Intellect Design Arena Ltd Management Discussions

1. Overview

I. INTRODUCTION

The global financial services industry is in the midst of unprecedented transformation. Financial institutions are responding to disruptive forces, including rapid digitisation, evolving customer expectations, open banking mandates, and embedded ecosystems, all while AI integrates deeper into their operations.

In this context, scale and speed are no longer optional; they are imperative. Banks now seek technology that offers certainty, solutions that coexist with legacy environments, and architectures that offer composability and contextuality to compete more intelligently and serve customers better.

It is against this backdrop that Intellects philosophy has gained sharp relevance. We believe in the Power of Dreams, embodied in our brand philosophy Live Your Dream, which inspires our teams and our clients to imagine beyond conventional boundaries. The Power of First Principles Thinking guides us to question status quo, deconstruct complexity, and rebuild from atomic units such as microservices, APIs, and domain events to create zero-waste architectures. The Power of Holistic Design Thinking ensures that our solutions are deeply intuitive, persona-sensitive, and context-aware.

These principles converged in FY25, with the global success of eMACH.ai, the worlds most comprehensive, composable and intelligent Open Finance

Platform.

Building on this foundation, Intellect launched Purple Fabric, the worlds first Open Business Impact AI Platform. Purple Fabric elevates enterprise intelligence with Enterprise Knowledge Garden, Enterprise Digital Experts, Enterprise Governance, and Open LLM Benchmarking. Together, these enable AI-powered intelligent orchestration across operations and decision-making layers.

In FY25, anchored by eMACH.ai and Purple Fabric, Intellect transformed global banking and insurance ecosystems. 43 financial institutions chose our platforms and 53 transformation programs went live, reaffirming the growing trust in our vision and solutions.

II. INDUSTRY SHIFTS - HOW WE LEAD THE CHANGE

As we observe the evolving landscape of global financial services, six transformative forces are reshaping how banks and financial institutions operate and compete. The shift from monolithic systems to composable platforms is not merely a technical evolution but a strategic imperative. Financial institutions now require modular solutions that can adapt swiftly to market demands.

Static interactions have given way to contextual engagements. Banks are expected to offer real-time, persona-based experiences that resonate with individual customers. At the same time, AI has become central, evolving from simple analytical tools to powerful orchestrators capable of driving hyper-personalisation and enterprise-wide efficiency.

Open ecosystems have emerged as the norm. Institutions now thrive in interconnected worlds where APIs and embedded finance enable seamless integration across platforms and partners. Cloud-native and headless technologies have further reinforced this trend, transforming cloud from a cost centre into a catalyst for innovation.

Lastly, as banks scale globally and operate round-the-clock, the need for hyper-scale capabilities and enterprise-grade security has become non-negotiable. These trends validate Intellects early and ongoing investment in composable, intelligent platforms like eMACH.ai, Purple Fabric, and iTurmeric. Our solutions anticipate change and enable our clients not just to adapt but to lead in this new era.

We are an enterprise-grade financial technology leader, providing composable and intelligent solutions for futuristic global financial institutions. With three decades of domain expertise, Intellect offers a full spectrum of banking and insurance technology products through Wholesale Banking, Consumer Banking, Central Banking, Wealth, Capital Markets, Insurance, Treasury, ESG and Digital Technology for Commerce.

At Intellect, we take pride in building futuristic, enterprise-grade solutions that deliver measurable business value while enabling long-term resilience and agility. With our Design The Thinking? philosophy and First Principles Thinking approach, we are committed to enabling our customers to unlock new opportunities through our composable and contextual solutions.

Our platforms and the diverse array of products have been categorised into three distinct frameworks, designed to drive sustainable business impact for our customers. They are eMACH.ai, Purple Fabric and iTurmeric.

eMACH.ai - First Principles Thinking based Open Finance Platform

With the rapid changes in the banking and financial landscape, it is essential to stay ahead of the competition with innovative product offerings and simplified operations. Intellects First Principles Thinking based eMACH.ai is the most comprehensive, composable, and intelligent open finance platform that offers composable solutions for banks and financial institutions to curate and contextualise products. Zip-coded 386 Microservices, 650 events and over 2015 APIs, eMACH.ai is a very foundational and disruptive technology platform that will dramatically simplify the Banking and Insurance technology world, especially for Transforming Core banking, Lending, Wealth, Corporate, Trade, and Underwriting platforms.

