NIIT Ltd Management Discussions

1. Company Overview

NIIT Limited is a leading skills and talent development corporation, set up in 1981 to help the nascent IT industry overcome its human resource challenges. Over the last 43 years, it has continually evolved—expanding from technology training into domains such as BFSI and Sales & Service Excellence—and is now transforming itself into an AI-first enterprise. With a vision to emerge as the Talent Builders to the Nation, NIIT today delivers future- ready learning and talent solutions across industries, helping individuals and enterprises thrive in an era of rapid technological and business transformation.

• Through the NIIT Digital platform, the company delivers distinctive, technology-enabled learning experiences for both corporate and individual learners.

• The Institute of Finance Banking & Insurance (IFBI)

continues to be a leading provider of career-launch and career-advancement programs for professionals in the BFSI sector.

• StackRoute serves as digital transformation partner for enterprises, building multi-skilled full stack professionals in advanced technologies at scale.

• RPS Consulting strengthens NIITs enterprise capability with deep expertise in training programs on emerging digital technologies, helping experienced professionals upskill and reskill.

• With Talent Pipeline as a Service (TPaaS), NIIT

addresses one of the biggest challenges for enterprises—ready-to-deploy talent across technology, marketing, and sales functions.

• NIIT Sales & Service Excellence (SSE) complements these offerings by enabling organizations to create a robust talent ecosystem, enhancing critical competencies and driving measurable business outcomes.

2.Environment and State of the Industry

FY25 unfolded in a complex macroeconomic environment, marked by elevated global uncertainty, tighter financial conditions, and ongoing geopolitical tensions. While the global economy continued its post-pandemic recovery, growth remained subdued. The International Monetary Fund (IMF) revised global GDP growth downward to 2.4% in 2025, reflecting the effects of prolonged monetary tightening, softer global trade, and rising protectionist policies among major economies.

Indias GDP grew at 6.5% in FY25, slightly above earlier estimates of 6.4%. This, however, marked the slowest pace of growth since the pandemic and a sharp moderation from the 9.2% recorded in the previous year. The deceleration reflected higher energy prices, tight domestic liquidity, weaker external demand across Asian emerging markets, and restrained government spending during elections. The Reserve Bank of Indias (RBI) restrictive monetary stance, along with sustained interventions in the foreign exchange markets to stabilize the rupee, further contributed to a subdued macro backdrop.

Despite this moderation, India remained one of the fastest- growing major economies. Rural consumption, public infrastructure investment, and services exports provided resilience. However, sectors with significant global exposure—such as technology services and startups— faced the pressure of tighter financial conditions and delayed decision-making cycles.

The IT/ITES sector, a key contributor to employment and learning demand, showed tentative signs of recovery. After six quarters of headcount contraction, the top three Indian IT services firms added over 13,500 employees in FY25, compared to a decline of over 60,000 in FY24. Hiring remained strong in niche digital skills such as AI, cybersecurity, and cloud infrastructure. Global Capability Centres (GCCs) and Tier 2 Global System Integrators (GSIs) continued to expand steadily, supported by demand for agile, high-value delivery models. According to NASSCOM, the Indian technology industry added ~60,000 net employees in FY25. The sector now employs approximately 5.5 million professionals and invests 60-100 hours per employee annually in upskilling, with AI, cloud, data, and cybersecurity emerging as the most sought-after capabilities. With the advent of Generative AI, enterprises are redefining their service portfolios to include AI-driven analytics, intelligent automation, and personalized customer engagement.

GCCs continued to expand at a robust pace in FY25, with over 1,700 centres employing nearly 1.9 million professionals. The segment is projected to grow from USD 64.6 billion in 2024 to USD 99-105 billion by 2030 (Reuters), supported by demand in areas such as AI-enabled analytics, cybersecurity, product engineering, and cloud architecture. An increasing share of operations is shifting to Tier-2 cities such as Jaipur, Coimbatore, and Kochi to access diversified talent pools and optimize costs. The sectors evolution from cost-arbitrage delivery to innovation-led mandates is driving sustained demand for niche digital skills and continuous workforce upskilling.

The startup ecosystem continued to face funding headwinds in FY25. Startups prioritized profitability and capital efficiency over rapid expansion, leading to conservative hiring and leaner team structures. This had a cascading effect on demand for early-career talent and onboarding- related training programs.

The Banking and Financial Services (BFSI) sector also grew at a more measured pace. Credit growth, which had touched ~20% in FY24, moderated to ~10-12% in FY25. Retail lending and financial inclusion initiatives remained important drivers. However, regulatory interventions by the RBI—particularly the tightening of norms on unsecured retail lending in response to rising NPAs—led banks to adopt a more cautious stance especially towards the end of the year. These measures, along with elevated risk-management priorities, contributed to a slowdown in fresher recruitment, particularly in frontline sales and lending roles. Indian banks employ close to 1.8 million people, with comparable scale across insurance and financial services. Hiring remained healthy overall, driven by business growth and the push to mobilize retail deposits, but moderated towards the end of the year due to rising NPAs and slower credit growth.

