S Chand & Co Ltd (NSE: SCHAND) Q1 2026 Earnings Call dated Aug. 11, 2025
Corporate Participants:
Unidentified Speaker
Ms. Stuti
Himanshu Gupta
Saurabh Mittal
Atul Soni
Analysts:
Unidentified Participant
Amit Agicha — Analyst
Aryamaan — Analyst
Nishita — Analyst
Amit Agicha — Analyst
Shubham — Analyst
Niteen — Analyst
Arihant — Analyst
Viraj — Analyst
Henil Pavadia — Analyst
Jayesh Shroff — Analyst
Presentation:
operator
and gentlemen, Good day and welcome to s. Chan and Co. Q1FY26 investor conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Suti from PL Capital. Thank you. And over to you, Ma’. Am.
Ms. Stuti
Thank you. On behalf of PL Capital, I welcome you all to the Q1FY26 earnings call of S.
Chan Ltd. We have with us the management represented by Mr. Himanshu Gupta, MD, Mr. Saurabh Mittal Senior and Mr. Abdul Soni, Head of Investor Relations Strategy and M and A. I would now like to hand over the call to the management for their opening remarks after which we can open the floor for Q and A. Thank you. And over to you sir.
Himanshu Gupta
Thank you. A very good afternoon ladies and gentlemen. I’m Himanshu Gupta, the Managing Director s Char & Co. Ltd. I would like to welcome you all to our first quarter results conference call for FY26 and thank you all for taking the time out and joining us here today. Q1FY26 was steady quarter for the school and higher education business. There was a shift in the content licensing AI data sheet data sets revenue from Q1 to Q2 which led to lesser revenues in that segment during Q1 versus last year. Do keep in mind that the content licensing revenue stream does not follow a seasonal cycle like our traditional education content business.
In terms of the working capital, we continue the great work by delivering the lowest working capital benefits for Q1 in the company’s history. We continued our strong cash flow generation and increased our cash reserve at the end of the quarter with an increased net cash balance of 1.161 million after distribution of dividend of rupees 141 million. Our new product releases. My Zen had a strong encouraging quarter Had a strong encouraging response in its first academic season. CUET UG online courses also have launched in in Q4FY25 and continued in Q1FY26 with a steady response from students with some of them achieving success from our Cuet Gug courses and mock tests.
We have now launched Cuet Pug and Class 12 online courses to enable students a more cohesive study plan and the test coach. We at Exchange consistently engage with our all stakeholders throughout the year. In the coming months, we have an active engagement calendar lined up like our product briefing for Top Channel partners, best practices and education willing to spring up over school owners and principals, connecting with the teachers, Head of Department, students in school through events like Map Summit, Hindi River, Varsha Mela, Knowledge Quest, quiz, teachers conclave, etc. On the operational front, our new Verizon Security is non functional.
The Integrated Quest project is also underway and it will be completed over the next 12 months. This should lead to a considerable benefit for the group in terms of improving efficiency during peak season and implementation of best practices for warehousing including warehouse management, solutions, automation etc. Looking ahead, we expect NCIT to release books on the new syllabus for Class 4, 4th, 5th, 7th and 8th over the course of this year. We expect the full adoption of the new syllabus booked by FY27 and are fully equipped to utilize the opportunity over the next two sales years.
With that, I will now request our CFO Mr. Saurabh Mittal to apply this all in a financial performance of S.
Saurabh Mittal
Thank you, thank you sir. Good afternoon everyone and thank you for your time. I’m Saurabh Mittal Group CFO of S10 Co. Ltd. Now coming to our numbers for the quarter we reported consolidated revenues of 1,026 million, EBITDA loss of 91 million and a PAT loss of 141 million. The decline in revenue and profitability were driven by shift in the Content license AI data sets revenue from Q1 to Q2 which led to lesser revenue in that segment versus last year. We had a content licensing revenue of 30 million during Q1 FY26 versus 115 million in Q1 FY25.
