The Indian education content provider reported a consolidation of its market position through its first overseas acquisition and significant reductions in inventory and debt. While quarterly losses persisted due to operational expansion, management has upgraded fiscal year margin guidance on the back of expected new curriculum adoption.
Lead Paragraph
S Chand & Co Ltd (NSE: SCHAND) reported consolidated revenues of Rs 990 million for the third quarter ended December 31, 2025, representing a marginal 1% decline compared to the same period last year. The company posted a Profit After Tax (PAT) loss of Rs 287 million for the quarter, influenced by increased operating expenses related to wage hikes, personnel hiring, and marketing initiatives aligned with the National Curriculum Framework (NCF). Despite the quarterly loss, the company achieved historically low working capital levels and completed its inaugural international acquisition.
Key Development: CPD Singapore Acquisition
In January 2026, the group finalized the acquisition of CPD Singapore Education Services Pte. Limited for a consideration of SGD 1.50 million. This transaction marks the company’s first international expansion and is intended to fill a portfolio gap in International Baccalaureate (IB) and IGCSE curriculum offerings. The acquisition targets the rapidly growing international school segment in India, which currently exceeds 1,000 institutions.
Financial Performance
For the nine months ended December 31, 2025 (9MFY26), consolidated revenue reached Rs 2,509 million, a 1% year-on-year increase. Gross margins for the nine-month period moderated to 65%, down from 69% in the prior year, primarily due to a higher share of third-party content sourcing in the digital licensing segment.
The company reported significant improvements in its balance sheet efficiency:
• Inventory days fell to 316, the lowest Q3 level in the company’s history.
• Net Working Capital (NWC) days were reduced to 143, down from 152 days in 3QFY25.
• Net Debt declined by Rs 180 million year-on-year to Rs 359 million as of December 2025.
Business Model and Market Situation
S Chand operates a highly seasonal business model, typically generating 70% to 80% of its annual revenue in the fourth quarter (January-March). This period coincides with the peak K-12 sales season ahead of the April academic session start for CBSE and ICSE schools. Consequently, Q3 is characterized by peak inventory levels and lower revenue volumes.
Where Does S Chand & Co Ltd Stand Today?
The company currently maintains a market capitalization of Rs 5,820 million, with a share price of approximately Rs 165 as of February 10, 2026. It remains India’s largest education content company with a sales network covering over 45,000 schools.
Regulatory Milestones: The company recognized an exceptional item provision of Rs 17.19 million in Q3FY26 following the notification of new Labour Codes by the Government of India in November 2025.
Business Outlook & Strategy
Management has issued the following guidance and operational priorities:
• Revenue Growth: Target for FY26 operating revenue to exceed Rs 8,000 million.
• Margin Expansion: EBITDA margin guidance for FY26 has been upgraded to a 18%-20% band, up from 17%-19% previously.
• Content Licensing: Projected revenues from AI dataset content licensing are expected to surpass Rs 300 million in FY26.
• NCF Adoption: Strong sales momentum is anticipated in FY26 and FY27 as schools adopt new syllabus books under the National Curriculum Framework.
Sector and Macro Context
The Indian educational publishing sector is currently undergoing a transition driven by the National Education Policy (NEP) and the subsequent NCF. S Chand is positioning itself to leverage this transition by refreshing its titles and expanding into digital content licensing. Broader industry trends show a shift toward blended learning solutions and a growing demand for international curricula within the Indian domestic market.
Analyst Commentary and Investment Rationale
Internal analysis highlights the “hidden value” in S Chand’s balance sheet through its investee companies. The company’s 16% stake in Smartivity is currently valued at approximately Rs 230 million, following a secondary market transaction. Additionally, its investment in ixamBee, a government exam preparation portal, turned EBITDA and PBT positive during 9MFY26. Analysts observe that the stock’s performance will likely depend on the successful execution of the peak Q4 sales season and the integration of the new Singapore-based curriculum assets.