Crizac Q4 FY26 Results (NSE: CRIZAC)
Signal: Margin expansion
The read
Q4FY26 revenue growth decelerated to 15% YoY from earlier quarters (28-30%), but profitability surged with EBIT margin expanding 550bps to 23.7% on lower commission ratio, delivering 50% PAT growth. The company remains net debt-free with strong cash generation, though two acquisitions introduce integration risk and depreciation quality flagged. Full-year revenue +22.8%, PAT +41.5% demonstrate scalability of the student recruitment model.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹391.73 Cr | 15.0% | 40.6% |
| EBIT | ₹92.96 Cr | 49.7% | |
| Net profit | ₹74.5 Cr | 49.2% | |
| EPS | ₹4.29 | 50.5% | |
| EBIT margin | 23.73% |
P&L walk
Revenue grew 15% YoY to ₹39,173 Lakhs, driven by organic student recruitment and contributions from acquisitions (Global Tree Careers & Studies Planet). Cost of services ratio improved 620bps to 71.5% of revenue, expanding contribution margin. EBIT margin expanded 550bps YoY to 23.7% on lower commission expenses and operating leverage. PAT rose 49% to ₹7,450 Lakhs, with EPS at ₹4.29 (+50.5%).
Key positives
- PAT grew 49.2% YoY to ₹7,450 Lakhs (EPS ₹4.29), driven by EBIT margin expansion of 550bps to 23.7%.
- Revenue for FY26 grew 22.8% to ₹1,04,216 Lakhs, with PAT up 41.5% to ₹21,918 Lakhs.
- Net cash of ₹16,428 Lakhs with no net debt; strong operating cash flow of ₹14,414 Lakhs for the year.
- Cost of services ratio improved to 71.5% in Q4 from 77.7% in Q4FY25, reflecting better pricing or mix.
Key concerns
- Revenue growth slowed to 15% in Q4FY26 from 28% in Q3 and 24-30% in earlier quarters, signally possible normalization after high growth.
- Depreciation expense declined 20% YoY despite significant asset base expansion from acquisitions, raising depreciation adequacy concerns.
- Two subsidiaries (Studies Planet and Global Tree Careers) are unaudited for Q4 and FY26, though management deems them immaterial.
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