Stock Price Movement and Market Context
On 26 Feb 2026, NIIT Ltd’s share price reached Rs.70.35, the lowest level recorded in the past 52 weeks. Despite a modest gain of 1.28% on the day and a two-day consecutive rise amounting to approximately 1.5% returns, the stock remains well below its key moving averages, trading beneath the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This indicates persistent bearish momentum and a lack of short- to long-term upward price support.
In contrast, the broader market benchmark, the Sensex, showed resilience, opening 142.71 points higher and trading at 82,515.48, up 0.29%. The Sensex is currently 4.42% shy of its 52-week high of 86,159.02, with mega-cap stocks leading the gains. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, signalling a cautiously positive medium-term trend for the market overall.
Financial Performance and Growth Trends
NIIT Ltd’s financial trajectory over recent years has been notably subdued. The company’s net sales have contracted at an annualised rate of -15.70% over the last five years, while operating profit has deteriorated sharply, declining by -198.77% in the same period. This prolonged negative growth has weighed heavily on investor sentiment and share price performance.
Quarterly results have also reflected this downturn, with the company reporting negative earnings before interest and tax (PBT less other income) of Rs. -8.68 crore, a staggering fall of -1769.23%. Net profit after tax (PAT) for the quarter stood at Rs.7.85 crore, down by 41.7%. These figures underscore the challenges NIIT Ltd faces in reversing its earnings decline.
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Profitability and Cash Position
NIIT Ltd’s earnings profile remains under pressure, with negative EBITDA reported, signalling that core business operations are not generating sufficient cash flow to cover operating expenses. This situation contributes to the stock’s classification as risky relative to its historical valuation averages.
Cash and cash equivalents at the half-year mark were recorded at Rs.48.49 crore, the lowest level in recent periods, which may constrain the company’s ability to fund growth initiatives or absorb short-term financial shocks.
Comparative Performance and Market Standing
Over the past year, NIIT Ltd’s stock has delivered a return of -40.34%, significantly underperforming the Sensex, which gained 10.60% over the same period. The stock’s 52-week high was Rs.150.55, highlighting the extent of the decline from its peak.
Additionally, NIIT Ltd has underperformed the broader BSE500 index across multiple time frames, including the last three years, one year, and three months, indicating persistent challenges in regaining investor confidence and market share.
Risk and Institutional Holding
Despite the negative performance, NIIT Ltd maintains a low average debt-to-equity ratio of zero, suggesting a conservative capital structure with limited leverage risk. Institutional investors hold a significant stake of 22.43%, reflecting a level of confidence from entities with greater analytical resources and long-term perspectives.
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Mojo Score and Rating Update
NIIT Ltd’s Mojo Score currently stands at 17.0, reflecting a Strong Sell rating. This represents a downgrade from the previous Sell grade, which was revised on 16 Jun 2025. The Market Cap Grade is rated at 4, indicating a relatively modest market capitalisation within its sector.
The downgrade to Strong Sell is primarily driven by the company’s deteriorating financial metrics, including declining sales, negative profitability trends, and weak earnings performance over multiple quarters.
Summary of Key Metrics
To summarise, NIIT Ltd’s stock has experienced a significant decline to Rs.70.35, its lowest in 52 weeks, amid a backdrop of shrinking revenues, negative operating profits, and subdued cash reserves. The stock’s performance contrasts with the broader market’s positive momentum, underscoring company-specific challenges that have persisted over an extended period.
While the company maintains a low debt burden and notable institutional ownership, these factors have not yet translated into a reversal of the downtrend in share price or earnings. The current valuation and rating reflect the market’s cautious stance on NIIT Ltd’s near- and medium-term prospects.
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