NIIT MTS: Navigating Profit Decline with Strategic Acquisitions and AI Innovation

NIIT MTS saw a decline in net profit by 17.7% for the quarter ending September 2025, despite a 19.7% rise in revenue. The company completed the acquisition of Germany-based MST Group and added new clients, with AI-enabled revenue now making up 10% of the business.

NIIT Learning Systems (NIIT MTS) witnessed a 17.7 percent drop in its consolidated net profit, which fell to Rs 46.9 crore for the quarter ending September 30, 2025. In contrast, the company's revenue from operations surged 19.7 percent, reaching Rs 475.7 crore, compared to the same period last year.

Despite the profit decline, NIIT MTS expanded its strategic footprint by acquiring the German MST Group for 22.37 million euros in July 2025. The acquisition, executed through its subsidiary NIIT (Ireland) Ltd., aligns with the company's growth strategy. Moreover, NIIT MTS added three new global Managed Training Services clients, increasing its total to 104.

The company emphasized its AI-first strategy, with AI-enabled revenue contributing to 10 percent of the quarter's business. CEO Sapnesh Lalla highlighted the importance of cost efficiency and automation amid global economic uncertainty, predicting a rise in consumption due to expected rate cut reductions in the future.

(With inputs from agencies.)