NIIT Limited conducted its Q3FY26 earnings conference call on January 30, 2026, following the declaration of unaudited financial results for the quarter and nine months ended December 31, 2025. The management team provided detailed commentary on performance highlights and outlined strategic priorities for Q4 and beyond.

Management Commentary on Q3FY26 Performance

Vice Chairman & Managing Director Vijay Thadani acknowledged that Q3 performance did not meet internal expectations, primarily due to a sharper than anticipated slowdown in fresh hire training. The company experienced significant disruption in BFSI sector training schedules during the second half of the quarter, with training dates being pushed out unexpectedly.

CEO Pankaj Jathar highlighted that this marked the second consecutive quarter with revenue above ₹1,000 million. However, excluding iamneo contribution, revenue declined 10% year-on-year, largely attributed to compression in new hire training across large private sector banks and top IT services firms.

Segment Performance and Strategic Mix Shift

The company reported a significant shift in its business mix, with Tech-BFSI ratio changing to 76:24 from 65:35 in the previous year. Technology programs demonstrated strong resilience with 20% year-on-year growth, while BFSI and others segment faced pressure with revenue declining 27% to ₹248 million.

The management emphasized that their strategy to increase penetration across lateral job roles through upskilling and reskilling created a healthier balance between early careers and working professionals, making Enterprise tech structurally more resilient despite volatile fresher hiring cycles.

Nine-Month Performance and Investment Focus

For the nine months ended December 31, 2025, order intake reached ₹3,340 million, up 16% year-on-year, while revenue stood at ₹2,904 million, representing 7% year-on-year growth. The company added 37 new Enterprise logos and 20 new universities and colleges during this period.

CFO Sanjeev Bansal noted that despite revenue challenges, the company maintained positive margins through tight cost control while continuing investments in go-to-market capacity and new AI offerings. Cash and cash equivalents increased to ₹7,122 million from ₹6,846 million in the previous quarter.

AI Initiatives and Product Innovation

The management highlighted significant progress in AI-enabled offerings, which now contribute 17.65% to total revenue. A key launch during the quarter was the "Building Agentic AI Systems" program - a 25-week hands-on curriculum designed for engineers to architect autonomous, goal-oriented AI agents.

The company is also running various generative AI and agentic AI programs for Enterprise clients, spanning from leadership enablement to hands-on technical implementation across cloud platforms including AWS, Azure, Google Cloud, and Databricks.

Forward Guidance and Strategic Outlook

Management provided specific guidance for Q4FY26, expecting double-digit year-on-year growth. For the full year, this implies low to high single-digit growth. The company anticipates breakeven to low single-digit margins in Q4 given continued strategic investments.

Vijay Thadani concluded that while Q3 was challenging, the strategic foundation remains strong with AI offerings being well-received and the company successfully widening its demand base. The management emphasized maintaining cost discipline while continuing targeted investments to capitalize on the substantial medium-to-long term opportunities ahead.

NIIT Learning Systems has reported strong financial performance for the third quarter, with consolidated net profit reaching ₹743 million compared to ₹617 million in the same quarter of the previous year.

Financial Performance Highlights

The company's Q3 results demonstrate solid year-over-year growth in profitability. The consolidated net profit figure represents a significant improvement from the corresponding period last year.

Growth Trajectory

The 20.42% year-over-year increase in consolidated net profit reflects NIIT Learning's operational efficiency and business momentum. This growth in profitability indicates the company's ability to effectively manage its learning solutions portfolio and deliver value to stakeholders.

The quarterly results showcase the company's continued focus on strengthening its financial position while maintaining its presence in the education and learning technology sector.