NIIT Learning Systems (NIITMTS) Q1 25/26 earnings summary

Executive summary

• Achieved 11% year-over-year and 5% quarter-on-quarter revenue growth, with consolidated revenue at INR 4,514 million and EBITDA at INR 951 million, down 7% YoY but up 11% QoQ.

• PAT was INR 493 million, up 1% QoQ, with consolidated basic EPS at INR 3.62; standalone net profit and EPS also improved YoY.

• Completed the acquisition of MSP/MST Group in Germany for EUR 22.37 million, expanding the client base and European presence.

• Added two new major MTS clients and renewed three contracts, bringing the customer count to 95 and maintaining a 100% renewal rate.

• Board approved unaudited consolidated and standalone financial results for the quarter ended June 30, 2025.

Financial highlights

• Q1 consolidated revenue was INR 4,514 million, up 11% YoY and 5% QoQ; standalone revenue reached INR 1,311.69 million.

• EBITDA margin was 21%, up 112 bps QoQ but down 408 bps YoY; operational PBT at INR 730 million.

• PAT was INR 493 million; excluding acquisition-related expenses, PAT would be INR 578 million.

• Net cash position improved to INR 7,704 million, up INR 668 million QoQ.

• Effective tax rate was 32.5% for the quarter, impacted by withholding tax on the MSP/MST acquisition.

Outlook and guidance

• Full-year revenue growth expected at 10%+ in constant currency, with Q2 organic growth at 8% YoY and MSP/MST Group adding 3–4 percentage points.

• Margins projected in the 20–21% range for the full year.

• Economic uncertainty and cost pressures may delay projects, but AI adoption and outsourcing are accelerating.

• Recent acquisition expected to expand international presence and capabilities.

• Robust contract pipeline and ramp-up in new customers anticipated.