Intellect Design Arena Ltd Q1 FY27 Results Analysis: Revenue Grows 20%, Margin Compresses 172 bps

Cofacto Research Updated July 31, 2026 2 min read

Neutral

Intellect Design Arena Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 845.17 Cr (+20.45% YoY) and PAT growth of +8.68% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	July 31, 2026
Quarter	Q1 FY 2026-2027
Revenue (Q1)	Rs. 845.17 Cr (+20.45% YoY)
PAT (Q1)	Rs. 101.82 Cr (+8.68% YoY)
EBITDA margin	22.25% (-172 bps YoY)
EPS (Q1)	Rs. 7.34 (+7.15% YoY)
Market cap	Rs. 10,090.65 Cr
CMP	Rs. 719.90

Quarter Snapshot

Revenue grew 20% YoY in line with the long-term target, but EBITDA margin compressed 172 bps due to employee cost growth, leading to PAT growth of only 8%. Credit outlook improved to Positive. Margin recovery and the Purple Fabric carve-out are potential catalysts for near-term focus.

Key Investment Insights

Key Positives

Revenue grew 20.45% YoY to Rs.845.17 Cr, in line with the 20% growth principle.
CRISIL reaffirmed A+ rating with outlook upgraded to Positive.
Subsidiaries contributed 42.8% of consolidated PAT, up from 41.3% a year ago.
Other expenses grew 13.97% YoY, below revenue growth, indicating cost control in non-employee areas.

Risk Factors

EBITDA margin compressed 172 bps YoY to 22.25% due to employee cost growth.
PAT grew only 8.03% YoY, significantly lagging revenue growth of 20.45%.
Employee benefits expense grew 24.22% YoY, outpacing revenue growth.
Other income declined 14.11% YoY, adding to the earnings drag.