Purple Fabric - Worlds First Open Business Impact AI Platform

Purple Fabric is built to meet the real-world needs of enterprises. It delivers measurable outcomes across core business functions, offering clarity for CEOs, seamless integration for CIOs, and governance assurance for CROs. At its core, Purple Fabric unifies four technology stacks: the Enterprise Knowledge Garden to activate structured and unstructured data; Enterprise Digital Experts-AI agents that simulate human expertise; an Enterprise Governance Framework ensuring explainability and compliance; and the LLM Optimisation Hub, which applies the best-fit models through the CAST (Cost, Accuracy, Speed, Throughput) framework. With 68 ready-to-use digital experts and embedded support for Data-as-a-Service and Knowledge-as-a-Service, Purple Fabric empowers enterprises to scale AI adoption with accuracy, security, and speed. This is AI reimagined for business impact.

iTurmeric - Composable Platform

Banking technology shouldnt be a barrier to innovation. iTurmeric combines the power of integration, process automation, and codeless development in a single platform, enabling banks to build, connect, and deploy solutions at unprecedented speed. Whether modernising legacy systems, launching new digital services, or streamlining operations, iTurmeric provides the building blocks for your digital transformation journey. The Low-code aspect of iTurmeric enables users to create applications with minimal coding, dramatically reducing development time and making the process more accessible to a broader range of professionals. This approach not only bridges the gap between technical and non-technical users but also fosters a more collaborative and agile development environment.

III. ANCHORED BY PLATFORMS. VALIDATED BY MARKET SUCCESS

FY25 was a year where Intellects platforms demonstrated their relevance and impact across global markets. We secured a prestigious multi-year, multi-million dollar engagement with a leading UK financial institution, leveraging eMACH.ai Wholesale Banking to unify Corporate Deposits, Lending, Payments, and Digital Engagement across India, Hong Kong, and Singapore, driving speed, agility, and transformative scale.

We achieved a significant milestone in North America by completing the transfer of Central 1 Credit Unions Digital Banking operations to Intellect

Canada. With this, over 170 Credit Unions and Banks are now part of the

Intellect ecosystem, enhancing our ability to deliver innovative, Canada-ready experiences through the eMACH.ai Digital Engagement Platform.

Vancity, Canadas largest community credit union, signed a 7-year deal to implement our eMACH.ai Digital Engagement Platform (DEP).

Intellect also won new eMACH.ai Core Banking deals with a Southern African financial institution and a greenfield EMI in Malta, and our eMACH.ai Cards platform was selected by a leading foreign bank in India.

We made significant strides in the global insurance sector with a 200 Cr+ multi-year deal from a leading London Market insurance brokerage, leveraging Purple Fabric AI to transform end-to-end policy placement across global markets, underscoring the rising demand for intelligent automation and connected intelligence in underwriting. Additionally, a standout moment this year was eMACH.ai WealthForce being awarded the ‘Most Innovative WealthTech Solution at the Global Private Banker MEA Awards 2024.

Also, we launched eMACH.ai Government & Corporate Procurement and Purple Fabric Accounts Payable, designed to revolutionise accounts payable and procurement landscapes. Our strategic collaboration with GlobalLinker empowers SMEs with global market access and integrated financing, while accelerating Intellects leadership in wholesale banking, supply chain, and trade finance through the convergence of its eMACH.ai suite and GlobalLinkers platform.

Intellect achieved a remarkable record-breaking achievement, securing the #1 global ranking in Retail Core Banking, Transaction Banking, and Lending in the IBS Intelligence Sales League Table 2024. It reaffirms our position as a global fintech leader, demonstrating excellence across key banking domains and the trust placed in us by leading financial institutions worldwide to drive their digital transformation agendas.

