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

• 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.

NIIT Learning Systems Limited has reported strong financial results for the first quarter, alongside a strategic acquisition in Germany, marking significant progress in its growth trajectory.

Financial Performance

The company announced consolidated revenue of ₹451.40 crore, representing an impressive 11% year-on-year increase and a 5% sequential growth. This robust performance underscores the company's ability to maintain momentum in a competitive market.

NIIT Learning Systems demonstrated improved profitability at the operational level, with EBITDA reaching ₹95.10 crore. The EBITDA margin stood at 21%, showing a notable improvement of 112 basis points quarter-on-quarter. This margin expansion reflects the company's focus on operational efficiency and cost management.

However, the bottom line saw some pressure, with profit after tax (PAT) declining 18% year-on-year to ₹49.30 crore. Consequently, the earnings per share (EPS) for the quarter stood at ₹3.62.

Business Expansion and Client Growth

NIIT Learning Systems continues to expand its client base, adding two new managed training services clients during the quarter. This expansion brought the total number of clients to 95, indicating the company's strong market position and ability to attract new business.

Importantly, the company maintained a perfect record of contract renewals, securing revenue visibility of $388 million. This high retention rate speaks to the quality of NIIT's services and customer satisfaction levels.

Strategic Acquisition in Germany

In a significant move to strengthen its European presence, NIIT MTS, a part of NIIT Learning Systems, completed the acquisition of Munich-based MST Group for €22.37 million. This strategic acquisition is expected to bolster NIIT's position in the DACH region (Germany, Austria, and Switzerland) and enhance its capabilities in the automotive and industrial sectors.

The acquisition is mutually beneficial, as it provides MST Group access to NIIT MTS's advanced AI-enabled learning solutions. This synergy is expected to drive innovation and expand service offerings to clients in the region.

Market Response

Despite the positive developments, NIIT Learning Systems' shares were trading at ₹328.30, down ₹7.20 or 2.15% at the time of reporting.

Outlook

With strong revenue growth, expanding client base, and strategic international expansion, NIIT Learning Systems appears well-positioned for continued growth. The company's focus on managed training services and its investment in AI-enabled learning solutions indicate a forward-looking approach in the evolving education and training landscape.

As NIIT Learning Systems integrates its new German acquisition and leverages its expanded capabilities, investors and industry observers will be keen to see how these strategic moves translate into long-term value creation and market leadership.