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

Executive summary

• Revenue for Q3 FY26 was INR 4,997 million, up 19% YoY and 5% QoQ, with organic growth at 14% YoY, driven by client ramp-ups and wallet share expansion.

• AI-enabled revenue reached 11% of total business, reflecting progress on the AI-first strategy and enterprise deployments.

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

• Four new managed training services (MTS) contracts were added, bringing the customer base to 107, with revenue visibility at $415 million.

• Results include MST Group acquisition in July 2025, making current period results not directly comparable to previous periods.

Financial highlights

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

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

• PAT: INR 743 million, up 20% YoY and 58% QoQ; EPS at INR 5.42 (basic), INR 5.28 (diluted).

• Net cash position improved to INR 6,927 million, up INR 1,010 million QoQ; cash and equivalents at INR 9,046 million.

• Exceptional items included INR 109 million from acquisition-related gains and expenses, and a one-time INR 135 million impact from new Labour Codes.

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 at 14.5%-15% in constant currency; margins expected in the 20%-21% range for Q4 and full year.

• FY27 guidance to be provided in the next quarterly call.

• The company continues to monitor the impact of new Labour Codes on employee benefit obligations.