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

Executive summary

• Q4 FY26 revenue reached INR 5,252 million, up 22% year-over-year, and FY26 revenue was INR 19,520 million, up 18% year-over-year, driven by AI-enabled offerings and new client acquisitions, though Q4 was below expectations due to temporary client budget reductions.

• PAT for Q4 was INR 771 million, up 58% year-over-year, and FY26 PAT was INR 2,477 million, up 9% year-over-year, reflecting operational efficiency and one-time gains.

• EPS for FY26 was INR 18.1, up 8% year-over-year.

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

• Audited consolidated and standalone financial results for FY26 were approved, with a recommended final dividend of Rs. 3.25 per equity share.

Financial highlights

• Q4 constant currency growth was 2% sequentially and 14% year-over-year, including MTS and SweetRush acquisitions.

• FY26 EBITDA was INR 3,957 million at a 20.3% margin; Q4 EBITDA was INR 1,002 million at a 19% margin; EBITDA margin declined by 88 bps YoY in Q4 and 249 bps for FY26.

• Operating cash flow for FY26 was INR 3,101 million; free cash flow was INR 2,657 million; cash and equivalents stood at INR 9,366 million; net cash at INR 6,692 million.

• Consolidated revenue from operations for FY26 was Rs. 19,519.84 million, up from Rs. 16,532.64 million year-over-year.

• Consolidated profit after tax for FY26 was Rs. 2,477.23 million, compared to Rs. 2,275.00 million in the previous year.

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.

• The Board recommended a final dividend of Rs. 3.25 per equity share, subject to shareholder approval.