This also impacted the PNL in the quarter. We expect this revenue to be recuperated in Q2 and to further build on this vertical. Now the strongest features of the results is our working capital metrics, receivable days, inventory days and net working capital days which are at historic lows for Q1 in the company’s history. Our Q1 receivable days were 89 days versus 92 days. Our Q1 inventory days were 218 days versus 261 days and our Q1 net working capital was at 119 days versus 132 days. I would like to draw your attention to slide number seven to slide number nine which showcases the results of the steps taken during the last five years towards building a cost effective and lower working capital capital organization with focus on positive cash flows.
Trade receivables stood at 1739 million during Q1FY 26 versus 1663 million during Q1FY 25. In terms of receivable days, it stood at 89 days versus 92 days, a reduction of three days over the previous year. This is the lowest receivable days in Q1 in the company’s history. Inventory decreased to 1386 million versus 1388 million on the back of lower level of raw material paper inventory. This inventory level includes raw material paper inventory of 279 million versus 485 million the previous quarter. Finished good inventory is almost the same level as last year. In terms of inventory days, it stood at 270 days versus 261 days in Q1FY25, a decrease of 43 days over last year.
Net working capital reduced to 119 days versus 132 days in Q1FY25, which is a reduction of 13 days over the previous year. This is the lowest net working capital days in Q1 in the company’s history. We continue to generate and build on our cash reserves. At the end of June 25, on the back of stock collection, our net cash position stood at 116 million versus a net cash position of 1036 million in Q4 FY25 after dividend payment of 141 million. As we continue into FY26, I would like to reiterate for this year. Firstly, we are looking to grow operating revenues in excess of 8000 million for the year.
Secondly, we have upgraded our EBITDA margin bank guidance to 18 to 20% versus 17 to 90% guidance last year. Thirdly, we look forward to continuing our focus on working capital metrics and cash flows. Fourthly, we are actively engaged in M and A opportunities which fill in the gaps in our portfolio and we aim to leverage our group strength in such acquisitions to deliver superior value to our customers and stakeholders and finally, continue to build on content licensing, AI data sets opportunities of our repository. With this, I would like to open the call for questions. Thank you.
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Amit Agicha from HG Hawa. Please go ahead.
Amit Agicha — Analyst
Yeah, good afternoon, sir. Am I audible?
operator
Yes, sir.
Amit Agicha — Analyst
Thank you for the opportunity. Sir, what is the total capex outlay for FY26 and 27?
Saurabh Mittal
It’s about 35 to 40 crores for next two years.
Amit Agicha — Analyst
So you’re seeing 35 to 40 crores, right?
Saurabh Mittal
Yes, for the next two years. Your voice is breaking up. Can you repeat your question? So we are not building our own warehouse. Am I audible? No, no.
Amit Agicha — Analyst
Yes, sir.
Saurabh Mittal
So I understand what he’s trying to ask. Basically yes. We’ve set up our integrated warehousing already that since it’s released. So it’s not Capex heavy. So the main Capex will come in next year when we are setting up the printing press. So that will be slightly. Because the new setups there, the Capex will be slightly higher.
Amit Agicha — Analyst
How much efficiency gain is expected?
operator
Amit? Sir, your voice is not clear.
Amit Agicha — Analyst
Yeah. Am I clear?
operator
No, sir.
Amit Agicha — Analyst
Okay, I’ll join back. Thank you.
Questions and Answers:
operator
Okay, sir. Ladies and gentlemen, to ask a question, please press Star and one now. Participants who wish to ask questions may please press Star and one at this time. The next question is from the line of Aryaman from Prudent Im. Please go ahead.
Aryamaan
Hi sir, can you maybe just give some light on the the MCRT updates? Maybe. What’s the timeline we can see here for the other classes? So we are already done with Region 6. So maybe for the other classes for say this year and plus the next two years. That will be helpful. Thank you.
