This document is a regulatory filing submitted to the National Stock Exchange of India Ltd. and the Bombay Stock Exchange Ltd. It contains the full transcript of the Q2 FY27 earnings call held on 5th November 2026, in accordance with Regulation 30 of the SEBI (LODR) Regulations, 2015.

Nature of Disclosure and Key Quantitative Figures

The management, represented by Managing Director Mr. Sunil Gala and CFO Mr. Kalpesh Dedhia, discussed the company's operational and financial performance for the quarter and half-year ended September 2026 (Q2 & H1 FY27).

Standalone Performance (Q2 FY27):

  • Revenue grew 31% Year-on-Year (YoY) to INR 324 crore from INR 246 crore.
  • EBITDA increased 150% YoY to INR 20 crore, with margins expanding to 6.2% from 3.3%.
  • Profit After Tax (PAT) was INR 6 crore, a significant improvement from a Net Loss of INR 6 crore in Q2 FY26.

Consolidated Performance (Q2 FY27):

  • Operational Revenue grew 31% YoY to INR 324 crore.
  • EBITDA was INR 11 crore, with margins at 3.4% versus 0.4% YoY.

Half-Yearly (H1 FY27) Standalone Performance:

  • Revenue stood at INR 1,109 crore.
  • PAT was INR 154 crore.

Segment-wise Performance and Analysis

Publication Segment (Q2 FY27):

  • Revenue grew 53.8% YoY to INR 140 crore. This growth was partly driven by a spillover of revenue from Q1.
  • Segment profit was INR 19 crore.
  • For H1 FY27, publication revenue showed a structural growth of 6.7% to INR 544 crore.
  • The performance is underpinned by an ongoing multi-year curriculum change cycle. After changes in lower grades in FY26 and FY27, the cycle will move to higher grades (7th, 9th, 11th in Maharashtra; 4 grades in Gujarat) in the coming years, which command a higher revenue per student.
  • Management expects a minimum of 15% growth in the publication segment for next year (FY28).

Stationery Segment (Q2 FY27):

  • Total revenue grew 18.7% YoY to INR 184 crore.
  • Domestic Stationery: Revenue was INR 52 crore, up 34% YoY. Growth is attributed to an aggressive strategy focusing on high-margin branding and non-paper stationery verticals, with over 70 new items introduced in the last six months.
  • Export Stationery: Revenue was INR 132 crore. Markets are showing signs of revival, and a U-shaped recovery is anticipated.
  • Profitability Challenge: Despite revenue growth, the segment's profitability was under pressure due to:

1. Aggressive branding and marketing expenses for building the domestic brand.

2. A one-time GST reversal on existing inventory.

3. Additional manpower costs for the non-paper stationery vertical.

4. In exports, most H1 sales were made at discounted prices offered to customers due to US tariff uncertainties. These discounts have now been discontinued, and better profitability is expected from H2 FY27 onwards.

  • The new plastic products plant also contributed to margin pressure due to delayed order placement by customers and resultant fixed costs.
  • Full-Year FY27 Guidance: Management expects domestic stationery revenue of ~INR 200 crore and export stationery revenue of ~INR 250 crore for the full year. Stationery margins are expected to be ~2% lower than last year.

Subsidiary Performance: Indiannica

  • Indiannica (a subsidiary focused on central curriculum business) reported a revenue of ~INR 1 crore and a loss of INR 9.5 crore for Q2 FY27.
  • The company is in the process of merging Indiannica with Navneet Education Limited. This merger is expected to generate annual cost savings of INR 5-6 crore by eliminating duplicate marketing efforts and optimizing operations.
  • Management reiterated the strategic importance of being in the central curriculum market despite current losses, which are typically recouped in Q4.

Corporate Action: K12 Techno Stake Sale

  • The company has partly sold its holding in K12 Techno Services Pvt. Ltd.
  • Proceeds of INR 330 crore have been received in Q3 FY27.
  • An additional INR 70 crore is expected to be received in the next 15-20 days based on an option given to the buyer.
  • Post these transactions, Navneet's residual stake in K12 will be approximately 8%.
  • The utilization of these proceeds (including possibilities like a special dividend or buyback) will be discussed by the board soon, with clarity expected next quarter.

Other Material Updates

Paper Prices: Paper prices have increased by INR 2,000 per ton (~3%) in the last month. Mills are signaling a potential further increase of 5-10% over the next year. The company's major paper sourcing period is from November to April.

Market Dynamics: A delay in the introduction of government textbooks and a rule preventing private publishers from selling books until one month after the government's launch led to an estimated INR 20-30 crore business loss in FY27, which is expected to be recovered next year.