A defining trend in FY25 was the rapid integration of Generative AI (GenAI) and automation technologies across industries. Businesses increasingly adopted GenAI to enhance productivity, drive innovation, and reduce turnaround times. According to the IMF, GenAI is reshaping labour markets, favouring roles that combine AI with analytical, interpersonal, and domain-specific expertise. Investor expectations have surged, with over 90% of institutional investors globally pushing companies to integrate GenAI into their operating models (KPMG, Q1 Quarterly Pulse Report).

These shifts are compelling enterprises to reevaluate workforce readiness and invest in large-scale upskilling and reskilling initiatives. Demand is particularly strong for modular, outcome-driven learning pathways that address both technical and behavioral skill gaps. With an early- mover advantage in integrating AI into its offerings, and with multiple industry recognitions validating its leadership, NIIT is well-positioned to capture this opportunity.

Indias higher education landscape also reinforces the longterm opportunity. With a Gross Enrollment Ratio of 28.4% (AISHE), the country has over 50 million learners across 40,000+ colleges and 1,000+ universities. Enrollments are projected to reach ~92 million by Academic Year 2035, while the annual graduate output of ~10.7 million is expected to double over the same period. This expanding base of students, graduates, and working professionals represents a large and growing addressable market for new-age, career-oriented skills.

Figure 1: Enrollment in Higher Education in India (in million)

In summary, while FY25 presented near-term challenges across several sectors, it reinforced the growing need for workforce transformation and lifelong learning. NIIT remains focused on enabling enterprises and individuals to navigate this evolving environment through future-ready, technology- enabled learning solutions. The long-term outlook remains positive, underpinned by Indias structural strengths, digital momentum, and the accelerating need for talent realignment in a GenAI-driven world.

3. Acquisition of iamneo

In line with its strategy to strengthen capabilities in AI-led, outcome-driven learning, NIIT Limited acquired a 70% majority stake in iamneo in April 2025. Headquartered in Coimbatore, iamneo is a leading provider of deep skilling technology training solutions through a scalable AI powered SaaS platform. iamneo leverages proprietary AI technology to deliver personalized, hands-on learning experiences. Its solutions are used by leading universities, Global System Integrators (GSIs), and Global Capability Centers (GCCs) to enhance job readiness, coding proficiency, and real- world project deploy-ability. The platform offers a range of products spanning AI-powered coding assessments, role-based skilling, and automated content generation— enabling institutions and enterprises to deliver scalable and measurable skilling outcomes.

The acquisition significantly strengthens NIITs digital learning portfolio and enhances its ability to meet the evolving needs of early-career professionals and enterprise customers, particularly in the context of the growing adoption of Generative AI. It positions NIIT at the forefront of delivering intelligent, simulation-driven learning experiences, aligned with the demand for faster, skills-first hiring and deployment models. Under the agreement, the remaining 30% equity in iamneo will be acquired in phases linked to financial milestones. The founding team of iamneo comprising of T.P Senthil and Aasif Iqbal will continue to lead operations, ensuring continuity and innovation as the platform scales within the NIIT ecosystem.

4. AI-First Approach and Innovation

NIIT has adopted an AI-first strategy, embedding artificial intelligence across its offerings, operations, and growth initiatives. In the enterprise segment, leadership and functional teams are equipped with targeted programs on AI strategy, productivity enhancement, and innovation, supported by proprietary sandbox environments, AI- powered tools, and intelligent agents for deployment in real- world business contexts.

For individual learners, AI literacy and applied AI skills are integrated into flagship programs such as the Full-Stack Development with GenAI Honours and domain-specific digital courses, enabling readiness for the demands of an AI-driven workplace.

NIIT is also leveraging AI to accelerate content creation, compress program design cycles, and raise benchmarks on quality and outcomes. RPS Consultings advanced AI training programs, including courses developed in collaboration with leading technology OEMs, further extend the Companys leadership in industry-aligned, future- focused learning.

The April 2025 acquisition of iamneo—an AI-powered, deep-skilling SaaS platform serving over 70+ private engineering colleges and multiple enterprise clients —adds a scalable, personalized learning channel for both corporate and higher-education markets.

Together with thought-leadership platforms such as NIIT Confluence, BAL&NCE, Digital Architect Conclave, and the Founders Growth Summit, these initiatives position NIIT as a leading catalyst for workforce transformation in the AI era.

The Companys leadership has been validated through numerous recognitions and awards from industry analysts and customers alike, reinforcing its credibility as a trusted partner for enterprise-wide talent transformation.

5. Business Overview

NIIT delivers digital talent transformation solutions for individual and corporate customers across India, China, and select emerging markets. Leveraging its presence in these geographies, the Company offers professional programs that prepare early-career learners for industry roles while enabling working professionals to upskill and reskill for career progression. In recent years, delivery has transitioned largely to synchronous, instructor-led digital formats, ensuring scale with quality.

The Companys program portfolio spans high-demand domains such as AI/ML, Generative AI, Data Science, Full-Stack Product Engineering, 5G, Cloud Technologies, Cybersecurity, and Game Development, along with programs in Digital Marketing, Business Development, and Virtual Relationship Management for digital enterprises. During FY25, Generative AI components were embedded across the curriculum, reinforcing NIITs position as an early mover in this space.

