NIIT Learning Systems (NIITMTS) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue reached INR 4,997 million, up 19% YoY and 5% QoQ, with organic growth at 14% YoY and 7.2% in constant currency; MST Group acquisition contributed to results.

• PAT was INR 743 million, with EPS at INR 5.42, up from INR 4.54 YoY and INR 3.4 last quarter; net exceptional gain included acquisition-related items.

• Four new MTS clients were signed, four renewals completed, and one major scope expansion delivered, bringing the MTS customer tally to 107 and revenue visibility to USD 415 million.

• AI-enabled revenue reached 11% of total business, with enterprise deployments live and significant investments in AI capabilities.

• Acquisition of SweetRush, Inc. in January 2026 for up to $26 million, expected to be EPS accretive by FY27 and expanding AI-enabled learning offerings.

Financial highlights

• Revenue: INR 4,997 million (+5% QoQ, +19% YoY); constant currency growth 2.5%-3% QoQ, 11% YoY.

• EBITDA: INR 1,038 million, up 10% YoY and 7% QoQ; EBITDA margin at 20.8%-21%.

• PAT: INR 743 million; EPS at INR 5.42; net cash: INR 6,927 million, up INR 1,010 million QoQ.

• Operating cash flow: INR 1,038 million; free cash flow: INR 920 million.

• CapEx: INR 126 million, up from INR 99 million last quarter, mainly for AI and infrastructure.

• DSOs increased to 74 days from 66 last quarter and 62 last year.

Outlook and guidance

• Q4 revenue growth expected at 10%-12% QoQ or 25%-26% YoY in constant currency, aided by SweetRush acquisition.

• FY26 revenue growth guidance: 14.5%-15% in constant currency; margins expected in the 20%-21% range for Q4 and full year.

• SweetRush margins expected to become accretive in 6-8 quarters; EPS accretive from FY27.

• Global growth projected at 3.3% in 2026 and 3.2% in 2027, with technology investment, especially AI, as a key driver.