News Earnings NIIT Q3FY26 Results: Consolidated Revenue Grows 3.3% YoY Despite Exceptional ChargesNIIT Q3FY26 Results: Consolidated Revenue Grows 3.3% YoY Despite Exceptional Charges
NIIT Limited reported Q3FY26 consolidated revenue of ₹1,013.68 million, up 3.3% YoY, but net profit declined 70.5% to ₹39.50 million due to exceptional charges of ₹54.34 million, primarily from new Labour Codes impact (₹46.41 million) and amalgamation costs (₹7.93 million). Nine-month revenue grew 7.1% to ₹2,904.30 million, while the company progresses with its amalgamation scheme and iamneo acquisition integration.
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NIIT Limited reported its Q3FY26 financial results for the quarter ended December 31, 2025, demonstrating revenue growth amid operational challenges. The education and training services company faced significant exceptional charges that impacted profitability despite maintaining business momentum.
Consolidated Financial Performance
The company's consolidated operations showed resilient top-line growth with revenue from operations reaching ₹1,013.68 million in Q3FY26, marking a 3.3% increase from ₹981.11 million in the corresponding quarter of the previous year. Total income, including other income of ₹207.38 million, stood at ₹1,221.06 million compared to ₹1,150.57 million in Q3FY25.
| Financial Metric | Q3FY26 | Q3FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹1,013.68 million | ₹981.11 million | +3.3% |
| Total Income | ₹1,221.06 million | ₹1,150.57 million | +6.1% |
| Net Profit (Parent) | ₹39.50 million | ₹133.95 million | -70.5% |
| Basic EPS | ₹0.29 | ₹0.99 | -70.7% |
Impact of Exceptional Items
The quarter's profitability was significantly affected by exceptional items totaling ₹54.34 million. The largest component was a ₹46.41 million charge related to the impact of new Labour Codes notified by the Government of India on November 21, 2025. These codes consolidate twenty-nine existing labour laws and introduce uniform wage definitions, resulting in increased gratuity liability for past service costs.
Additionally, the company incurred ₹7.93 million in legal, professional, and other costs related to its ongoing scheme of amalgamation. Despite these charges, profit before exceptional items and tax reached ₹119.86 million, down from ₹173.71 million in Q3FY25.
Nine-Month Performance Overview
For the nine months ended December 31, 2025, NIIT demonstrated stronger year-to-date performance with consolidated revenue from operations of ₹2,904.30 million, representing a 7.1% increase from ₹2,712.98 million in the corresponding period last year.
| Nine-Month Metrics | FY26 YTD | FY25 YTD | Growth (%) |
|---|---|---|---|
| Revenue from Operations | ₹2,904.30 million | ₹2,712.98 million | +7.1% |
| Total Income | ₹3,484.32 million | ₹3,272.65 million | +6.5% |
| Net Profit (Parent) | ₹97.02 million | ₹329.86 million | -70.6% |
The year-to-date results were impacted by exceptional items of ₹99.12 million, including the Labour Code impact, amalgamation costs, acquisition-related expenses of ₹17.40 million, and exit-related personnel costs of ₹27.38 million.
Standalone Results and Strategic Developments
On a standalone basis, NIIT reported revenue from operations of ₹303.33 million for Q3FY26, compared to ₹317.34 million in Q3FY25. The standalone entity recorded a net loss of ₹14.58 million for the quarter, primarily due to exceptional items of ₹50.53 million.
The company continues to progress with its scheme of amalgamation involving NIIT Institute of Finance Banking and Insurance Training Limited and RPS Consulting Private Limited. The scheme, approved by the Board on October 9, 2025, is pending approval from the National Company Law Tribunal, with the next hearing scheduled for March 26, 2026.
Business Expansion and Outlook
NIIT's strategic expansion includes the acquisition of 70% equity shareholding in iamneo Edutech Private Limited on April 17, 2025, for a consideration of ₹608.90 million. The acquisition strengthens the company's position in the education technology sector, with plans to acquire the remaining 30% stake over the next five years.
The company operates in a single segment of Education & Training Services, with operations evaluated as a whole by the Chief Executive Officer and Chief Financial Officer who serve as Chief Operating Decision Makers. The trading window for dealing in company securities will open for all designated persons and their immediate relatives from February 2, 2026.
Historical Stock Returns for NIIT
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.70% | -1.62% | -18.35% | -36.46% | -49.69% | +76.58% |
