Good evening everyone, and thank you for joining us on Intellect Design Arena's Q3 earnings call. It's a pleasure to speak with you today as we share our performance for the third quarter of the financial year.

Before I get into the quarter, I would like to begin with the last 12 months' performance because we believe that the LTM view best reflects the true direction and health of our business. I'm pleased to share that for the first time in our history, Intellect's LTM total income has crossed 3,000 crore, reaching 3,025 crore, representing a 23% year-on-year growth.

This milestone is not just a scale maker. It is the outcome of a deliberate, well-architected growth strategy that has been executed consistently over the last decade.

Platform revenue for the LTM stood at 497 crore compared to 218 crore in the previous year, a strong 128% year-on-year growth. License-linked revenue of 1,595 crore compared to 1,163 crore in LTM as of Q3 '25 delivered a robust 37% year-on-year growth.

Our annual recurring revenue stood at 1,118 crore in the LTM compared to 700 crore a year ago, representing a strong 60% year-on-year growth. EBITDA for the last 12 months stood at 709 crore compared to 534 crore in LTM as of Q3 '25, a 33% year-on-year growth.

PBT for the last 12 months grew 34% over the previous period. Our cash position as of December '25 was 1,198 crore compared to 804 crore as of December '24, a 49% growth year-on-year.

The strong improvement in collections also contributed meaningfully to strengthening our balance sheet and liquidity position. Beyond financial metrics, the LTM period also highlights the depth of market traction and execution capability that Intellect has built.

Over the last 12 months, 53 new customers have chosen Intellect's digital stack for their transformation journeys. In parallel, we successfully enabled 82 digital transformations where global financial institutions went live on our products and platforms.

This LTM performance is the foundation on which our quarterly execution rests, and it gives us strong confidence as we continue to scale responsibly and sustainably. Our performance is anchored on three scaled business engines, each built over successive growth cycles and now supported by an emerging fourth engine.

The first and most mature engine is wholesale banking, which we initiated as a scale engine in 2015. Today wholesale banking contributes around 1,400 crore to our LTM revenues.

The second engine is consumer banking, which became our next growth focus from 2018 onwards. This now contributes close to 1,000 crore in LTM revenues.

The third engine is IntellectAI, which includes wealth, insurance, and AI-led platforms. This engine was deliberately seeded from 2021 onwards and has already scaled to around 500 crore in revenue.

From 2024 onwards, we have begun building our fourth growth engine, Purple Fabric, our open business impact AI platform. Over the coming years, this will become a powerful multiplier for Intellect's next phase of growth.

Finally, our growth over the last 12 months has been supported by deliberate investments in leadership and institutional capabilities. 27 senior leaders have joined Intellect during the last 12 months.

These additions strengthen our global consulting, delivery, product, and go-to-market capabilities. In a key leadership move, Manish Maakan has been elevated to Executive President and Group Chief Revenue Officer while continuing in his role as CEO of Intellect Wholesale Banking.

This step brings sharper alignment across product strategy, sales execution, and revenue ownership at an enterprise level. We are also pleased to announce that the Board of Directors have approved the appointment of Mr.

D. Shivakumar as an additional director, designated as an independent director based on the recommendation of the NRCC.

Mr. Shivakumar is a respected business leader with extensive experience across Indian and global organizations.

He is currently an operating partner at Advent International, a global private equity firm. He has previously served as Group Executive President at Aditya Birla Group, Chairperson and CEO of PepsiCo India, and CEO of Emerging Markets at Nokia.

As an alumnus of IIT Madras, IIM Calcutta, and The Wharton School, he brings a wealth of strategic and governance insight to our board. His appointment for a five-year term is subject to shareholder approval via a postal ballot.

Now, let me turn to the financial performance for Q3. Total income for the quarter stood at 753 crore, reflecting a 21% year-on-year growth.

License-linked revenue, which is the platform plus license plus AMC, for the quarter stood at 391 crore, growing 34% year-on-year. On profitability, EBITDA for Q3 was 122 crore, translating to a margin of 16%.

Profit after tax stood at 28 crore, impacted by a one-time gratuity provision of 30.84 crore on account of the new labor code and the resultant deferred tax of 7.8 crore. Collections for Q3 stood at 913 crore compared to 553 crore in Q3 as of full year '25, up by 65% year-on-year.

eMACH.ai continues to power composable transformation across banking domains, enabling clients to modernize at speed while maintaining control and predictability. Purple Fabric, our open business impact AI platform, is increasingly embedded into live production environments.

During the quarter, 14 new value discovery partners joined the Purple Fabric ecosystem, expanding our reach across AI-led underwriting, risk, claims, collections, and payments use cases. Together, these platforms are enabling clients to move beyond digitization into intelligent, explainable, and outcome-driven transformation.

On the market recognition, we are proud to share that TIME magazine has recognized our Chairman and Managing Director, Arun Jain, as one of the global growth architects, a rare and prestigious distinction that recognizes leaders building for long-term value in a world obsessed with quarterly outcomes. In addition to this global media recognition, Intellect has received strong analyst validation this quarter.

Datos Insights awarded our transaction limits management solution the gold medal for innovation and operational efficiency in their Commercial Banking and Payments Impact Awards. Euromoney named Intellect the world's best transaction banking software provider 2025, including best in cash management and best corporate channels.

Gartner acknowledged eMACH.ai core banking as a visionary in the Magic Quadrant for Retail Core Banking Systems, Europe. IDC MarketScape identified Intellect's Corporate Loan Lifecycle Management System as a leader in its worldwide vendor assessment for 2025, and many more.

Together, these recognitions reflect the depth, breadth, and relevance of our platforms across core banking, treasury, risk, compliance, transaction banking, and AI-led business intelligence. To summarize, Q3 represents a quarter of structural progress for Intellect.

