Good evening everyone. A very warm welcome to all of you. I'm delighted to walk you through the financial and strategic performance of our company for the first quarter of the financial year 2025-26. This quarter marks yet another important milestone in our journey of becoming the most comprehensive, composable, and intelligent financial technology provider to forward-looking institutions across the globe. On the financial performance, we had a strong start to the fiscal year. In Q1, we delivered a total income of INR 734 crore, representing a growth of 18% year-on-year. EBITDA stood at INR 176 crore, showing a 28% year-on-year growth. Profit after tax was INR 94 crore, a solid 27% increase year-on-year. Collection stood at INR 586 crore. Our cash and cash equivalents remained robust at INR 976 crore, giving us the confidence to continue investing in growth and innovation.
Our license-linked revenues, comprising license, platform, and AMC revenue, stood at INR 389 crore for the quarter. That's more than 50% of our overall revenue, creating a predictable and recurring engine, and our ARR (annual recurring revenue) now stands at INR 1,041 crore. This is a strong indicator of how our business is maturing towards long-term committed high-quality engagements. Now on the deal wins and go-lives, we won 17 new deals and went live with 15 digital transformations in Q1. Let me highlight three strategic wins in the U.S. with two global banks, marking the entry of eMACH.ai into the U.S. market. A Tier 1 Canadian multinational bank has chosen both eMACH.ai Core Banking and Payments for the U.S. expansion. This engagement spans their corporate and investment banking operations and sets the stage for future expansions in Europe and Asia.
This win is significant not just in size but in strategic depth. It reinforces our relevance for Tier 1 banks operating in complex global environments. In parallel, a San Francisco-based global financial services firm operating across 35 countries selected eMACH.ai Liquidity Management. This solution will give them real-time visibility, control, and compliance over global liquidity positions, a vital capability in today's volatile market. These are part of a deep, growing funnel now valued at INR 11,300 crore, with over INR 9,200 crore already in active opportunities. Let me shift gears to Purple Fabric, our open business impact AI platform. In just 60 days since launch, Purple Fabric has conducted over 50 boot camps, engaged 5,000+ particpants through our business impact AI masterclasses, and sparked deep strategic interest among global banks and insurers. More importantly, this platform is aligned to enterprise- wide AI deployments, not mere experiments.
The market is clearly signaling that it is ready for AI that is auditable, traceable, governable, and most importantly impactful. We are building a strong pipeline of engagements that we expect to convert into high- impact AI transformations in the quarters ahead. Let me talk about the continued validation by the global analysts. The growing adoption of EMACH.ai is also reflected in the industry analyst community. Gartner continues to rate us highly in its critical capabilities for retail core banking systems. Chartis has positioned our credit lending operations as leaders in five different quadrants. Celent has identified our Digital Engagement Platform as a functionality standout in its retail and SME digital banking platform across APAC, EMEA, and North America. These recognitions affirm that EMACH.ai is not just a visionary platform, it is a proven execution engine.
On the leadership capital to support our global scale up, we have made some key leadership additions. Dave Thomas has joined us as EVP and Business Head, Credit, Credit Union and Small Market Financial Institutions. He brings three decades of experience from Central One, ATB, and Accenture and will lead Canadian Credit Union's transition to our Digital Engagement Platform. John Turner has joined as President and Business Head for Purple Fabric. Rajesh Makija has been instrumental in shaping EMACH.ai cloud architecture and was pivotal in launching Purple Fabric and has been appointed Chief Marketing Officer to lead enterprise wide marketing. Ishmael has come on board as SVP and Country Manager for South Africa, and Connor has joined as Chief Marketing Officer, Wholesale Banking. Vivek Patil has joined us as EVP and Chief Growth Officer for Intellect Consumer Banking. He will lead large transformation deals in India and adjacent markets.
These appointments reflect our conviction to not just build world class products but to support them with global talent, strong governance, and high touch customer engagements. To summarize, quarter one has delivered strong growth across all key metrics: top line, margins, profitability, and pipeline progression. eMACH.ai continues to gain traction with Tier 1 banks and analysts alike. Purple Fabric is ushering in a new era of auditable, governed, and business impact-focused AI adoption. We are backed by a growing base of referenceable clients and a leadership team built for global scale. As we move into the rest of the financial year 2026, we are confident of building on this momentum. We are operating from a position of strength with conviction in our strategy, confidence in our products, and clarity in our execution. Thank you again for your time, your trust, and your continued partnership in our growth journey. Thank you.
Thank you, Vasudha, for taking us through the brief. The presentation is sent to all of you. As an investor, you must have gone through the presentation deck on all the numbers. To me, the results are in line with what we are presenting to you. You wanted 15% growth. I think we are in line with that, that we are growing in spite of IT industry slowing down, and we have a good pipeline of INR 12,000 crore, close to INR 11,000 crore pipeline. That's a big validation of the strategy of eMACH.ai. U.S. getting three deals in a single quarter of digital transformation on eMACH.ai core is significant validation because that is a core concern we had and core strategy we had to enter into U.S. market with our eMACH core payments system and core payment liquidity system.
It's very, very significant for us that in a single quarter we get all the three major product core liquidity and payments getting an entry. It means what we have invested the money in last six quarters is paying off one by one. Initially U.K., then Canada, then U.S. Before that it was Germany and Hungary. In advanced market, it is going in line with our expectation in AI Purple Fabric business. Similar kind of deals are there in U.S. and U.K., which is continuing our agenda to build on the top of Purple Fabric. Obviously, as I mentioned in my comment, Purple Fabric in last six months is keeping me extremely, extremely busy and excited. It's very rare in the organization history that we come out with a technology which is compared to the best in class in AI where there's a tailwind where everybody wants to acquire.
