NIIT Learning Systems (NIITMTS) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue was INR 5,285.76m, up 11% YoY, but constant-currency growth of 2.3% missed 9%–11% guidance; EBITDA was INR 874m and PAT was INR 373.13m.

• Revenue visibility reached a record USD 510m, up 25% YoY, across 116 annuity clients; management expects new contracts to ramp in H2, with most acceleration in Q4.

• AI-led Transform & Operate remains a strategic focus, supported by AI learning solutions, consulting assignments and the Bluewater Learning acquisition.

Financial highlights

• Q2 net revenue was INR 5,285.76m, up 11% YoY and down 6% QoQ; constant-currency growth was 2.3% YoY, or 6.6% excluding the prior-year North American real estate training contract.

• EBITDA was INR 874m, down 10% YoY; margin was 16.5%, below the roughly 18% Q2 guidance.

• Profit before tax was INR 510.08m and PAT was INR 373.13m, down 26% and 21% YoY, respectively; basic EPS was INR 2.70.

• H1 FY27 revenue was INR 10,936.57m and PAT was INR 947.24m; prior-year comparisons are affected by acquisitions completed during FY26.

Outlook and guidance

• FY constant-currency growth guidance remains high single digits, with potential for double-digit growth including Bluewater; FY EBITDA margin guidance is around 18%.

• New contracts are expected to ramp in H2, with most YoY acceleration in Q4; macro conditions and client decisions may affect timing.

• Integration is expected to support a return toward 20% EBITDA margins over time; Bluewater is expected to become margin-accretive in four to six quarters.