We crossed 3,000 crore in LTM revenue anchored on three scaled engines and an emerging fourth. We delivered robust cash flows and balance sheet strength, and we continued to execute large-scale transformations with consistency and discipline.

As we move into the final quarter of the year, we do so with confidence, backed by a strong portfolio, resilient cash flows, and a repeatable growth engine designed for the long term. Thank you for your continued trust and support.

Over to you, Manish.

Thanks Vasudha for a detailed commentary. Good evening everyone, and thanks for attending this investor call.

Let me try and summarize some of the things which Vasudha talked about into five strategic themes which we are focused on. I think an LTM growth of 3,000 crores crossing 3,000 crores in this quarter is really proud moment for all of us, and I'm sure it'll be equally proud for all of you being part of this journey.

A 23% revenue growth, 33% EBITDA growth, 49% additional cash generation. I think we're ticking all the right critical parameters and clearly shows that the investment we have been putting in well-orchestrated and is delivering the right results for us.

Let me briefly talk about the five salient themes that explain how this growth algorithm works. I think the first one, which we believe is our technology moat, eMACH.ai.

At the core of our model is eMACH.ai, our AI-first composable platform architected for scale, reuse, and continuous evolution, which is consistently being demonstrated with the wins and our ability to execute quicker and faster. I think we're proud that we have built this system with AI-first as an objective across the lifecycle, rather than induce it or put a bolt-on on top of it while some of my peers are doing that same thing.

This composability is driving faster time to value and helping us get a better rates and a platform stickiness from us. The second pillar I want to focus upon is multiple engines, like what Vasudha called out, are working in one flywheel.

The wholesale bank, I was fortunate to initiate and lead that from 2015, has crossed 1,400 crores and has been a consistent growth engine. It's a mature, cash-generating engine focused on long-cycle transformation programs with the largest Tier 1 banks.

I think our second pillar, consumer banking, which we started in 2018 scaling up, very proudly is crossing the 1,000 crore mark and is becoming the powerhouse for digital and new-age core banking, which banks are looking at. This has the robustness and the depth of capabilities and is not just a framework.

I think I want to call our youngest platform, wealth, insurance, which is solely anchored around AI. Our focus started 2021 and has also now crossed 500 crore LTM.

All three of them, I repeat again, are powered by same AI-first platform backbone, Purple Fabric, allowing reuse of capability, intelligence, and operating leverage across the organization.

The

third engine is our markets. Our revenue is battle-tested in the world's most demanding financial hubs, with 62% of our revenue coming from advanced market and is also well-distributed across the Americas, Europe, Middle East, APAC, and India, avoiding any geographic concentration any place.

Success in these high-bar economies validates product maturity, regulatory robustness, and delivery predictability at the same time. I think this is well set for India, APAC, and Africa, which are the followers and also the faster-growing economies to be able to adapt to all of this.

Our success with Tier 1 banks across multiple geographies has created a strong global brand. This result gives us the insulation against the regional volatility, and it's no more a noise for us.

I think the fourth dimension, which is now the next growth frontier which we are embedding into our platform, as well as looking at for scale, is around mainframe to cloud migration and enterprise AI versus Purple Fabric. In this last quarter, we have signed one large global system integrator for our AI propositions taking out to the market, as well as 14 value discovery partners to evangelize and help us take this to more clients across the board.

On momentum, we are in advanced discussion with a global mainframe infrastructure leader to jointly transition monolithic banks to eMACH.ai-based architectures from the mainframe architecture. These are not just adjacent bets.

These are natural extensions of the same platform, eMACH.ai. I think the fifth thing, which is in summary, is a downside protection or a risk absorption designed by Intellect.

No single geography, customer, or product line can materially impair our performance. Revenue is distributed across multiple buyers, regulators, and decision cycle.

Execution risk is reduced through platform reuse, standardization, and delivery industrialization. In closing, this is not being opportunistic.

This is all about engineered growth built from first principle and powered by AI-first platform. This is the essence of our growth by design, and that's why Intellect is a unique asset, sufficiently derisked by a mature, diversified portfolio, yet poised for growth through AI leadership and advanced market dominance.

Thank you for listening, and I'll pass it back to Praveen for Q&A.

Thanks Manish. Now the platform is open for the Q&A.

Please click so that in case you want to ask a question. First we have Mr.

Garvit Goyal from Seclever Alpha. Mr.

Goyal? Mr.

Garvit Goyal? I think he's not there.

Praveen Next we have Mr. Mihir Manohar from Trust Mutual Fund.

Mihir, please ask your question.

Yeah. Hi, thanks for giving the opportunity, and congratulations on crossing the 3,000 crore mark and 3,000 crore LTM number.

Congratulations for that. Sir, largely wanted to understand on the Claude side.

There are a lot of talks that Anthropic AI Claude is getting inroads into the USB FSI side, not on the core operations, but yes, middle office, back office, and also on the insurance underwriting process. If you can sir provide some clarity over here as to how is Anthropic Claude AI becoming a competition for us, and how to understand this?

Yeah.

Manish, you want to maybe take this? Yeah.

There is obviously different LLMs continuously upgrading in the market, and I think our Purple Fabric platform has the ability to optimize the right LLM that a customer needs for each use case. We don't believe that they are really our competition in that sense, because we orchestrate financial services AI-first products end-to-end for our customers, and we optimize the right LLM.

LLMs will continue to improve as the Purple Fabric platform is only a consumer of these LLMs. I think we are not really concerned, and we are not finding that they are actually coming and occupying a place where Purple Fabric is placed.