There are two kinds of AI businesses, just to make you aware. There's an AI which is data lifecycle AI, which is built on data and knowledge, which is done by OpenAI or Perplexity or DeepSeek. They are classified by the analyst into data lifecycle AI. Then there's a second class of AI, which is application lifecycle AI. That's where application becomes a primary pivot around which you build AI, where it translates enterprise to deliver business result. Purple Fabric is classified into application lifecycle AI. There are three players as of now in leading quadrant. First is Palantir, which all of you are aware of. Second is C3, and third, which is Purple Fabric. We have done an independent analyst study on Purple Fabric, which is putting us on that bracket. That is the one part of validation of Purple Fabric.
We launched Purple Fabric in Financial Times on 12th of May and then followed by next 26th of May with Economic Times, with enterprise GPT with the enterprise Knowledge Garden as a basic value proposition. With that four text tax it was surprised to see that even traditional way of newspaper ad has delivered us more than 3,000 registration on the Economic Times ad and there are more than 2,500 unique companies who have participated in this journey. It is keeping all of us on our toes. I think we are doing one boot camp per day. Almost 50 boot camps happen in less. Sometimes there are two or three boot camps, one in London, one in Middle East, one in India. The pipeline is growing significantly. Within 60 days we could able to look at it.
The annual pipeline close to INR 800 crore in just 60 days of working. This is a lead pipeline which need to convert into opportunity pipeline and from opportunity to close your pipeline. That's the one index of us to measure that out of 400 leads which we have generated in just 60 days is highest by any other product in last so many years that 60 days could have generated this many leads. Purple Fabric is extremely, extremely differentiated product. It's a disruptive product and market disruptive product. With a open business impact AI platform we are disrupting and simplifying and one of the important feedback which is there from the customer who are using it. It's simple to use while Palantir is cumbersome to use. That's where the feedback we are receiving. It's early days we will be.
We looked at it that we'll be investing INR 100 crore and this INR 100 crore. Out of INR 100 crore, INR 10 crore was invested in last quarter. The profitability which is there as of now INR 94 crore. If you add so it's another INR 10 crore investment which has gone to Purple Fabric. Next three quarters will be investing close to INR 120 crore increasing from INR 30 crore in coming quarter. Between INR 20-INR 30 crore in coming quarter and then each quarter going by an incremental amount. That's how total number may move of the investment from INR 100 crore to INR 130 crore. We are managing the EBITDA margins between 20%- 25%.
That band what we are guiding from quite some time that sometime it can go to 25% sometime it comes down to 21% based on the specific license deals or specific market scenario. That's the beauty of it that all the AI investment is done within the same balance sheet without taking any other money. This is like a bootstrap AI model which is happening in this company first time where otherwise anybody in the world is looking minimum of $150 million- $200 million, INR 1,000 crore to INR 2,000 crore investment which is going to be there. Our research team has done a phenomenally good job in understanding what the enterprise needs are and able to respond to all the companies which have already invested in AI and they're working from last two years.
When we are going and talking to them, whether they are working on Vertex, they are working on Palantir, they are able to, Banesh or Deepak or Hitesh, are able to answer every question which they have on the table and what doubts they have on the table for enterprise implementation. That's the beauty of holistic planning. From last year to this year, before the launch, we tested out all the market objection upfront and then created a market leading messaging to go forward on this particular launch at a global level. We are on one side, we are excited to move forward every day and very, very busy day keeping all of us busy. On second front, AI is help. Purple Fabric is helping us out to get a more lead in eMACH.ai because in Purple Fabric I can consume Purple Fabric as an API on my eMACH.ai.
In eMACH.ai, whether I'm talking about core banking, I'm talking about lending, I'm talking about wealth, I'm talking about custody of capital market, or I'm talking about payments, I'm talking about liquidity, I'm talking about trade finance or trade operation or supply chain finance. In all these areas, we have built up digital experts and enhanced the capacity of existing products which is now AI native products in a market. In banking industry, these are the first time we are launching AI native banking products which is consuming AI at the right place because Purple Fabric gives them ability to consume at API level. That's value. The complete eMACH.ai platform which we launched in February where AI was initial start in last two years. Now AI becomes a front leading conversation with a customer that when they are looking for trading application.
We are not saying you just buy out the trading application for system of records or system of engagement. You can take complete trade operation where we can play 20/20 game with you. 20% help you in increasing your revenue on customer side. 20% help you in decreasing your operational cost using Purple Fabric and [DEP] or a payments platform or a core platform or a wealth platform. That's the promise we are looking at at this point of time. I'm willing to take as many questions as possible on the strategy and the financial numbers. I think most of you are aware and familiar. I would love to have the questions which are related to strategy rather than just tactical financial questions, which you can keep one- to- one with Vasudha, willing to respond whether on email or any other.
This time of one hour we can spend to make you understand where are we in the journey. If you have a question to Manish, Rajesh, Banesh, all three of you are here. Four of us are here to respond to business questions. You utilize our time effectively. It will be an interest to you to utilize our time effectively. Over here, financial numbers are available. Yeah, yeah,
Thanks, Arun. Now the forum is open for Q& A. In case you want to ask a question, please click on raise your hand. I repeat, please click on raise your hand and we'll unmute you and everybody will be able to listen to you. First we have Mr. Rahul Jain, Mr. Rahul Jain from Dolat Capital. Rahul, please unmute yourself.
Yeah, hi. I hope my line is okay.
Yeah, please go ahead.
Yeah, thanks for the color that you shared around the product. Just had a couple of questions. Firstly, the funnel that we talked about in terms of Purple Fabric part and if you could see that, how you know, typically this should culminate into business for us over a period of time. What are the top use cases that people are actually looking us on this thing? First of all that, and probably I'll have a follow up.
Yeah, Banesh would like to answer.
Thank you.
Rahul.
