NIIT Learning Systems (NIITMTS) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 revenue reached INR 5,252 million, up 22% year-over-year, driven by AI-enabled offerings and new client acquisitions, though below expectations due to temporary client budget reductions.

• PAT for Q4 was INR 771 million, up 58% year-over-year, with EPS of INR 5.61.

• FY26 revenue was INR 19,520 million, up 18.1% year-over-year; organic revenue grew 13%.

• AI-enabled revenue now comprises over 13% of total revenue, reflecting strategic investments and client adoption.

• Expanded global presence through acquisitions in the US and Europe, enhancing AI learning capabilities.

Financial highlights

• Q4 FY26 revenue: INR 5,252 million (+22% YoY); EBITDA: INR 1,002 million (+17% YoY); PAT: INR 771 million (+58% YoY).

• FY26 revenue: INR 19,520 million (+18% YoY); EBITDA: INR 3,957 million (+5% YoY); PAT: INR 2,477 million (+9% YoY).

• Free cash flow for FY26 at INR 2,123 million; cash & equivalents at INR 9,366 million; net cash at INR 6,692 million.

• EBITDA margin at 19% in Q4 and 20.3% for the year, within guided range, but declined by 88 bps YoY in Q4 and 249 bps for FY26.

• Net exceptional gain of INR 286 million, mainly from fair value adjustment in acquisition liability.

Outlook and guidance

• FY27 revenue expected to grow in high single digits, subject to macroeconomic conditions.

• EBITDA margin guidance for FY27 is 18%-20%, with 18% expected in Q1 due to SweetRush integration.

• Positioned to benefit from increased outsourcing and recovery in corporate learning spends.

• Revenue visibility at $459 million from 110 annuity clients.