NIIT Learning Systems Q4 profit falls 10.4 pc to Rs 48.7 crore

IANS May 14, 2025 205 views

NIIT MTS reported a significant 10.4% decline in Q4 profits this year, bringing their net to Rs 48.7 crore. Despite this downfall in profit, the company's revenue grew by 7.9%, showcasing resilience in a challenging market. CEO Sapnesh Lalla emphasized their focus on AI-fueled strategies to strengthen their Managed Learning Services sector. The company remains committed to expanding its customer base, evidenced by securing new contracts and emphasizing artificial intelligence approaches in its offerings.

"We will continue to make disproportionate investments to strengthen our unique position." - Sapnesh Lalla
Mumbai, May 14: NIIT Learning Systems Limited (NIIT MTS) has reported a 10.4 per cent year-on-year (YoY) decline in its consolidated net profit for the March quarter (Q4) of FY25.

Key Points

1

NIIT MTS profits fall in Q4 despite revenue increase

2

New customer acquisitions drive growth

3

Focus on AI and Managed Learning Services

4

FY25 sees 6.7% annual net profit rise

The company posted a net profit of Rs 48.7 crore for the quarter, down from Rs 54.4 crore in the same period last fiscal, according to a regulatory filing.

Despite the fall in profit, NIIT MTS reported a 7.9 per cent increase in its revenue from operations, which stood at Rs 429.7 crore during the quarter.

However, on a quarter-over-quarter (QoQ) basis, the company saw its profit shrink by 21 per cent, while revenue grew by just 2.6 per cent.

Nevertheless, NIIT MTS CEO Sapnesh Lalla said the company witnessed steady growth in new customer acquisition and expanded its business with existing clients during the quarter.

"In line with our AI first approach, we will continue to make disproportionate investments to strengthen our unique position as a strategic leader in Managed Learning Services," he said.

For the full financial year FY25, NIIT MTS managed to post a 6.7 per cent increase in net profit, which rose to Rs 227.5 crore. Revenue for the year also grew 6.4 per cent, reaching Rs 1,653.2 crore.

Throughout the year, the company secured 10 new global Managed Training Services (MTS) contracts and expanded six existing ones.

It also renewed nine contracts during the year and ended FY25 with 93 MTS customers. NIIT MTS reported revenue visibility of $390 million, up from $335 million last year.

Vice Chairman and Managing Director Vijay K Thadani highlighted the company's focus on artificial intelligence, noting that customers are increasingly adopting GenAI-based learning and development (L&D) solutions.

He said NIIT MTS will continue to invest heavily in AI to maintain its leadership in Managed Learning Services.

The company's employee headcount stood at 2,410 as of the end of FY25. The board has recommended a final dividend of Rs 3 per equity share.

Shares of NIIT Learning Systems closed 3.51 per cent higher at Rs 372.90 on the Bombay Stock Exchange (BSE) on Wednesday.

Reader Comments

R
Rajiv K.
Not surprising to see profits dip when they're investing heavily in AI. Short term pain for long term gain. NIIT has always been ahead in tech education - their AI focus shows vision. The revenue growth is still healthy at 7.9% YoY.
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Priya M.
As someone who did NIIT courses in college, it's good to see them evolving with AI. But 21% QoQ profit drop is concerning 😕 Hope their AI investments pay off soon. The dividend announcement is a positive sign though!
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Amit S.
Why is stock price up when profits are down? Market seems to be betting on their AI strategy. NIIT was the gold standard for IT training in 90s - needs to reinvent itself for GenAI era. Fingers crossed 🤞
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Shweta R.
The 10 new global contracts show international confidence in Indian edtech! 🇮🇳 But operating costs must be rising with 2,400+ employees. Maybe they should focus more on profitability than just revenue growth?
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Vikram J.
Mixed bag results. Full year profit growth of 6.7% is decent but not spectacular. The $390M revenue visibility is impressive though. Hope they don't lose focus on core training business while chasing AI trends.
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Neha P.
As an alumna, I'm proud to see NIIT transforming with times! Their AI-first approach makes sense - corporate L&D is changing fast. The 93 MTS clients show strong market position. Dividend is cherry on top 🍒 Long term looks promising!

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NIIT MTS Profit Decline Revenue Growth Managed Learning Services AI