I think we've been, as you know, working and you've been seeing from regular results Purple Fabric deals that we are continuously closing out in the U.S. On the insurance side, we've got several leads now. As of this point of time, we've already moved forward. The large numbers that Arun mentioned, we started analyzing. We reached out to all of them. We've had good response. We've got already 87 people who have already responded to us, where we are fixing continuous boot camps on, and also we have pretty advanced stage discussion with several Tier 1s in the U.K. To answer your question, we are moving forward with the pipeline opportunity that has significantly come after the launch of Purple Fabric in continuation to our existing business that is already making good momentum on Purple Fabric.
Are you trying to say that bulk of the interests are coming from the insurance side or it's, yeah, I think it's three, four area.
Yeah.
It's well spread out. We have 20, we have 39 in Europe, we have 16 in the U.S. and also a lot of interest in India. There are 20 of them. These are advanced stage discussions. These are where we've already moved them from interest into leads and many of them are already in opportunities. There are already 21 in opportunities right now that are pretty advanced level discussions going on. To answer your question, it is not only insurance, it's all of banking, it's wealth, it's several areas including a lot of operations, reimagination, a lot of compliance and regulatory interest. We actually had an event on compliance and regulatory sort of events in the U.K. It was attended by over 50 people, actually it was very popular. I wouldn't say it's insurance only.
By far, insurance has got a lot more momentum because we had started a lot of AI on it earlier and it was well embedded with our products. As Arun said, a lot of this is getting attention because it's being embedded with our products and in a way in which Purple Fabric can coexist with eMACH, which is what it is when we say eMACH.ai, it's eMACH and AI. The AI is Purple Fabric embedded with our eMACH suite. That makes us uniquely positioned to the change that's taking place in the market on all of the products. All the products are looking for AI to embed itself in it. Fundamentally, that's the interest we are seeing, which is quite unique from everybody else.
Interesting. As Arun Jain mentioned about scaling up the budget on marketing from INR 100 crore to INR 130 crore or moving to INR 30 crore kind of a runway, is there—I don't want to get into an outlook kind of a question, but more importantly, if you could gauge, since we're seeing this kind of scale up on spend, is it safer to assume the monetization scale up should also start later part of the year meaningfully for us, raising the spend criteria for us on marketing?
Yeah.
I think Rahul, just first of all, you understand that opportunities are there in reimagination customer, which is Enterprise GPT. Then we have enterprise products, which is all the relationship managers, how you design the product, compare the product with Enterprise Knowledge Garden. Then you have enterprise operations, reimagine operations, which is completely operation, whether it's a customer onboarding operation, loan origination operation, trade operations. We are having opportunities in that area and compliance area when banished. The four reimagination business impact AI all have a list of opportunities. Obviously, INR 130 crore is a number. We are looking for incremental investment.
We are looking around AI should generate close to INR 200 crore revenue by end of the year cumulatively from all the sectors where we are having insurance, we are having APX CPX, which is an area, we have Wealth at the area, we have a GRC as an area, and we have a new line of business which is coming up over here.
Yeah, thanks for that input. Of course, we have seen how expensive the product has been in terms of leveraging the enterprise knowledge garden. Does that also open up some kind of a consulting opportunity, or would we like to play it to product only, or would it be consulting plus product?
Manish, would you answer the consulting approach you are taking now?
Thanks, Arun. Now we will be extending our consulting where we're looking at business impact created.
We're looking at target operating.
Models and efficiency, operational efficiencies, what AI can provide. We are onboarding a number of senior folks next week. I'll wait till then, but we'll have shortly an announcement on the consulting side.
Including industry consulting, not industry AI consulting but industry consulting.
Appreciate it. Last one from my side. It's a numerical, I'm afraid. The platform revenue we see has grown significantly in this quarter. If we could share the organic part and the CI part, and is there any seasonality to the CI run rate? If we could understand that. Thank you.
Some portion came from Credit One. This revenue has gone up because of Credit One. Credit One was expected to grow. That's the reason mainly for that is sustainable.
What you are essentially saying is the current run rate is what we should take as a base, and there's not much seasonality from that point of view. Whatever we grow is, we'll grow from this base.
That's right.
Thank you so much.
Thank you, Rahul. Thanks for the question. Next, we have Mr. Sushovan Nayak from Anand Rathi Securities. Sushovan, please unmute yourself. Sushan, are you there?
Is my voice audible?
Yeah. Please go on.
Yeah. Thank you. Thank you for the opportunity. Just a quick question. Two questions. One is on the working capital. This is for Vasudha. Just wanted to understand what exactly is the GeM receivable contribution. You have a significant non-current receivables of almost INR 200 crore which was there in Q4. If you could put some light on that. That was one. The other was what exactly has contributed to the significant change in the currency mix. These are my two questions versus last quarter.
I believe you would have picked up this non current receivables from the annual report perhaps. That is nothing but the contractually not- due cases. As per the accounting principles, we are supposed to reflect the contractually not- due receivables under the non- current receivable. That's what it is. The other question that you asked is on the GeM. Generally, we do not report the customer wise receivables anywhere. It's quite a significant number, and that number is also reducing gradually is what we would say. There are plans to liquidate that completely. That's one of the reasons for the increasing DSO. You would see good improvements in the quarters to come.
I'm sorry, just the reason I asked this question is because in this presentation I think you have just mentioned DSOs, including GeM and without GeM. That was the basic reason why I just asked the question.
Yes, yes. We would like to specifically highlight that the higher GSO DSOs are on account of GeM receiver included in that. That is why we wanted to separate it out and show it. In addition to that, there are other global macro reasons as to why we could not liquidate quickly. There are some delays in the collections, which our account management team is working very hard to collect at the earliest possible. The other reason is there are many projects which are running on a milestone basis. As soon as we complete the milestone spot, we can raise the invoice to the customer and get it collected. There are multiple reasons for the DSOs.
