Consolidated Financial Performance Q1FY27

Income Statement Highlights:

  • Revenue from Operations: ₹1,145 million, up 12% YoY from ₹1,026 million in Q1FY26
  • Gross Margin: ₹806 million (70% margin), up 17% YoY from ₹689 million (67% margin)
  • EBITDA Loss: ₹(97) million (-8% margin), compared to ₹(91) million (-9% margin) in Q1FY26
  • Profit Before Tax Loss: ₹(190) million, compared to ₹(182) million in Q1FY26
  • Net Loss: ₹(187) million, compared to ₹(141) million in Q1FY26
  • Basic and Diluted Loss Per Share: ₹(5.07), compared to ₹(3.77) in Q1FY26

Expense Breakdown:

  • Cost of published goods/materials consumed: ₹325 million (up 13% YoY)
  • Employee benefits expenses: ₹484 million (up 11% YoY)
  • Other expenses: ₹419 million (up 21% YoY)
  • Finance cost: ₹29 million (up 5% YoY)
  • Depreciation and amortization: ₹104 million (down 1% YoY)

Tax Expenses:

  • Current tax: ₹(5) million
  • Deferred tax: ₹1 million

Balance Sheet Position (as of June 30, 2026)

Assets:

  • Total Assets: ₹12,471 million (vs. ₹13,954 million as of March 31, 2026)
  • Property, plant and equipment: ₹945 million
  • Right-of-use assets: ₹542 million
  • Goodwill: ₹3,359 million
  • Inventories: ₹1,717 million (increased from ₹1,634 million)
  • Trade receivables: ₹2,251 million (decreased from ₹3,503 million)
  • Cash and cash equivalents: ₹357 million
  • Bank balances other than cash: ₹265 million

Equity and Liabilities:

  • Total Equity: ₹10,173 million (vs. ₹10,507 million)
  • Equity share capital: ₹176 million
  • Non-current liabilities: ₹663 million
  • Current liabilities: ₹1,634 million (decreased from ₹2,759 million)

Cash Flow Performance

  • Net cash from operating activities: ₹325 million in Q1FY27
  • Net cash used in investing activities: ₹(307) million
  • Net cash used in financing activities: ₹(706) million
  • Net decrease in cash and cash equivalents: ₹(688) million

Working Capital Metrics

  • Trade Receivables Days: 101 days (increased from 89 days in Q1FY26)
  • Inventory Days: 244 days (increased from 218 days in Q1FY26)
  • Net Working Capital Days: 130 days (increased from 119 days in Q1FY26)
  • Net Cash Position: ₹1,182 million (highest in company's history, increased from ₹1,160 million in Q4FY26)

Management Commentary

Management stated Q1FY27 was a strong quarter for the School Education segment with refreshed curriculum businesses receiving multiple repeat orders. The company generated ₹91 million revenues from content licensing during the quarter and expects growth acceleration in this segment.

The company made a conscious decision to advance paper purchases due to expected higher paper prices and elongated shipping timelines for imported paper, citing geo-political environment concerns. This strategic move resulted in higher raw material and finished goods inventory levels.

The company remains net debt free with strong cash flow generation. Management expects full adoption of new syllabus books in FY27 as NCERT releases remaining books throughout the year.

Business Segment Performance

Revenue Breakdown by Segment (FY26 annual figures):

  • K-12 (National Boards): ₹5,783 million (9% YoY growth)
  • K-12 (Regional Boards): ₹1,327 million (14% YoY growth)
  • Higher Education: ₹534 million (-2% YoY growth)
  • Digital: ₹336 million (53% YoY growth)
  • Total: ₹7,987 million (11% YoY growth)

Minority Investments

Smartivity:

  • S Chand holds approximately 16% stake
  • Recent secondary market transaction valued company at approximately ₹1,500 million
  • S Chand's investment valued at approximately ₹230 million
  • FY26 revenues exceeded ₹750 million (up ~50% YoY)
  • Company is EBITDA and PBT positive

ixamBee:

  • S Chand holds approximately 4.3% stake with ₹30 million investment
  • Company turned EBITDA and PBT positive in FY26 versus losses in FY25

Shareholding Structure (as of July 2026)

  • Market Capitalization: ₹5,020 million (as of August 7, 2026)
  • Share Price: ₹142
  • Shares Outstanding: 35 million
  • Face Value: ₹5.0

Key Institutional Investors:

  • Miri Strategic Emerging Markets Fund: 2.7%
  • Blue Diamond Properties: 2.0%
  • Zen Securities: 1.2%
  • Prudent Investment Flexicap Scheme: 1.0%
  • Trustline Holdings: 0.7%
  • HDFC Balanced Advantage Fund: 0.3%

Strategic Initiatives

  • Madhubun (S Chand subsidiary) signed MoU with IITM Pravartak and BodhBridge Education to expand Future-Ready Skills Programmes for schools across India
  • Refreshed Mylestone and Zen curricula showing strong traction
  • Acquisition of CPD Singapore expected to drive K-12 International Board business growth