NIIT (NIITLTD) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue reached INR 1,049 million, up 16% YoY and 25% QoQ, with strong contributions from the IMGO/iamneo AI-powered platform.

• Order intake rose to INR 1,454 million, up 14% YoY and 37% QoQ, driven by technology segment growth.

• The company is investing in AI, platforms, products, and brand to strengthen its competitive edge and drive durable growth.

• Major reorganization underway, merging RPS Consulting and RSPI into the parent entity, and integrating new subsidiaries like iamneo.

• Profit after tax for Q2 FY26 was INR 14 million, with EPS of INR 0.1, reflecting a significant YoY decline.

Financial highlights

• Technology program revenue was INR 761 million, up 30% QoQ and 31% YoY; BFSI & Other programs at INR 288 million, up 14% QoQ but down 12% YoY.

• EBITDA for Q2 FY26 was INR 13 million, down from INR 21 million YoY and INR 48.99 million in Q2 FY26, with margin compression due to higher expenses.

• Cash and cash equivalents stood at INR 307.34 million as of September 30, 2025, down from INR 1,115 million last quarter due to dividend payment and investments.

• Total income for Q2 FY26 was INR 1,185 million, compared to INR 1,129.79 million in Q2 FY25.

• Net cash used in operating activities for H1 FY26 was INR 160.45 million, compared to net inflow of INR 19.96 million in H1 FY25.

Outlook and guidance

• Q3 FY26 revenue growth guidance is 15%-18% QoQ, with low single-digit margins as investments continue.

• FY26 full-year revenue guidance remains at 15%-20% YoY growth, to be reassessed quarterly.

• Investments in sales teams and products are expected to continue supporting growth amid a volatile environment.

• Mid-career reskilling and technology upskilling remain key opportunities, especially in AI, data science, and cybersecurity.

• The results for the current quarter are not comparable with previous periods due to the acquisition of NEO.