Sure. Thank you. On the change in the currency mix, other than the C1 acquisition, is there something else? U.K. has significantly reduced and U.S. has significantly increased from a currency mix standpoint.
There is a significant increase in perhaps the CAD. That is the reason you are seeing some, you know, the consequential impact in U.K. and U.S. Otherwise, whatever we'd been generating for, you know, GBP and USD, it's all the same in quantum, absolute numbers.
Okay. Because what I see is 29% of GBP has become 14% now, while USD 33% has become 45% now.
The CAD would have increased significantly.
Okay. The CAD.
Okay, okay.
Okay. The CAD is from $6 to $13. Yeah.
CAD. CAD is separately shown as 13% here.
Yeah. Yeah.
Okay.
Thanks Sushovan.
Yeah.
Some contracts are denominated in dollars, but they are operating from different countries. That makes the 45% USD. It's not a U.S. business, it's a USD- denominated business.
Understood. Thank you.
Okay, thanks. Thanks, Sushovan. Next, we have Mr. Keshav Surekha from Niveshaay.
Thank you for the opportunity. As you can see, you have added five new logos in India. From my presentation, there were top nine banks and now I can see that there are 14 of them. If you could talk about those deals, like what kind of deals are starting up from India and subsequently, in the future, are we expecting any more deals to come from India and any major deals that are going to happen in this geography .
In India deal. Ramanan is the right person to tell you, but these five deals are in the space. Few deals are in the space of DTC, Digital Commerce in the retail area and the commerce area. They are not all banking deals, which is reported from India. These five deals have two or three deals in banking and two or three deals in commerce area.
Additionally, Arun, we were showing top 10. Now we're showing top 15. We're showing how the width of our coverage across these markets is growing.
Okay, yeah, top 14 out of 15. That's a coverage which is historic.
Okay.
Manish, you want to highlight it here.
You will see we were showing top 10 banks out of each of these markets as we've gone deep.
Now we're looking at top 15, top 20, top 30. Expanding those space and showing you how deep we are entrenched in this market. It's about now growing these accounts and growing deep in them.
How do you see Indian market as a growth like to your business?
The Indian market is a very active market and we are participating now in eMACH.ai as Indian market. With Purple Fabric it's a very, very potent market.
Okay, thank you.
Thanks, Keshav. Next, we have Mr. Amar Bakth from Oman Investment. Amar.
Hi.
Please unmute yourself.
Am I audible?
Yeah, yeah. Please go on.
Yes.
See these two new products which have been now fully enforced and ready to provide the incremental revenue for the company. Just trying to understand this revenue model. Will it be coming at the time of implementation itself, or there will be outcome-based revenue modeling, or is it after implementation there will be some AMC- related revenue as well? How the revenue life cycle is with these two, Purple Fabric as well as this eMACH.ai. How is it going to provide the revenue in one stream or different streams of revenue?
Manish, you would like to take it up?
Yeah. Arun. Sure. Now, Purple Fabric. Let's start with Purple Fabric. It's a mix of initial revenue, small.
Implementation, long tail as you scale, minimum commitment on certain volumes, and then impact, business impact base.
This will bring in that trigger.
Of a lot of variable on eMACH.ai. Also, we're moving to a lot more.
Variable revenue and the consulting piece, which.
We are looking at launching this will.
Be a business impact created how we.
Can help a bank move from point A to point B on their revenues, on their costs. That's where we're building out.
I'll just add a little more texture to the deals on both Purple Fabric. I think the customers normally are paying in different ways. Some of them, they're all subscription driven, some of them are paying for the platform itself. Some of them are paying because that platform is bringing them safe. Most of them, we have a minimum subscription amount. For most of our Purple Fabric implementations, we have a minimum subscription amount they pay, which is the cost of us operating, running, and licensing our platform to them. The balance is then driven on outcome related of improving their either cost reductions or doing greater volumes on the platform.
Therefore, some of them we charge by AI sort of volumes or agents, and some others we charge the whole platform. Wherever it is embedded into our products, we also charge similarly for the usage of that, of the AI element of that, of that license.
Okay, so if my understanding is correct, that means there's a part of the revenue which is a kind of an annuity- based. That means once I have a customer who takes my product, the part of the revenue, either it is AMC or license based or the platform based, it will keep on continuing till the customer is using. Probably part of it is a one-time expenditure at the time of implementation itself. Now you are also adding that there is something depending on the output based, so the customer is able to achieve certain efficiency level out of using our product. There will be kind of a profit sharing or some kind of a fixed kind of things will be getting by the company.
I'm just trying to understand how longevity of this, if I get a customer today, how long I will be able to monetize for that particular customer.
The subscription deals that we do range from three to five years. They are, like you said, an annuity with a minimum volume which grows as the volume grows. There is a volume pricing, there is a separate implementation cost. Very often for certain projects we do pilots and there's normally a charge on the pilots. When we implement, we start with implementing the subscription which normally runs, like I said, for three to five years thereafter. On top of it, there are several change requests that keep coming on upgrading the platform along those three to five years.
Ah good.
It's an annual contract. Let me just say the A1 cost is a pilot cost. A2 revenue is implementation. A3 revenue is a subscription based on percentage of, let's say, 30 basis points on the insurance premium paid or per transaction basis. $12 per transaction or $99 per work packet produced, like per complaint resolution. Those are my transaction-based pricing. This is my A3 pricing, which is based on subscription or transaction. Third is my platform licensing, which is on an annualized basis, which is also subscription-based licensing, which is A4 licensing, based on number of cores. My AI platform will be used, so number of cores, the way Oracle sells the number of core-based license. We have a similar policy of number of cores for Purple Fabric platform-based outsourcing. There are four different models of pricing.
Since you are first time, I think, in Intellect Design Arena, I'll tell you there's a license pricing, which is a fifth model of pricing, and long-term license with AMC, AMC the sixth revenue stream. These are the six different types of revenue streams in the company.
