Intellect Design Arena shares surge over 20% in four sessions, here is why the stock is soaring

Shares of Intellect Design Arena, the Chennai-based fintech company, rose for a fourth straight session on Monday, November 3. In the last four trading sessions, Intellect Design Arena shares have rallied as much as 21% to hit an intraday high of ₹1,244.60 on the National Stock Exchange.

In intraday deals on Monday, the stock rose as much as 9.85% amid heavier than usual trading volumes. Trading volume in Intellect Design Arena shares spiked by nearly 5 times on the BSE to 1.36 lakh shares compared to an average of 29,000 shares traded daily in the past two weeks.

Intellect Design Arena shares came under buying interest after it reported its September quarter earnings. Intellect Design Arena on Friday reported a standalone net profit of ₹69 crore in July-September period, marking an increase of 187% from ₹24 crore in the same period last year.

Its revenue from operations jumped 29% in the second quarter to ₹431 crore from ₹334 crore.

The Chennai-based company's operating profit also known as EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) jumped a whopping 246% to ₹103 crore and its EBITDA margin improved to 23.84% from 8.89%.

During the quarter, the company a leading European banking giant and a global systemically important bank with a strong wholesale and retail footprint selected eMACH.ai’s Virtual Accounts solution to power its next-generation eCommerce ecosystem, enabling accelerated deposit growth and real-time cash visibility.

"Q2 was a quarter of strong execution and platform synergy. Our 34% YoY growth to ₹789 crore reflects how global institutions are embracing the combined power of eMACH.ai for composable transformation and Purple Fabric for governance-first Business Impact AI. With accuracy, traceability, and open architecture at the core, we are helping financial institutions modernise with lower risk and higher velocity. This performance validates our strategic investments and reinforces our confidence in a strong pipeline and future growth trajectory,” said Arun Jain, Chairman and Managing Director, Intellect Design Arena.

As of 11:00 am, Intellect Design Arena shares traded 7.1% higher at ₹1,214, outperforming the NIFTY Smallcap 250 index which was up 0.64%.