Based on reports surrounding the recent performance, shares of Intellect Design Arena fell, with significant downward pressure observed around February 1, 2026, driven by several key factors: 

• Weak Q3FY26 Results (Dec 2025 Quarter): The company reported results that fell below market expectations, with a sharp 61% year-on-year decline in profit after tax (PAT) to ₹27.4 crore.
• Declining Operating Margins: Profitability was hit by a sharp contraction in EBITDA margins, which dropped to 13.9% from 19.5% a year ago.
  • High Investment & Costs: The decline is attributed to increased investments in the business and higher operating costs, including employee expenses.
• Delayed Deal Closures: The company indicated that deal closures were slowing down, with clients taking longer for decisions and, in some cases, shrinking deal sizes to conserve cash.
• Termination of Joint Venture: The stock was also affected by news that a proposed Joint Venture (JV) in GIFT City with ITIXA Ltd was called off following a review of market conditions, specifically noting a change in the operating environment for small and medium enterprises. 

While revenue growth remained healthy, the market reacted negatively to the squeezed margins and continued high-cost investments