Near-flat revenue still lifted Intellect's operating margin
Expenses rose 0.01% QoQ against 0.18% revenue growth, while other income made up 21.79% of pre-tax profit.
Filed 30 Oct 2026, 13:09 IST · Intellect Design Arena Ltd (INTELLECT)
Key takeaways
- Consolidated operating profit rose 0.90% QoQ as revenue grew 0.18% while expenses grew 0.01%, lifting operating margin by 0.14 percentage points.
- Other income contributed 21.79% of pre-tax profit, making the 1.90% QoQ rise in net profit less purely operational.
- Intellect's 19.80% operating margin was 0.53 percentage points above the 19.27% median for 35 reported IT peers.
Price around the results
Q2FY27 margin edged higher on cost discipline
On a consolidated basis, revenue was almost flat QoQ, with growth of 0.18%, while expenses increased only 0.01%. The slower expense growth supported a 0.14 percentage-point improvement in operating margin and a 0.90% rise in operating profit. Depreciation increased 3.59%, partly limiting the conversion of operating profit into pre-tax profit.
Other income and tax shaped profit conversion
Pre-tax profit rose 1.10% QoQ, while net profit increased 1.90%. Other income grew 7.12% and accounted for 21.79% of pre-tax profit, so a meaningful part of reported profit came from outside operations. The tax rate fell by 0.59 percentage points to support net profit growth, while interest expense declined 7.26%.
Margin remained above the reported IT peer median
Intellect's 19.80% operating margin was 0.53 percentage points above the 19.27% median among 35 Information Technology peers that had reported the quarter. The sequential improvement came from expenses growing more slowly than revenue, rather than from a material change in revenue momentum.
Platform go-lives support management's expansion narrative
Management said 25 financial institutions went live on Intellect platforms in Q2FY27. The company said it plans to expand across Europe, the Middle East, India and APAC, and linked its long-term growth outlook to its pipeline and widening strategic opportunities.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹847 cr | ₹845 cr | +0.18% |
| Other income | ₹30 cr | ₹28 cr | +7.12% |
| Expenses | ₹679 cr | ₹679 cr | +0.01% |
| Operating profit | ₹168 cr | ₹166 cr | +0.90% |
| Operating margin (%) | 19.80% | 19.66% | — |
| Interest | ₹1 cr | ₹1 cr | -7.26% |
| Depreciation | ₹60 cr | ₹58 cr | +3.59% |
| Profit before tax | ₹137 cr | ₹135 cr | +1.10% |
| Tax | ₹33 cr | ₹33 cr | -1.32% |
| Net profit | ₹104 cr | ₹102 cr | +1.90% |
| EPS (₹) | ₹7.47 | ₹7.34 | +1.77% |
Operating margin of 19.80% compares with a Information Technology sector median of 19.27% across 35 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Twenty-five financial institutions went live on Intellect platforms in Q2 FY27.
Guidance & outlook
- The company plans to expand across Europe, the Middle East, India and APAC.
- The company says its robust pipeline and expanding strategic opportunities support long-term growth.
Problems & risks
- Q3 FY26 exceptional items included an INR30.84 crore gratuity provision and INR7.76 crore deferred tax due to new labour codes.
What to watch
- Whether operating margin holds above 19.80% in the next quarter.
- Whether other income's share of pre-tax profit moves below 21.79%.
- Whether new platform go-lives build on the 25 financial institutions added in Q2FY27.