RPS Consulting, a wholly owned subsidiary, provides specialized upskilling programs in emerging digital technologies for working professionals—a segment witnessing sustained demand as enterprises accelerate digital transformation. RPS serves over 250 customers with a catalog of 2,000+ programs, delivered in collaboration with 30+ leading technology OEMs, including Microsoft, AWS, Google Cloud, VMware, Red Hat, Citrix, Veritas, Symantec, and (ISC) 2 .

Across StackRoute, RPS Consulting, and the enterprise business, NIIT maintains strong engagement with Global System Integrators (GSIs), Global Capability Centers (GCCs), and leading Indian private-sector banks that are advancing their digital agendas. The Companys enterprise offerings include deep-skilling programs in technology (via StackRoute) and Talent Pipeline-as-a-Service (TPaaS), which provides day-one-ready professionals on a just-intime basis.

During FY25, NIIT trained a total of 249,606 learners across its portfolio—139,506 in Technology programs and 110,100 in BFSI & Other programs. Within Technology, 41,389 were early-career learners and 98,117 were working professionals. In BFSI & Other programs, 42,350 were early- career learners and 67,750 were working professionals. Technology and BFSI continue to remain among the most aspirational career paths for Indian learners, underscoring the relevance of NIITs offerings.

Highlights for FY25

• NIIT Ltd. announced gNIIT, Indias first customizable dual-qualification program for undergraduate students, aimed at producing AI- and new-tech-ready professionals irrespective of academic background.

• The Company launched a merit-based Career Edge Scholarship to enable BE/BTech students to enroll in its flagship Full- Stack Development with GenAI Honours Program.

• NIITs BFSI vertical was empaneled by two prominent public sector banks to skill their employees, reinforcing its role as a trusted learning partner across private and public financial institutions.

• StackRoute partnered with GSIs to deliver training for Enterprise Architects, re-skill SAP professionals, build leadership capability for senior technology leaders, and train graduate hires across technology stacks.

• StackRoute organized the Chennai Chapter of BAL&NCE, bringing together HR and L&D leaders from GCCs and GSIs around the theme Adapting at the Speed of Change: Leadership, Talent, and AI for a Resilient Future.

• StackRoute also hosted the second edition of the Digital Architect Conclave 2024 - Indias only dedicated platform for digital architects to connect and collaborate.

• RPS Consulting launched an advanced AI training program leveraging the Microsoft technology stack, reinforcing its commitment to future-focused, industry-aligned learning.

• NIIT StackRoute and RPS Consulting jointly achieved ISO 9001:2015 certification, while RPS also secured ISO 27001:2022 certification.

• RPS Consulting earned a Silver Medal in its first EcoVadis assessment (86th percentile globally) and a B rating from CDP, reflecting leadership in ESG and climate transparency.

• NIIT Ltd. won 18 awards at the Brandon Hall Group HCM Excellence Awards 2024 — including 12 Gold, 3 Silver, and 2 Bronze for StackRoute, and 1 Bronze for its SSE division.

• RPS Consulting was recognized as Google Cloud Training Partner of the Year 2025 (Asia Pacific) its third consecutive win.

• NIIT was honored at the ET HR World Future Skills Awards 2025 — StackRoute received Gold for Best in Learning Data Analytics, while NIITs HR business earned Silver for Best Learning Culture (SME).

NIIT also won at the BW People Tech Future Awards 2025,

where its HR team received Gold for Best HR Tech Team of the Year (Product & Services) for pioneering AI-assisted HR solutions.

6. Company Performance

The operating performance of the Company for FY25 is provided in Table 1.

Table 1: NIIT Ltd Profit & Loss Statemen t

Rs. Million	FY25	FY24	YoY
Net Revenues	3,576	3,035	18%
Operating expenses	3,461	2,986	16%
EBITDA	115	48	138%
EBITDA%	3.2%	1.6%	162 bps
Depreciation & Amortization	232	184	27%
EBIT	(118)	(135)	13%
Net Other Income/ (Expenses)	707	594	19%
Profit before Tax	589	459	28%
Tax (Operational)	94	60	57%
Operational Profit after Tax	495	399	24%
Profit/(Loss) from Discontinued Operations	(15)	(4)	(11) mn
Non-Controlling Interests	(19)	(11)	(8) mn
Profit After Tax	461	384	20%
Basic EPS (Rs.)	3.41	2.85	20%
PAT%	12.9%	12.6%	26 bps

Note:

• Net Other Income/ (Expenses) primarily includes Treasury Income and Non-Operating/Transitory expenses related to the Composite Scheme of Arrangement.

• Net Result (revenue minus expenses) of discontinued operations of NYJL business are reclassified as Profit/(Loss) from Discontinued Operations and reported as separate line below operating results, as per Ind AS 105.

FY25 was the first full year following the demerger of the Corporate Learning Business, completed in FY24. Post demerger, NIIT is focused on the Skills & Careers (SNC) business offering a diversified portfolio of training programs, certifications, and learning solutions for career seekers and working professionals.