If you implement product to one particular company, all those six streams will be activated over a period of time. As and when we are adding the new customer to our new platform for this, this will compound over a period of time?
That's right. That's the value of the business. Like us, it may not be all the six for each customer. There'll be three for one customer, two for one customer. That will vary, but it's a compounding. Compounding will happen. All the profit gets compounded. That is why we have 18% revenue growth and 27% profit growth.
That's an important point, that companies come into that lever where profit growth is higher than the revenue growth. It's not a linear model.
In that particular model itself, there is a kind of an operating leverage also built on, because as the product gets matured, the expenditure towards the product will not be as big compared to the revenue-generating capacity of this particular product. There's a compounding from that side, there's a compounding from the margin side as well.
Exactly, exactly. That's what I think the value of the product companies are.
Okay, just a second, and probably the last one, I will not take time just to understand the second part of it.
If there is a lumpiness in this kind of a business as well, that means in some quarter suddenly there is a revenue built up or in some certain quarter because what I understanding there's a kind of a consistency and a longevity of the product is quite high. If I look at just quarter on quarter I can see as a huge lumpiness in the revenue things how it's happening.
It's happening because this product business each license can be as high as $7 million. Now $7 million license happens extra in particular quarter or not happening in particular quarter can give the lumpiness to the business. On LTM basis is a good way for you as an investor to look LTM as a metrics for looking at it rather than quarterly numbers.
Okay. If I may allow the last one please. In respect of this U.S.
as a market, I can see your main still U.S. Normally for the IT companies U.S. is a very big market. So far Intellect is able to manage the maximum amount of revenue outside the U.S. market. If I consider the U.S. dollar denomination is a separate thing. The business coming from the U.S. is not that big compared to other IT companies. We all know that's a huge market for a product like yours. How as a company we are approaching to build that particular pie into our business. Probably the margin there comparatively better. What we understood from other IT product related companies.
There are not too many product companies from India who is getting revenue from U.S. as a market. Intellect will be still better than that. Margins are almost equal in U.S., Canada, Europe are similar nature.
We are seeing the margin in U.K. and Europe is still better than U.S. margins. From that perspective we have approached our strategy to go to Europe first, Canada next and U.S. next. That is our strategy roadmap items. This quarter we are announcing this financial year opened with the three deals in U.S. Now we'll be expanding U.S. portfolio.
Thank you very much. I may be rejoining the queue. Thank you.
Thanks Amar. Next we have Mr. Mihir Manohar from Carnelian Asset Management .
Hi.
Thanks for giving the opportunity, and congratulations on good set of numbers.
Sir.
Wanted to understand on Palantir, C3, and Purple Fabric. You mentioned that these are the three enterprise- grade AIs. Any color, any feedback from clients, from industry analysts as to how is the competitive positioning placed of Purple Fabric vis-à-vis Palantir and C3, and you know, some color around as to in which areas, who is strong, and how will the things eventually pan out?
Beautiful question for understanding the market. Palantir is a company which started in 2005, so it's a 20-year-old company in the AI space. Started from government of the U.S. and for commerce. Their major revenue comes from government. After 2018, they started moving out of government and started looking at the commercial sector. They are using their old platform, Foundry, to support it, so it means they have a legacy. Large Foundry platform, which is built on AI technology, is available in 2010, 2012. Intellect has started investing into AI in 2016, C3 also investing around the same time. We launched Purple Fabric as a platform only in 2025. After understanding what the pain of the implementation of AI, when you look at it, four elements which are differentiating AI in Intellect is Enterprise Knowledge.
Garden is a first value proposition, which Intellect is the first time trademarked that along with Data Lake. You need Enterprise Knowledge Garden because moat of enterprise is a knowledge which is the which resides in enterprise. We have a technology to vectorize that knowledge in a garden and nurture the garden so that customer can use data from Data Lake and knowledge from garden. This will make expertise for the organization. This is very, very unique, which is not provided by C3 and Palantir. Second is we don't talk about agents. We believe the business impact can only happen from the experts. Agent can solve the smaller problem like executive console, like call center problem they can solve. Expert, if you want to look at trade, finance or wealth, you need experts there to solve the problem.
We have an agent orchestration system with a Socrates dialogue built into it, which creates immense value in digital expert methodology. Most of the company in the world, both of the C3 are agentic. They announced more than agents only. We believe it's a business of experts, which is different. The third differentiation is we allow, it's an open technology, we allow any LLM to be used. We believe LLM costs are coming down, we should not lock down with the particular LLM. We provide our customers the ability to benchmark LLM, select appropriately. This is not given by any of the MIC players right now. These are the three core differentiation besides the enterprise governance, which all three of us are giving enterprise governance entitlements. All three of us are giving the enterprise governance. We are maybe equal, but on an EKG, digital expert, and LLM, we are differentiated.
I think just to add to that, Arun, talking to clients in Europe and now we have a few large banks. I think the orchestration of the flow through the EKG , through the digital workforce, and to set up a digital workforce, which is really multiple agents, multiple digital experts. I think the ability to do that easily and govern, because the clients who come to us are finding they cannot scale. Some of them are using the competition we're talking about and they would like to scale. I think the governance part of managing multiple workforces, I think we are better positioned in some sense. We are also more flexible and easy to consume those services compared to their models. That's the feedback we're getting. We are obviously learning along the way.
Sure. Understood. Is there any more color around as to people are looking to replace or change their C3 and Palantir side of offerings to our side of offerings?
I think they are different.
People are coming with different. Go ahead.
I'm saying it's just coexistence here. We are not replacing Palantir right now. I think we are too young a player to fight that battle. It's a $300 billion company, Palantir. Even if you take a 10% market share it will be good for us.
Understood? Sure.
Second question was the investment INR 100-INR 130 crores. The INR 30 crores will be incremental, right, which will be having a hit to the P&L in FY 2026?
