S Chand and Company Ltd

Financial Performance

• Consolidated revenue: Rs1,145 million in Q1 FY27, up 12% YoY.
• EBITDA loss: Rs97 million; PAT loss: Rs187 million.
• Tax adjustment: higher tax due to one-time adjustment elevated PAT losses.
• Content Licensing revenue in quarter: Rs91 million.
• Ending Q1 cash balance: Rs1,182 million; after Rs141 million dividend.
• Highest net cash balance in company history.
• Receivable days stable; Middle East collections hampered; normalization expected.
• Inventory higher due to early paper purchases.

Operating Update

• Q1 FY27: School Education segment strong; Mylestone, My Zen, SmartK, Solid Steps adopted.
• Allied, Jump Maths, Penguin, Speedlabs partnerships strengthened product offering.
• Madhubun partnered with IIT Madras Pravartak Foundation and BodhBridge Education for future-ready skills.
• NCERT new syllabus adoption expected; full adoption in FY27.
• CPD Singapore acquisition: Q1 contribution around Rs1 crore; aims to cross SGD 1 million by year-end.
• India-focused international expansion: targeting 1,000+ international schools; marketing started.

Balance Sheet & Cash Flow

• Receivable days are stable; Middle East collections hampered, normalization expected.
• Paper purchases advanced to pre-empt price increases; increases raw material and finished goods inventory.
• Net working capital days slightly higher due to higher inventories.
• Dividend distribution of Rs141 million during the quarter.

Projects & Capex

• State-of-the-art printing and binding facility: half completion this year; rest next year.
• Partial operations expected from September-October; full rollout next year.
• Infrastructure expected to boost productivity, quality, and capacity for future growth.

Outlook & Guidance

• FY27 operating revenues guidance: 10-15% growth.
• EBITDA margin guidance: 17-19%.
• M&A opportunities evaluated; target investments around Rs40-50 crore.
• Content Licensing target: revenues in excess of Rs400 million; clients to grow from 5 to 10 this year.
• Content Licensing run-rate: Rs14 crore to date; Q1 Rs9 crore; Cross Rs40 crore by year-end.
• Buyback: market buyback being considered; decision expected by October.

Q&A Highlights

• Mylestone and Zen adoption: 650+ and 500+ schools; full-year revenue around Rs55-60 crore.
• CPD Singapore: Q1 contribution ~Rs1 crore; targeting SGD 1 million by year-end.
• Acquisitions: opportunities in test prep and school space; total size Rs40-50 crore at max.
• Buyback timeline: decision by October; market buyback actively considered.
• Goodwill: impairment unlikely now; potential impairment only if exceptional income arises.
• Core growth: steady-state 10-12%; acquisitions could lift beyond this; 3-4% volume growth; 4-5% price growth.

Meeting Details

• Date and time: Aug 11, 2026 at 12:30 P.M.
• Type and mode: group virtual conference call (analysts and investors)
• Event: Q1FY27 Investor/Analyst conference call
• Availability: audio recording available on company website

Participants

• Company management participation not specified in filing

Purpose

• Discuss Q1FY27 results for quarter ended Jun 30, 2026 and related investor presentation

Record date for AGM

• Purpose: record date for the Annual General Meeting.
• Security: equity shares.
• Record date: 16 September 2026.
• Issuer: S Chand And Company Limited.

Business Overview

• India's largest education content company with pan-India reach and print plus digital services.
• Segments include K-12, Higher Education, and Digital, with CPD Singapore expansion.
• Printing facility upgrades support latest content and services.

Operational Highlights

• Q1FY27 revenue 1,145m, up 12% YoY; gross margin 70%.
• Net cash from operations ₹325m; net cash ₹1,182m—the highest in history.
• Inventory pre-pone purchases due to higher paper prices and longer shipping timelines.
• MoU with IIT Madras and BodhBridge for Future-Ready Skills.
• CPD Singapore acquisition to accelerate international K-12 growth.
• Smartivity ~16% stake valued ~₹230m; ixamBee ~4.3% stake invested.
• FY27 MyLESTONE curriculum traction; marketing activities planned.