The Company delivered revenue of Rs. 3,576 million, up 18% year-over-year (YoY) from Rs. 3,035 million in FY24, despite headwinds from slower hiring and compressed training budgets in the technology sector amid softer growth and near-term economic uncertainty.

For Technology programs, given the continued weakness in hiring at Tier-1 Global System Integrators (GSIs), the Company focused on broadening its customer base. It added Tier-2 and Tier-3 GSIs and deepened penetration within Global Capability Centers (GCCs). The Company also intensified its emphasis on advanced technology skills for working professionals. In BFSI (Banking, Financial Services, and Insurance) and other sectors, NIIT increased penetration with leading private banks and broadened its offerings for Indian enterprises.

These actions drove broad-based growth across Technology and BFSI & Other programs. Technology programs gained momentum from mid-year, while BFSI programs experienced some moderation toward year-end due to regulatory actions.

For the full year, revenue from BFSI & Other programs rose 32% YoY to Rs. 1,233 million, while revenue from Technology programs grew 12% YoY to Rs. 2,343 million. Technology programs contributed 66% of total revenue (69% in FY24), while BFSI & Other contributed 34% (31% in FY24).

Figure 3 Revenue Mix (By Learner)

The Company achieved growth across both Early Career and Working Professional segments, which increased 23% and 13% YoY, respectively. Early Career programs contributed 52% of revenue (50% in FY24), driven primarily

LIMITED

by Banking & Other programs, while growth among Working Professionals was led by Technology programs.

Swift actions taken by the Company last year for customer diversification enabled a return to growth in a challenging environment. The business improved profitability while continuing to prioritize investments in generative AI. EBITDA increased to Rs. 115 million in FY25 (Rs. 48 million in FY24). Supported by a strong balance sheet and treasury income, the Company recorded a PAT of Rs. 461 million, translating into an EPS of Rs. 3.41 (FY24: PAT Rs. 384 million; EPS Rs. 2.85).

Overall, the business delivered double-digit YoY growth in each quarter of FY25 despite ongoing headwinds in Technology. While near-term uncertainty persists, NIITs strong balance sheet and liquidity provide the capacity to invest for growth in a large, expanding market shaped by digital disruption. The Company will continue to pursue both organic initiatives and selective inorganic opportunities to add relevant capabilities and offerings, and to deepen penetration in chosen customer segments and geographies.

7. Consolidated Financials of the Company

The consolidated financial summary for FY25 is provided in Table 2 below:

Table 2: Consolidated Statement of P&L for the Financial Year 2024-2 5

Rs. Million	FY25	FY24	YoY
Net Revenues	3,576	3,035	18%
Operating expenses	3,461	2,986	16%
EBITDA	115	48	138%
EBITDA%	3.2%	1.6%	162 bps
Depreciation & Amortization	232	184	27%
EBIT	(118)	(135)	13%
Net Other Income/(Expens- es)	707	594	19%
Profit before Tax	589	459	28%
Tax (Operational)	94	60	57%
Operational Profit after Tax	495	399	24%
Profit/(Loss) from Discontin	(15)	(4)	(11) mn
Non-Controlling Interests	(19)	(11)	(8) mn
Profit After Tax	461	384	20%
Basic EPS (Rs.)	3.41	2.85	20%
PAT%	12.9%	12.6%	26 bps

Net Revenue

In FY25, the Company delivered revenue of Rs. 3,576 million, an 18% increase over FY24, despite continued volatility in the operating environment. Technology programs grew 12% YoY and contributed 66% of total revenue, while BFSI & Other programs contributed 34% and led growth with a 32% YoY increase. Growth was underpinned by improved traction with Tier-2 GSIs, deeper penetration within GCCs, a broadened customer base among Indian enterprises, and strong momentum in BFSI.

Operating Expenses

Operating expenses for FY25 stood at Rs. 3,461 million, up 16% from Rs. 2,986 million in FY24. The Company continued to focus on cost optimization and increasing cost variability, while investing in new products and enhancing market visibility. Personnel costs declined 6% YoY to Rs. 1,274 million while Professional and technical outsourcing expenses rose 47% YoY to Rs. 1,127 million, reflecting change in business mix and a higher use of variable resources to manage increased business volumes given the uncertainty in the environment. Purchase of stock-in-trade was Rs. 180 million as compared to Rs. 115 million last year. Other expenses were Rs. 880 million, up 17% YoY. Depreciation

For FY25, Depreciation and Amortization expense was Rs. 232 million, compared to Rs. 184 million in the previous year. The increase was driven by investments in new initiatives and products, including the development of new programs, platforms, and infrastructure to support hybrid delivery models, as well as renovation and reconfiguration of office facilities. The total also includes Rs. 24 million in amortization of intangible assets recognized in the consolidated accounts pursuant to the acquisition of RPS Consulting.