All of them will be hit to the P&L in market. We cannot capitalize any of this investment. We still manage the margins to the level of what we are looking. Between 20%- 25% margin, we will still manage within that margin in spite of the investments. INR 130 crore is a hardcore investment.
Understood?
Sure.
The last question was on the DSO. I mean on a QoQ as well as YoY basis, even excluding GeM, there is a good jump in DSO. How should we see this normalizing happening, and why has this jump been there?
It keeps on fluctuating. Last quarter was very good. We could able to collect a lot of money. This quarter is bad. This is quarter on quarter. This is a transactional item which, when the project goes live, suddenly the large money comes in. It's a milestone-based payment. I think that now you've seen the company from the last three years. We should not be too much worried about DSOs.
Understood. Sure, that's it for myself.
Thanks for the question. Next we have Mr. Rohit Balakrishnan from it hought PMS. Rohit, unmute yourself and ask the question. Rohit, are you there?
Hello.
Hello.
Yes, sir.
Am I audible here?
Yeah.
Yeah, please go on.
Good evening everybody.
Thank you for the opportunity.
Sir, a few questions. One was the U.S. Destiny deals that we won, one in Canada, one in the U.S. If you can share some more color in terms of who we were competing with, and how long was the engagement. In terms of this, would you feel that this is a very important inflection point for you to get more deals in the U.S. if you can share that first. I have two more questions.
Manish
Thank you. Very good question. I think it's the strength of our technology, eMACH.ai architecture, what Arun's been talking about. We clearly beat a number of the existing players fair and square.
You go down deep into the architecture. The purity of architecture just stands up on itself.
The strength of the wholesale.
Banking, our industry-aligned solutions, and our payments platform, which is again being rated by all analysts now in the leaders class, are all getting demonstrated. You had the who's who of all.
The key core banking, payments, and liquidity players in each of these wins. This is a good start for us. Liquidity, we have been, we are market leaders. Payments also, we now amongst the.
Top two most times. The power of our core banking, what we have demonstrated in Europe.
Strength of that is now very evident as we break through in the U.S.
If I can just add Manish, I think from a core banking perspective for us to get a Tier 1 client to get the corporate DDA deal in the U.S. is a great achievement because from a U.S. perspective, regulatory requirements are very steep, especially on the DDA part, which has state requirements and Fed requirements, and without a reference site we were able to win this deal. This just goes and shows the power of our eMACH.ai architecture as well as our relationships that we have built over the last many years with some of these Tier 1 clients.
Are you disclosing the size of the deals? Sir, in terms of what is the size, is it like $30 million, $40 million, or less than that.
The Canada deal is very large.
I am not getting into numbers. This is the Phase I . There are multi phases of it, and this will be very, very large. I just stay at that.
Right.
Okay. The second question was again, if I have been following the company for a long time and being invested for around five years now, I think generally I understand, of course, that we have been investing much ahead of the curve.
A lot of things, I think.
This, whether it is eMACH.ai or Purple Fabric, is a culmination of that. While you said, Arun sir, that this year also you will be investing around INR 130 crore, of which INR 10 crore has been done. Maybe looking beyond FY 2026, looking beyond FY 2026, our understanding, and I think you have also mentioned it many times, is that generally margins can be even upwards of 25% or could be even higher than that. When do you see Intellect sort of getting into that trajectory? I'm not asking it this quarter or next quarter. I'm just trying to understand when we, as outsiders, should start expecting that to happen. Again, not a specific quarter or any. Would just maybe like to hear from you. How are you viewing this? Of course, these are big opportunities. I understand what you are trying, what you all are trying to do.
Not looking at immediate quarters, but just would love to understand from you.
I think the way we design the business is to keep the growth peg around 20%. We achieve 15%, we achieve 14%. We design the business for 20% growth year-on-year. That's the first principle. The second principle is we are 20% is pegging the business for from design perspective. Economic condition may be different. Customer condition may be different. Margin will be close to 30% growth. If I look at it, 1: 1.5 is a difference between revenue growth and a profit growth. As a number, if you're looking from a three-year perspective window, achieving INR 4,000 crore revenue and INR 1,000 crore margin is what we are looking to design the company for. From your investment tagging, PBT of INR 1,000 crore and INR 4,000 crore as a top line number in three years' time is very much possible.
It's not a guidance, but this is what we are striving for.
Got it. That is helpful. Sir, just two small bits. Of the pipeline that you mentioned, INR 9,000 crore which is active, would you be able to broadly share what would be U.S. of that? That was one. Second, sir, we have consolidated C1 acquisition. Has that also led to some kind of a margin drag in this quarter and in this financial year also? Will that be there?
Yeah. The acquisition has obviously on its own it's profitable, but not as much profitable as our other businesses. That as a % margin dip may be there from this perspective, but as an acquisition it has given a huge amount of acceleration in Canadian market. Rajesh can brief you about this.
I think we announced this acquisition in March. Along with this acquisition, let me just summarize for the investors. We got about 170 new customers. 140 people came along with this. I think our first quarter results have been better than what we expected. Both from a culture perspective, from a sales perspective, and from a relationship perspective, our business is growing. As we get into a totally new segment of these 150- odd credit unions, we are seeing a lot of new opportunities which are opening up. We are looking at not only, so this acquisition is from a Digital Engagement Platform perspective, but we are now seeing opportunities coming up in core banking, opportunities coming up in lending, opportunities coming up in commercial banking and payments.
I think we are seeing this opportunity, this C1 acquisition, as a good, it's still early days, but as a good acquisition to really significantly improve our footsteps in the Canadian market and get that client base and the cross-sell and the upsell opportunities that we are seeing. Though it is still early days, these are good opportunities that we are seeing. From that perspective, it's a very good acquisition.