Himanshu Gupta
So we had said that fourth, fifth and seventh and eighth over the course of this year will be released by ncrt. That’s what we are hoping. And the rest of the classes will be done by the next year. So the whole. I think the whole bunch would be completed by FY27 financial year and getting implemented in the academic year.
Aryamaan
Right? So. So 7, 8, 7 and 8 for this year and the rest say 7 and 8. Sorry, sorry.
Himanshu Gupta
4Th, 5th, 7th and 8th.
Aryamaan
4Th, fifth, 7th and 8th. Okay, got it. Thank you.
operator
Thank you, sir. Ladies and gentlemen, to ask a question, please press and one now. Participants who wish to ask questions may please press Star and one at this time. The next question is from the line of Nishita from Sapphire Capital. Please go ahead.
Nishita
Yeah, hi, can I get an update on any acquisition that you may have planned?
operator
Your voice is not clear.
Nishita
Hello, Am I audible now?
Nishita
No, ma’. Am. Your voice is breaking.
Nishita
Okay, I’ll join back.
operator
Yes, ma’. Am. Thank you, ma’. Am. Ladies and gentlemen, to ask a question, please press Star and one now. Participants who wish to ask questions may please press Star and one at this time the next question is from the line of Amit Agricha from HG Hawa. Please go ahead.
Amit Agicha
Yeah, hello everyone.
operator
Yes sir, yes you are.
Amit Agicha
Yeah, yeah, thank you for the call up sir. With the networking capital and the receivables and inventory days all reducing like would it be possible to improve it further or can it be sustained?
Saurabh Mittal
Yeah, it is more sustainable and of course we’re looking to reduce it further also because we still feel there is some headway in the inventory and it’s a continuous improvement and we hope to improve it a bit further.
Amit Agicha
As a follow up on about the previous question which was asked for the capex like this 35 to 40 crores will be doing for the integrated integrated press. Like how much overall efficiency we can expect from this?
Saurabh Mittal
Overall I would say the efficiency in terms of production there would be some tangible, some intangibles in terms of tangible. Since the production process would be a bit more easy flowing I think we should say what?
Himanshu Gupta
Yeah, the efficiency would improve. So I think there will be a advantage in terms of production turnaround time plus the quality of the books, plus what had happened that we had not added any new machine over the last seven, eight years. So we just added two or three machines now and we have a space constraint and the warehouse and the plant will be integrated so that advantage will be there. So I feel overall there will be a 15 to 20% advantage in terms of production capacity increase plus efficiency plus cost advantages. Exact figures as of now is very difficult to share right now but as all of that will be tangible, intangible, both but there will be a substantial improvement in next two, three years in the production and efficiency of the company.
Amit Agicha
What are the total number of employees currently? Sorry, what are the total number of employees?
Himanshu Gupta
You’re saying 1900, right? Yeah, yeah.
Amit Agicha
Thank you for your replies and all the best for the future.
Himanshu Gupta
Thank you.
operator
Thank you sir. Ladies and gentlemen, to ask a question please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Shubham from Simpl. Please go ahead.
Shubham
Hello.
operator
Yes.
Shubham
Yeah, thanks for the opportunity. I just had two questions. So first question is that like the guidance that you’ve given for this year that we’ll be crossing or reaching 800 crore in revenue and our margins would be around 17 to 19%. So could you just elaborate on both of them like how are we looking forward to achieve these figures?
Himanshu Gupta
So I mean we said 800 crores which is almost just about 1011 odd percent. So that should be done. That shouldn’t be an issue. In terms of margin guidance we’ve said 18 to 20, not 17 to 19. So in terms of we expect our gross margins maybe to be slightly better since paper prices are tad lower than last year. And of course digital data licensing revenue should also add to that.
Shubham
Okay, got it. And you mentioned that we are looking at M and A options as well. So is that into like any specific domain?