Net Other Income

Net Other Income for FY25 was Rs. 707 million, compared to Rs. 594 million in the previous year. This comprised Other Income of Rs. 726 million, including treasury income of Rs. 568 million (reflecting the mark-to-market impact on fixed income investments) and miscellaneous income of Rs. 158 million. Miscellaneous income included adjustments in acquisition-related payout obligations of Rs. 34 million, demerger-related expense recovery of Rs. 15 million, income from leased assets of Rs. 68 million, interest on tax refunds of Rs. 29 million, and other miscellaneous income of Rs. 12 million. Net Other Income was stated after Non-Operating Expenses of Rs. 19 million, primarily comprising finance costs including bank charges of Rs. 15 million, exceptional expenses of Rs. 3 million, and a foreign exchange loss of Rs. 2 million. The details are provided in Table 3 below:

Table 3: Other Income/ (Expenses )

Rs. Million	FY25	FY24
Treasury Income	568	497
Miscellaneous income	158	122
Non-Operating Expenses	(19)	(25)
Other Income/(Expense)	707	594

Profit/(Loss) from Discontinued Operations

The net results from the skilling business of NIIT Yuva Jyoti Limited (NYJL), which continued to be serviced by NIIT Limited, have been presented as a separate line item in accordance with IND-AS 105.

Non-Controlling Interests

Non-Controlling Interests reflect share of profit in subsidiary companies held by third parties. The increase in noncontrolling interests from Rs. 11 million to Rs. 19 million reflects higher profit generated in subsidiaries.

Taxes

The Company provided Rs. 94 million towards income tax at the consolidated level in FY25, compared to Rs. 60 million in FY24. The effective tax rate (ETR) for the year was 16%. Effective tax rate continues to benefit from carry forward losses and fixed investments that continue to be taxed at lower rates. ETR was higher as compared to last year due to higher profit in subsidiaries and tax on dividend distributed by overseas subsidiary.

Table 4 Consolidated Balance Sheet at the End of the Financial Year 2024-2 5

Rs. Million	31-Mar-25	31-Mar-24
Sources of Funds
Share Capital	271	270
Reserves & Surplus	10,518	10,066
Shareholders\u2019 Funds	10,789	10,336
Non-Controlling Interests	72	53
Total Sources of Funds	10,861	10,389
Application of Funds
Net Fixed Assets (including Intangibles under Development)	2,854	2,677
Right-of-use Assets	50	76
Deferred Tax Assets net of Liabilities	159	165
Cash & Equivalents	7,580	7,185
Trade Receivables	503	382
Other Assets	892	1,150
Other Liabilities	(1,119)	(1,163)
Lease Liabilities	(58)	(83)
Total Application of Funds	10,861	10,389

Note:

The analysis in this MD&A does not conform specifically to the Schedule III format. Numbers have been regrouped for analysis.

Share Capital

The Share Capital of the Company stood at Rs. 271 million, as compared to Rs. 270 million in FY24. The increase is due to allotment of 522,482 shares on exercise of employee stock options during the year. As on March 31, 2025, the number of shares outstanding were 135,587,704.

Non-Controlling Interests

Non-Controlling Interests reflect the book value of equity owned by third parties in subsidiary companies. This increased from Rs. 53 million in FY24 to Rs. 72 million on account of share of profit in FY25 for minority shareholders.

Reserves and Surplus

Reserves and Surplus stood at Rs. 10,518 million in FY25 compared to Rs. 10,066 million last year.

Please see Note 12 for further information on changes during the year.

Fixed Assets

During the year, the Company had a total capital expenditure (including change in Capital Work in Progress) of Rs. 391 million.

The category-wise addition in fixed assets is as follows:

a) New initiatives including Products & Platforms:

Rs. 297 million

b) Infra/ Capacity enhancement: Rs. 52 million

c) Normal capital expenditure: Rs. 42 million

The Capital Work in Progress as on March 31, 2025, was Rs. 320 million, as compared to Rs. 155 million last year. This primarily includes intangible assets under development.

The Net Block stood at Rs. 2,854 million as on March 31, 2025, as compared to 2,677 million last year.

Table 5 Fixed Asset s

Rs. Million	As on Mar\u201925	As on Mar\u201924
Property, plant and equipment	1,415	1,382
Capital Work in Progress (including Intangibles)	320	155
Goodwill	835	835
Other Intangible assets	283	304
Net Block	2,854	2,677

Right-of-Use Assets

Right-of-Use Assets as on March 31, 2025, stood at Rs. 50 million, as compared to Rs. 76 million last year. The reduction is due to rationalization of leased premises during the year.

Deferred Tax Assets

As of March 31,2025, Deferred Tax Assets stood at Rs. 159 million, primarily arising from timing differences between the carrying value of fixed assets in the financial statements and their tax base, as well as from provisions recognized in the financial statements that are deductible for tax purposes only upon actual write-off.

Table 6 Deferred Tax Assets/(Liabilities )

Rs. Million	As on Mar\u201925	As on Mar\u201924
Deferred tax assets	160	165
Deferred tax liabilities	(1)	-
Net Deferred Tax	159	165

Other Assets & Liabilities

The elements of Net Current Assets were as follows: Inventories

Inventories comprise training materials, including educational software and examination vouchers, used

by the Company for delivering training and certification programs. The value of inventories stood at Rs. 11 million as of March 31,2025, unchanged from the previous year.

