NIIT Q2 FY27 Results (NSE: NIITLTD)

27 Oct 2026 · Analysis by Alpha Inflection

Signal: Slipped to loss

The read

The operating inflection is real but incomplete: EBITDA margin recovered to 1.33% from -1.12% YoY and -3.85% in Q1FY27, yet revenue growth reversed to -6.4% and higher depreciation of ₹103.38 million plus lower other income of ₹84.67 million pushed attributable PAT to a ₹21.88 million loss.

P&L walk

Revenue declined 6.4% YoY to ₹982.17 million, but lower employee and outsourcing costs helped EBITDA margin improve to 1.33% from -1.12%; depreciation rose 42.6% to ₹103.38 million and other income fell 37.5% to ₹84.67 million, leaving a ₹21.88 million loss attributable to owners.

Segments

The group reports a single Education and Training Services segment; consolidated earnings were dragged by ₹22.40 million of quarterly losses from three subsidiaries and ₹1.19 million from another subsidiary, while the parent reported ₹21.88 million attributable loss.

Key positives

• EBITDA margin turned positive at 1.33% versus -1.12% a year ago and -3.85% in Q1FY27, supported by employee-cost decline of 11.0% YoY and outsourcing-cost decline of 4.1%.
• Other exceptional expenses reduced to ₹3.50 million from ₹25.52 million a year ago, limiting the below-EBITDA drag.
• Net cash increased to ₹259.86 million at September 30, 2026 from ₹117.09 million at March 31, 2026.

Key concerns

• Revenue declined 6.4% YoY to ₹982.17 million after 13.7% YoY growth in Q1FY27, indicating a sharp deceleration in top-line momentum.
• Depreciation increased 42.6% YoY to ₹103.38 million even as property, plant and equipment declined, creating an earnings-quality concern.
• Other income fell 37.5% YoY to ₹84.67 million, removing an important support to pre-tax earnings.
• Operating cash flow remained negative at ₹113.24 million in H1FY27 despite EBITDA turning positive in Q2.

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