Himanshu Gupta
Those are basically an area where we feel the company has gaps and basically acquisitions are very small in number in terms of size and basically to fill in the gap here, the company does not have the product or the reach in the market.
Shubham
Okay, okay, got it. I’ll just get back.
operator
Thank you sir. The next question is from the line of Nitin from ARU Capital. Please go ahead.
Niteen
Yeah, thank you for the opportunity. I also wanted to know more about the acquisition. Is there any, you know, company finalized in which geography we are looking for any specific segment? If you can, you know, elaborate more on the strategy for this acquisition that we are looking for. What is the size that we are looking for? Will it be in the publishing sector, within publishing sector? If you are looking for any specific area, things like that. Because you mentioned in the presentation that you want to fill the gap. So if you can elaborate more on that, it will be helpful.
This is the only question I have. Thank you so little.
Saurabh Mittal
One I think we’ve already disclosed one is there is a diligence going on in one of them which is going to be test prep segment. We are looking at another two opportunities. One is in the international board segment with a smaller one and one in the regional segment. So these are smaller ones that we are looking at right now. Not very huge in total. I think the revenue size of all of these should be around between less than 50 crores for all three of them together.
Niteen
And this acquisition will be through internal accruals or will be, you know, raising some.
Saurabh Mittal
Internal accruals. I think we have already have about 116 crores of cash surplus in our books. So all internal. The maximum payout should be around another what, 50, 60 odd crores.
Niteen
Thank you. Thank you so much.
Himanshu Gupta
And again these are in various phases of evaluation. So it’s not as if they’re confirmed or anything. Okay, so these are all we are. Yeah, I mean we are undergoing the process for it. So as and when any concrete news is there then it will be given to the agencies.
Niteen
Got it. Thank you so much. Wishing you best.
operator
Thank you sir. Ladies and gentlemen, to ask a question please press star and run now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Nishita from Sapphire capital. Please go ahead. Yes ma’.
Nishita
Am. Hello. Yes, Am I audible now? Yes ma’. Am. Yeah, yeah. So I had a question landing the capex. Hello.
operator
Yeah, please go ahead.
Nishita
With the 35 to 40 crore capex in the next two years how much is the peak revenue that you can get after the capex is done?
Saurabh Mittal
So a that capex has no, no direct relation to revenue because capex again is on the printing press and warehousing and so that’s not really a constraint in terms of revenue. So revenue will go according to its own pace. It’s not really related to the capex.
Himanshu Gupta
But it’s going to support the business in terms of back end support in terms of warehousing and printing and logistics and everything. So we feel efficiencies will be improved and if new companies or new acquisitions happen we can support them as well. So I think the capacities that we will have will suffice for next eight to 10 years. In terms of infrastructure there shouldn’t be any problem for next 10 years.
Nishita
Okay, thank you so much.
operator
Thank you ma’. Am. The next question is from the line of Arihan from Bowhead. Please go ahead.
Arihant
Yeah, hi sir, thanks for taking my question. Sir, just wanted to know regarding paper prices since start of this year, since April 25th what would have been the rise or fall in paper prices and percentage term and what do you see the trend going forward in like next three to four months?
Himanshu Gupta
So paper prices have been swapped thankfully and we have seen a decline of 5 to 7% and right now the paper prices are stable and we’re not expecting too much increase in the paper prices and depending on the foreign policy also tariffs and everything that will also determine the paper prices. So it’s very difficult to say as of now what will the paper price in next three to four months but I personally feel it will be on the soft side only.
Arihant
Okay sir. And regarding the as the government come up, come out with the NCRT books for class 4, 5, 7, 8.
Himanshu Gupta
Yeah, that’s what I said earlier in my opening remarks. 457-8-S8 is coming out. It’s coming out. It’s coming up.
Arihant
Okay, got it. Thank you sir.