Trade Receivables

Trade receivables as of March 31, 2025, were Rs. 503 million, compared to Rs. 382 million as of March 31, 2024. Days Sales Outstanding (DSO) increased from 46 days to 51 days, primarily due to business growth and a change in the business mix. The Company continues to place strong emphasis on managing and optimizing its working capital cycle.

Cash and Bank Balances

The Cash and Bank Balances as of March 31,2025, stood at Rs. 7,580 million, compared to Rs. 7,185 million as of March 31,2024.

During the year:

• Net cash from operations: Rs. 299 million, compared to Rs. 73 million in FY24 driven by reduction in working capital required.

• Net cash from investing activities: Rs. 196 million (FY24: Rs. 31 million), comprising:

o Cash inflows of Rs. 581 million from investments. o Capital expenditure of Rs. 384 million.

• Net cash from financing activities: Rs. (101) million (FY24: Rs. (76) million), primarily due to dividend payments of Rs. 102 million.

Table 7 Cash and Bank Balance s

Rs. Million	As on Mar\u201925	As on Mar\u201924
Investments	6,779	5,863
Bank Deposits	790	1,311
Unclaimed Dividend	11	10
Cash & Equivalents	7,580	7,185

Other Assets

Other Assets include Advance Income tax, Advance recoverable, Unbilled revenue, Interest receivable and Security deposits. These have marginally decreased from Rs. 1,150 million in FY24 to Rs. 892 million in FY25.

Table 8 Other Asset s

Rs. Million	As on Mar\u201925	As on Mar\u201924
Advance Tax	373	572
Advances recoverable	256	361
Unbilled revenue	215	151
Interest Receivable	24	36
Security Deposits Receivables	13	13
Inventories	11	11
Capital Advances	-	6
Other Assets	892	1,150

Other Liabilities

Other Liabilities include Trade Payables, Other Financial Liabilities and Provisions. These have marginally decreased from Rs. 1,163 million in FY24 to Rs. 1,119 million in FY25.

Table 9 Other Liabilitie s

Rs. Million	As on Mar\u201925	As on Mar\u201924
Trade payables	479	409
Provisions	157	135
Statutory Dues	60	125
Deferred Revenue	148	175
Advances from Customers	24	32
Other Payables*	250	253
Future Acquisition Liability	2	33
Other Liabilities	1,119	1,163

Other Payables include capital creditors, amount payable to employees, income tax liability, etc.

Key Financial Ratios

The Company has identified the following as Key Financial Ratios:

Table 10 Key Financial Ratio s

Particulars	FY25	FY24	YoY
Revenue growth (%)	18%	(11)%	2890 bps
Operating Profit margin (%)	3.2%	1.6%	162 bps
Net Profit margin (%)	12.9%	12.6%	26 bps
Basic EPS (Rs)	3.41	2.85	20%
Current Ratio	7.84	7.16	10%
Days Sales Outstanding (dSo) days	51	46	5 days
Debtor Turnover Ratio	8.08	8.82	(8) %
Inventory Turnover Ratio	17.04	13.18	29%
ROCE	(1.27)%	(1.47)%	20 bps

In FY25, revenue grew by 18% compared to a decline of 11% in FY24, reflecting a recovery in the business led by swift actions to expand the customer base. EBITDA margin improved to 3.2% from 1.6% in FY24, driven by cost rationalization measures and a favorable business mix, despite planned investments in growth initiatives. Net profit margin improved marginally to 12.9% on higher EBITDA and treasury income. The current ratio improved to 7.84 from 7.16 in the previous year, indicating a stronger liquidity position. Days Sales Outstanding (DSO) increased by 5 days, as explained in the relevant sections above, while the inventory turnover ratio improved to 17.04 from 13.18, reflecting better utilization of inventory. ROCE remains low as the business is in investment phase.

The details of Return on Net Worth are mentioned below: Table 11 Return on Net Wort h

Particulars	FY25	FY24	YoY
Return on Net Worth (%)	9.03%	8.15%	88 bps

Return on Net Worth (RoNW), calculated as Profit after Tax divided by Net Worth, stood at 9.03% in FY25 compared to 8.15% in FY24. Net Worth represents the sum of the Companys equity and reserves, excluding capital reserves, hedging reserves, and cumulative translation reserves. The improvement in RoNW was driven by a 20% increase in net profit to Rs. 461 million, alongside an increase in Net Worth to Rs. 5,108 million from Rs. 4,708 million in the previous year.

Accounting Policies

The Company has adopted the accounting policies set out in the Notes to Accounts, applying them consistently, and has made judgments and estimates that are reasonable and prudent to present a true and fair view of its state of affairs as at March 31,2025, and of its profit or loss for the year then ended. The significant accounting policies and practices followed by the Group are detailed in Note 2 of the Consolidated Financial Statements for the year.

Related Party Transactions

Related Party transactions are defined as transactions of sale / purchase of goods / services made by the Company with Promoters, Directors, Key Managerial Personnel, Subsidiaries, or other parties in which Promotors or Director are having significant interest / control directly or indirectly, which may have potential conflict of interest with the Company. There were no material transactions during the year under review that were prejudicial to the interests of the Company.

