Navneet Education Q2 FY27 results: net loss narrows to ₹3 crore, revenue up 31.2%

How did Navneet Education perform in Q2 FY27?

Navneet Education’s consolidated Q2 FY27 revenue was ₹324 crore, up 31.2% from ₹247 crore in Q2 FY26. Total income was ₹328 crore, compared with ₹251 crore, while EBITDA rose to ₹11 crore from ₹1 crore and the EBITDA margin increased 3.0 percentage points to 3.4%. The company reported a net loss of ₹3 crore, compared with a net loss of ₹15 crore, and basic EPS of -₹0.18 against -₹0.67.

Against Q1 FY27, consolidated revenue fell 58.9% to ₹324 crore and EBITDA fell 94.4% to ₹11 crore. The company moved from ₹141 crore profit in Q1 FY27 to a net loss of ₹3 crore, with basic EPS falling from 6.41 to -₹0.18. On the standalone basis, revenue was ₹324 crore and PAT was ₹6 crore, compared with a standalone loss of ₹6 crore in Q2 FY26.

What changed in Navneet Education's costs and profit?

Consolidated total expenses rose 26.5% to ₹339 crore in Q2 FY27 from ₹268 crore in Q2 FY26. Cost of materials increased ₹32 crore to ₹163 crore, employee cost rose ₹8 crore to ₹78 crore, depreciation rose ₹4 crore to ₹22 crore and other expenses rose ₹12 crore to ₹87 crore. Finance costs and other income were unchanged at ₹4 crore each, while the tax charge moved to ₹1 crore from ₹2 crore.

The quarter included a ₹7 crore exceptional gain, against no exceptional item in Q2 FY26. Consolidated profit before tax was a loss of ₹4 crore, compared with a loss of ₹17 crore, and the net loss narrowed to ₹3 crore from ₹15 crore. The investor presentation stated that the exceptional items included fair-value gains on investments in K12 Techno Services, CP Capital and CareerPoint Edutech.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue rose 6.8% to ₹1,112 crore from ₹1,041 crore in H1 FY26, while total income increased 6.5% to ₹1,121 crore from ₹1,053 crore. Consolidated PBT fell 3.1% to ₹189 crore from ₹195 crore, and PAT fell 2.8% to ₹138 crore from ₹142 crore. Basic EPS declined to 6.23 from 6.46.

The investor presentation reported consolidated H1 EBITDA of ₹209 crore, with an 18.8% margin, against ₹228 crore and a 21.9% margin in H1 FY26. It also stated that H1 FY27 included exceptional gains of ₹21 crore, including a ₹10 crore leave-encashment provision reversal and investment fair-value gains.

What do the balance sheet and cash flow show?

At 30 September 2026, consolidated total assets were ₹2,683 crore, total equity was ₹2,223 crore, borrowings were ₹35 crore and cash was ₹268 crore. Inventories were ₹434 crore, trade receivables were ₹334 crore and trade payables were ₹77 crore. The comparable figures at 31 March 2026 were ₹25.66 crore for total assets, ₹20.99 crore for total equity, ₹0.36 crore for borrowings and ₹0.63 crore for cash, with inventories at ₹6.28 crore, trade receivables at ₹3.37 crore and trade payables at ₹0.8 crore.

H1 FY27 operating cash flow was ₹383 crore, compared with ₹485 crore in H1 FY26. Investing cash flow was an outflow of ₹119 crore, compared with an outflow of ₹86 crore, while financing cash flow was an outflow of ₹54 crore against an outflow of ₹101 crore. Capital expenditure was ₹50 crore, compared with ₹54 crore a year earlier.

How has Navneet Education done over the last 8 quarters?

The reported quarterly figures show a seasonal pattern, with the company stating that quarterly results are not representative of the whole year because of the business’s seasonal nature. Revenue was highest at ₹794 crore in Q1 FY26 and lowest at ₹4.3 crore in Q4 FY26; Q2 FY27 revenue of ₹324 crore was below Q1 FY27’s ₹788 crore.

PAT peaked at ₹188 crore in Q3 FY26 and was lowest at -₹15 crore in Q2 FY26. The most recent result moved from ₹141 crore profit in Q1 FY27 to a net loss of ₹3 crore in Q2 FY27, while the EBITDA margin fell from 25.1% to 3.4%.

Which businesses drove the quarter?

Publishing Content reported revenue of ₹139 crore in Q2 FY27, up from ₹91 crore in the year-ago quarter, with EBIT of ₹9 crore compared with a loss of ₹7 crore. The segment’s revenue grew 52.7% and its EBIT margin was 6.5%. Management said the publication revenue increase largely reflected spillover from Q1 to Q2.

Stationery Products reported revenue of ₹184 crore, up 18.7% from ₹155 crore, and EBIT of a loss of ₹13 crore compared with no EBIT in the year-ago quarter. Its EBIT margin was -7.1%. The Other segment reported revenue of ₹2 crore, unchanged from the year-ago quarter, and EBIT of ₹0 crore compared with ₹1 crore.

What else did the company announce?

The board approved the standalone and consolidated unaudited financial results for the quarter and half year ended 30 September 2026, along with the independent auditor’s limited review report. It also approved the standalone and consolidated audited financial statements for the financial year ended 31 March 2026.

The board declared an interim dividend of ₹1.50 per equity share and a special dividend of ₹1.50 per equity share for FY27, taking the total to ₹3.00 per share. The record date was fixed as 11 November 2026, and the dividends were to be paid on or before 3 December 2026.

What did Navneet Education's management say?

Management said the curriculum change cycle that began in FY26 is expected to continue for the next 2 financial years. It expects higher grades to contribute a higher revenue share than lower grades as the cycle progresses, and said domestic stationery will continue to show decent growth because of its focus on branding and non-paper stationery.

Management said exports had shown signs of revival and described a near-term U-shaped recovery as conditional on supply-chain disruptions, geopolitical challenges and weakening global demand improving. It also said the company aims to penetrate markets more aggressively with customer-centric products for long-term sustainability, and gave no numerical revenue or margin target.

Management noted that Q2 publication growth largely reflected revenue spillover from Q1, while H1 publication growth was 6.7%. It also said consolidated H1 EBITDA and PBT declined despite higher revenue, and that reported profit included exceptional gains.

How did Navneet Education shares react?

After the filing appeared after market hours, the stock was down 2.4% after 5 minutes, 1.8% after 15 minutes and 1.6% after 30 minutes. On the reaction day, it closed 2.8% below the previous close of ₹132.5, from a filing-time price of ₹131.9. The Stationary industry’s median reaction-day move was 1.0%, so Navneet Education underperformed the industry by 3.8 percentage points.

The stock’s reaction-day move was -1.0% on 28 July 2026, 3.9% on 21 May 2026 and -3.8% on 30 January 2026. Earlier moves were -2.0% on 10 November 2025, -5.0% on 7 August 2025, 1.8% on 19 May 2025, 6.2% on 5 February 2025 and -1.1% on 7 November 2024.

How did other Stationary companies do?

Five other Stationary companies that had filed for the quarter were compared with Navneet Education as of 6 November 2026. Their median revenue growth was 17.6%, while 3 peers grew slower than the company and 2 peers grew faster than the company. One of the six peers compared for profit reported higher profit.