The other thing I wanted to state is that a lot of them are focused right now in the assistant area, while we actually have digital experts, which is on the agentic side of multiple agents working together to make use cases more successful for customers. In the agentic side, we still believe our full stack, which y'all are fully aware of, both what we call the knowledge garden where we vectorize data from multiple data sources, we have digital experts that work on that data, but we have the optimization hub, which is quite unique, because the user continuously needs to ensure that the digital experts is using the best LLMs to achieve their objective of outcomes for the customers.

I think fundamentally, the big difference between us is not just orchestrating use cases, but orchestrating multiple use cases for our customers, and therefore, the fourth part of the Purple Fabric stack is really the governance part of Purple Fabric. We're seeing more and more governments paying a lot of attention to ensuring that we follow an ethical AI standard, which ensures that we can actually manage to govern different digital experts in a way in which we can get the best performance from them.

To answer your question, I think there will definitely be competition, there'll be definitely different people doing things, but the combination of what we bring along with our leadership in financial services products makes most of our eMACH platforms today completely AI-native and AI-first. I hope that answers the question, yeah.

Sure. No, absolutely.

It is very difficult to displace CBS, that's the core of the part. Second question was on the Purple Fabric.

What would be the Purple Fabric revenue for nine months? Because for full year, we were roughly looking at 200 crores kind of a number.

Some clarity around that will be helpful.

Mihir, we're on track for what we are forecasting for the 200 crore number. I think we reasonably confident of coming close to that number for the year.

Sure, understood. Last question was on the SG&A side.

I see SG&A QoQ some increase. Any hiring around the foreign geographies, any incremental differential hiring on foreign geographies?

I think Vasudha shared that we have been investing for distribution, for the market in a planned way of what we had planned for. That's also evident in the growth we are seeing.

It's a planned capacity addition.

Sure, yeah. That's it from my side.

Thank you very much.

Thanks Mihir. Next we have Mr.

Jitendra Agrawal from Relax Capital. Mr.

Jitendra Agrawal from Relax Capital. Jitendra?

Yes. Hi.

Good evening. I'm sorry, I don't have a question, but it is an observation.

If you look at your shares that were outstanding at a corporate level, right? We were in December 2020, we had about 13 crore 26 lakh 64,000 shares outstanding.

December '25, that number has increased to 13 crore 93 lakhs and about 15,000. There's about a 5% dilution in a period of about five years.

You look at our market cap, somewhere about 12 and 1/2, 13,000 crores. That's a float of anywhere about 500 to 600 crores in the market just because of ESOPs.

If you actually look at the promoter shareholding, right? That has also gone down in that period by almost the same percentage.

We seem to be very comfortable in terms of our cash balance. Given the way the business is doing, it seems that in the foreseeable future, also the cash generation should be good.

My request or suggestion would be that instead of paying it out as dividends, can you please consider a buyback internally? That's it from me.

Thank you.

Thank you. Praveen, we can go to the next.

Thanks Jitendra. Next we have Mr.

Rahul Jain from Daulat Capital. Rahul?

Yeah. I hope my line is okay.

Yeah. Please

go on. My question was related to the fourth pillar point that Manish articulated.

If you could elaborate more. What I could understand was about building the SI ecosystem.

If you could go deeper into that thought. Secondly, on the similar lines, since we have built roughly 1,400 odd crore of GBT business, does that mean it would at that scale, you may see a significant SI contribution in terms of new client on as well?

Or we are still not that point that we get a lot of deals from SIs?

No Rahul, thanks for the question. On the fourth pillar, what I'm talking about is I think we've been talking about Purple Fabric and getting partnership development.

We have finally now executing with one of the largest global system integrator, and we taking this out to the customer. Other than that, we have also signed 14 value discovery partners across the globe to take Purple Fabric out.

That was the first piece of it where we were doing the work for last two quarters, which you are aware. In the last quarter, we have additionally now tied up with an infrastructure leader which is focused on mainframes so that we can help transition mainframe loads to eMACH cloud loads.

Banks are looking for solutions. That's where our composability of a solution, it's not a rip or replace, it's not just pick up the load and deploy somewhere else.

We've done multiple mainframe to cloud migrations, and we see this as a natural alliance whereby working together, we can take it forward. Your third question around wholesale banking touching 1,400 crores and where we're already working with publicly, we have shared along with Accenture in some of the implementations, and I'm continuing to grow along with our multiple other partners where the large transformations we can take along.

We are doing big scale wholesale banking transformation. We have got core lending, payments, the full corporate stack, and we've got a couple of other SI partners already working around them.

We'll hopefully announce some of these partnerships also publicly.

Sure. Manish, when we say about the mainframe infrastructure player, are you referring something like the IBMs of the world who would have that core infrastructure and they may also need some application to do the workload shift?

This partner supports quite a bit of mainframe infrastructure. At this stage, I want to keep it there.

Significantly large player. Yes.

Yeah. This are the SI guy or these are the mainframe guy?

They focus on mainframes support significantly.

Understood. Thanks for that color.

Just last bit from my side, the growth in this quarter in particular was not pretty exciting. Our investment in terms of marketing and go-to-market has been pretty strong.

Is it just one-off quarter in between where we are seeing this kind of a dip, or it's more of some kind of an economic factor that you're seeing in the market causing slower ramp-up in particular markets? With those thought, how you see current year or Q4 panning up?

Thank you.

No. Rahul, the key thing is we've said we are designed for a 20% growth company on an LTM basis right now.

We're demonstrating that. We're not from quarter to quarter.

We had said at the beginning of the year that we have to stay above 700 First three quarters, we have stayed above 700 crores. Now is about in between Q4 and Q1, how do we go above above 800 crores revenue.