IV. WHO ARE OUR COMPETITORS - AND WHY OUR DIFFERENTIATION MATTERS

The financial technology landscape is diverse and intensely competitive. Across Wholesale Banking, Consumer Banking, Wealth, Insurance, and Digital ecosystems, Intellect faces formidable global players ranging from established incumbents to agile fintech challengers. In Wholesale Banking, we have Finastra, Bottomline Technologies, ACI, Reval competing against us. In Consumer Banking, our competitors are, Thought Machine, Temenos, nCino, Oracle Flexcube, Infosys Finacle and TCS BaNCS, while in Treasury, its Finastra, Guava and Finacle. In Insurance, we compete with Duck Creek and Carpe Data. And, Purple Fabric competes with Palantir and C3.ai

Yet, Intellects approach and differentiation are clear. While competitors often focus on individual layers of digital transformation, either modernising legacy infrastructure or enhancing customer experience, Intellect takes an integrated, holistic approach. Our platforms unite composability, contextuality, and intelligence into seamless architectures that deliver real-world business impact.

This comprehensive offering allows us to win complex, multi-country deals and Tier 1 assessments, where banks seek not just digital interfaces, but true transformation from core to customer. By being ahead of market shifts and delivering solutions that enable banks to lead rather than follow, Intellect consistently positions itself as a strategic partner of choice.

As consumers of banking and financial services, we have personally witnessed the pervasive impact of technology in this space. Technology has become the single biggest lever of competitive edge in this domain. While so, the diversity of our Customers coming from different geographies, at different stages of technology journey, operating under different regimes of regulation / data protection, facing different textures of competition and finally catering to different customer sets introduces multiple variants of priorities.

V. WHY DO WE WIN? THE INTELLECT PHILOSOPHY AT WORK

At the heart of Intellects market success lies our commitment to applying

First Principles and Holistic Design Thinking across all facets of our business. Unlike others who tweak existing models, we rebuild from fundamentals, creating platforms that are inherently simple, scalable, and adaptable.

By breaking down banking into elemental units (Events, Microservices, and APIs) we remove complexity and enable rapid assembly of new solutions. This allows us to deliver persona-led, business-grade solutions that are context-aware and hyper-personalised. Our Design Thinking mindset ensures every product is intuitive and crafted for the end user. Furthermore, our consistent investment ahead of technology waves, whether in Service Oriented Architecture, Cloud-Native, or AI and Agentic Automation, has prepared us to address every stage of the digital transformation journey. This proactive innovation gives us a unique ability to partner with advanced global institutions as they move into the next generation of financial services.

VI. WHAT IS OUR BUSINESS MODEL?

We operate in three Business models:

1. Traditional Product Sale Model: In this model, we License the Product to the customer for use on-premise. The customer also pays us for maintenance of the Product during the period of License. We also earn revenues in implementation of the Product and for any customisation carried out for the customer. We also work with some customers in supporting the Product and the business over the period of License with on-site presence of personnel / remote support. Our License revenue stood at Rs. 5,031 million and Maintenance revenue stood at Rs. 5,031 million in FY25.

2. Customer Centric Partnership Model: We collaborate with the customers as their Strategic Technology partners and work with them on their Technology / Business roadmap. As this blueprint is translated to action, we take on implementation / support roles for their Business or Operations transformation agenda. We are paid for our services apart from any Intellectual Property licenses that we may grant them for use in this transformation journey. The introduction of eMACH.ai in February 2023 has helped in retaining cost structures. Simplification through this technology platform has started to bring down delivery costs.

3. Cloud deployment / Subscription based Revenues: For customers who do not wish to take on the investment in Technology Infrastructure and / or the complexity of managing them, we offer our Products and platforms on the Cloud deployment model either in a unique hosting arrangement or through an independent Cloud Services provider. We receive revenues through Product licensing, Cloud setup, Hosting, Subscription revenues either fixed or linked to Customers Business metrics. Our subscription revenues stood at Rs. 2,410 million in FY25. Together, License, Maintenance and Subscription revenues are termed License linked revenues and represent an important metric for a

Software Product company. Intellects License linked revenue in FY25 stood at Rs. 12,472 million compared with Rs. 13,486 million in FY24.

