Submission of Unaudited Financial Results for the quarter and half year ended September 30, 2025
NIITMTS · price
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NIIT Learning Systems reported consolidated revenue from operations of Rs. 4,757.16 million for Q2 FY26, up about 19.7% from Rs. 3,974.48 million in Q2 FY25, lifted partly by the newly acquired MST Group (bought on July 9, 2025 for EUR 22.37 million via NIIT Ireland). Profit after tax for the quarter fell to Rs. 469.64 million from Rs. 570.36 million a year ago, a decline of around 17.7%, and H1 FY26 PAT slipped to Rs. 962.67 million vs Rs. 1,170.55 million in H1 FY25. The dip is largely due to exceptional items of Rs. 60.31 million in Q2 (Rs. 57.67 million in acquisition-related costs for MST and the rest for strategic initiatives) and higher professional outsourcing and depreciation expenses. Operating cash flow before exceptional items stayed healthy at Rs. 1,198.05 million for H1, and reserves climbed to Rs. 13,075.59 million. EPS for the quarter stood at Rs. 3.43 basic, down from Rs. 4.20 in the year-ago quarter.
The acquisition is fueling top-line growth but is pressuring near-term margins and PAT. Shareholders should watch how quickly the MST Group integration adds to profits, as the headline earnings dip is mostly acquisition-driven rather than core business weakness.