Intellect Design Arena retains FY26 margin guidance at 21–25%, CMD Arun Jain says Purple Fabric AI platform key growth lever

Intellect Design Arena is maintaining its margin guidance at 21% to 25% for the current financial year (FY26) despite continued investments in sales, distribution, and marketing.

“Margin guidance remains at 21% to 25%, and we are consistent on that,” said Arun Jain, Chairman and Managing Director of Intellect Design Arena, in an interview with CNBC-TV18. The company reported an EBITDA margin of 20.4% in Q1 FY26.

A key growth lever for the company is its Business Impact AI platform, Purple Fabric, which Jain described as a major differentiator. “It’s the first business impact AI platform created for the world,” he said, noting that it stands alongside offerings by global firms like Palantir and C3.ai. Launched in June 2025, the platform generated 400 leads through its first masterclass and is being distributed via system integration partners.

Jain believes Purple Fabric could significantly scale revenue over the next few years. “This platform could potentially grow from ₹1,000 crore to ₹5,000 crore over four years,” he said. According to him, the ₹1,000 crore level is already “more or less established,” with upside depending on execution and global adoption.

The AI-led platform is part of a broader horizontal strategy to diversify Intellect’s revenue streams across industries and geographies. Jain emphasised that Purple Fabric is designed to be leveraged by multiple sectors beyond financial services.

While earlier statements were interpreted as quarterly guidance, Jain clarified that the ₹800 crore figure was a milestone, not formal guidance. “We have not given ₹800 crore as guidance… our next milestone is ₹800 crore in the next three quarters,” he said.

Looking ahead, Intellect Design has set its sights on a ₹1,000 crore quarterly revenue run rate by FY29 as part of a four-year roadmap targeting ₹4,000 crore in annual revenues. In Q1 FY26, the company posted revenues of ₹702 crore, up 16% year-on-year, while the bottom line rose 27% to ₹94.4 crore. EBITDA grew 18% to ₹143 crore.

“Year on year, we’ve grown 18% on the top line, which is very healthy growth, and 27% on the bottom line, which is also good growth,” Jain added.

Watch accompanying video for entire conversation.