S Chand & Compan Q1 FY27 Earnings Call — Analysis (NSE: SCHAND)
S Chand reported Q1FY27 revenue of ₹114.5 Cr, up 12% YoY, while Q1 remained loss-making at EBITDA and PAT level, and reiterated FY27 revenue growth of 10-15% and 17-19% EBITDA margin guidance.
Result quality: poor — Loss widened. Management sentiment: neutral.
The take
Q1FY27 Consolidated revenue ₹114.5 Cr ( +12% YoY ) . New guidance — FY27 consolidated operating revenue 10%-15% .
Results
Consolidated Q1FY27 revenue was ₹114.5 Cr, up 12% YoY; EBITDA loss was ₹9.7 Cr and PAT loss was ₹18.7 Cr, with PAT hit by a one-time tax-rate adjustment and Q1-marketing expenses that relate to Q2 activities.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated revenue | ₹114.5 Cr | +12% | yoy · Q1FY27 |
| EBITDA | ₹-9.7 Cr | none · Q1FY27 · loss | |
| PAT | ₹-18.7 Cr | yoy · Q1FY27 · management said increased PAT loss vs last year | |
| Net cash | ₹118.2 Cr | qoq · Q1FY27 · vs Q4FY26 ₹116.0 Cr | |
| Dividend paid in Q1FY27 | ₹14.1 Cr | none · Q1FY27 | |
| Content licensing revenue | ₹9.1 Cr | none · Q1FY27 | |
| Mylestone and Zen curriculum revenue | ₹55-60 Cr | point_in_time · FY26 · FY26 full-year | |
| CPD Singapore revenue | ₹1 Cr | none · Q1FY27 |
Guidance
FY27 operating revenue growth guidance of 10-15%, EBITDA margin band of 17-19%, and content licensing revenue target above ₹40 Cr.
What management committed to
- S Chand is looking to grow operating revenues by 10%-15% for FY27. — 10%-15%, FY27
- S Chand is giving an EBITDA margin band guidance of 17%-19% for FY27. — 17%-19%, FY27
- S Chand is targeting content licensing revenues in excess of Rs400m in FY27. — in excess of Rs400m, FY27
- S Chand is looking to grow content licensing clients from 5 to 10 this year. — 5 to 10, FY27
- [CPD Singapore] is expected to cross SGD 1 million (Approx Rs 7.5 cr) revenue at the end of FY27. — SGD 1 million (Approx Rs 7.5 cr), FY27
- S Chand expects full adoption of the new [NCERT] syllabus books in FY27. — FY27
- S Chand's core business steady-state growth expectation is 10% to 12% for the next 2 to 3 years, excluding acquisitions. — 10% to 12%, FY27-FY29
- The new West Bengal syllabus is expected to give [S Chand's West Bengal regional board business] a good leg up for 2 years from next year onwards. — FY28-FY29
- Paper prices might firm up in the next quarter or so, [management says].
Key themes
Content licensing scale-up and curriculum refresh
Operational commentary
- Content licensing generated ₹9.1 Cr revenue in Q1; management expects acceleration in coming quarters and is diversifying into non-academic data licensing.
- Refreshed curriculum products including Mylestone, My Zen, SmartK and Solid Steps received multiple repeat adoptions; new partnerships with Allied, Jump Maths, Penguin and Speedlabs strengthened the offering.
- Mylestone was adopted by 650+ schools and Zen by over 500 schools; the two together generated ₹55-60 Cr revenue in FY26.
- CPD Singapore was acquired as an international curriculum platform; Q1 contribution was about ₹1 Cr, with India and Middle East marketing now being ramped up.
- Paper purchases were advanced to hedge higher landed paper costs; about 25% of annual requirements was bought 3-4 months earlier than usual, lifting raw material and finished goods inventory.
- Receivable days were stable, but Middle East collections remained hampered by geopolitical instability; net working capital days were slightly higher YoY.
- West Bengal state-board revenue was lumpy due to elections moving some sales to Q4, but the new West Bengal syllabus is expected to provide a two-year uplift from FY28.
- The new printing and binding facility is expected to start partial binding and printing operations in September-October, complete half this year and full completion next year; it is planned for 10-15 years of requirement.
- M&A pipeline includes conversations in test prep and school segments, with total investment expected around ₹40-50 Cr at max.
- Management is actively considering a market buyback and expects to make a decision by October once acquisition opportunities fructify.
- Madhubun partnered with IIT Madras Pravartak Technologies Foundation and BodhBridge Education for skills programs for Class 7-12 and educators; revenue impact is small and mainly brand-building.
- Goodwill impairment is not planned now, but management may consider it alongside an exceptional gain such as real estate liquidation or a Smartivity IPO.
Analyst Q&A
Q. What revenue has the Mylestone/Zen curriculum initiative generated and what should be expected for the year?
The combined revenue from both was about ₹55-60 Cr in FY26, and it is on an uptrend.
Q. What is the contribution and expectation from the CPD Singapore acquisition?
Q1 contribution was only about ₹1 Cr, with the main business in Q3 and Q4; management expects to cross SGD 1 million (~₹7.5 Cr) by year-end and says CPD Singapore was profitable in the past but is now being invested in.
Q. Why has the company taken an unusual raw material inventory position and where are paper prices heading?
Dollar prices rose to about ₹95 from ₹85 last year; logistics and Middle East tensions increased landed paper costs. The company bought about 25% of annual requirement 3-4 months early as a cushion. Paper availability is not a problem, but prices may firm up next quarter.
Q. When can we hear about a potential buyback?
Management is considering a market buyback and expects to decide by October, once acquisition opportunities fructify over the next two months.
Q. What is the growth expectation for the next 2-3 years?
Steady-state core business growth is 10-12%; student growth is 3-4%, volume growth another 4-5%, and pricing growth another 4-5%. Acquisitions would add to this.
Q. Does the FY27 margin guidance account for paper price increases?
Yes, the 17-19% margin guidance considers paper price increases; management has factored in about a 10-12% price increase.
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