That's what us all of us as leadership team are working. That's a very nice momentum from that perspective cumulatively, if you look at.

See, I don't the pressure of signing a deal distress because I have a quarter ending. We're building a robust business.

Sometimes quarters is not what we look at. The yearly is where we are committed to demonstrate performance, and I think and we had said, measuring at an absolute level, stay above 700 court 700 crores, and in the next two quarters see how between Q4 and Q1, how we can go above 800 crore revenue.

We are all working towards that. I'm still confident of

the trajectory. Okay.

Thanks for that color. Thanks a lot Manish and best wishes for the time ahead.

Thanks Rahul. Next we have Mr.

Rohit Balakrishnan from ithoughtPMS. Rohit, please ask your question.

Yeah. Hi.

Good evening everybody. Sir, my question was I think

Rohit, are you there?

Yes, Praveen. We can hear him.

We can hear him, Praveen.

Can you guys hear me?

Yes.

Yeah. Go ahead, Rohit.

Okay. Thank you.

Thank you very much. My question was, sir, we had, I think, talked about these accelerated investments in Q3 and Q4.

If you could maybe, I think if my memory serves right, we had talked about around 40 to 45 crores in Q3 and another, I think, a similar number in Q4 in terms of market investments towards both Purple Fabric and eMACH.ai. Maybe can you just call out what the number was in this quarter and what do you think would be the number in Q4?

That was one. The second question was, we saw license revenue come down below 100 crores after almost six, seven quarters.

I know this is very lumpy. Anything you want to call out in terms of the delay that is happening and are there any deals which sort of fell through this quarter or will get covered up in the next quarter, anything you want to call out?

I have one more question which maybe you can answer that and I'll ask the next question then.

Rohit, I'll go reverse order. I think, like I said, please don't ask which quarter 100 crore more or 100 quarter.

LTM basis consistently remain focus. We're showing good results.

I think it's a proud moment to be above 3,000 crore from that perspective on a run-rate basis. We driving towards, we said we will stay above 700 crore mark.

We've remained above 700 crore mark. I'm already saying that we're targeting in the next two quarters to cross the 800 crore mark.

That speaks of everything of what you wanted to ask from your second question perspective. Could you repeat your first question?

On the cost side, I think the cost is primarily around the three dimension. Vasudha can give color to the absolute numbers.

It's around Purple Fabric, it's around bit of distribution, plus given what I am seeing incoming in the next two quarters, we've also invested right now on our delivery execution capability side, because we need to be ready and we need to have these people not being joining the day before, one or two quarters before we make that investment on the delivery side. These are the three elements of where the cost has gone.

Just to add, last quarter we said we made an incremental investment of 15 crores, and similarly this quarter also, we have made similar investments between 10 to 15 crores. That's an incremental investment this quarter.

Got it. Manish, I think just from the LTM point of view, I think we had said that we will be, despite all these investments, we will be at 20% kind of margins adjusted for these investments.

After these investments. Do we still hold on to that number for this financial year, FY '26?

I think look at consistent 700 crores, investing towards 800 crores. Those are very, very positive metrics.

Don't look at quarter on quarter. Look at

No, I'm asking for the entire year. Not looking at this quarter as such, but I'm saying for the entire year.

Okay. Manish, let me answer.

Like Manish said, it's always better to look at LTM performance, and if you look at our LTM EBITDA, LTM EBITDA has fetched us about 23.8%. Going by that, yes, we are very highly hopeful that we'll also end up in a similar number as we close this financial year.

Got it. Last question was on the US expansion.

Any qualitative commentary Manish you can give, how are you seeing this calendar year or next financial year in terms of the growth there? We were expecting very high growth for this year as well, maybe you can comment how US has been for this year and how do you expect next year?

I think I want to maybe just quantitatively share one more forward thing. I think across North America, I'm not far from start touching 1,000 crore revenue.

It's been a good North America growth for us this year. That's why across Canada and US, we're investing.

Some parts of execution happens out of Toronto, some happens out of New York. Purple Fabric has been helping us grow significantly.

Our liquidity and CTX platform was a growth platform. Payments is where we are now making multiple breakthroughs, we investing over there.

Corporate core is something which we have been winning over there. If you see, multiple levers are firing over there.

We happy that with PF also, we are now expanding our distribution across multiple hubs.

If I can just add, in Canada, we are also seeing significant growth in credit union space, both in our digital engagement platform as well as now we just also getting some success in our loan lending platform. We're able to cross-sell into the same segment.

Got it. I'll join back.

I have one more question, but I'll join back in the queue.

Sure.

Thanks Rohit. Next we have Mr.

Vivek Kumar from Bestpals Research. Vivek, please ask your question.

Vivek, are you there?

Looks like Vivek is not there.

Vivek is there. Vivek, you can unmute and ask the question.

Am I audible, sir?

Yep.

Yeah. Please.

Thank you. Manish ji, just if you can throw qualitative light on are you facing tailwinds or headwinds in terms of Just three quarters back Arun ji was explaining about sales cycle being long, and in next two, three quarters we will convert a lot of deals.

Can you qualitative outlook on different revenue streams that you are highlighted in your presentation like consumer, GTB, GCB, and AI and wealth? If you can talk in terms of tailwinds and headwinds so that and also anyway and even given all these things, you are still confident on 20% growth on a LTM basis, right?

These two are

No, I think

If we talk about tailwinds and headwinds, because what are the tailwinds which are the products which are really having lots of tailwinds, because that would give us more qualitative picture on if you can give us.

I think the multiple products under each of this wholesale banking, consumer banking, wealth, insurance, which are now getting scale, which is a good news for us. It's not just firing on one or two products or one or two lines of business.