All transactions covered under related party transactions were regularly ratified and/or approved by the Board, the guiding principles being arms length, fairness, and transparency. Please refer to Note 34 of the standalone financial statements and Note 33 of the Consolidated Financial Statements for details of related party transactions during the year.

8. Human Resources

At NIIT, we believe that our collective growth is a direct outcome of the individual development of every NIITian. Guided by the mission Growing NIITians, Building NIIT, FY25 focused on building a future-ready workforce through leadership development, capability building, and digital transformation of HR processes.

FY25 Human Resources Highlights

• Relaunched Chairmans Quality Club for high-potential leaders.

• Concluded GROW and LEAP leadership journeys;

Launched Scaling Heights for women leaders.

• Trained 75%+ workforce in Generative AI.

• Launched NAIRA AI-powered HR bot; 40% workforce adoption in year one.

• 83% direct hiring; Gen Z at 27% of workforce.

• Gender diversity at 34%; attrition contained at 12%.

• Record 95% participation in engagement survey; engagement score at 91%.

• ET Best Learning Culture Award and BW People Tech Future Gold Award for HR innovation.

Leadership Development

The Chairmans Quality Club (CQC) was relaunched as a platform for high-potential NIITians to drive strategic impact, alongside the conclusion of the GROW and LEAP leadership programs for senior and emerging leaders, and the Scaling Heights program for women leaders. Over 75% of employees underwent training in Generative AI, complemented by enablement programs for NIIT Digital offerings such as Digital Modulars, Swift GenAI, and Swift Cybersecurity, as well as BFSI product training and capability building in relationship management and team effectiveness.

Chairmans Quality Club

Industry Recognition & Digital HR Transformation

The Company received the ET Best Learning Culture Award in the Small & Medium Enterprises category and the Gold Award for Best HR Tech Team of the Year (Product & Services) at the Business World People Tech Future Awards 2025. A key driver of this recognition was the launch of NAIRA, an AI-powered HR support bot that handled over 40% of employee queries in its first year.

Talent Acquisition & Workforce Profile

Talent acquisition efforts remained agile and focused, with direct hiring accounting for 83% of recruitment and internal referrals contributing 26%, reflecting strong employee engagement. Gen Z representation reached 27% of the workforce, supported by targeted campus and early-career hiring. As of March 31, 2025, the Company employed 722 people on regular roles, with gender diversity improving to 34% and attrition contained at about 12%.

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Engagement & Well-being

The Company expanded its holistic well-being framework to cover physical, emotional, mental, and financial health, while completing the digitization of all personnel records. The Working@NIIT engagement survey achieved record participation of 95% and a peak engagement score of 91%, reaffirming the strength of the Companys supportive and purpose-driven culture.

The Road Ahead

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The HR strategy for FY26 will focus on strengthening I leadership capability, embedding continuous learning and skill development, leveraging AI and advanced HR technologies for talent management, aligning workforce planning with strategic business objectives, and fostering an environment where every NIITian can thrive and grow.

9. Leadership Update: Appointment of CEO

The Company appointed Pankaj Jathar as Chief Executive Officer, effective July 1, 2024. He succeeds Sapnesh Lalla, who continues as a Non-Executive Director of NIIT Limited and serves as CEO of NIIT Learning Systems (NIIT MTS) following the demerger.

Following the demerger completed in the previous financial year, NIIT Limited has sharpened its focus on Indias expanding Skills & Careers landscape. Pankaj brings extensive experience in consumer-focused businesses spanning e-commerce, startups, and D2C ventures. Under his leadership, the Company aims to strengthen its position as a market leader, leveraging opportunities in digital talent transformation and integrating Generative AI to drive innovation and growth.

Pankaj has over 25 years of leadership experience across global corporations in e-commerce, consulting, technology solutions, the training industry, business development, and governance. He began his career as a Management Trainee at NIIT, followed by four years at Tata Interactive Systems in London. He then joined Accenture as a solution architect, developing IT solutions for the banking and finance sector.

He was part of the launch team for Amazon India, later managing the FMCG division at Cloudtail before being appointed CEO of Prione (Amazons joint venture with Catamaran) in 2020. Over the last 13 years, Pankaj has been closely involved with the rapid evolution of e-commerce in India, bringing strategic insight and operational expertise to his role at NIIT.

10. Future Outlook

Indias digital skills training market presents a compelling long-term growth opportunity, supported by a young demographic profile, a rapidly expanding higher education base, and global competitiveness in English and STEM disciplines. With approximately 600 million people under the age of 25, over 50 million learners currently enrolled in higher education, and a Gross Enrollment Ratio projected to rise from 28.4% to 50% by Academic Year 2035, the country is well placed to emerge as a global hub for skilled talent. This opportunity extends beyond the student base, as rapid digital transformation in sectors such as Technology, BFSI, Fintech, HealthTech, Logistics, EdTech, and other technology-enabled industries is sustaining strong demand for continuous upskilling among working professionals. Even during cyclical hiring slowdowns, the requirement for deep expertise in new-age technologies and modern work practices remains resilient.

