NIIT Learning posts higher revenue as AI work rises

NIIT Learning Systems reported first-quarter revenue of Rs. 565.1 crore and profit after tax of Rs. 57.4 crore. It added three new long-term annuity clients during the quarter.

Revenue rose 25% year on year from Rs. 451.4 crore, while EBITDA increased 9% to Rs. 103.2 crore from Rs. 95.1 crore. Profit after tax climbed 16% to Rs. 49.3 crore, and earnings per share stood at Rs. 4.17.

Margins narrowed during the period. EBITDA margin fell to 18.3% from 21.1% a year earlier, a decline of 281 basis points, even as revenue increased 8% from the previous quarter.

The quarter also brought further growth in the company's long-term annuity business, a key source of contracted work. NIIT Learning signed three new global clients, expanded the scope of one existing contract and renewed three contracts.

That took its long-term annuity client total to 113 and lifted revenue visibility to USD $462 million, up 19% year on year. The new clients included a quantum computing company, a clinical research organisation and a hospitality group with more than 20 brands in its portfolio.

AI focus

Management highlighted artificial intelligence as a growing contributor to the business. AI-enabled learning services accounted for 13% of revenue in the quarter.

It also introduced products and services under its AI-ready L&D Enterprise series. The offering brings together four areas: an AI future learning operating model, AI-native learning architecture, AI fluency for enterprise workforces and leadership support for managing a human and AI workforce.

NIIT Learning said its earlier investment in an AI learning platform had won recognition from clients and market analysts. It cited components including an AI Coach, a Simulation Manager and the Signal Engine as part of that platform.

Outside the financial figures, the company highlighted a series of industry rankings and awards linked to digital learning and AI. It said it was acknowledged as a Strategic Leader in Fosway's AI market assessment for digital learning and was also named Global Authorised Training Partner of the Year by Databricks.

The business was also listed among Training Industry's Top 20 learning services companies for the nineteenth consecutive year. It was ranked in the Top 20 for AI coaching and learner support tools, as well as staffing and temporary resources.

Vijay K. Thadani,  Co-founder, NIIT and Vice Chairman & Managing Director, NIIT Learning, commented on the significance of AI to the group's direction.

"NIIT has been part of every major shift in how the world learns over the last 4 decades. AI is the biggest one yet. We are proud to the have the pole position in deployment of AI towards improved learning outcomes," said Thadani.

Chief Executive Officer Sapnesh Lalla linked the company's investment programme to client work and operating momentum.

"Our investments in AI are enabling us to create reliable business outcomes for clients at a scale and pace that would not be possible otherwise. We are starting to see build up of momentum," said Lalla.

NIIT Learning operates in more than 40 countries and focuses on managed learning services and corporate training. Its client base is centred on large enterprises, and the annuity model provides a measure of forward revenue cover through multi-year contracts.

The latest quarter suggests client demand remained firm despite lower margins. With revenue visibility at USD $462 million and AI-related services accounting for a rising share of sales, the company is relying on contract expansion and technology-led work to support growth.