Intellect Design Q1 FY27 Results (NSE: INTELLECT)
Signal: Margin pressure
The read
Revenue growth of 20.5% YoY to ₹8,452 Mn is respectable, but OPM compressed 200bps YoY to 16% driven by employee cost growing 24.2% YoY — nearly 4pp faster than revenue. PAT grew only 8.7% YoY after higher D&A and lower other income. With two straight quarters of margin decline and revenue sequentially flat, margin stability hinges on cost control in coming quarters.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹845.17 Cr | 20.5% | -0.2% |
| EBIT | ₹77.84 Cr | -0.7% | |
| Net profit | ₹101.82 Cr | 8.7% | |
| EPS | ₹7.34 | 7.2% | |
| EBIT margin | 16.0% |
P&L walk
Revenue grew 20.5% YoY to ₹8,452 Mn, but OPM contracted 200bps YoY to 16.0%, as employee cost rose 24.2% YoY (to 61.1% of revenue) outpacing revenue growth. Net profit grew only 8.7% YoY to ₹1,018 Mn due to higher depreciation (+19.6% YoY) and a normalised tax rate (24.7% vs 25.2% YoY). Other income fell 14.1% YoY, offering no support.
Key positives
- Consolidated revenue grew 20.5% YoY to ₹8,452 Mn, accelerating from prior Q4 FY26's +16.7% YoY; indicated by the earlier data block trend.
Key concerns
- OPM contracted 200bps YoY to 16.0%, worse than Q2-Q3 FY26 contraction trend; employee cost grew 24.2% YoY outpacing revenue growth.
- EPS growth (7.2%) lagged PAT growth (8.7%) due to ESOP dilution — 4,98,557 shares allotted in the quarter.
Research and educational content only. Not investment advice.