VII. HOLISTIC SUSTAINABILITY MODEL

Intellect views sustainability as an integral part of business transformation, extending far beyond regulatory compliance. Our holistic sustainability model operates across three dimensions: internal ESG excellence, community and social impact, and ecosystem-level influence.

Internally, we are driving responsible technology practices with cloud-first products, AI ethics, and green coding. Our community engagement through initiatives like Ullas Trust has impacted over 2.2 million students, while Mission Samriddhi has fostered inclusive development across more than 1,500 villages.

At the ecosystem level, we continue to play a leading role in advocating open banking frameworks, responsible AI policies, and industry-wide best practices. FY25 marked significant progress as we expanded our reporting scope, achieved new certifications, and met our stated sustainability goals. For Intellect, sustainability is not just about being responsible but about creating lasting value and impact for all stakeholders.

VIII. HOW ARE WE CONFIDENT OF THE FUTURE?

Our confidence in the future stems from the momentum we have built and the strategic levers we have activated.

eMACH.ai, launched in February 2023, has helped us preserve cost structures while driving simplification in delivery. As its adoption scales, we expect significant reductions in delivery costs, contributing to operational leverage. The platform has shown strong acceptance in advanced markets like Europe and the US, positioning us well for premium-value deals though we are also recalibrating our go-to-market to improve closure rates in North America.

Our focused investments, through deployment of Purple Fabric and iTurmeric, underpins much of our next-gen architecture.

Our entry into the Digital Technology for Commerce space opens up higher-value market segments beyond traditional BFSI.

Backed by a strong cash position of 10,209 million and a global partner ecosystem built for scale, we are well-positioned to accelerate growth and profitability as we transition into the Intellect 3.0 era one defined by composable technology, ecosystem collaboration, and global scale.

2. FACTORS IMPACTING OUR RESULTS OF OPERATIONS

Our Companys total income for FY25 was Rs. 25,770 million and the consolidated profit after tax for FY25 was Rs. 3,344 million. Our Companys standalone total income for FY25 was Rs. 16,281 million and the standalone profit after tax for FY25 was Rs. 1,938 million.

Other factors

The following factors could cause actual results to differ materially from our expectations:

1. Overall global economy;

2. Changes in fiscal, economic or political conditions in India;

3. Companys ability to successfully implement its strategy and its growth and expansion plans;

4. Increasing competition;

5. Changes in the value of the Indian rupee and other currencies; and

6. Regulatory changes pertaining to the BFSI industry in which our

Company operates and our Companys ability to respond to them.

3. PRINCIPAL COMPONENTS OF OUR CONSOLIDATED STATEMENT OF PROFIT AND LOSS

Total income

Our income comprises:

a. Revenue from operations Our revenue from operations comprises revenue from our four business verticals viz., Consumer Banking, Wholesale Banking, IntellectAI and Digital Technology for Commerce. As per the Consolidated Statement of Profit and Loss, our revenue from operations for FY25 and FY24 stood at Rs. 25,000 million and Rs. 25,064 million, respectively.

b. Other income - Other income consists of interest received on deposits with banks, interest on other financial assets, profit on sale of investments, fair value gain on investments, gain on realised/ unrealised foreign currency transaction and miscellaneous income. Our other income for FY25 and FY24 stood at Rs. 770 million and Rs. 590 million, respectively.

Expenses

Our expenses comprise employee benefit expenses, other expenses and finance cost and depreciation and amortisation expenses. Our total expense, as per the Consolidated Statement of profit and loss, for FY25 stood at Rs. 21,301 million and Rs. 21,069 million for FY24.

Tax expense

Tax expense is recognised at an effective tax rate as applicable to the entities in the Group in accordance with the relevant tax regulations in the jurisdictions such entities operate.

RESULTS OF OPERATIONS FOR FINANCIAL YEAR 2024-25 COMPARED TO FINANCIAL YEAR 2023-24

Total income

Our total income for FY25 stood at Rs, 25,770 million as compared to Rs. 25,654 million in FY24. Our revenue from operations was Rs. 25,000 million in FY25 as compared to Rs. 25,064 million in FY24. Our other income increased by 31% from Rs. 590 million in FY24 to Rs. 770 million in FY25 primarily due to an increase in interest income from fixed deposits and other financial assets in FY25.

