Synopsis:
A Small-cap Company in which Mukul Mahavir Agarwal has invested is in focus today after announcing strong Q2 results.
A small-cap company that works globally in the fields of Financial Technology for Banking, Insurance and other Financial Services, is in the spotlight today after posting Q2FY26 results. Read the article below for detailed insights into its performance.
With a market capitalization of Rs. 15,695.10 crore, the shares of Intellect Design Arena Limited closed at Rs. 1,127.80, up by 7.74 percent from its previous closing price of Rs. 1,046.75. The stock has touched an intraday high of Rs. 1,144.50 in today’s trading session, implying an upside of 9.34 percent from previous day’s close price. As of September 2025, Ace Investor Mukul Mahavir Agarwal holds 1.44 percent stake (20 lakh shares) in the company.
Q2FY26 Results
Intellect Design Arena Ltd Limited reported Rs. 758 crore in revenue for the second quarter of FY26, a 35.84 percent increase over the Rs. 558 crore for the same period in FY25. It increased by 7.97 percent as compared to Rs. 702 crore in Q1 FY26.
The company’s EBITDA for Q2 FY26 stood at Rs. 153 crore, up by 7.75 percent from Rs. 142 crore in Q1 FY26, and inclined by 88.89 percent from Rs. 81 crore in Q2 FY25.
The consolidated net profit for the second quarter of FY26 was Rs. 102 crore, which was 8.51 percent higher than the Rs. 94 crore reported in the previous quarter and increased by 96.15 percent from Rs. 52 crore in Q2 FY25. Profit growth was also reflected in earnings per share (EPS), which increased to approximately Rs. 7.35 in Q2 FY26 from Rs. 3.82 in Q2 FY25.
The company reported strong growth across all key revenue streams in Q2FY26. Platform revenue surged 200 percent year-on-year to Rs. 137 crore from Rs. 46 crore, while License revenue rose 69 percent YoY to Rs. 144 crore from Rs. 85 crore. AMC revenue increased 19 percent YoY to Rs. 143 crore from Rs. 120 crore. Overall, license-linked revenue (comprising License, Platform, and AMC) grew 69 percent YoY to Rs. 423 crore, compared to Rs. 250 crore in Q2FY25, highlighting strong demand momentum and recurring revenue growth.
Other Updates
Intellect Design Arena’s Collections rose to Rs. 753 crore, up from Rs. 550 crore in Q2FY25, while cash and cash equivalents increased to Rs. 927 crore from Rs. 755 crore a year ago, reflecting improved liquidity and cash flow efficiency. On the business front, eMACH.ai continued to drive growth, adding 18 new customers for digital transformation, while 22 global financial institutions successfully went live on Intellect’s platforms, showcasing the company’s expanding global footprint and strong execution capabilities.
According to Chairman and Managing Director Arun Jain, Q2 showcased strong execution and platform synergy, with revenue rising 34 percent YoY to Rs. 789 crore. He highlighted growing global adoption of eMACH.ai and Purple Fabric, enabling secure, high-velocity modernization and validating the company’s strategic investments and growth outlook.
About the company
Intellect Design Arena Ltd is a global financial technology leader offering intelligent and composable solutions to over 500 financial institutions in 61 countries. With expertise in banking, insurance, and capital markets, its platforms eMACH.ai, Purple Fabric, and iTurmeric drive modular digital transformation using advanced design thinking and innovation.
A return on equity (ROE) of about 12.7 percent, a return on capital employed (ROCE) of about 16.8 percent and debt to equity ratio of 0.03 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 44.5x higher as compared to its industry P/E 29.4x.
As of September 2025, the company’s shareholding pattern shows that promoters hold 29.84 percent of the total equity, indicating strong promoter ownership. Foreign Institutional Investors (FIIs) hold 27.53 percent, while Domestic Institutional Investors (DIIs) own 7.19 percent and the Public shareholding stands at 35.45 percent.
Written By Akshay Sanghavi
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