NIIT (NIITLTD) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue was INR 841 million, up 2% year-over-year but down 3% sequentially; organic revenue declined 4% YoY and 9% QoQ.

• Order intake surged to INR 1,065 million, up 37% YoY, reflecting robust demand despite execution delays.

• Two major acquisitions completed: 70% stake in iamneo (AI-powered SaaS skilling platform) for INR 609 million and full ownership of IFBI, expanding capabilities and market reach.

• Challenging environment in Tech and BFSI segments led to lower revenue and profitability.

• Strategic investments in GTM, technology, and leadership are beginning to show positive impact, with strong order intake and new client wins.

Financial highlights

• Q1 revenue was INR 841 million, up 2% YoY, but down 3% sequentially; organic revenue declined 4% YoY and 9% QoQ.

• EBITDA was negative INR 63 million, reflecting lower revenue, higher operating expenses, and exceptional costs of INR 19 million for inorganic actions.

• Profit after tax was INR 44 million, down from INR 131 million last quarter and INR 78 million last year; EPS stood at INR 0.32.

• Order intake to revenue ratio improved significantly, indicating a strong future pipeline.

• Cash and equivalents at quarter-end were INR 7,115 million.

Outlook and guidance

• Q2 revenue growth expected at 13%-15% sequentially, with margins remaining marginally negative.

• Full-year revenue growth projected at 15%-20%, including inorganic contributions; organic growth guidance is 5%-10%.

• Guidance will be updated quarterly due to ongoing macro volatility and sectoral headwinds.