Expenses comprises the following:

Employee benefits expense

Our employee benefit expenses comprise salaries, wages and bonus, contribution to provident and other funds and post-employment / retirement benefits expenses like gratuity etc. During FY25, the Company incurred Rs. 15,223 million whereas we incurred Rs. 13,404 million in FY24 reflecting an increase in expense of 14%. Such an increase is primarily due to pay revisions and increase in headcount during the year.

Depreciation and amortisation expenses

Our depreciation and amortisation expenses increased by 14% from Rs. 1,372 million in FY 24 to Rs. 1,564 million in FY 25. The increase is primarily on account of amortisation on additions to intangible assets and ROU assets.

Finance cost

Our Company has been debt free since FY22. Our finance cost primarily comprises interest implicit in the arrangements relating to leases and customer contracts that are recognised in accordance with IND AS. Our finance costs increased by 62% from Rs. 26 million in FY24 to Rs. 42 million in FY25 on account of leases.

Other expenses

Our other expenses decreased by 29% from Rs. 6,267 million in FY24 to Rs. 4,472 million in FY25 primarily due to reduction in cost of technical subcontractors.

Tax expense

Our tax expense decreased by 21% from Rs. 1,385 million to Rs. 1,093 million in FY25 primarily due to unutilised MAT credit balance of Rs. 125 million that was written off and considered as an exceptional item in FY24 and reduction in effective tax rate after the Company adopted a new tax regime.

Profit after tax

As a result of the foregoing factors, our total consolidated profit after tax has increased from Rs. 3,227 million in FY24 to Rs. 3,344 million in FY25.

Dividend

The Board at its meeting held on May 09, 2025 has proposed a final dividend of Rs. 4 plus a special dividend of Rs. 3 per equity share of face value of Rs.

5 for the financial year ended March 31, 2025, subject to the approval of shareholders at the ensuing Annual General Meeting and if approved would result in the cash outgo of Rs. 972 million.

Status of Financial Position

Total equity

Our Total equity stood at Rs. 28,169 million as of March 31, 2025 as compared to Rs. 24,511 million as of March 31, 2024 representing an increase of Rs. 3,658 million. Total equity comprises Share capital, Retained earnings, Securities premium, Reserves (General and Share based payment) and Other comprehensive income. Increase in Total equity is primarily due to profits earned during the year amounting to Rs. 3,344 million.

Liabilities

Our Company has no debt obligations as of March 31, 2025, other than lease obligations. The Company has only non-fund based credit facilities in the form of various bank guarantees furnished on our behalf.

Our total liabilities as of March 31, 2025 is Rs. 10,652 million as compared to Rs. 9,538 million as of March 31, 2024, representing an increase of Rs. 1,114 million. Our employee related liabilities increased by Rs. 791 million in line with increase in compensation, headcount and other employee related benefits in FY25 and customer advances (including advance billing to customers based on contractual terms) increased by Rs. 287 million.

Assets

Total assets (excluding the cash position) stood at Rs. 28,611 million as of March 31, 2025 as against Rs. 26,293 million as of March 31, 2024, representing an increase of Rs. 2,318 million. Our Tangible assets, Other Intangible assets (including those under development) and ROU assets increased by Rs. 803 million. Trade receivables and unbilled revenue increased by Rs. 1,303 million in line with the operating activity of the Company.

