NIIT Ltd’s consolidated net profit fell 43.6% YoY to ₹4.37 crore in Q1 FY26, hit by weakness in technology and BFSI sectors.
Operations revenue edged up to ₹84.11 crore from ₹82.47 crore a year earlier but fell 2.5% sequentially.
Enterprise business grew 7% YoY and contributed 68% to revenue.
Large IT firms (TCS, Infosys, Wipro, HCL) cut 42,000+ jobs in two years; BFSI hiring slowdown linked to margin pressures, lower attrition, and softer loan/premium growth.
Skills and talent development firm NIIT Ltd on Friday posted a 43.6% decline in consolidated net profit to ₹4.37 crore in the April-June quarter due to headwinds from a turbulent environment in the technology and BFSI sectors.
It had reported a profit (attributable to owners of the parent company) of ₹7.75 crore in the year-ago period, according to a regulatory filing.
The company's revenue from operations rose slightly to ₹84.11 crore in Q1 FY26, from ₹82.47 crore in Q1 FY25.
Seen sequentially, profit and revenue fell by 66.7% and 2.5%, respectively.
Enterprise business grew 7% year-on-year and contributed 68% to overall revenue. Revenue from Technology programs was up 7% year-on-year, while revenue from BFSI & other programs was down 9% year-on-year.
The sharp decline in BFSI (Banking, Financial Services & Insurance) hiring reflected in reduced share of BFSI & other programs, and also contributed to the decline in share of Consumer business, the company said.
"TCS, Infosys, Wipro, and HCL Tech cut 42K+ jobs in two years, including TCS’s 12K layoff; WorkPro segment in ITeS hit hardest as clients stay cautious amid trade tensions and tech spend slowdown.
"Banking Q1 was tough (Axis, Kotak, HDFC, SBI,ICICI) with margin pressures and muted hiring amid lower attrition; weakness spilled over to insurance (slower premium growth) and NBFCs (retail/personal loan moderation)," the company said.
The company's order intake during the quarter under review was ₹106.5 crore, representing a 37% year-on-year growth.
During the quarter, NIIT Limited acquired a 70% stake in Coimbatore-based AI-powered deep-skilling SaaS platform iamneo for around ₹61.3 crore, with the remaining 30% to be purchased in phases from its promoters upon achieving agreed financial milestones.
"In the current volatile environment, the company stayed the course on its investments in AI-powered learner-centric outcome-based education. The strategic investment in iamneo significantly enhances our capability to deliver impactful digital transformation curricula at scale," Vijay K Thadani, Vice Chairman & Managing Director, NIIT Limited, said.
