NIIT Learning Systems Reports Strong Q2 FY26 Results, 20% Revenue Growth, and Advances AI-First Strategy
NIIT Learning Systems reported Q2 FY26 revenue of ₹475.7 crore, up 20% YoY, with 20.3% EBITDA margin. AI-enabled revenue reached 10%. The company completed the MST Group acquisition and maintained FY26 guidance.
This announcement provides detailed financial results for Q2 FY26, outlines strategic advancements like the MST Group acquisition and AI-first approach, and offers future guidance, all of which are key indicators for the company's performance and strategic direction.
The company reported robust revenue growth, maintained its full-year guidance, successfully integrated a strategic acquisition, and saw significant traction in its AI-first strategy with AI-enabled revenues reaching 10%.
NIIT Learning Systems Limited announced its unaudited financial results for the quarter ended September 30, 2025, during an Investors/Analysts Call held on November 6, 2025. Key highlights include: * Revenue for Q2 FY26 was ₹4,757 million (₹475.7 crore), marking a 20% year-on-year (YoY) and 5% quarter-on-quarter (QoQ) growth. In constant currency terms, revenue grew 15% YoY and 3% QoQ. * Excluding contributions from the MST Group acquisition, revenue was up 17% YoY and 3% QoQ. * EBITDA for the quarter stood at ₹966 million (₹96.6 crore), a 2% QoQ increase, with an EBITDA margin of 20.3%. * Profit After Tax (PAT) was ₹470 million (₹47 crore), and Earnings Per Share (EPS) was ₹3.43. * Cash and cash equivalents were ₹8,079 million (₹807.9 crore), with a net cash position of ₹5,917 million (₹591.7 crore). Operating cash flow was ₹777 million (₹77.7 crore) and free cash flow was ₹677 million (₹67.7 crore). * The company completed the acquisition of MST Group in Germany in July 2025, adding seven marquee clients and strengthening its presence in the DACH region and industrial vertical, including automotive. MST contributed 2.5% to the quarter's growth. * NIIT's AI-first strategy is gaining traction, with AI-enabled revenues now contributing almost 10% of the business this quarter, expected to grow rapidly. The company emphasizes the effectiveness of AI in training and sees potential for subscription revenue. * Customer additions include three new MTS logos, three renewed contracts, and one expanded scope, maintaining a 100% renewal record. The total MTS client tally now stands at 104. * Revenue visibility increased to $409 million from $388 million last quarter and $368 million in the same quarter last year. * The North American real estate contract was successfully completed on June 30, 2025. * For Q3 FY26, constant currency growth is expected between 2% to 3% QoQ. The full-year FY26 constant currency growth guidance is maintained at 12.5% to 13% YoY, with organic growth expected to be 10% plus. Margins are projected to be in the 20% to 21% range for both Q3 and the full year. * Management noted the volatile global economic environment, leading to longer decision cycles but also increased focus on cost optimization and outsourcing. The company plans to continue disproportionate investments in capability building and sales and marketing, aiming to maintain 20% profitability.
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