NIIT Limited (NIITLTD) AI Stock Analysis

• Market Cap: ₹8.91B
• Dividend Yield: 1.07%
• Average Volume (3M): 24.64K
• Price to Earnings (P/E): 78.6
• Beta (1Y): 2.17
• Revenue Growth: 12.25%
• EPS Growth: -28.69%
• Country: IN
• Employees: 739
• Sector: Technology
• Sector Strength: 88
• Industry: Education & Training Services
• EPS (TTM): 0.30
• Shares Outstanding: 136,383,760
• 10 Day Avg. Volume: 15,507
• 30 Day Avg. Volume: 24,635
• PEG Ratio: 1.82
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 4.62
• P/FCF Ratio: -170.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.1
• Revenue Forecast (FY): ₹4.11B

• Rating: 54 Neutral
• Price Target: ₹67.00 ▼(-27.72% Downside)
• Action: Downgraded Date: 01/28/26
• Date: Action: Downgraded 01/28/26

The score is held back primarily by very weak technicals (deep downtrend with negative MACD and price below all major DMAs). Financial fundamentals are moderately supportive due to improved margins and a strong, low-debt balance sheet, but cash flow weakness (negative free cash flow) and a relatively high P/E with a modest dividend yield limit the overall score.

Positive Factors

Very low leverage / strong balance sheet

Extremely low leverage and a high equity ratio provide durable financial flexibility: the firm can fund working capital, invest in digital content or M&A, and withstand demand shocks without relying on debt markets, lowering solvency and refinancing risk over months.

Structural margin recovery and revenue growth

Sustained revenue recovery paired with a sharp gross margin expansion and restored EBIT margin points to durable improvements in pricing, cost structure, or a higher-margin product mix. These operating gains can fund reinvestment and support longer-term profitability.

Diverse learning revenue streams and managed services

A mix of enterprise contracts, individual tuition and managed learning services creates recurring and contractually-backed revenue streams. This diversity reduces single-channel exposure, increases customer stickiness, and supports predictable multi-month contract revenues.

Negative Factors

Negative free cash flow

Persistent negative free cash flow limits the company's ability to self-fund capex, platform upgrades, or working capital needs. Over a 2-6 month horizon this constrains strategic investments, dividend flexibility and may force reliance on external financing for growth initiatives.

Earnings quality and non-cash/EBITDA pressure

A large EPS contraction alongside a falling EBITDA margin suggests earnings volatility or rising non-cash costs. This weakens sustainable free cash conversion and raises the risk that reported operating profits may not convert to cash, limiting durable cash generation.

Modest returns on equity

Low ROE indicates the company generates modest profit relative to equity base. Even with margin recovery, such limited capital efficiency can constrain long-term shareholder returns and suggests further productivity or growth is needed to materially improve returns.

NIIT Limited Business Overview & Revenue Model

Company Description

NIIT Limited provides learning and knowledge solutions to individuals, enterprises, and institutions worldwide. It offers managed training services, such as custom curriculum design and content development, learning administration and technology, learning delivery, strategic sourcing, and advisory services; and learning and development transformation services, including augmented and virtual reality-based learning solutions, curriculum transformation, and portfolio optimization. The company also provides skills and careers programs, which includes software and product engineering, data sciences and analytics, cloud computing, cybersecurity, banking and finance, digital marketing, content design, UI/UX, project/product/ program management, sales & service excellence, professional life skills, business process excellence, and multi-sectoral vocational and professional skills. Its brands portfolio comprises the training.com, a learning platform for career programs; NIIT.tv, a digital learning platform; banking, insurance, and financial services under IFBI brand; and NIIT NGuru that offers various education solutions for schools comprising interactive classrooms for teachers, as well as math lab, mobile science labs, IT wizard programs, learning labs for students, and education resource planning solution for the school management. In addition, the company provides Talent Pipeline as a Service, a just-in-time job ready talent that offers talent sourcing, training, and onboarding services; and StackRoute program. The company was incorporated in 1981 and is based in Gurugram, India.

How the Company Makes Money

NIIT Limited generates revenue primarily through its diverse educational offerings and training programs. The key revenue streams include fees from corporate training services, which are designed to enhance the skills of employees in various organizations, and income from individual learners enrolling in professional courses. Additionally, NIIT earns revenue through partnerships with educational institutions and organizations for providing learning management systems and curriculum development services. The company also benefits from collaborations with technology firms, enhancing its course offerings and expanding its reach. Furthermore, NIIT's foray into digital learning solutions and online education platforms contributes to its earnings, especially in the context of increasing demand for remote learning.

NIIT Limited Financial Statement Overview

Summary

Improving operating performance and revenue recovery (revenue +17.8%, gross margin up sharply, EBIT margin back to 25.8%) and a very strong, low-leverage balance sheet (debt-to-equity 0.006, equity ratio 89.6%) are offset by weak cash generation, with negative free cash flow metrics and only moderate cash conversion (operating cash flow to net income 0.63).

Income Statement

The income statement reveals a mixed performance. Gross profit margins have improved significantly from 18.5% in 2024 to 57.3% in 2025, indicating better cost management or pricing strategies. However, the net profit margin remained fairly steady at around 12.9% in 2025. Revenue growth was notable at 17.8% from 2024 to 2025, reversing the previous year's decline. EBIT margins improved from negative territory to 25.8% in 2025, reflecting enhanced operational efficiency. EBITDA margin, however, dropped significantly, signaling potential increases in depreciation or non-cash charges.

