NIIT swings back to profit: consolidated PAT ₹7.5 Cr, revenue +13.7% YoY, but operating EBITDA still negative
PAT +79.37% YoY · revenue +13.71% · margins expanding
₹95.65 Cr
+13.71% YoY
₹7.52 Cr
+79.37% YoY
6.39%
+2.5pp YoY
₹0.59
NIIT Ltd reported consolidated Q1 FY27 revenue of ₹95.7 Cr, up 13.7% YoY (from ₹84.1 Cr) and down 4.1% QoQ, with net profit of ₹7.5 Cr — a turnaround from the ₹3.5 Cr loss in Q4 FY26 and up from ₹4.2 Cr a year ago. Net margin (on total income) expanded to 6.4% from 3.9% YoY and −3.2% sequentially. On the surface this is a clean beat, but the quality of the print matters: the profit is carried almost entirely by other income of ₹22.0 Cr, not by operations.
Q1 FY-2027 vs prior quarters
Stripping other income out, operating EBITDA was still slightly negative (~−4% of revenue), exactly the "breakeven to slightly negative EBITDA" management guided for on the Q4 concall. On that count the quarter is squarely in line — double-digit YoY revenue growth was delivered as promised (13.7%), and margins behaved as flagged, held back by the ongoing strategic investment cycle. Reported PAT is up ~79% YoY, but both periods carry exceptional losses (₹1.52 Cr this quarter vs ₹1.93 Cr year-ago, mostly amalgamation and legacy tax-litigation costs); adjusting for these on both sides, underlying PAT growth is ~48%, and even that is other-income-led rather than operational. A tax credit of ₹0.63 Cr this quarter also helped PAT print above PBT.
The stock went into the print at ₹98.7, up 4% over the past month of trading.
For context: this is the second-highest quarterly PAT of the last 6 quarters.
What the summary numbers don't show
PAT aided by a net tax credit of ₹0.63 Cr — small discontinued-ops loss of ₹0.10 Cr; PAT is total incl. NCI (−₹0.57 Cr)
Management guides for double-digit year-over-year revenue growth in Q1 FY27, though the EBITDA margin is expected to remain at breakeven to slightly negative due to ongoing strategic investments. For the full year FY27, the company anticipates stronger revenue growth than the 9% achieved in FY26, coupled with an improv
— This quarter: met
Context from the quarter's corporate actions ties in: the NCLT-approved amalgamation of NIFBI and RPS Consulting became effective April 1, 2026, and StackRoute/RPS were folded into the Enterprise Tech business on July 3 — both consistent with the strategic-investment framing behind the thin operating margin. Note the comparability caveat: iamneo (NEO), acquired 70% and consolidated from April 17, 2025, means part of the YoY revenue lift is inorganic. Standalone tells a stronger operating story (revenue ₹78.6 Cr, PAT ₹10.8 Cr, positive operating profit before exceptionals), so readers will see a higher standalone number elsewhere; the divergence is real and driven by loss-making overseas/consolidated subsidiaries (auditor-noted subsidiary net losses of ~₹1.6 Cr).
What to watch
W1
Operating EBITDA trajectory: management guided breakeven-to-slightly-negative for Q1 (delivered ~−4%); watch for the promised improving margin path through FY27
W2
Reliance on other income (₹22.0 Cr this quarter) — whether operating profit turns positive without treasury support
W3
FY27 revenue guidance of growth above FY26's 9% and continued order-intake momentum; capex expected to moderate post-peak — verify against next quarter's spend
Source in ₹ Millions; converted to ₹ Cr (÷10). Consolidated has exceptional loss ₹1.522 Cr (legal/amalgamation/legacy-tax costs) and tax was a net CREDIT of ₹0.626 Cr, lifting PAT above PBT. PAT ₹7.519 Cr is total incl. NCI (−₹0.569 Cr); owners' share ₹8.088 Cr. Also small discontinued-ops loss (₹0.102 Cr). NEO (70% stake) consolidated only from Apr-17-2025, so YoY not fully comparable; RPS/NIFBI amalgamation effective Apr-1-2026 (no impact on consol).
Informational and educational content only. Not investment advice.