. Or whatever the capitalization we do.

Partly to P&L, partly to development. Up to the stage of doing a feasibility study, it will be to the P&L.

Once the technical feasibility is done and the roadmap is clear, it will get into development. CWIP.

It's a part of the same 160 ₹180 crore investment every year.

Okay. Lastly, we are going to demerge Purple Fabric into a separate company, right, sir?

No, sir.

No, no. There is nothing like that.

Are you suggesting us, sir?

I'm suggesting. Why don't you do it?

Demerger idea

What do you mean by having a separate this thing which you are in your press release?

Vipul ji, it's a separate line of business so that the required and desired focus can be given to this particular initiative. We've heard you in terms of the demerger, but as of now, there are no such plans.

Okay. Thank you, sir, and all the best.

Thank you.

Thank you.

Arun, there are two more questions are there. Should we close or we take the questions?

We'll take the two questions.

Please go ahead, Praveen. We can take the questions.

Actually, we should announce three questions before, not last minute one question. That's the right practice.

Praveen ji, go ahead.

Yeah. Next, we have Mr.

Pranaya Jain. Mr.

Pranay Jain from Banyan Tree Advisors. Pranaya Jain?

Yeah. Hi.

Can you hear me?

Pranay. Please go on.

Thank you so much for the opportunity. Just one question on Purple Fabric.

I wanted to understand the kind of things that we are doing on Purple Fabric and some of the deals that we have announced previously. Can we kind of cater to more non-BFSI clients, which could possibly expand our TAM for Purple Fabric?

We are using other unit called Direct to Corporate, they're APX and procurement space we are expanding to other customers. We are using Purple Fabric for non-banking clients.

Understood.

Probably motion, Pranay.

Got it. Okay.

That's it from my side.

Thanks, Pranay. The last, we have Mr.

Sandeep Nabira. Mr.

Sandeep Nabira, as an individual investor. The last question.

Sandeep?

Yeah. Good evening, everyone.

Am I audible? Good evening.

Please go on.

Yeah. Good evening, everyone, and thanks for accommodating my question.

I think couple of quarters back, we announced that we have some 14, 15 strategic implementation or partners kind of consulting companies. We said we will be using their domain expertise to extend Purple Fabric in the respective domain.

Has there been any progress on that, and the R&D what we talk about, are we spending to extend Purple Fabric to other domains?

Now, using cloud partnerships and AI partnerships on Purple Fabric, the domain side is taking our eMACH products forward, the consulting companies, how we can go deeper with it.

If you're referring to the 14 value discovery agreements that we signed with some of our partners, it is still in progress. I think a lot depends upon because some of them, we've already seen some success, but obviously, yeah, there need to be certain solutions that we need to build using those partners and take it to the market.

It's still again in progress.

Right. Can we expect something in the next couple of quarters so that it can become a new revenue

Definitely we can. That's what is our intent of signing with them, and we that's where we're seeing the movement also.

Excellent. Thank you so much.

The last one and quick one: Is it possible to give the breakdown of revenue from the continuing customers, existing customers, and the revenue from the new customers as a breakdown, if that would not be too much to report?

We don't disclose, Sandeep.

We don't disclose that, and we don't have exiting customers also. You should be happy about it.

No concern there. I was just wanted to know what are the new customers we are adding.

It's fine. Thank you so much.

Appreciate that. All the best.

Thank you, Sandeep. Thank you everybody for joining today.

In case still you have any question, please do write to us, accordingly it will be replied. Thank you.

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