NIIT (NIITLTD) Q4 24/25 earnings summary

Executive summary

• Achieved resilient growth in a volatile macroeconomic environment, with FY25 consolidated revenue reaching INR 3,576 million, up 18% year-over-year, and a return to revenue growth after a prior year decline.

• Broadened customer base, especially in GSI, GCCs, and private sector banks, and expanded offerings in GenAI, cybersecurity, and analytics.

• Completed a strategic acquisition of a 70% stake in iamneo Edutech Private Limited for INR 613 million, with the remaining 30% to be acquired by FY 2030 based on milestones.

• Audited consolidated and standalone financial results for the year ended March 31, 2025, were approved, with a recommended final dividend of INR 1 per equity share, subject to shareholder approval.

• Statutory auditors issued unmodified opinions on both consolidated and standalone results, confirming compliance with applicable accounting standards.

Financial highlights

• FY25 consolidated revenue was INR 3,576 million, up from INR 3,034.72 million in FY24; Q4 revenue was INR 863 million, up 16% year-on-year but down 12% sequentially.

• FY25 consolidated PAT was INR 461 million, up 20% year-on-year; Q4 PAT was INR 131 million, up from INR 112 million last year.

• EBITDA for FY25 was INR 115 million, up from INR 48 million last year; EBITDA margin improved by 162 bps to 3%.

• EPS for FY25 was INR 3.41, up from INR 2.85 last year; Q4 EPS was INR 0.97, up from INR 0.83.

• Cash and cash equivalents at year-end were INR 7,580 million.

Outlook and guidance

• Expecting over 25% revenue growth in FY26, with growth improving from Q2 as local environment stabilizes.

• Medium to long-term outlook remains positive, with a large opportunity ahead and continued commitment to long-term goals.

• Guidance will be revisited quarterly due to ongoing volatility and uncertainty.

• IT services sector faces near-term uncertainty due to reduced discretionary spending, but demand for AI, data science, and cybersecurity roles is expected to drive growth.

• Significant upskilling opportunities exist, with a large number of graduates entering the job market without offers.