NIIT Limited Earnings Summary — Q1 FY2027
NIIT Ltd Returns to Operating Profit in Q1 FY27 Amid Strategic Amalgamations
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 4.1% sequentially in Q1 FY2027.
- Revenue of ₹96 Cr is 13.7% higher year-on-year.
- Revenue has compounded at 11.9% annualised over the last 10 quarters.
- Net profit of ₹8 Cr is 84.7% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -14.9% annualised across the period.
- Operating margin stands at -3.9% in Q1 FY2027.
- Operating margin expanded by 785 bps year-on-year.
- Over the last two years operating margin has contracted by 252 bps.
- PBT margin is 7.2%.
- Expense growth of 5.7% remained below revenue growth of 13.7%.
- Operating profit of ₹-4 Cr is 62.6% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 64/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 96 | 100 | 101 | 105 | 84 | 86 | 98 | 91 | 82 | 74 |
| Expenses | Improving | 99 | 101 | 102 | 106 | 94 | 88 | 91 | 92 | 84 | 74 |
| Operating Profit | Volatile | -4 | -1 | -1 | -1 | -10 | -1 | 7 | -1 | -1 | 1 |
| Operating Margin | Volatile | -3.9% | -1.5% | -0.9% | -1.1% | -11.7% | -1.7% | 7.0% | -1.2% | -1.3% | 0.7% |
| Other Income | Volatile | 20 | 8 | 15 | 11 | 22 | 24 | 17 | 21 | 17 | 18 |
| Interest | Softening | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 |
| Depreciation | Improving | 10 | 7 | 8 | 7 | 7 | 6 | 6 | 6 | 6 | 5 |
| Profit Before Tax | Volatile | 7 | -2 | 6 | 2 | 5 | 17 | 17 | 14 | 10 | 13 |
| Tax | Volatile | -1 | 2 | 2 | 2 | 1 | 3 | 3 | 2 | 1 | 1 |
| Net Profit | Volatile | 8 | -4 | 4 | 1 | 4 | 13 | 13 | 12 | 8 | 11 |
| Net Margin | Volatile | 8.5% | -4.4% | 3.9% | 1.3% | 5.2% | 15.2% | 13.7% | 13.0% | 9.4% | 15.0% |
Key Takeaways
- Consolidated revenue for the quarter stood at ₹956.53 million, a 13.7% increase year-on-year, though slightly down from the preceding quarter.
- The company successfully transitioned back to profitability with a net profit of ₹75.19 million, compared to a loss in the previous quarter (Q4 FY26).
- Completed the NCLT-approved amalgamation of NIIT Institute of Finance Banking and Insurance Training Ltd and RPS Consulting Pvt Ltd effective April 1, 2026.
- Profitability was significantly supported by 'Other Income' of ₹220.34 million, which remains a substantial contributor to the bottom line.
- The acquisition of a 70% stake in iamneo Edutech Private Limited has been consolidated since April 17, 2025, impacting year-on-year comparability.
- Exceptional items for the quarter totaled ₹15.22 million, primarily driven by legacy tax litigation costs and amalgamation-related professional fees.
Management Guidance
Management is focused on the 'Skills & Talent' business following the demerger, with a specific pivot toward Enterprise Tech and digital architectures. They aim to stabilize the cost structure and regain economies of scale lost during reorganization.
Sentiment Shift
Improving
The return to net profitability after a heavy loss in the preceding quarter, combined with successful amalgamation, indicates a stabilizing business structure.
Outlook
The company is navigating a transition phase post-demerger. While core operating margins are still recovering, the debt-free balance sheet and high promoter confidence (evidenced by recent stake increases) provide a floor for recovery.
From the Annual Report (Key Quotes)
“The Hon'ble NCLT pronounced its order sanctioning the Scheme [of Amalgamation] on May 22, 2026.”
“During the quarter, the Group has incurred non operating legal and professional expenses... towards legacy tax litigation matter.”
“The results of the current quarter are not comparable with the corresponding quarter ended June 30, 2025 [due to NEO acquisition].”
Official Quarterly Documents
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This summary is AI-generated from NIIT Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.