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 post-acquisition.

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

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

• Strategic investments in AI, platforms, and products continued, positioning for durable growth.

• Initiated merger of RPS Consulting and RSPI into the parent entity to simplify structure and enhance agility.

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 FY25.

• Operating expenses increased 17% YoY to INR 1,036 million.

• Net other/treasury income declined to INR 82-85 million due to mark-to-market losses on fixed income investments.

• Exceptional expenses of INR 23.8-26 million were incurred for strategic and inorganic actions, including severance costs.

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, subject to macro conditions.

• 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.

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