Financial Results Highlights

  • Total Income: ₹45.18 crores, representing 159% year-on-year growth
  • EBITDA: ₹9.2 crores, registering 31% year-on-year growth
  • Profit After Tax: ₹6.3 crores, showing 42% year-on-year growth
  • EPS: ₹4.21 compared with ₹4.03 in the corresponding quarter last year

Business Performance and Strategy

The company reported a strong start to FY27 driven by healthy demand across publishing and integrated education businesses. The integrated business model combines educational publishing, digital learning, printing infrastructure, and technology-enabled academic solutions.

Key Business Initiatives and Updates

  • Pelican Platform Expansion: Enhanced capabilities enabling schools to procure textbooks, notebooks, uniforms, stationery, and other academic essentials through a centralized technology-driven platform
  • Direct-to-Parent Initiative: Allowing parents to conveniently purchase school-specific academic products through dedicated digital channels
  • Backward Integration: Acquisition of advanced notebook manufacturing machinery, transitioning from trading to in-house notebook manufacturing
  • Product Diversification: Expanding into stationery, skill development products, and competitive examination material
  • Digital Supply Chain: Enhanced infrastructure improving connectivity between publishers, vendors, schools, and parents

Geographic Presence and Expansion

  • Current presence in approximately 13,000 schools across India
  • Expanding into new states including UP, Rajasthan, Gujarat, and Assam
  • UP identified as having the most meaningful contribution potential due to higher population and more schools
  • Southeast Asian expansion (Malaysia, Thailand, Singapore) planned for future but currently focused on domestic market

Business Mix and Revenue Streams

  • Current revenue mix: 70% B2B, 30% B2C (Pelican Edu Supply platform)
  • Q1 FY27 revenue breakdown: ₹30 crores from textbook sales, ₹15 crores from Pelican Edu Supply
  • School ticket size increased from ₹1 lakh to ₹40 lakhs per school after Pelican platform implementation
  • Targeting FY27 revenue of ₹130-150 crores, with long-term projection of ₹220-250 crores by FY27

Margin Profile and Cost Structure

  • Management expects maintained PAT margins of 17-18% year-on-year
  • Explained Q1 margin decline from 40% to 20% as timing issue related to raw material purchase and delivery patterns
  • Raw material expenses recognized upon invoice receipt, not correlated with sales timing
  • Notebook manufacturing expected to improve margins by 15% compared to trading purchased notebooks

Receivables Management

  • Trade receivables increased from ₹75 crores in March to ₹100 crores due to seasonal sales pattern (Q4 and Q1 are peak sales quarters)
  • 40% of receivables recovered by July-August, 90% expected recovery by October-November
  • Typically 7-10% of receivables extend beyond six months due to industry payment patterns

Technology and Digital Initiatives

  • V-Study Digital Ecosystem: Learning management system provided free to schools with cost recovered through slight MRP increases (₹10-12 per textbook)
  • AI integration recently added to technology platform
  • Strategy aims to protect textbook business from edtech competition by bundling free technology
  • Technology adoption increases customer retention to 3-5 years

Manufacturing Capacity

  • Textbook printing machines at 80-85% capacity, sufficient up to ₹300 crores turnover
  • Notebook manufacturing capacity currently meets 10-20% of total demand
  • Additional capex planned for notebook manufacturing if demand increases

Strategic Priorities

1. Increase market share from 2% to 5% in existing states

2. Promote in-house notebook manufacturing to existing school network

3. Scale Pelican Edu Supply model from 50 to 100-150 schools next year

4. Maintain 70-30 revenue mix between textbook and e-commerce businesses

Q&A Session Highlights

Addressed questions on: curriculum change risks, margin trends, receivables management, business mix, expansion strategy, competition, technology initiatives, and growth priorities.