NIIT (NIITLTD) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue reached INR 1,014 million, marking the second consecutive quarter above INR 1,000 million, but growth was below expectations due to a sharp slowdown in fresh hire training, especially in BFSI and IT services sectors.

• Technology training revenue grew 20% year-on-year, while BFSI and others declined 27% year-on-year, shifting the business mix toward technology (76:24 vs. 65:35 last year).

• AI-enabled offerings contributed 17.65% to revenue, and the company is accelerating investments in tech and AI programs.

• PAT for Q3 FY26 was INR 39 million, with EPS at INR 0.29 per share.

• Board approved unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2025, with statutory auditor review completed and no material misstatements identified.

Financial highlights

• Q3 FY26 consolidated revenue was INR 1,014 million, up 3% year-on-year; excluding Iamneo, revenue was down 10% year-on-year.

• Order intake for Q3 was INR 822 million, marginally better than last year but down 43% sequentially.

• EBITDA for Q3 FY26 stood at INR 10 million, down from INR 92 million YoY.

• Exceptional expenses of INR 54 million were recorded due to the New Wage Code and strategic actions.

• Cash and cash equivalents stood at INR 712.2 million, up from INR 684.6 million last quarter.

Outlook and guidance

• Q4 is expected to deliver double-digit year-on-year revenue growth.

• Guidance for Q4 is breakeven to low single-digit margin, reflecting continued investments.

• Medium to long-term outlook remains positive, with substantial opportunities in reskilling and AI, though timelines are uncertain due to market volatility.

• The scheme of amalgamation is pending regulatory approval, with the next hearing scheduled for March 26, 2026.

• Manufacturing sector anticipated to rebound in FY27 after a period of low PMI.