NIIT Q1 FY27 Results (NSE: NIITLTD)
Signal: Margin expansion
The read
NIIT's Q1FY27 shows continued revenue growth (+14% YoY) and a sharp improvement in profitability (PAT +85% YoY to ₹81 Mn), though EBITDA remains negative (-1.5% margin) and sequential revenue declined 4.1% from Q4. The turnaround is driven by cost management and treasury income, not operating breakeven. AI-led revenue at 9% and order intake ₹953 Mn provide forward momentum.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹95.7 Cr | 14% | -4.1% |
| EBIT | 0 Mn | N/A | |
| Net profit | ₹8.1 Cr | 85% | |
| EPS | ₹0.6 | 85% | |
| EBIT margin | -1.5% |
P&L walk
Revenue grew 14% YoY driven by strong consumer and technology programs; EBITDA loss narrowed sharply from -63 Mn to -14 Mn; PAT boosted by treasury income.
Key positives
- Revenue grew 14% YoY to ₹957 Mn, driven by strong consumer business (+27%) and technology programs (+16%).
- PAT increased 85% YoY to ₹81 Mn, supported by treasury income and narrowed operating loss.
- Order intake of ₹953 Mn indicates healthy demand pipeline.
- AI-led revenue now 9% of total, contributing to growth.
- EBITDA loss narrowed sharply from -₹63 Mn to -₹14 Mn YoY.
Key concerns
- EBITDA remains negative at -1.5% margin, indicating continued operating losses.
- PAT dependent on other income (treasury); core operations not yet profitable.
- Sequential revenue declined 4.1% QoQ from Q4FY26.
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