Earning call Transcript - Q4FY26
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S Chand reported FY26 revenue of Rs 8,000m with EBITDA of Rs 1,449m (18.1% margin) and PAT growth of 21% to Rs 731m. The company remains net debt-free with net cash of Rs 1,048m despite Capex of Rs 362m and acquisition spend of Rs 107m. For FY27, management guided revenue growth of 10%-15% but EBITDA margin guidance was lowered to 17%-19% due to expected 10-15% rise in paper and raw material costs. AI content licensing revenue grew over 60% YoY to ~Rs 32 crore, with management targeting Rs 100 crore business in 3-5 years. The company completed its first international acquisition (CPD Singapore) in January 2026 to enter the IGCSE/IB curriculum market, estimating it as a potential US$8-10 million business. Working capital metrics showed some increase in receivable days (160 vs 140) and inventory days (232 vs 223) due to NCF rollout and timing shifts, expected to normalize in 1HFY27.
The lower FY27 margin guidance (17%-19% vs 18.1% achieved in FY26) signals cost pressure from rising paper and logistics costs that cannot be fully passed on to customers, which may concern margin-focused investors. However, the strong cash position and new syllabus adoption opportunity provide growth visibility.