NIIT plans to remain focused on deep-skilling for aspirational careers in the Technology and BFSI sectors, addressing the talent transformation needs of Global System Integrators (GSIs), Global Capability Centers (GCCs), large Indian enterprises, and BFSI organizations. In parallel, the Company plans to capture new growth opportunities in industries undergoing accelerated digital adoption, including Manufacturing, Engineering R&D, Decarbonization, Supply Chain Management, and Design.

Artificial Intelligence is set to drive significant changes in work practices across sectors, including education. NIIT expects to capture this shift by delivering AI-focused training programs and integrating AI into its delivery platforms to enhance learning outcomes, personalization, and scalability. The acquisition iamneo has further strengthened NIITs market position, with iamneos AI-powered, deep skilling SaaS platform reaching a large number of leading engineering colleges and complementing the Companys enterprise client base. The AI-focused portfolio is reinforced by 35 OEM partnerships, providing early access to cutting- edge technologies.

With a strong brand, proven pedagogy, enterprise- grade learning delivery platforms, robust balance sheet, and experienced leadership team, the Company is well positioned to scale its transformation initiatives. Building on its long-standing presence in technology training for learners across Enterprise and Consumer markets, NIIT expects to expand its offerings, accelerate digital adoption, and strengthen its position as the talent builder to the nation

11. Risks and Concerns

NIIT serves customers in India and other growth economies and, as a multinational enterprise, is exposed to a broad spectrum of risks. Risk management is therefore embedded into the Companys core processes, encompassing the recording, monitoring, independent testing, and control of internal functions. This is enabled through a structured framework comprising the Risk Control Matrix (RCM) for process control, the Business Risk Management (BRM) framework for aligning with business objectives, and Entity Level Controls (ELC) for comprehensive risk reporting.

Rapid global technological advancements have required continuous adaptation of the Companys business and delivery models. In response, NIIT has implemented an Enterprise Risk Management (ERM) framework across the organization, strengthening its existing processes and embedding a strong risk culture. Developed in line with global best practices, the ERM framework enables the Company to identify, assess, mitigate, monitor, and report risks that could impact the achievement of strategic goals, thereby supporting informed and timely decision-making.

The framework covers strategic, operational, financial, governance, and information & technology risks. The Risk Management Committee reviews the framework at regular intervals in consultation with senior management, ensuring that strategic decisions are taken with a clear understanding of key and residual risks. Recognizing that risk-taking is intrinsic to business, NIIT continually seeks to balance risk appetite with the objective of generating superior risk- adjusted returns and maximizing shareholder value.

Enterprise Risk Management Framework

The Companys Enterprise Risk Management (ERM)

framework is based on global best practices, drawing from the COSO and ISO 31000 standards, and has been tailored to NIITs specific business requirements. Proactive measures are taken to identify and prioritize risks in consultation with business groups, document them, and define corresponding mitigation strategies. Key identified risks include customer concentration, competitive pressures, people and talent, cyber security and data protection, investments, and foreign exchange exposure. Internal controls over financial reporting have been established and are considered adequate and operating effectively.

At the entity level, the framework addresses significant risks across business activities, factoring in past experience, the prevailing operating environment, and future business plans. Mitigation strategies for each risk are developed by the respective business groups in alignment with strategic and operational objectives. Compliance with, and assurance of, these mitigation measures are overseen by the Internal Audit and Assurance Group. Risks are broadly categorized into External Risks and Internal Risks, each with defined mitigation plans. The ERM process is reviewed regularly to ensure responsiveness to evolving risk scenarios.

While NIITs diversified service offerings and geographic reach reduced overall exposure, certain concentration risks remain in the Technology and BFSI sectors. To address these, the Company is investing in both organic and inorganic initiatives — including targeting working professionals and expanding into emerging sectors — and is actively integrating Generative AI into offerings to strengthen competitiveness and adapt to rapid technological change.

Environmental risks are addressed through the 3R Principle — Reduce, Reuse, Recycle — alongside initiatives to increase renewable energy usage, achieve zero waste through water recycling, and monitor fuel consumption, hazardous materials, and plastic usage.

A strong balance sheet and liquidity position provide the Company with resilience against external shocks, while sustaining stakeholder confidence among global customers, employees, and partners.

12. Internal Control Systems and Their Adequacy

The Company has adopted global practices for evaluating and reporting on internal controls based on its operational experience in multiple countries. It has also implemented one of the leading ERP solutions in its global operations to integrate various facets of business operations, including Human Resources, Finance, Logistics, and Sales. This has enabled the Company to control and monitor its worldwide operations and strengthen the ability of internal controls to function most optimally. The evaluation of internal controls is an integral part of the plan for the Audit & Assurance Organization.

Disclaimer

Certain statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations of future events. Actual results, performance, or achievements could differ materially from those expressed or implied due to a variety of factors, including but not limited to economic conditions, market dynamics, regulatory changes, and other risks and uncertainties. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether in response to new information, future events, or otherwise, and readers are cautioned not to place undue reliance on such statements.