Sorry, just a small clarification on this. When you are now looking at C1, do you look at them separately in terms of as an operation, or are you fully consolidating in terms of, I mean, the way, I mean numbers is one thing, but just from your own lens. The reason why I'm asking is, as you take over, as you sort of integrate, how do you see the margins of that business, or you look at everything together.
We look at a merger means merger. It's a culture merger, it's a people merger, it's a thinking merger, and we don't separate that.
Yeah, we have done this significantly over the last quarter, Rohit. It's now one Intellect operations.
It's a strategic intent of.
It's given us access to 150+ .
Banks in the market where we have plenty of other cross sell opportunities. It also gives us a competence of running a large scale cloud SaaS business, which we can extend out. It has a lot of strategic.
Decisions behind why we went into this.
Acquisition, other than it brought us a certain revenue.
It's the scale which you will get.
We are in the market in Canada.
Becoming a dominant force.
Did this acquisition also help in clinching the deal that you just mentioned?
No, it adds up to the Canada.
Start feeling very comfortable.
Our size of operation, our intent is like we're calling this as one of.
Our three home markets: India is the home market. The U.K. is a home market.
Canada is now becoming that home market.
The intent is to scale each.
One of these to $100 million business in near future.
It is on the right path.
Yeah. If I can just add to that. Manish, I think another important piece that we got is about 140 Canadian employees who came along with this deal, and I think that would significantly help us as we go along in implementing these deals that we are winning. It is like a Canadian team has now got that critical mass right that we should be able to implement better. That gives the confidence to the clients as they look at us for large deals.
Got it. Thank you very much and all the very best.
Thanks, Rohit. Next we have Aditya Trivedi from Nepean Capital.
Yeah, the question I have is.
You know, is there a roadmap for this.
Expanding Purple Fabric's adoption beyond BFSI into.
Sectors say like manufacturing or retail, where.
We could see AI-driven workflow, automation, and procurement optimization also critical or is.
Purple Fabric's architecture and components restricted to BFSI?
What I'm trying to understand is there could be an.
Could there be an expansion in TAM for Purple Fabric?
Yes. Yes, Aditya, we are expanding already to procurement and e-commerce solutions, DTC business that is already there. Besides that, we are looking at some partners in other sectors to expand into pharma sector or a retail sector. We are looking at partners in that area.
We have some pipeline in the non-BFSI we are already working on.
Okay. As of now, what are the top three AI-driven business impact use cases being deployed using Purple Fabric?
More than three. Yeah, we answered this question earlier. It's the same area which we are talking about. We have just only five minutes. We are running time. If you have some other question.
No, that's it from my end.
Thank you.
Thank you. Should we take another two, three questions?
How many are waiting?
Maybe around four.
Just take all the four and let's close it out.
Okay.
Okay.
Next we have Jyoti Singh from Arihant Capital. Jyoti Singh from Ariham Capital.
Yeah.
Thank you for the opportunity, sir.
I just wanted to understand, like you discuss about the Canada thing.
What's our expectation to have a growth in that area after Capital One acquisition? Also, another thing that on the license-linked revenue, our expectation is 60% over the next two to three years. If you can update on that side, how it is moving.
New direct to corporate platform like GPX, CPX, and APX.
How are they expected to contribute?
Growth by 2028, 20 29?
Let's not look at independently. Canadian market will grow. Manish has mentioned its home market like $100 million market in next few years. Similarly, APX, GPX, we cannot quantify individually for each market. They are early start business. The way we look at our strategy of Intellect Design Arena, because Arena first GTB expanded the market share, then GCB expanded the market share. Now AI is expanding the market share. DTC is in an incubation stage. That will take another three years for contributing substantially to the intent. It takes five years for the incubation to start generating a big number. To sustain the product company revenue year-on-year and to create a pipeline, you need those kind of investment upfront.
Thank you, sir.
Thanks, Jyoti. Next, we have Srinivasu K from TIA. Mr. Srinivasu K?
Hi sir. Am I audible?
Yeah, yeah. Please move.
Thanks for the opportunity, sir. Congratulations for the solid set of Q1 numbers. My question is with the new AI laws are coming that you said regulatory is very tight, how Purple Fabric is guaranteeing the governance and explainability in those markets. Are you pursuing any certifications to accelerate this?
There is no certification available, but we have full traceability and auditability, which is being. That's why we have won the client in Europe. In Europe, the largest wealth bank is using our Purple Fabric platform, and they have certified it. Their own risk department has done it. There is no formal risk department worldwide to say this is traceable. It's about the company to do their risk department to do it. We have all the ethical traceability, dialoguing, questioning, all are recorded for ensuring that the responses of AI is, and we tell the AI agent tells whether the accuracy is 92%, 98%, 97%. We have built up very, very solid enterprise governance module into it.
To add to it, the digital experts, everything they do is audit trail, just like a human would do. That is clearly available as part of the process where you are able to see how the digital expert works in collaboration with the human.
Okay, thank you for that. The follow up to the previous one who asked about the projects beyond BFSI sector, what are the likely ticket sizes in those? Is it similar to mid tier bank kind of deals or is it smaller?
As of now, we are just saying as a platform it can go out. We have to look at with partners how the deals will work out, how the consulting company or the SI companies will take this platform to the non-BFSI sector is still to be valued. For a large non-BFSI client, the deal value will not be different because its pricing is based on number of cores being consumed for the platform. Core consumed by bank and core consumed by non-bank should be similar.
Okay, so when you say system integrators like as on Q1, how many SI partners are already selling this Purple Fabric platform? What share of this year's PF revenue will come through them?
It's too early to tell you the numbers. We have more than we are having. We engage more than 5 SIs working on it right now, and it's increasing.
Okay sir. My last question is, out of the INR 11,300 crore funnel, that looks very impressive. What kind of win rates and sales cycles are you modeling to reach this INR 800 crore quarterly rate?
