NIIT Limited Navigates Volatility with Strategic Growth in Q2 FY26

NIIT Limited, a prominent player in the skills and talent development sector, has reported a robust performance for the second quarter of fiscal year 2026, demonstrating strategic resilience amidst a volatile global economic landscape. The company's unaudited financial results for the quarter ended September 30, 2025, reveal significant growth in order intake and revenue, underpinned by strategic investments and organizational restructuring.

Overall revenue for Q2 FY26 stood at INR 104.9 crore, marking an impressive 25% quarter-on-quarter (QoQ) and 16% year-on-year (YoY) increase. This growth was significantly bolstered by iamneo, an AI-powered deep-skilling SaaS platform acquired by NIIT, which contributed INR 11.1 crore in its first full quarter of consolidation. The company's EBITDA turned marginally positive at INR 1.3 crore, surpassing initial expectations of a negative EBITDA for the quarter, reflecting improved operational efficiency. Profit After Tax (PAT) for the quarter was INR 1.4 crore, with Earnings Per Share (EPS) at INR 0.10.

Segmental Performance and Strategic Focus

NIIT's performance was largely driven by its Technology programs, which recorded revenues of INR 76.1 crore, up 30% QoQ and 31% YoY. This segment now accounts for 73% of the product mix, highlighting the company's strong positioning in high-demand tech skills. The BFSI & Other programs segment generated INR 28.8 crore, showing a 14% QoQ increase but a 12% YoY decline, indicating continued hesitation in BFSI hiring. From a customer segment perspective, Enterprise revenue was INR 70.3 crore (67% of total), while Consumer revenue was INR 34.7 crore (33% of total).

The company's order intake for Q2 FY26 reached INR 145.4 crore, a substantial 37% QoQ and 14% YoY growth. This strong order book reflects the success of NIIT's accelerated sales and marketing efforts and its broader go-to-market strategy. The management noted sustained consumption in the tech segment and growing demand from India enterprises, which offset the impact of soft hiring in the banking sector.

Financial Summary (INR Crore)

Note: Net Other Income includes treasury income of INR 8.5 crore in Q2 FY26, lower due to mark-to-market impact on fixed income investments.

Strategic Initiatives and Future Outlook

NIIT's investment thesis is clearly playing out, with positive trends in order intake, new customer logos, digital engagement, and pipelines. The company is making planned investments in AI, platforms, products, and brands to capitalize on its early-mover advantage in AI and gain market share. Key initiatives include the revamp of its learning platform, the launch of deep skilling in new-age technologies, and the integration of agentic AI to enhance learner outcomes.

Furthermore, NIIT is expanding its sales coverage across Global Capability Centers (GCCs), banks, NBFCs, and India Enterprises. The acquisition of iamneo has opened new higher education channels and strengthened the company's reach into universities and colleges. The company also reported adding 18 new logos in the quarter across BFSI and technology sectors.

Looking ahead, NIIT is focusing on emerging high-growth areas such as the Electric Vehicle (EV) space and cybersecurity. The management anticipates sustained momentum in the tech and enterprise segments, although some hesitation in BFSI is expected in the near term. The company has provided guidance for Q3 FY26, expecting 15%-18% YoY growth, with full-year FY26 revenue projected to grow 15%-20% YoY, contingent on the macro environment not worsening in the second half of the fiscal year.

Revenue Mix Q2 FY26

Conclusion: Strategic Clarity and Growth Trajectory

NIIT Limited's Q2 FY26 results underscore a period of strategic clarity and disciplined execution. The company is actively investing in its future, leveraging AI and expanding its market reach through both organic efforts and strategic acquisitions. The planned amalgamation of its subsidiaries further streamlines operations for enhanced agility. Despite external market volatilities, NIIT's focus on high-demand skills and emerging sectors positions it for continued growth and value creation, reinforcing investor confidence in its long-term trajectory.