Financial Performance

• Revenue up 12% YoY; gross margin expanded to 70%.
• EBITDA negative ₹97m; PAT loss ₹187m due to higher tax.

Capital Structure & Liquidity

• Net cash position ₹1,182m; highest ever; Q1 cash after dividend.
• Dividend payout ₹141m in June.
• Plan to remain net debt-free for three quarters.

Strategic Outlook

• FY27 growth focus on K-12 and Digital segments; NCERT adoption.
• CPD Singapore to drive international expansion; MyLESTONE traction supports growth.
• Marketing initiatives planned; stronger cash flow expected from school segment.

Risks & Mitigation

• Geopolitical Middle East instability hampers collections; normalization expected.
• Preponing paper purchases due to price and shipping delays increases inventory.

Governance & Shareholding

• Shareholding mix disclosed as of July 2026; promoter and institutional holders noted.
• Notable institutional holders include Miri Fund (2.7%), Blue Diamond Properties (2.0%), Zen Securities (1.2%).

Standalone results

• Standalone revenue from operations: 416.78m; total income: 443.61m for quarter ended 30 Jun 2026.
• Total expenses: 533.81m; PBT: -90.20m; tax: nil current, deferred 0.03m; PAT: -90.23m.
• Total comprehensive income: -91.07m; other comprehensive income: -0.84m.
• Auditors' review on standalone results: unmodified opinion; report dated 10 August 2026.

Consolidated results & audit

• Consolidated results cover group; nine subsidiaries not reviewed by auditors; conclusion not modified.

Business profile

• Publisher of educational content; operates multiple publishing houses and edutech entities.

Financial results

• Standalone unaudited quarterly results for quarter ended 30 June 2026 approved.
• Consolidated unaudited quarterly results for quarter ended 30 June 2026 approved.

Auditor appointment

• Reappointment of Walker Chandiok & Co LLP as statutory auditors for five years, subject to shareholders' approval.
• Appointment date: 10 August 2026; term FY2026-27 to FY2030-31.

Governance & AGM

• AGM date set for 23 September 2026 via video conferencing.
• Annexure-A discloses Regulation 30 details.

Business Overview & Strategic Initiatives

• S. Chand is India’s largest education content company with print-digital offerings and pan-India presence.
• Acquired CPD Singapore in January 2026, expanding into supplementary books for Singapore/IGCSE/IB curricula.
• Focus on curriculum content for CBSE, ICSE, and international markets including India, Middle East, and SAARC.
• Targeting content licensing revenues (AI datasets) to exceed Rs300m in FY26, up from Rs195m in FY25.
• Emphasis on CUET exam preparation via TestCoach and inorganic growth opportunities to enhance portfolio.

Financial Performance 📊

• Q3FY26 consolidated revenue: Rs990 million; PAT loss: Rs287 million due to higher operating expenses.
• 9MFY26 gross margin declined due to increased third-party content sourcing in digital revenues.
• Content licensing revenues at Rs171m in 9MFY26, expected to grow strongly in FY26.
• Trade receivables at Rs1,750m (88 days), inventory at Rs2,059m (316 days).
• Net debt reduced to Rs359m from Rs539m YoY; gross debt stable at Rs1,062m.

Capital Structure & Liquidity

• Net debt reduced by Rs180m YoY to Rs359m in Q3FY26 from Rs539m in Q3FY25.
• Gross debt stable at Rs1,062m vs Rs1,078m in Q3FY25.
• Target to remain net debt free for three quarters in FY26.

Operational Efficiency & Digital Investments

• Inventory days reduced to 316 in Q3FY26, lowest in 5 years; net working capital days at 143, also lowest in 5 years.
• Smartivity (16% stake) valued at Rs230m, with 60% revenue growth and EBITDA positive in 9MFY26.
• ixamBee (4.3% stake) turned EBITDA and PBT positive in 9MFY26, focused on government exam preparation.

Outlook & Risks ⚠️

• FY26 revenue expected to exceed Rs8,000m with EBITDA margin improving to 18%-20%.
• Focus on working capital optimization and cash flow improvement.
• Margin pressure from higher third-party content sourcing in digital revenues.
• Mitigation via inventory and working capital management and expanding high-margin content licensing.