Cash position

Historically, our primary liquidity requirements have been to finance our working capital requirements for our operations and for capital expenditure. We have met these requirements through cash flows from operations. The Company continues to maintain liquidity through robust collection management. As on March 31, 2025, we had a cash position of Rs. 10,209 million, as against Rs. 7,756 million in FY24 as summarised below:

	Financial Year
Particulars	2024-25	2023-24
Investments - Refer note 10(a)	4,848	3,924
Non-current bank balances - Refer note 6(b)	2,086	1,789
Bank balances other than cash and cash equivalents - Refer note 10(d)	36	45
Cash and cash equivalents - Refer note 10(c)	3,239	1,998
Total	10,209	7,756

Table No. 6.1

Key financial ratio analysis

Below are some of the key ratios indicating the financial status (based on consolidated financials)

Key ratios	March 31, 2025	March 31, 2024	Management comments (only material variances)
Current ratio	2.08	2.04	-
Return on net worth Debtors turnover	13% 3.97	14% 4.69	- -
Ratio Interest coverage ratio	107.00	177.11	Our Company is debt free and the decrease is due to higher interest on lease expense owing to new leases and renewals of the old lease contracts. The Companys capacity to service interest obligations arising out of lease (accounted for in accordance with IND AS) remains strong.
Debt equity ratio	0.03	0.02	Due to increase in lease obligations as of year-end due to new lease arrangements and renewal of earlier lease contracts.
Operating profit margin	18%	19%	-
Net profit margin	13%	13%	-

Table No. 6.2

Qualitative disclosure about Intellect risk

A comprehensive overview of the key risks and uncertainties faced by Intellect Design Arena, along with corresponding mitigation strategies, is provided in the Directors Report under the "Risk Management" section. In addition, systemic risks arising from technology disruption, evolving cybersecurity threats, and regulatory changes impacting technology adoption are also detailed in Intellects Sustainability Report.

In addition to technology disruption, Intellect recognizes the rising threat of cyberattacks, including ransomware incidents, data breaches, and vulnerabilities. Compliance with evolving data protection laws across geographies and sector-specific regulations remains a priority. Intellect continues to strengthen its cybersecurity posture through multi-layered defense mechanisms, regular penetration testing, and continuous cybersecurity awareness programs for employees and partners. Further, material risks related to environmental, social, and governance

(ESG) factors, each presenting potential risks and opportunities to Intellects business are disclosed in the Business Responsibility and Sustainability Report (BRSR). These disclosures cover the rationale for identification and the mitigation approach. Intellect acknowledges the dynamic regulatory landscape shaping data protection, cloud deployments, and AI governance across its key markets. Through a systematic approach, it proactively identifies emerging compliance requirements from local laws to global frameworks, ensuring effective risk mitigation, regulatory adherence, and long-term delivery resilience.

Known trends or uncertainties

Beyond the risks and uncertainties highlighted in the Risk Management section of the Directors Report, to the best of our knowledge, there are no known trends or uncertainties expected to materially adversely impact our revenues or income from continuing operations. Intellect continues to actively monitor macroeconomic developments, geopolitical risks, and emerging regulatory requirements, which could influence our operating environment.

Seasonality of business

Our Companys business is not seasonal.

Significant developments after March 31, 2025 that may affect our future results of operations

There have been no material events or circumstances arising after March 31, 2025, that are expected to materially and adversely affect Intellects trading performance, profitability, asset valuation, or its ability to meet financial obligations within the next 12 months. Intellect continues to monitor global economic trends, technology adoption cycles, and regulatory developments to proactively manage any potential impact.

Internal Financial Control and their Adequacy

The Company has designed and implemented a framework of internal controls and procedures, which enables the Company to identify risks and formulate an appropriate response in a timely manner. The Company has adequate internal controls commensurate with the size and nature of its operations, which have been designed to provide reasonable assurance regarding recording and providing reliable financial and operational information for accounting, consolidation, and management information purposes, in compliance with applicable statutes. Internal processes and procedures defined include controls that safeguard assets from unauthorized use, execute transactions with appropriate authorization and ensure compliance with corporate policies.

The Chairman & Managing Director and the Chief Financial Officer (CFO) have evaluated the effectiveness of the internal controls over financial reporting related to the preparation of financial statements included in this Annual report. The CEO and CFO certification has been provided as of March 31, 2025, in accordance with Regulation 17(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR). A Certificate included in the ‘Report on Corporate Governance section of this Annual report, discusses the adequacy of our internal controls over financial reporting.

MSKC & Associates LLP, the statutory auditors of the Company have audited the financial statements included in this annual report and have issued an attestation report on the Companys internal control over financial reporting (as defined in section 143 of Companies Act, 2013).