Himanshu Gupta
Thank you.
operator
Thank you sir. Ladies and gentlemen, to ask a question please press char and one now participants who wish to ask questions may please press star and one at this time. The next question is from the line of Viraj from simpl. Please go ahead.
Viraj
Yeah, thanks for the opportunity. Sorry I missed the early opening remark. What you just said is 4578 standard will get implemented in 2026, right?
Himanshu Gupta
Yeah. 2026, not financial year 26, 2627 academic year, which basically means sales in sales in FY26.
Viraj
So sales will be reflected in Q4 26, right?
Himanshu Gupta
Yes.
Viraj
Okay, so if I look at the 10% growth we talked about, can you give some more deeper construct in terms of the volume versus price what we kind of, you know, how we looking at internally.
Himanshu Gupta
Volume versus price. So price again I think price is about 5% for 5% and then rest of it 6, 7% volume growth.
Viraj
Okay. But typically what we have seen in the past, also the higher standards as they go for a curriculum change, the delta in terms of volume is much larger. So this time it doesn’t seem to be that way. And with NCRT curriculum change happening after a long time under nep, the digital component was also supposed to be a key value driver, but we’re not seeing that as well. So just trying to understand what has changed. Is it competition, intensity being very high or any color you can give?
Himanshu Gupta
The implementation of SCRT has taken a long time. It’s quite delayed and it’s coming in broken pieces. So it’s not come at one go, in two go. It’s coming in different classes, one class, two class, three class. So that whole effect of NCRT is not coming up as we were expecting that people were expecting. But still we are growing in this tough market in terms of volumes also and we feel we continue to grow. But I would say it will still take some time to see the full potential of NCRT because of the whole issue with the government that getting coming in piecemeal, very small piecemeals, you know.
Viraj
But these will be full standards going under the new nep. Right. And post this, what other standards will be left remaining?
Himanshu Gupta
So they will be also looking to change the 9 to 12 syllabus also the books of 10 to 12 also. So that will come later I think.
Viraj
Okay, just can you give some more perspective on the competitive landscape for NCRT related segment for cbse.
Himanshu Gupta
How do you see that? NCRT is a government body and that is also one of our competitors. But there are a lot of private players who are in this segment and there are lots of them. Lots of them. There are smaller players also bigger players, also organized players, also unorganized also it’s a very diversified unorganized Market I would say overall and we being the largest there, we get an advantage of our brand, of our relationship with the schools, of our product portfolio and our teams. But obviously the market is tough because of so many players in the market.
So everybody obviously wants to bring out new products, new services for the customer and we are doing the same. But we definitely deliver what we commit and that’s what our advantage has always been in terms of good quality content, good quality books and good quality service to our customers. And that will always remain so we believe that is our edge and competition is there and will always remain so that’s the way it is.
Viraj
So see in the past we Talked about government NCRT books having a share of somewhere around 35, 40% of the overall market and within private players. Also if you see communication in the past was that with nep the requirement of digital tools and digital content will be quite significant and not many small or unorganized players will be able to compete in the market and that industry itself should see some consolidation. But from what we understand from your communication now, it doesn’t see seem to be the case. The competition density still remains very high. So just trying to understand what is really change which is driving this still high competition intensity.
Himanshu Gupta
I don’t know when we said that that competition won’t affect the market and won’t affect us. I never, I don’t, I don’t know. I personally remember that saying that but communication was always there that we always have an edge over the market because being a larger player and being a branded player and being a good quality player, that advantage is still there. If that advantage was not there, we would have not grown in volumes and in terms of expecting higher price. But that advantage is there. But still you have to understand the market is quite disorganized.
So there are lot many players in the market who also bring out products. They may be not of that good great quality. And digital, yes definitely people use digital but as we expected that people will use a lot of digital still the digital usage in schools is not to that level. People want to get digital products but they’re not using it to that degree. We are giving it our books. It’s not that we are not giving it, but people are not able, people are not still using it.