Clear evidence we have shared with you, 500 crores, 1,000 crores, and 1,400 crores. That is helping us a balanced portfolio approach helps us to deal with any market volatility.

I think that's why we continuing to say we've designed for 20%. This balanced portfolio approach across markets and across product lines is helping us manage it.

Our technology moat is the big differentiator out which I'm most proud of. With eMACH.ai, I'm able to grow the size of the deals also with this, because what people see is this is a desired architecture state where everyone would want to be from the composability and the scalability and resilience perspective.

Bank after bank, the largest Tier 1s consistently signing is just giving us that confidence. There is always headwinds of you hear noise of politics, different things.

We got to deal with that. That's what we design business for.

There's nothing right now material of headwinds or material tailwinds. I think a balanced growth is I'm feeling good and confident.

We are feeling good about 20% growth on a yearly basis. I'm not talking about quarter.

That's what we have designed for. That's what we are looking at.

The goal is how quickly with next quarter or the following quarter, how do I cross 800 crore revenue and then run it for three, four quarters there and then look at 900 crores. This 100 crore consistent growth in three to four quarters if we can drive it, I think that's the evidence.

Because three years back, we were very confident on Quantum, central banking. Just any Rajesh ji, any outlook on Quantum as a product, central banking?

Sure. I think as you are aware that we are one of the only companies which has a core banking for central banks, right?

This comes from our legacy of RBI, because we run the central banking for Reserve Bank of India. As if you look at the TAM, right?

The TAM of this market is limited because there are only that many central banks. There are a couple of opportunities that we are chasing with central banking, but it'll always be a limited market by the design as compared to, let's say, a core banking, etc.

We continue to be the market leaders in this market, and we continue to be consistently rated in T1 as T1 in this space. We are, as we speak, in a couple of opportunities with large central banks.

Small suggestion, like what Jitendra Agrawal has suggested, your equity dilution, because now we are generating cash and you're already sitting on close to 1,200 crore cash, I think can please ask Arun ji to consider buyback, because there's a lot of you almost 1% is entering free float every year, right?

We'll record your comment, share with

Thank you, Manish ji. Thank you very much.

Thanks Vivek. Then we have next, Mr.

Pawan Kataria from Bullseye. Pawan?

Yes.

Can you hear me?

Yep.

Yeah. Please go on.

Yeah. As Manish sir said, we saw sharp Q3 compression in the margins, right?

Can we so Manish sir already broke it down, but how much are we heading back to 20, 25% margins for the year? Given that the margins for Q3 has been out of 15%?

Pawan, that's what Vasudha just now also confirmed, that we're driving towards 20% plus margin for the full year. We've done it in LTM basis for the last 12, for the financial year also, that's what we're driving towards.

That's why the balanced investment is there. We're not going aggressive.

We're not shying away from right investments when we see opportunity.

Sir. Sir, another question, sir.

In the last concall, Arun sir said ki we are striving towards 25% margins, right? Do we see that happening somewhere in FY '27?

I think if you go back, study some of our peer companies, it's about getting to scale. At 3,000 crore, the profitability is X.

At 4,000, it moves to Y. At 5,000 crores.

It's about, I think we should all be looking towards consistent and more growth and right investments to balance to drive that growth. I think that's most important.

We would all want to be It's naturally going to come. The leverage keeps coming as the more license comes in.

Got it. Thank you, sir.

That was from my side.

Thanks Pawan. Next we have Mr.

Anjan Puranik. Puranik ji, you are there?

Looks like it's dropped. Puranik ji?

No, I think he's dropped. Then next we have Miss CA Vansh Handa.

Mr. Vansh Handa from Anvest Analytics.

Vansh?

Hi, am I audible?

Yes. Yeah.

Please go

on. I have a question.

I noticed the cost escalations, apart from the exceptional items during quarter three, that appears to have impacted the overall profitability. Could you help us to understand that what are the key drivers behind that increase in cost?

Also, this is not clarified in any of the presentation or management commentary. Can you help me with that?

Vasudha?

Cost escalation.

The Okay. One If you're talking about the exceptional item, that is related to the gratuity provision, the one-time provision that we have considered in our books on account of the new labor code, and that's about 31 crore.

Also, there is a resultant deferred tax that we have considered for about 8 crore. That has pulled our PAT down by close to 24 crore.

I'm not talking about this exceptional items, but if you look before profit before exceptional item also, it has impacted from 900 million to 671 million this quarter.

So Vansh, just to add to what Vasudha is saying and what Manish also alluded to, see, if you look at the current quarter, there has been significant investments in terms of capacity building. Whether it is capacity building from a sales and marketing perspective or capacity building in anticipation of the deals we are planning to close in the current and the next quarter.

That is primarily the reason for us for cost to go up.

Okay. Sir.

Thank you.

Thanks.

Thanks Vansh. Next we have Prem Doshi from Ace Securities.

Prem Doshi.

Hi sir, am I audible?

Yeah. Please go on.

Sir. I have two questions.

One is that, in particular for this quarter, as we have already discussed that some of the cost escalations were there and for some other reasons the profit was muted, right? What we are looking at, are we looking to close the quarter, as you said, close the year at 3,000 crore plus that you have already guided for the financial year.

My question is actually for the next financial year. After we cross say 3,000 crores in terms of revenue and we maintain a 20% margin, are we looking at on such a high base to continue growing at 20% for the next fiscal, or you expect some moderation in the guidance for the next fiscal in that case?

Prem, I will stay away from guidance on next financial year. Who is very simply get to 800 crores, we will then we'll stay there a few quarters and then get to 900 crores.

We're building the business 100 crores at a time. Right now, we feel good about what we are doing.

From a guidance, I'll stay away.

Okay. Sir, earlier we have read up stuff that we want to position ourselves like the top AI companies such as Palantir, right?

