NIIT Share Price Falls After Q3 Margin, Profit Decline

Shares of NIIT Ltd. fell by 3.34% on Friday following the company's subdued third-quarter earnings for fiscal 2025. The stock price declined after the company reported a decline in net profit and weaker margins, compared to the same period last year.

For the quarter ended Dec. 31, 2024, NIIT’s net profit stood at Rs 13 crore, reflecting a 17.2% decline from Rs 15.7 crore in the corresponding quarter of the previous fiscal. Despite this drop in profit, the company’s revenue rose by 15.3% year-on-year to Rs 98 crore, up from Rs 85 crore in the same quarter last year.

The company’s earnings before interest, taxes, depreciation, and amortisation showed a modest increase of 1.9%, rising to Rs 6.8 crore from Rs 6.7 crore in the same period last year. However, the Ebitda margin contracted to 6.9%, compared to 8.2% in the previous year.

Overall, the company's performance in Q3 was a mixed bag, with revenue growth being offset by declining profit and margin pressure.

NIIT operates in the talent development industry, providing training and consulting services to individuals, businesses, and institutions. Established in 1981, the company was originally founded to address human resource challenges in the IT industry.

The scrip fell as much as 3.34% to Rs 161.50 apiece. It pared losses to trade 1.01% lower at Rs 165.40 apiece, as of 1:42 p.m. This compares to a 0.26% decline in the NSE Nifty 50.

It has risen 35.40% in the last 12 months. The relative strength index was at 39. The average 12-month analysts' consensus price target implies a downside of 15.1%.