Viraj
Thank you very much.
operator
Thank you sir. Before we take the next question, we would like to remind participants that you may please press star and one to ask question. The next question is from the line of Aryaman from prudent im. Please go ahead.
Aryamaan
Thanks for the Follow up. I just wanted a clarification. So 4578 announcement. Do we expect that in FY26 or calendar year 26?
Himanshu Gupta
Sorry, I didn’t get the question. Sorry. Can you repeat other one again?
Aryamaan
Yeah, yeah, sure.
Himanshu Gupta
So. So we said that we expecting the 4, 5, 7, 8 announcement. Did you mean calendar year 2026 or financial year 2026? Just a clarification. Financial year 2026.
Aryamaan
Okay. And do we expect anything this calendar year?
Himanshu Gupta
Government issue? I mean it will be very difficult for us to call out. If it happens In December of 25 or January of 26 or February, we would not like to call that out. But this is our sense that before, basically before we enter our sales season or during our sales season also these books for these classes will be released.
Aryamaan
Okay. Okay. So basically our cutoff date is more or less something like November, December. Right. If you want to sell for the next academic year, essentially.
Himanshu Gupta
Hopefully. Hopefully.
Aryamaan
So thanks. Thanks a lot. Thank you sir.
operator
Thank you, sir. Before we take the next question, we would like to remind participants that you may please press star and one to ask question. The next question is from the line of Henil Pagadia from ikvikorp. Please go ahead.
Henil Pavadia
I hope I’m audible and thank you for the opportunity. So I just needed some little more information and clarification. So as we said that 4, 5, 7, 8 is going to come in FY26. So I think so the stack from first standard to eight standard is going to be complete. So. So I mean when this PI is complete. And as you said that the standards implementation has not been even. And that is also one of the reason why the, the, the NEP and the new curriculum is not. The sales have not shot, the volumes have not grown.
So I mean what’s your take on that? And when do you see the 9th and 10th curriculum coming into implementation?
Himanshu Gupta
9Th to 12th curriculum would be coming in not this financial year, we think becoming a next financial year. That was the second question you had and the first question, 4578. We hope that get implemented and that should help us in selling the new books. But we are being conservative and we are not sure of the government policies. When do they bring out, what time they bring out, what do they do? These are all if and buts. So. But we hope that you know, when the full implementation of the syllabus comes in, that will also help us in kicking up volumes.
But because this process has been too slow and fragmented, it has not given us the necessary results that we were hoping for last two years back.
Henil Pavadia
So just getting a little deeper into this. So when you see the curriculum implementation of 457 at happening this year I think so there should be some clarification at when we are sitting in Q2 because I mean Q3 is Q2 and Q3 is going to be. I mean you’re going to write the entire curriculum from your authors and then Q4 is going Q3, the end of Q3 is also going to be on the side of printing and Q4 is going to be on the side of distribution and getting the sales. So I mean there should be more clarity at this point of time, right.
Himanshu Gupta
Friend? This is not in our hands. That is from the government side point of view. We cannot tell the government that because we have to print or we have to sell. We cannot tell the government that. The government will decide itself and whatever they decide we will follow by it. But it becomes popular that we are talking about. It’s our sense that we’re talking about. It is not a guaranteed thing.
Saurabh Mittal
And also from our side, you know. Our books are ready, you know with the new curriculum. So it’s not as if one book books come out then we start to work. Okay, so our books are majority ready for these classes as well. But we need to tweak them as per the need of the books on the syllabus.
Henil Pavadia
So even if the government notification is a bit late, I mean we can manage, manage it in time and we can, I mean get it through the distribution.
Himanshu Gupta
Hopefully. Hopefully. All this depends on the timing. You know if it comes before December then it will be easier. It comes after December it will become a little tough.
Henil Pavadia
Okay. On the on. So there were news that there was shortage of some NCRT books around Delhi and up area which has got I mean a good density of your the CBSE schools. So I mean what’s your take on that? Somewhere in July this this was in.