Balance Sheet

The balance sheet remains robust with a low debt-to-equity ratio of 0.006, indicating limited leverage and conservative financial management. Return on equity increased slightly to 4.3% in 2025, suggesting modest profitability relative to equity. The equity ratio is high at 89.6%, signifying a strong financial position with most assets financed by equity. Overall, the company maintains a stable financial structure with limited risk from debt.

Cash Flow

Cash flow analysis shows some areas of concern. Free cash flow growth rate is negative, indicating potential challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is 0.63, reflecting decent cash conversion, but the free cash flow to net income ratio is negative, suggesting issues in maintaining positive free cash flow. These factors imply potential liquidity concerns that need addressing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.59B	3.58B	3.03B	3.41B	2.51B	9.60B
Gross Profit	2.02B	2.05B	562.28M	718.83M	1.24B	2.97B
EBITDA	797.05M	32.35M	659.62M	337.78M	400.52M	2.49B
Net Income	427.47M	461.25M	383.61M	31.77M	2.26B	1.43B
Balance Sheet
Total Assets	0.00	12.04B	11.63B	11.40B	21.08B	21.52B
Cash, Cash Equivalents and Short-Term Investments	7.33B	7.33B	7.17B	7.14B	12.44B	13.95B
Total Debt	0.00	64.31M	82.81M	128.82M	252.26M	579.66M
Total Liabilities	-10.86B	1.18B	1.25B	1.40B	5.89B	5.09B
Stockholders Equity	10.86B	10.79B	10.34B	9.96B	15.15B	16.40B
Cash Flow
Free Cash Flow	0.00	-96.68M	-237.14M	-178.01M	2.61B	2.06B
Operating Cash Flow	0.00	293.00M	92.44M	38.72M	2.88B	2.33B
Investing Cash Flow	0.00	-268.11M	53.38M	265.52M	2.27B	-377.79M
Financing Cash Flow	0.00	-100.44M	-226.17M	-337.00M	-3.86B	-978.49M

NIIT Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 92.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NIITLTD, the sentiment is Negative. The current price of 92.7 is above the 20-day moving average (MA) of 73.50, above the 50-day MA of 79.72, and below the 200-day MA of 104.68, indicating a bearish trend. The MACD of -3.61 indicates Positive momentum. The RSI at 25.73 is Positive, neither overbought nor oversold. The STOCH value of 6.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NIITLTD.

NIIT Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAKSOFT	68 Neutral	₹17.98B	21.87	―	0.42%	21.17%	27.66%
KERNEX	66 Neutral	₹17.40B	84.78	―	―	155.87%	―
SASKEN	64 Neutral	₹16.92B	74.37	―	1.83%	77.13%	-39.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NIITLTD	54 Neutral	₹8.91B	78.58	―	1.07%	12.25%	-28.69%
RAMCOSYS	53 Neutral	₹15.22B	163.07	―	―	20.41%	―

NIIT Limited Corporate Events

NIIT Publishes Newspaper Extracts of Q3 and Nine-Month FY2025 Unaudited Results

NIIT Limited notified the stock exchanges that it has published newspaper advertisements containing extracts of its unaudited financial results for the quarter and nine-month period ended December 31, 2025, in the Financial Express and Jansatta on January 31, 2026, in line with its disclosure obligations as a listed entity. While the release does not provide the financial figures themselves, the move underscores continued regulatory compliance and transparency towards shareholders and market participants, ensuring public access to its interim performance ahead of any deeper analysis by investors and analysts.

NIIT Faces Rs 1.81 Crore GST Demand, Sees No Material Financial Impact

NIIT Limited has disclosed that it received a Goods & Services Tax demand order from the Deputy Commissioner of State Tax in Maharashtra for an aggregate amount of Rs 1.81 crore relating to the 2021-22 financial year, arising primarily from a disallowance of GST credit due to differences between returns filed in GSTR-3B and GSTR-2A. The company has stated that it considers the demand not maintainable, is evaluating all legal and procedural options including an appeal, and does not expect any material impact on its financial position, operations, or other activities as a result of this order.

NIIT Moves Closer to Subsidiary Merger as NCLT Waives Creditor and Shareholder Meetings

NIIT Limited has provided an update on its ongoing amalgamation of two subsidiaries, NIIT Institute of Finance Banking and Insurance Training Limited and RPS Consulting Private Limited, into the parent company. The National Company Law Tribunal’s Chandigarh Bench has, via an order dated December 18, 2025, dispensed with the requirement to hold meetings of equity shareholders, secured creditors, and unsecured creditors of both the amalgamated and amalgamating entities, marking a procedural step that is expected to streamline and speed up the merger process and internal reorganisation for NIIT.

NIIT Limited Receives Nil Demand Order in GST Case

NIIT Limited, a company listed on the National Stock Exchange of India and BSE Limited, has announced that it received an assessment order with nil demand concerning a previous GST Show Cause Notice (SCN) related to a mismatch in GST credit. The Assistant Commissioner of State Tax, Ward 203, Zone-11, Delhi, issued the order, dropping the proceedings under section 73 of the CGST Act, 2017. This resolution indicates that no further action is required from NIIT Limited, alleviating any potential financial or operational impact on the company.