NIIT Learning lifts revenue visibility to USD 510m

NIIT Learning Systems reported higher second-quarter revenue and signed a large multi-year contract with a global enterprise software company, lifting revenue visibility to USD 510 million.

The Indian learning and talent services group posted consolidated revenue of Rs. 528.6 crore for the quarter, up 11.1% from Rs. 475.7 crore a year earlier. EBITDA fell 9.6% to Rs. 87.4 crore from Rs. 96.6 crore, while profit after tax declined 20.5% to Rs. 37.3 crore from Rs. 47.0 crore.

EBITDA margin narrowed to 16.5% from 20.3% a year earlier. Earnings per share stood at Rs. 2.7.

AI-enabled learning services and solutions accounted for 17% of quarterly revenue, up 22% from the previous quarter. The company attributed the growth to demand from existing and new clients for operating model redesign, AI-powered learning simulations, coaching and content development.

Contract pipeline

During the quarter, NIIT Learning signed four new long-term annuity clients, including the software company contract. It also expanded two existing contracts and renewed three.

That brought the total number of long-term annuity clients to 116 by the end of the quarter. New signings and renewals increased revenue visibility by 25% year on year to USD 510 million.

Bluewater deal

NIIT Learning also completed the acquisition of Bluewater Learning, a Texas-based HCM technology consulting and implementation business, through its wholly owned U.S. subsidiary. The deal carries aggregate consideration of up to USD 17.6 million, including performance-based earnouts over five years.

Founded in 2003, Bluewater works with HCM platforms including Cornerstone and Docebo. NIIT Learning said the acquisition adds HCM learning technology consulting, implementation and integration capabilities to its managed learning services business.

The latest quarter reflects the company's broader push to increase exposure to AI-related learning work and expand its presence in client learning technology projects. AI-enabled services still account for a minority share of total revenue, but management highlighted their growing contribution.

Vijay K. Thadani, Co-founder of NIIT and Vice Chairman and Managing Director of NIIT Learning, said corporate customers are changing how they view learning and development.

"Our AI-enabled learning platform is redefining how business leaders view corporate L&D. Today, clients are able to build capability and performance at scale through our AI-powered coaching, simulations and synthetic apprenticeships. Importantly, by delivering measurable business outcomes, we are transforming training from a cost center to a core value driver and catching the attention of C-suite leaders. This structural change bodes well for our future growth," Thadani said.

Chief Executive Officer and Executive Director Sapnesh Lalla said the company's recent investments spanned both internal development and acquisitions.

"Our strategic investments in new capabilities, including AI and expanded reach, through focused organic and inorganic investments are enabling us to help our clients transform into an AI-enabled L&D enterprise. Bluewater Learning joining the NIIT family will strengthen NIIT Learning's HCM learning technology consulting and implementation capability, and further our AI-led transformation capabilities," Lalla said.

Recognition

Separately, the company received 114 Brandon Hall HCM Excellence Awards jointly with clients. It was also ranked among Training Industry's Top 20 AI Content Creation & Authoring Tools Companies and Top 20 Experiential Learning Technologies Companies, and retained Gold standard accreditation from the Learning and Performance Institute in the UK for an 11th consecutive year.

While revenue rose in the quarter, lower margins and profit pointed to a more mixed financial picture as NIIT Learning pursued acquisitions and expanded its AI-related services.