How much? INR 800 crore quarterly run rate. Yeah. INR 800 crore. That's a good point you raised. It takes every four quarters we increase INR 100 crore. Now we have reached INR 700 crore. INR 800 crore. In next two, three quarters we should reach INR 800 crore.
Okay, sir. Thank you.
Thanks, Srinivasu. Next, we have Samir Dosani from ICICI. Samir Dosani.
Thanks for the opportunity. Basically, how to think about your acceptability of products, especially eMACH.ai products, which are AI-powered in the regulated markets like the U.S. and Europe? Any thoughts on that?
What's the question?
Basically, how to think about acceptability of AI-powered products. There is a lot of security concerns in regulated markets, especially industries like banks, which is very regulated. Any thoughts around how is it getting more and more accepted? Is there some security concern which is impacting you?
No. I think every bank in the U.S. is using AI for some reason or the other. It's very well accepted. Right now it's a question of what kind of use case they are using. Some of them are using it for call center, some of them are using it for some operational processes. Most of the banks, the question is whether that initiative is scalable or not. Is it platform-based or particular use case-based? What Intellect is offering is a platform-based scalable operation within the enterprise where every employee can use the same platform and every manager can build their own agent and experts to deliver better value in operational process and reimagine the process. That's the differentiation we are doing. Acceptance of AI in advanced markets is already there. Everybody has put the processes in place.
Okay, thanks. Thanks.
Thanks Amit. Next we have Pravesh Kocher from FourLion Capital. Pravesh.
Thank you for taking my question. I just want to understand if you could bring together what you talk about, the experts rather than the agents, into sort of the procurement product that you are selling to some of.
The non-BFSI customers.
Thank you.
Yeah. In procurement area there are a lot of digital Experts which are there. In the area of vendor, vendor management, vendor qualification, vendor due diligence, we have experts which are there, the price parity agents are there, and some of the documentation which is required for procurement in terms of tender or RFPs, which is a large RFP analysis which is there. We have additional experts in that area.
In procurement space,
Extraction, comparisons, everything are done through digital agents for procurement.
How is the enterprise knowledge garden created for these kind of use cases?
Knowledge Garden is about the policies of the company, all the process of the company. Whenever the comparison is done, Knowledge Garden is for sync all the policies, processes, best practices, Customer Knowledge Garden, Talent Knowledge Garden is a part of the Enterprise Knowledge Garden. It consists of Product Knowledge Garden, Talent Knowledge Garden, Customer Knowledge Garden, Policies and Process Knowledge Garden. Whenever you are writing any use case you need to say this. Whether we are complying to the policies what company has for procurement or for any other action, whether it's a human related policies of employee, Knowledge Garden is the baseline from where all the knowledge emerges.
Should we think about the value creation target in the non-BFSI procurement scenario as well at that 4x- 5x level that you talk about, or is it different in this scenario?
What is 4x- 5x? Sorry?
Like the cost savings that you can have versus the traditional method that they might be using for doing this.
Process
It will be 20% . I think the savings as of now is not fully quantified. First of all, it's effectiveness which is more counted in our customer. When you're talking about it, it's like GeM, the phase one of GeM. We identified the transparency and speed at which you can do the procurement. At stage two, you start looking at the cost saves, which can be in the range of 8%- 15% cost save from an absolute procurement price. That comes in the Phase II. Phase I is efficacy and transparency.
Thank you and all the best.
Okay,
Thank you. Two are there. I think his hand is down again. There is one repeat in case you want to take it for Sushovan again was there, but I think it's left two of them. Pranik, you are there. No, I think Kaze put down his hand. Looks like such is again there. Sushovan from Anand Rathi .
Just complete it and then close it.
Okay.
Sushovan, please unmute yourself.
I hope my voice is audible.
Yeah.
Sir, just one question. On the Palantir thing that you had mentioned, Palantir, as you mentioned, was first into U.S. defense, got into enterprise AI, and then gradually it's getting into BFSI. The way you are going or evolving is you have been very, very strong in BFSI and you are gradually moving towards the enterprise in the process—enterprise AI is what I mean, which is non-BFSI. In the process of this, do you believe or do you envisage that Palantir may, you know, cannibalize into you? You obviously did mention that Palantir being so big, it will be very difficult for you to cannibalize into Palantir. I just wanted to get your thoughts on this evolution as such.
What is the exact question? Whether it will be in difficult competition to Palantir, obviously will be no.
The other way around is what I basically referring to Palantir getting into the BFSI part of the AI business, right? Because they are starting to get into that is what market.
Market is too big, Sushovan. We are not looking for 100% market share. We are looking for 10% market share. We good enough for us.
Okay.
Can coexist three player market. Can coexist three player market is a very good market to coexist, where we can compete, win, and fight it out. Remaining in a top three in AI enterprise space is a great celebration for Intellect .
Sure, sir. Thank you. Counsel your question.
Okay.
Thanks, Shan. I think Puranikji has left. The last one, one more is there. Arun, Tushar Verma from Big Short. Can I take it? Last one. Tushar Verma from Big Short Investment. Tushar, are you there?
Sir, am I audible?
Yeah, please go on.
I just need one clarity on your guidance. Like you said the AI-driven revenue by end of this year will be around INR 200 crore.
Is this.
Is this from this new AI Purple Fabric only, or will it include some other AI revenue as well? Is this $100 million for the whole year, or will it be a per quarter figure?
No, it's a full whole year. All everything is Purple Fabric. Every AI is Purple Fabric. There's no other thing called AI.
Okay. Okay. Thank you, sir.
Okay,
Thank you everyone.
Okay.
Okay. Thank you. With this we can. Can we close it?
Yeah. We just close it.
Yeah. Thank you everybody for joining us today. In case you have any other questions, please write to us and it'll be replied on same. Thank you. Now you can log off. Okay.