NIIT Q2 CONCALL : REVENUE DOWN 6% YOY, RETURNS TO POSITIVE EBITDA; AI REVENUE SHARE RISES TO 12.4% AS BFSI BUSINESS GROWS 11%

• MANAGEMENT EXPECTS FY27 REVENUE OUTLOOK TO REMAIN BROADLY FLAT, WITH EBITDA MARGINS IN THE LOW-SINGLE-DIGIT RANGE • MANAGEMENT EXPECTS TRAINING DEMAND FROM LARGE GLOBAL SYSTEM INTEGRATORS (GSIs) TO REMAIN WEAK FOR THE NEXT TWO QUARTERS DUE TO LOWER HIRING & INTERNAL TRAINING • MANAGEMENT EXPECTS CONTINUED POSITIVE MOMENTUM IN BFSI TRAINING, SUPPORTED BY BANKING CLIENT ADDITIONS, WEALTH MANAGEMENT ACADEMIES & SALES TRAINING PROGRAMMES • MANAGEMENT EXPECTS AI-LED TRAINING SOLUTIONS TO CONTRIBUTE AN INCREASING SHARE OF REVENUE, WITH SUBSCRIPTION-BASED AI COACHING OFFERING RECURRING INCOME OPPORTUNITIES • NEW CEO ANISH SARKAR, WHO JOINED IN OCTOBER 2026, WILL REVIEW BUSINESS PORTFOLIO, MARKET STRATEGY, OPERATING COSTS & AI-LED GROWTH OPPORTUNITIES • Q2 REVENUE DECLINED 6% YOY TO ₹98.4 CR, BUT INCREASED 3% QOQ, REFLECTING CONTINUED WEAKNESS IN ENTERPRISE TECHNOLOGY TRAINING • Q2 EBITDA TURNED POSITIVE AT ₹2.7 CR, WITH EBITDA MARGIN AT 2.7%, WHILE COMPANY REPORTED A NET LOSS OF ₹2.2 CR • H1 FY27 REVENUE GREW 3% YOY TO ₹193.9 CR, WHILE EBITDA IMPROVED TO ₹1.25 CR FROM A LOSS OF ₹4.9 CR LAST YEAR • ENTERPRISE REVENUE DECLINED 11% YOY TO ₹62.5 CR, WHILE CONSUMER REVENUE GREW 3% TO APPROXIMATELY ₹35.7 CR • BFSI & INDUSTRY PERFORMANCE REVENUE GREW 11% YOY TO ₹32.1 CR, WHILE ENTERPRISE BFSI REVENUE SURGED 17% TO A RECORD ₹20 CR • TRAINING CONSUMPTION FROM FOUR MAJOR GSI CLIENTS DECLINED APPROXIMATELY ₹10 CR YOY, IMPACTING TECHNOLOGY PROGRAMME REVENUE, WHICH FELL 13% TO ₹66.1 CR • AI-LED REVENUE CONTRIBUTION INCREASED TO 12.4% IN Q2 FROM 9% IN Q1, WITH AI COACHING SOLUTIONS ALREADY DEPLOYED ACROSS MULTIPLE CUSTOMERS • Q2 ORDER INTAKE REACHED ₹130.1 CR, SUPPORTED BY NEW CLIENT ADDITIONS ACROSS TECHNOLOGY, HIGHER EDUCATION & BFSI, INCLUDING A LEADING INDIAN BANK • OPERATING EXPENSES DECLINED 8% YOY, EMPLOYEE HEADCOUNT REDUCED TO 816 & CASH BALANCE STOOD AT ₹688.9 CR, PROVIDING FLEXIBILITY FOR AI INVESTMENTS & SELECTIVE ACQUISITIONS • MANAGEMENT REMAINS FOCUSED ON COST OPTIMISATION, AI ADOPTION & BFSI EXPANSION, BUT WEAK GSI SPENDING, CLIENT CONCENTRATION, LOW PROFITABILITY & AI-DRIVEN DISRUPTION REMAIN KEY RISKS

NIIT LIMITED

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