Intellect LTM income rose 17% while EBITDA increased 2%

Intellect Design Arena Ltd reported last-twelve-month (LTM) total income of Rs 3,387.62 crore for the period ended September 30, 2026, up 17% year on year. Intellect’s reported EBITDA rose 2% to Rs 735.89 crore despite more than Rs 100 crore attributed to artificial intelligence (AI) investments, while profit before tax declined 6% to Rs 503.37 crore.

What drove Intellect’s LTM income growth?

Intellect’s LTM total income increased to Rs 3,387.62 crore in Q2 FY27 from Rs 2,892.45 crore in Q2 FY26, a rise of Rs 495.17 crore. Revenue from operations accounted for most of the increase, rising to Rs 3,285.74 crore from Rs 2,792.60 crore, while other income increased to Rs 101.88 crore from Rs 99.85 crore.

The presentation shows an upward LTM income trend across eight reported periods, from Rs 2,457 crore in Q3 FY25 to Rs 3,161 crore in Q4 FY26 and Rs 3,388 crore in Q2 FY27. Intellect attributes the income progression to consistent execution, growing platform adoption and stronger customer engagement.

Q2 FY27 itself contributed Rs 877.98 crore of total income, compared with Rs 788.93 crore in Q2 FY26 and Rs 872.18 crore in Q1 FY27. Quarterly revenue from operations was Rs 855.40 crore, while other income of Rs 22.58 crore was below Rs 27.01 crore in Q1 FY27.

How did AI investment affect Intellect’s EBITDA and profit?

Intellect reported LTM earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 735.89 crore in Q2 FY27, compared with Rs 721.14 crore a year earlier. The presentation says this result was delivered despite more than Rs 100 crore attributed to AI investments, but it does not allocate that spending between software development, sales or research functions.

Total expenditure rose by Rs 480.42 crore year on year to Rs 2,651.73 crore, compared with a Rs 495.17 crore increase in total income. Software development expense rose to Rs 1,468.25 crore from Rs 1,210.78 crore, sales, general and administrative expense reached Rs 950.21 crore from Rs 743.44 crore, and research and engineering expense was Rs 233.27 crore against Rs 217.08 crore.

Profit before tax fell to Rs 503.37 crore from Rs 536.32 crore as depreciation and amortisation increased to Rs 229.19 crore from Rs 178.04 crore. Profit after tax before exceptional items declined to Rs 377.95 crore from Rs 402.28 crore, while profit after tax after exceptional items was Rs 354.86 crore in LTM Q2 FY27.

The exceptional-item difference relates to a Rs 30.84 crore gratuity provision recorded in Q3 FY26 following new labour codes, partly offset by Rs 7.76 crore of deferred tax. Intellect also reported non-generally accepted accounting principles adjusted EBITDA of Rs 802 crore, excluding stock compensation cost, compared with reported EBITDA rounded to Rs 736 crore.

Which revenue streams contributed most to Intellect’s growth?

Intellect’s LTM license-linked revenue reached Rs 1,768 crore in Q2 FY27, up 18% year on year, slightly faster than the 17% growth in total income. Platform revenue grew 51% to Rs 591 crore, the highest growth rate among the disclosed license-linked components.

Annual maintenance contract, or AMC, revenue was the largest disclosed component at Rs 603 crore, up 12%, while license revenue rose 2% to Rs 575 crore. The three rounded components total Rs 1,769 crore, compared with reported license-linked revenue of Rs 1,768 crore, reflecting the presentation’s use of whole-crore figures.

Q2 FY27 license-linked revenue was Rs 457 crore out of quarterly total income of Rs 878 crore. That quarterly amount comprised Rs 164 crore of license revenue, Rs 133 crore of platform revenue and Rs 160 crore of AMC revenue, showing broadly similar quarterly values across the three components.

What do Intellect’s cash and working-capital figures show?

Intellect reported cash and cash equivalents of Rs 1,216 crore at LTM Q2 FY27, a 31% year-on-year increase. LTM collections were Rs 3,282 crore, close to LTM revenue from operations of Rs 3,285.74 crore, and management said the cash increase reflected cash generation.

Days sales outstanding, or DSO, stood at 111 days excluding contractually not due balances. The presentation does not provide a Q2 FY26 DSO comparator, so it does not establish whether collection days improved or deteriorated year on year.

Q2 FY27 collections were Rs 815 crore, compared with Rs 855.40 crore of quarterly revenue from operations and Rs 877.98 crore of total income. Cash and cash equivalents increased 31%, whereas EBITDA grew 2% and profit before tax declined 6%; the presentation does not provide a cash-flow statement to explain the separate effects of working capital, capital expenditure, tax or financing movements.

Conclusion

Intellect’s LTM Q2 FY27 results show income growth outpacing reported EBITDA growth as operating costs and depreciation increased. License-linked revenue rose 18%, led by the 51% increase in platform revenue to Rs 591 crore, while profit before tax declined by Rs 32.95 crore year on year to Rs 503.37 crore.

The next disclosed operational development is the Wholesale Banking remit of newly appointed Chief Operating Officer Vijay Anand, which includes strengthening operations, accelerating product-led innovation and deepening client partnerships. Future reporting on the more than Rs 100 crore of AI investment, platform revenue and reported EBITDA would clarify how Intellect’s stated AI-first strategy is affecting costs and profit.