How is the plan fairing? Is the management satisfied with how the overall positioning that we are doing in the AI space?

Are you personally satisfied with how the segment for us is moving towards?

I think we had said upfront that we're going to drive towards a 200 crore revenue on this. From that perspective, if you look at, are you satisfied, are you headed towards that, I think we are in the right direction.

We are consistently amongst the top three players along with Palantir. That's not a concern right now.

Right. Thank you so much, sir.

Thanks Prem. Next we have Keshav Sureka from Niveshay.

Keshav Sureka from Niveshay.

Hello. I think my question was already answered.

Thank you.

Okay. Thank you.

Next we have Mr. Krish Jain.

Mr. Krish Jain from NAFA Asset Managers.

Yeah. Hi.

I hope I'm audible. Yeah.

Thank you for taking my question. My question is regarding Purple Fabric.

What I can see from the presentation is that your LTM revenue from operations is 29 19 crores. Out of that, wholesale, retail, and AI business put together is around 2,900 crores.

Am I correct in understanding that Purple Fabric in last 12 months has contributed only 19 crores? Since you've reiterated that you're on track to hit 200 crores this financial year, I wanted to understand how's that possible in the next 3 months.

No, Purple Fabric is embedded across the businesses on wealth, insurance, and everything. We're not looking at that.

When we look at segmented Purple Fabric, that's where we're saying we are good for 200 crores.

Okay. Got it.

Next question is, you've mentioned Palantir and C3.ai as our main competitors for Purple Fabric. Are we still sticking to that, or do you see any new competitors entering this space?

Manish, you want to help in this, please?

Yeah. I think Palantir and C3 AI are our fundamental main competitors the way we see it.

There will be lots of noise with small players coming and doing use cases in different areas. When you actually look at end-to-end orchestration and enterprise-level AI deployment, I think those two would be our primary sort of competitors when we look at orchestrating different type of use cases.

What Manish mentioned is that a lot of our existing products also have moved to AI-first. A lot of the Purple Fabric capabilities of orchestrating AI is getting embedded into everything we do.

I think frankly, other than those two, there are various other people we run across, but we haven't found somebody who orchestrates end-to-end use cases the way anybody other than those two.

Okay. Got it.

Just I'll squeeze in last question regarding Central 1, the acquisition that happened a few months back. They are still reporting revenues in the digital banking segment, and they've mentioned there's a transition period as well as they're reporting losses.

My question is how long is this transition period, and what are the losses we are bearing in the business that we've taken on from Central 1? How are we going to make it profitable?

We are already making profit on Central 1. It's a single-digit profit that we are making.

In fact, initially we said it's going to be margin neutral, but we are making some profits out of it.

How long is the transition period?

What do you mean by transition period, Krish?

The transaction is completed and it's now Okay, yeah. Go on.

Yeah. When you say Are you talking about transition towards digital engagement platform?

No, I'm taking this from Central 1's quarterly report, actually. In their Q3, it's calendar year Q3, which is our Q2 of the financial year, they have reported $4.5 million Canadian as non-interest income, revenue.

They've mentioned revenue has gone down because the business is being transitioned to Intellect. So

When they say Yeah. Rajesh, please answer that, yeah.

Krish, let me just explain this to you. What we did was we acquired Forge business from Central 1, which is the digital business from them.

That business, as Vasudha confirmed, is already giving us a single-digit margin business. Initially, we had said it would be margin neutral, but we are actually seeing a single-digit margin business.

Now, Central 1 is providing us some support. For example, the cloud infrastructure on what this Forge business works on is still provided by Central 1, for which we are paying them a certain cost.

That is what they are showing it. Otherwise, the business is completely transitioned into Intellect.

I hope that helps to explain your query.

Yeah. That helps.

Yeah. Thank you for taking my question.

Thanks Krish. Next we have Mr.

Kushal Goenka. Mr.

Kushal Goenka from Mangalkeshav Financial.

Yeah. Hi sir, can you hear me?

Yeah. Please go on.

Yeah. Yeah.

Sir, my question was on the gross profit margin. I'm not trying to analyze quarter-on-quarter, year-on-year basis, but I just want to understand that if we offer more, say specialized products like Purple Fabric integrated to our other services, shouldn't our gross profit margin should increase?

Because I think so we saw around 300 basis point blip quarter-on-quarter and year-on-year also. Just wanted your thoughts on the same.

No, that is already happening. In addition to that, as Manish had mentioned in the beginning, we are also capacitizing, we are also building capacity in anticipation of the work to be completed in the coming quarters, and that's why you're seeing some dip over there.

Ma'am, if you can just allude what exactly are the item line in the gross profit then? Then so isn't that the people

It is Yeah, it is the the

people that we take in, doesn't it come under the EBITDA line?

No, no. See, for computing the gross margin, the costs that we consider are those which are directly attributable to the projects.

Okay? Also people sometimes work on proof of concept and proof of delivery, and those costs are also build part of those SDE costs.

That's how you compute your gross margins.

Okay. If I may ask in another way, what can be a sustainable, at least a gross margin basis?

I'm not going to the EBITDA part, but 54%, I guess, this year?

If you look at our trend maybe again in the last 12 months and then even in the previous last 12 months, it was hovering around 57%.

Yeah. Okay?

We can expect at least we come back to 57% from 54%?

Yes.

Okay. Okay.

Okay. Okay.

Okay. Thanks Kushal.

Next we have Mr. Ravi Mehta.

Mr. Ravi Mehta from OneUp.

Ravi?

Yeah. Hi, am I audible?

Please ask your question. Ravi.

Come

on. I just wanted to check, you mentioned that this quarter that was an incremental investment of 15 crores.

