NIIT Q2 FY27 results: net loss of ₹1.84 crore vs ₹0.65 crore profit, revenue down 6.4%

How did NIIT perform in Q2 FY27?

NIIT’s consolidated revenue for Q2 FY27 was ₹98.22 crore, down 6.4% from ₹104.94 crore in Q2 FY26 but up 2.7% from ₹95.65 crore in Q1 FY27. Total income was ₹106.68 crore, down 10.0% year on year and 9.4% sequentially.

EBITDA was ₹1.30 crore, compared with an EBITDA loss of ₹1.17 crore in Q2 FY26 and ₹3.68 crore in Q1 FY27. The EBITDA margin improved to 1.3% from -1.1% and -3.9%, respectively. Despite the EBITDA improvement, the company reported a net loss of ₹1.84 crore and basic EPS of -₹0.16.

On a standalone basis, Q2 FY27 revenue was ₹75.42 crore, up 120.1% year on year, while profit before tax was a loss of ₹3.04 crore. The consolidated figures therefore differed materially from the standalone results, which included a profit before tax of ₹2.35 crore in Q2 FY26.

What changed in NIIT's costs and profit?

Total expenses fell to ₹107.47 crore in Q2 FY27 from ₹113.60 crore in Q2 FY26. Employee cost fell 11.0% to ₹34.83 crore from ₹39.12 crore, other expenses fell 11.1% to ₹55.34 crore from ₹62.26 crore, and finance costs fell 4.3% to ₹0.22 crore from ₹0.23 crore. Depreciation rose 42.6% to ₹10.34 crore from ₹7.25 crore.

Other income fell 37.5% to ₹8.47 crore from ₹13.55 crore, while the exceptional charge fell to ₹0.35 crore from ₹2.55 crore. The tax charge was ₹0.61 crore, compared with ₹1.64 crore. EBITDA moved to ₹1.30 crore from an EBITDA loss of ₹1.17 crore, but profit before tax moved to a loss of ₹1.14 crore from ₹2.35 crore.

Management said that Q2 revenue was affected by a quarter-on-quarter compression in consumption by four of its largest GSI clients, with consumption from those clients down by as high as ₹100 million year on year. Management said GSI client spending was under pressure because of factors including lower onboarding, in-house resources and cost-cutting pressures, while the rest of the business grew meaningfully in the quarter.

How did the first half of FY27 go?

NIIT reported H1 FY27 consolidated revenue of ₹193.87 crore, up 2.5% from ₹189.06 crore in H1 FY26. Total income was ₹224.37 crore, down 0.9% from ₹226.33 crore, while profit before tax fell 20.3% to ₹5.86 crore from ₹7.35 crore.

Profit after tax for H1 FY27 was ₹5.68 crore, up 17.1% from ₹4.85 crore in H1 FY26, and EPS was ₹0.43 compared with ₹0.42. The quarter’s net loss meant that the second-half figures reduced the overall improvement in profit after tax.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹1,238.02 crore, compared with ₹1,253.83 crore at 31 March 2026, and total equity was ₹1,067.77 crore compared with ₹1,070.03 crore. Borrowings were nil at the quarter end, down from ₹0.34 crore, while cash was ₹26.33 crore against ₹27.52 crore.

Trade receivables were ₹107.16 crore at 30 September 2026, compared with ₹57.32 crore at 31 March 2026, and inventories were ₹1.72 crore compared with ₹1.26 crore. Trade payables were ₹49.08 crore against ₹58.06 crore. The auditor’s review also referred to restatement of comparative unbilled revenue previously shown under other financial assets instead of trade receivables.

H1 FY27 operating cash flow was an outflow of ₹21.09 crore, compared with an outflow of ₹16.05 crore in H1 FY26. Investing cash flow was an inflow of ₹30.97 crore against ₹32.38 crore, financing cash flow was an outflow of ₹12.76 crore against ₹18.53 crore, and capital expenditure was ₹11.32 crore against ₹16.07 crore.

