NIIT Limited Reports Mixed Q1 Results, Revises Full-Year Guidance

2 min read     Updated on 14 Aug 2025, 11:36 AM
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Ashish ThakurBy ScanX News Team
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Overview

NIIT Limited reported mixed Q1 results with 2% YoY revenue growth to INR 841 million, but negative EBITDA of INR 63 million. The company revised its full-year revenue growth guidance to 15-20% from 25% earlier, citing macroeconomic headwinds and slower decision-making. Enterprise business revenue grew 7% YoY, while consumer business declined 8% YoY. NIIT completed the acquisition of a 70% stake in iamneo and the remaining 19% stake in NIIT IFBI. Order intake increased by 37% YoY to INR 1,065 million. The company expects Q2 revenue growth of 13-16% QoQ with marginally negative margins, and anticipates a gradual recovery beginning in Q2.

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*this image is generated using AI for illustrative purposes only.

NIIT Limited , a leading global skills and talent development corporation, reported mixed results for the first quarter, with revenue growth but negative EBITDA. The company also revised its full-year guidance, citing macroeconomic headwinds and slower decision-making in the market.

Financial Highlights

Metric Value Change
Revenue INR 841.00 million Up 2% YoY, Down 3% QoQ
EBITDA Negative INR 63.00 million -
Profit After Tax (PAT) INR 44.00 million Down from INR 131.00 million in previous quarter
Earnings Per Share INR 0.32 -

Segment Performance

Segment Revenue Change
Enterprise Business INR 574.00 million Up 7% YoY
Consumer Business INR 267.00 million Down 8% YoY

Business Mix: 68% Enterprise, 32% Consumer

Key Developments

  1. Acquisition of iamneo: NIIT completed the acquisition of a 70% stake in iamneo, an AI-powered deep skilling SaaS platform, for INR 609.00 million.

  2. IFBI Stake Purchase: The company acquired the remaining 19% stake in NIIT Institute of Finance Banking and Insurance (IFBI) from ICICI Bank, making it a wholly-owned subsidiary.

  3. Order Intake: Total order intake increased by 37% year-over-year to INR 1,065.00 million, with the Enterprise segment showing a 35% growth.

  4. New Logo Wins: NIIT signed 10 new logos across BFSI and other business segments during the quarter.

Challenges and Market Conditions

NIIT's performance was impacted by several factors:

  • Slowdown in decision-making cycles and discretionary spending cuts by Global System Integrators (GSIs)
  • Cautious hiring sentiment in the banking sector
  • Geopolitical conflicts affecting training batch schedules
  • Planned investments in AI, go-to-market strategies, and integration expenses related to recent acquisitions

Revised Guidance and Outlook

Metric Revised Guidance
Q2 Revenue Growth Expectation 13-16% (QoQ)
Full-Year Revenue Growth Guidance 15-20% (from earlier 25%)
Q2 Margins Expected to remain marginally negative

Mr. Pankaj Jathar, CEO of NIIT Limited, commented on the results, stating, "While the near-term environment remains volatile, our conviction in the medium- to long-term opportunity is intact. We expect Q2 to mark the beginning of a gradual and sustained recovery."

Strategic Initiatives

NIIT is focusing on several strategic initiatives to drive growth:

  • Accelerating go-to-market investments
  • Expanding sales teams and increasing brand visibility
  • Revamping learning platforms and introducing deep skilling programs in new-age technologies
  • Integrating AI tools to enhance learner outcomes and internal productivity
  • Expanding offerings to include generative and agentic AI, AI and digital coaching for banks and enterprises

The company remains committed to its long-term strategic objectives and continues to see significant opportunities in the skills and talent development sector, particularly in AI, digital, and domain-led learning.

As NIIT navigates through the current challenging environment, it aims to leverage its strong brand, differentiated deep skilling methodology, and scalable AI-powered delivery platform to capitalize on the evolving market demands and drive future growth.