If you can help us split in which headline items it was being split, whether it was software development, SG&A? Because I'm just trying to see how the impact is playing out on EBITDA and on gross margin, just to understand how the normalized course can be.

I don't think so we need to get into that level of nitty-gritties, anyway the amount is not that much for a 15 crore value.

Broadly,

if you can

split? Is it in SG&A is what I wanted to understand.

Predominantly, yeah, predominantly in SG&A that you can see, and we also had some global events this quarter, which also contributed to the increase in SG&A cost. There were some partner commission which got included.

The investments mostly went into SG&A and some bit of it also into product development, yeah.

No, it's reflecting in SG&A. I just thought we'll confirm it here.

Yes.

Sure.

Okay. Thanks Ravi.

Then we have Mr. Dhruv Shah.

Mr. Dhruv Shah from Ambika Fincap.

Am I audible?

Yes.

Hello?

Manish, I have two questions. One is we won eight deals this quarter, which is lowest in eight quarters.

Is there something to read into it, or is that a seasonality? Do you want to just

No, I'm not reading too much into it.

Because it's the lowest in eight quarters, that's why it came up. Because we just launched Purple Fabric and we have done a lot of investments, that's why it popped up that that's the lowest in eight quarters.

No, it is on a count it is low, but I am right now not concerned. Like I said, Dhruv, I'm looking at crossing 800 crores, and it's one or two quarters away.

Manish, should we see that going forward, will we be chasing larger destiny deals compared to low ticket size, and that's why the deal wins will be lower going ahead?

No, it's a very good, fairly balanced mix. One thing good is happening is we getting more of the large big deals also, we playing in there.

See, with Purple Fabric, what will happen is they will start small, but suddenly they will start showing big results in year two, year three as the consumption grows. That's a consumption-based business.

Right. Okay.

My second question is on the press release we did last week on adding 14 value discovery partners. Are these mainly SIs or are they distributors for Purple Fabric?

These are smaller techno mid-sized technology companies which we are helping to take us forward.

Okay. Understood.

Great. Thank you so much.

See,

in each of there are people with 300, 400 people who really are entrenched in one or two different banks. Leverage that relationship and capacity gives them an opportunity to grow, and it's in a connected field, Dhruv Shah (Ambika Fincap):

Fair enough.

Okay.

Fair enough.

Done.

Thanks. Thanks Dhruv.

Next we have Mr. Pranay Jain from Banyan Tree Advisors.

Pranay, please ask your question.

Can you hear me?

Yeah.

Yeah.

Please go on.

Thank you. One question I had on Purple Fabric, whenever you're going to to our clients, whenever you're trying to close deals, what has been the key differentiating factor for us in terms of client adopting something that is fresh in the market?

That would be my first question, and then I have couple of smaller questions as well.

Manish, you could help this.

Yeah. We've been having a lot of discussions with different clients.

I think our key differentiation, as I said earlier, is the ability for us to be able to help the customer achieve business impact. There's been a lot of work that people have done using the ChatGPTs and assistants and copilots.

When it comes to business impact, a lot of what we can orchestrate at end-to-end journeys actually helps the customer either improve their cost and productivity, or improve their revenue or their customer experience, or or fundamentally, a lot of our customers in certain markets in wealth and other areas also focus a lot on compliance and regulatory stuff. What we're seeing is the ability to understand the leadership and the thought leadership in particular lines of business and actually achieve business impact for them.

Clearly, that is something that in 2025, a lot of people believe has not been achieved so much, which is where our platform positions ourselves best to do. I think we are seeing that as something that's attracting a lot of attention.

We must remember that AI is still at an early stage of adoption in the agentic and the digital expert space, and therefore adoption will take time. Actually, when we run these pilots, they can actually start seeing business impact.

We have a lot of customers we've already been doing that for, because we started earlier with insurance and certain product lines, yeah.

Got it. That's helpful.

The second question that I have is, whenever we are doing large destiny deals, are they typically front-loaded in terms of revenue recognition, or do they ramp up gradually over multiple years?

It's multiple models, Pranay.

Okay. There'll be a mix of both front-loading and annuity, tail kind of thing as well?

Annuity based on variability.

Understood. Got it.

That's it.

That's

it. Thank you.

Thanks Pranay. Next we have Mr.

Krishna Agrawal from Mangalkeshav. Mr.

Krishna Agrawal from Mangalkeshav Securities.

Hello? Hello?

Yeah. Krishna.

Please go on.

Yes, sir. I'm audible?

Yeah. Please go on.

Yes, sir.

It is just a follow-up question regarding our competitors. Sir, as you said that you only consider Palantir and C3 AI as our major competitor, but I still wanted to get some light on Indian competitors.

Sir, currently in the Indian banking technology ecosystem, there are multiple players offering AI-led solutions for banks, such as TCS BaNCS, Aurionpro AI, NPST, and AI Compass. Sir, how does Intellect differentiate itself from these competitors in terms of depth of AI capabilities and platform maturity in the long term?

Sir, additionally, how close are these players to Intellect's currently level of AI-led banking technology, and what is the Intellect strategy outlook to maintain and extend its competitive edge going forward with these Indian competitors? Thank you.

I think there are a lot of SI players like TCS and others like you mentioned. I think, as I said earlier, our big differentiation is our full Purple Fabric stack, where we have invested significant amount of effort over the last seven, eight years, going all the way back from the early models of machine learning to the large language models right now.

I think that learning and experience for our product lines, I think compared to a lot of people coming and offering use cases or and a lot of the people are actually building SI type of work for customers to be able to do things that can help them achieve some level of AI independence. Everybody says AI right now, but nobody really has a full end-to-end platform.