How has NIIT done over the last 8 quarters?

Revenue reached ₹104.94 crore in Q2 FY26, its highest level in the reported series, and fell to ₹84.12 crore in Q1 FY26 before recovering to ₹98.22 crore in Q2 FY27. Profit after tax reached ₹13.98 crore in Q3 FY25, bottomed at -₹3.48 crore in Q4 FY26, and moved to a net loss of ₹1.84 crore in Q2 FY27.

The EBITDA margin bottomed at -11.7% in Q1 FY26, improved to -1.1% in Q2 FY26 and -0.9% in Q3 FY26, then fell to -3.9% in Q1 FY27 before rising to 1.3% in Q2 FY27. Revenue and profit have moved unevenly across the reported quarters, with the latest quarter showing higher revenue but a return to a net loss.

What else did the company announce?

The board approved the consolidated and standalone unaudited financial results for the quarter and half year ended 30 September 2026, together with limited review reports from the statutory auditors. It also approved the appointment of Price Waterhouse Chartered Accountants LLP for five consecutive years, subject to shareholder approval at the 44th AGM and applicable statutory and regulatory requirements.

S. R. Batliboi & Associates LLP, the present statutory auditors, will continue until the conclusion of the 44th AGM proposed for 2027. The trading window for designated persons and their immediate relatives opened from 30 October 2026. No dividend or fund-raising proposal was stated in the same-day filings provided.

What did the auditors point out?

The auditors’ review report stated that nothing had come to their attention causing them to believe that the consolidated unaudited results had not disclosed the information required under the Listing Regulations or contained a material misstatement. The report was a limited review under SRE 2410 and did not express an audit opinion.

The auditors drew attention to the restatement of comparative unbilled revenue, which had previously been disclosed under other financial assets rather than trade receivables, and said that their opinion was not modified in this matter. The report also included an emphasis of matter concerning the scheme of amalgamation of NIIT Institute of Finance Banking Insurance Training Limited and RPS Consulting Private Limited with the company, approved by the National Company Law Tribunal on 22 May 2026.

What did NIIT's management say?

Management said revenue for the remainder of FY27 was likely to be broadly flat, based on Q2 FY27 experience, and lowered its revenue outlook. GSI training volumes were expected to remain under pressure for the next two quarters, while a low-single-digit EBITDA margin was expected to continue for FY27. Capex was expected to remain moderated in coming quarters unless a significant initiative was announced.

Management said AI-linked revenue rose to 12.4% from 9%, and that AI solutions were finding resonance. Management also said Enterprise BIPS revenue reached ₹200 million, up 17% year on year and 66% sequentially. New CEO Anish Sarkar was expected to review the portfolio, go-to-market strategy, cost structure and AI opportunities over 60–90 days.

Management identified GSI client spending pressure, macro uncertainty, rising rates, energy costs and cybersecurity threats as risks. It also said that integration savings may take a couple of quarters to emerge and that further headcount trimming would occur, though not at the current reduction rate, with strategic roles being added where needed.

How did NIIT shares react?

After the filing appeared after market hours, the stock fell 1.6% within 5 minutes, 3.0% within 15 minutes and 4.4% within 30 minutes. It closed 8.2% lower on the reaction day from the previous close of ₹75.90, underperforming the Education sector median by 7.5 percentage points.

By the next day’s close, the stock was down 7.6% from its pre-results close, and by the fifth day it was down 6.5%. The Education sector median was down 0.8% on the reaction day and up 3.4% by the fifth day. Earlier results-day moves were negative on 21 July 2026, 14 May 2026, 30 January 2026, 28 October 2025, 13 May 2025 and 24 January 2025, while the 8 August 2025 and 25 October 2024 moves were positive.

How did other Education companies do?

Six other Education companies were compared. Their median revenue growth was 6.0%, and three of the six reported higher profit. Two peers grew more slowly than NIIT, while four grew faster than NIIT, against NIIT’s consolidated revenue growth of 6.4% in Q2 FY26.