The Gurugram-based managed training services provider has added five new logos, secured two renewals, and expanded two existing client relationships during the quarter, helping revenue visibility improve. He added that net revenue retention remained above 100%, indicating strong support from existing customers.
The company is also benefiting from the growing adoption of artificial intelligence in workplace learning. He said the company’s early positioning in AI-enabled learning and development is beginning to translate into business wins and stronger customer engagement.
The stock was trading at ₹289.00 at 1:38 pm on the NSE and has declined more than 18% over the past year.
In January-March quarter (Q4FY26), NIIT Learning Systems reported revenue of ₹525 crore, margin of 16.6% and net profit of ₹77 crore.
This is an edited transcript of the interview.Q: What is the outlook? If you can give us specific numbers—things are uncertain right now—but based on client conversations across sectors, what are you seeing? Will growth slow down versus FY26? Could there be a margin hit?
A: First, we have to talk about growth in constant currency terms. Second, we have to talk about it in organic terms because inorganic activity can contribute more or less. We have been talking about double-digit growth despite uncertain times, and this confidence comes from a very strong intake of contracts during the quarter.
We had five new logos, two renewals, and two expansions, and our overall revenue visibility increased to $459 million. That gives us a lot of confidence. Our net revenue retention has been more than 100%, which means our existing customers continue to support us strongly.
Of course, everyone is dealing with economic uncertainty, but the AI opportunity and the position NIIT has taken, especially in learning and development, gives us confidence. That is visible from the contracts we have won this quarter.
Q: There has been sequential as well as year-on-year growth, but the one negative surprise appears to be the EBITDA margin. The Street was anticipating that post-acquisition, you would be able to consolidate the EBITDA margin closer to the 20% mark. It’s coming in a bit lower. What is the outlook going forward?
A: First of all, the margin is consistent with how we had guided. Yes, it is off the 20% mark because we had also mentioned that during the acquisition, integration and ramp-up period, which takes about two to three quarters, there will be some impact. In this case, we didn’t get the full year of contribution—in one case, we got two quarters, and in another, less than one quarter. That part should settle over time.
Overall, there are product mix changes that contribute from time to time, but our overall growth trajectory will remain solid. The fact that we were able to increase our net profit by 58% year-on-year in this quarter is also significant.
Q: You recently acquired SweetRush in the US, but towards the end of quarter two, you had also acquired the Germany-based MST Group. You had said that the business should contribute close to 2–3% of revenue growth in H2, since quarter two is seasonally softer. How has that asset performed, and what kind of margin profile are you seeing there?
A: As I mentioned, both these acquisitions are relatively small companies, but they have done exceedingly well. The one in Germany has been integrated extremely well. They have secured large contracts, but there is significant pressure on spending in the German market.
To that extent, converting those contracts into actual revenues has been a bit slower. However, our integration is progressing at full scale, and we remain confident of meeting the numbers we have discussed over a 12-month period. One or two quarters of performance should not be taken as an indicator because integration and ramp-up take time.
Q: You’ve spoken a couple of times about AI. In quarter two, you said you were looking to invest close to ₹10 crore in ramping up AI capabilities. What has been the capex so far? Going forward, as a percentage of topline, can you give us a breakup of contribution? Specific numbers would be helpful.
A: Thank you for asking that question because this is what occupies us most of the time—how to use AI in the most effective way in learning and development, where it is likely to make one of the biggest differences compared to any other activity.
We are very excited about the work we have done and the use cases we have developed. About 12% of revenue this quarter came from AI-led business. We use AI across every activity of NIIT Learning Systems, including performance and operations.
To that extent, we continue to invest in platforms as well as very specific offerings, which we will share at an appropriate time. We are encouraged by the results so far. AI has moved from being a pilot initiative to becoming mainstream, and clients now want to see real outcomes. Our use cases give us confidence that we can demonstrate those outcomes.
NIIT Learning Systems’ current market capitalization is ₹3,957.21 crore.
Watch accompanying video.
Follow our live blog for more updates on Q4 results