I've already covered the four sort of stacks that make up our platform. I think that combination And the most important thing that we are seeing is when customers want to scale multiple use cases, they need to govern them.

The ethical AI stack of governing our platform is fundamentally very different from what anybody else does, because when you implement these use cases, that ethical AI stack gives you the ability to govern digital experts. You've got to think of this as human and digital experts working together in an operational role.

In that model, the digital expert really needs to be managed on a regular basis because of the continuous changing language models, the continuous changing data that is fed into those digital experts. Think of it that governing digital experts is a very, very detailed part of the Purple Fabric stack, which you won't find this in most of the other people.

They are still talking about doing small use cases here and there of doing SI work. I think that's the fundamental difference with most of the Indian players in my mind, yeah.

Sir. Thank you.

Thanks Krishna. Next we have Sonal Minhas from Prescient Capital.

Sonal?

Hi sir, this is Sonal Minhas. I hope I'm audible.

Yep. Yeah.

Please go on, Sonal.

I want to continue from the question the last participant asked. Some of the players, as you mentioned, you mentioned that they don't have a full stack, and I think having attended some of these calls of these players, they also mentioned that the real ROI of AI showing its value add in productivity or similar matrices, basically something which is still at the proof of concept stage.

We wanted, given the fact that you say that the Purple Fabric project has a linkage to close to 200 crore of top line, are there early signs for you guys where this is showing up in terms of how you build a particular client or in terms of you having better margins for some of the use cases where you've implemented Purple Fabric, or is this early days for us right now? That's about it.

Yeah. Hey, adoption of AI, it is still at an early stage.

Having said that, I think the opportunity for us to be able to bring productivity would mean a different way of working, because we are seeing significant impact on operational work, on compliance work that we are beginning to see in our pilots, and already in production for our insurance business. We've seen significant impact on the same work being done by the human through a BPO type process versus the way we do it using AI end to end.

I think it is therefore important for us to keep in mind that this is early-stage adoption. The agentic actual work, which is something uniquely put together on Purple Fabric, which is why it's a multiple agents coming together.

Very few of our competitors have multiple agents coming together, and we refer to that as digital experts in different areas coming together. I think that piece has not taken off as fast as we believe it sort of will in the future.

I think it'll change fundamentally the way in which we operate, or we often call it the future of work will change quite significantly. I think we are actually experiencing the early stages of that.

Some product lines where this has been AI-first, like the insurance and some areas in wealth, and now some areas in trade, and some areas in payments, I think that will actually go much faster as the adoption starts taking place. There is obviously ROI challenges in the industry, which normally happens when you start something like this new, as it happened 25 years back with the dot-com.

It'll happen that we will stabilize, but fundamentally, new business models using AI will appear, and we're well-positioned for that.

Got it, sir. Thanks for explaining this in detail.

I also have a follow-up. I think a couple of my other colleagues were also asking the margin profile, and you were mentioning that companies have a different margin profile at 700 crore run rate, 800 crore run rate, maybe 900, 1,000.

Are there and this is similar to, let's say, what a SaaS company does talk about in the US, my understanding is that. Please correct me if I'm wrong on that.

Are there some companies which are into banking software which have scaled up where we could refer to to understand the margin profile of businesses as they scale up and as they mature? Are there some peers would you refer to in the US?

I think go back and look at from India, FLEXCUBE and Oracle. We have a combination of that as a business model as well as SaaS.

We have a dual engine firing. Look at what was FLEXCUBE's margin at 300 million, 400 million, 500 million, 600 million.

You'll find a good story.

Got it, sir. Thank you.

Thanks Sonal. Manish, there is one more and then a lot of raised hands.

One we can take, I think.

We can take one, and then

people

can write back to you, and we can reply to them.

Yeah. Please, the persons who are reraising the hand, please write to me.

We'll get back to you. The last we have Sameer Dosani from ICICI Pru.

Sameer?

Hope I am audible.

Yeah. Sameer.

Please go on.

Yeah. I'm not sure whether it's clarified, but our original plan was to ramp up investments through the year, and obviously it's needed for the business, it's good.

Just wanted to understand 225 crores of SG&A, will we see further ramp-up from here on in and then it will settle there? That is the plan, or there are some programs, as you mentioned, we had some marketing programs and roadshows, etc.

How to think about this SG&A for maybe next 12 to 18 months from here on?

Sameer, quarter this quarter the last quarter is typically when we have more roadshows and more events, large events, which happens every year. That's from a annual cycle perspective.

Rest is calibrated based on when we see opportunities as we're growing in, like right now, you see US is a big focus. We're driving growth in North America.

A very large market from a size as well as geography. We're keeping it calibrated to ensure we don't run ahead of ourselves.

That's fine, and it's needed for the business. Our original plan was to ramp up like 100 crore annualized SG&A, if I'm not wrong, that we wanted to ramp up through the year.

That step-up in terms of SG&A is already done, is it, that I should think of? Then maybe gradual investment here and there, whatever is needed, it should That is how I should think about it?

No. See, if we as soon right now, like we said beginning of year, 700, 800 crores.

As we stabilize at 800, when we say 900 or 1,000, we will have to add more, it's a cycle.

Okay. This level is okay for 700, 800 crore of revenues, 800 crore of revenue run rate.

That's right.

Okay. Obviously, Purple Fabric required software development and related expenses.

That step-up in terms of investment in software development expenses is also done, right, we should think of? Year-on incremental increase is what I should think of.

Yes.

Okay. Okay.

That's it from my side, and good luck. Thanks for taking my questions.

Thanks for supporting, Sameer.

Thanks Sameer. Thank you, everybody, for joining today.

In case any questions you have, you can just write back to us, and we'll reply accordingly. Thank you.

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