1. Opening Hook
Fresh off a quarter where half of Corporate India claimed to be “AI-first,” NIIT actually showed up with numbers to back it. And of course, right after apublic holiday delay, because nothing says efficiency like announcing results when nobody can read them.
But here’s the kicker — AI-enabled revenue now makes up nearly10% of business, MST is finally in the house, Germany was on vacation (again), and despite that, revenue still popped 20%.
Strap in. Things get spicy — from tariff tantrums to L&D outsourcing psychology.Read on, because the real fun begins when analysts start poking the “AI-enabled” beast.
2. At a Glance
- Revenue up 20% YoY– CFO swears it’s not because Germany was on holiday… again.
- EBITDA at ₹966 Cr – 20.3% margin– The “we will stay in the 20% club” promise continues.
- AI-enabled revenue hits 10%– Finally some AI that doesn’t just generate PowerPoint slides.
- Free Cash Flow: ₹677 Cr– Cash pile still flexing harder than rivals.
- DSO steady at 66 days– Customers still paying… mostly.
- Net Profit ₹470 Cr– Thanks to MTM tantrums and tax drama, PAT came dressed as “flat-ish.”
- Order Book: $409M– Traders heard this and stopped reading instantly.
3. Management’s Key Commentary (with translations)
Quote 1:“This quarter validates our AI-first strategy with Fosway giving us pole position.”(Translation: We are now officially allowed to brag in every presentation 😏)
Quote 2:“AI-enabled revenue is now almost 10% of business.”(Translation: Finally, something we can shout over competitors pretending to use AI.)
Quote 3:“Decision cycles remain slow due to volatility.”(Translation: Corporate customers are still overthinking everything as usual.)
Quote 4:“MST added 7 marquee clients, taking our MTS count to 104.”(Translation: Germany went on vacation, but still brought clients as souvenirs.)
Quote 5:“We are not adding fixed costs until certainty returns.”(Translation: No way we’re hiring full-time until the economy stops mood swinging.)
Quote 6:“Life sciences, tech, industrials all show strong traction.”(Translation: Everything except consulting is behaving.)
Quote 7:“20% margin is good for us; extra gains will be reinvested.”(Translation: Don’t dream of margin expansion; we’ll spend it before you ask 😏)
4. Numbers Decoded
Metric Q2 FY26 Commentary
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Revenue ₹4,757 Cr Germany on holiday, still strong.
Constant Currency Growth 15% YoY / 3% QoQ Real muscle without FX makeup.
EBITDA ₹966 Cr Margins steady at 20.3%.
PAT ₹470 Cr MTM losses crashed the party.
Cash & Cash Equivalents ₹8,079 Cr CFO sleeping peacefully.
Free Cash Flow ₹677 Cr Cash machine mode ON.
DSO 66 days Stable—customers behaving.
Revenue Visibility $409M Pipeline clearly well-fed.
Capex ₹99 Cr AI investments not slowing.Quick Hits:– AI revenue is the breakout star.– MST contribution small this quarter thanks to European sunbathing season.– Real estate contract teach-out now officially behind them (finally).
5. Analyst Questions (Summarized with sarcasm)
Q: Is your guidance conservative?A: “We see what we see.”(Translation: Bro, macro is unpredictable. Don’t push it.)
Q: Will AI improve margins?A: “Maybe, but we’ll spend it on growth anyway.”(Translation: Margin dreams? Forget it.)
Q: MST – real revenue from next quarter?A: “Yes, Germany won’t be on vacation forever.”
Q: Consulting dropped 22% QoQ — why?A: “Seasonality.”(Translation: Their calendar is as weird as their billing model.)
Q: Any slowdown in L&D due to layoffs?A: “Layoffs happen because skills mismatch, not because training isn’t needed.”(Translation: More layoffs = more training = more money. Thank you.)
6. Guidance & Outlook
Management doubled down on FY26 guidance:
- 12.5–13% constant currency growth(10%