Historical Stock Returns for NIIT

1 Day5 Days1 Month6 Months1 Year5 Years
-1.50%+2.59%-7.58%-8.27%-5.58%+280.89%

NIIT Reports Mixed Q1 Results: Revenue Up, Profit Down Amid Strategic Acquisitions

2 min read     Updated on 08 Aug 2025, 02:14 PM
scanx
Reviewed by
Ashish ThakurBy ScanX News Team
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Overview

NIIT Limited's Q1 FY26 results show a 2% increase in consolidated revenue to Rs 841.17 crore, driven by 7% growth in the Enterprise business. However, net profit declined 44% to Rs 44.00 crore. The company acquired a 70% stake in iamneo and increased its stake in NIIT IFBI to 100%. Order intake rose 37% YoY to Rs 1,065.00 crore, while EBITDA was Rs (63.00) crore. The Technology programs segment grew 7%, but BFSI & Other programs declined 9%. NIIT continues to focus on AI-powered learning solutions amid a challenging market environment.

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*this image is generated using AI for illustrative purposes only.

NIIT Limited, a leading skills and talent development corporation, has released its financial results for the first quarter of the fiscal year 2026, ending June 30, 2025. The company reported a mixed performance, with revenue growth accompanied by a decline in net profit.

Revenue Growth

NIIT's consolidated revenue from operations for Q1 FY26 stood at Rs 841.17 crore, marking a 2% increase from Rs 824.75 crore in the same quarter last year. This growth was primarily driven by the company's Enterprise business, which grew by 7% year-over-year and contributed 68% to the overall revenue.

Profit Decline

Despite the revenue growth, NIIT experienced a significant drop in net profit. The company reported a consolidated net profit of Rs 44.00 crore for Q1 FY26, compared to Rs 78.00 crore in the corresponding quarter of the previous year, representing a 44% decline.

Segment Performance

Segment Revenue YoY Change
Technology programs Rs 587.00 crore Up 7%
BFSI & Other programs Rs 254.00 crore Down 9%
Enterprise business - Up 7%
Consumer business - Down 8%
  • Enterprise business contributed 68% to revenue
  • Consumer business contributed 32% to revenue

Strategic Acquisitions

During the quarter, NIIT made significant strategic moves:

  1. Acquired a 70% stake in iamneo, a Coimbatore-based AI-powered deep-skilling SaaS platform.
  2. Increased its stake in NIIT Institute of Finance Banking and Insurance Limited (IFBI) to 100%.

Order Intake and EBITDA

  • Order intake: Rs 1,065.00 crore, up 37% YoY and 44% QoQ
  • EBITDA: Rs (63.00) crore, compared to Rs (2.00) crore in the same quarter last year

Management Commentary

Vijay K Thadani, Vice Chairman & Managing Director of NIIT Limited, stated, "In the current volatile environment, the company stayed course on its investments in AI-powered learner-centric outcome-based education. The strategic investment in iamneo significantly enhances our capability to deliver impactful digital transformation curricula at scale."

Pankaj Jathar, CEO of NIIT Limited, added, "Despite a challenging environment, the strong order intake is the reflection of our robust track record and the confidence that our customers place in our learning outcomes."

Outlook

While NIIT faces challenges in the current market environment, particularly in the BFSI sector, the company continues to focus on expanding its capabilities in AI and digital skilling. The acquisition of iamneo and the increased stake in IFBI demonstrate NIIT's commitment to strengthening its position in the high-growth digital skilling market.

The company's strong order intake, despite the challenging environment, suggests potential for future growth. However, NIIT will need to navigate the ongoing pressures in its key segments, particularly in the BFSI sector, which has seen a decline in hiring and slower premium growth in insurance.

As NIIT continues to invest in AI capabilities and expand its go-to-market strategies, investors and stakeholders will be watching closely to see how these initiatives translate into financial performance in the coming quarters.

Historical Stock Returns for NIIT

1 Day5 Days1 Month6 Months1 Year5 Years
-1.50%+2.59%-7.58%-8.27%-5.58%+280.89%
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