Himanshu Gupta
News NCRT books are always in shortage only it’s nothing new. We have. I’ve been seeing it from the last 25 years since I’ve joined this business so. And there are a lot of even piloted books available for NCRT. Piracy happens. So this is a thing which has been going on from a long time. And how does the government control it there? We know it better. But this issue has been there for a long time. It must have crop up now also. It crops up all the time.
Henil Pavadia
Okay. Okay. Thanks a lot sir.
Himanshu Gupta
Thank you.
operator
Thank you sir. Ladies and gentlemen, to ask a question please press Star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Jayesh Raof from Caste Capital. Please go ahead.
Jayesh Shroff
Yeah, hi. Thanks for taking my question. I had a slightly longer term question now that you are saying that since there has been a staggered implementation of new curriculum and that is not giving us the desired result. So post this implementation which would hopefully end in this or maybe next academic year and for us this calendar year, where do you see the growth trajectory for the company?
Himanshu Gupta
Okay, should I answer that?
Jayesh Shroff
Yeah, please.
Himanshu Gupta
So it’s very difficult to say as of now where with more growth the issue will be. But we feel that we’ve got the positive side only. What will be the exact numbers? What will be the fail numbers or growth numbers? That’s very difficult to say as of now because the full implementation has still not happened and we will be able to only analyze it when it fully happens and then we’ll be able to sit with our team and understand what the market situation would be at that time. So it will be very, I would say early to say anything about it, but I personally feel it will be on the positive note.
Jayesh Shroff
Why I am asking this is because you know we significantly delivered lower than what we were expecting in terms of growth. Now when the NCRT implements implement, I mean new curriculum implementation is going on. So post that, you know, you think that there is going to be a steep cliff in terms of growth going ahead.
Saurabh Mittal
Yeah. So I’ll. So in terms of growth. See we are looking at multiple things. It’s not completely dependent upon the NCRC K28. We also am looking at M and A. We are looking at other verticals in terms of we started cuet coaching, we’ve got AI data set licensing that is going on. So we are looking at other multiple verticals to also further the growth.
Jayesh Shroff
Okay, okay. Just one more thing in terms of our the AI content business where we’ve seen some deferral from this quarter to next quarter. So you have any idea how long this revenue stream will last or how big it can become?
Saurabh Mittal
Yes, the potential is huge. And last year probably we were speaking to just two companies. At present we are speaking to seven. So think that at various stages we’ve offered our content to multiple people. Decisions are being a bit here and there but I think the opportunity is huge. It’s not only about our basic data set, it’s about converting into little more complex data sets. So we are speaking to a lot of people and the opportunity is There for the next two, three years, I think.
Jayesh Shroff
Okay, and which would be, I mean, in terms of annual revenues, you think it could be significantly higher than what we’ve done maybe last year?
Himanshu Gupta
It should be. It should be.
Jayesh Shroff
Okay. And as you squeeze, you know, your content on this AI side, how, how does this whole billing and business work? So can you give some idea in terms of how, how this business works? And we know NCRT business where you said, I mean we create content, we sell textbooks, but AI business, how does it actually work? Yeah.
Saurabh Mittal
So you engage with these companies, you understand what their requirement is. You see what you have within your organization in terms of content, you see what you can source for them from outside. To be honest, last 12 months we sourced almost 40% of the content from outside also. So it’s not exactly basically meeting your customers requirements more than, you know, generating something and then trying to sell them. It’s the other way around. You’re servicing their requirements at the moment.
Jayesh Shroff
Okay, so some may have our own content which we recycle, right?
Himanshu Gupta
Initially, yes, but now it’s, it’s almost 50. 50.
Jayesh Shroff
Okay, so sorry, go ahead. Sorry.
Himanshu Gupta
Yeah, so I mean currently we are sourcing also and we are generating our own content. We are, I would say, reworking on our content also some parts of our content, maybe images, maybe text, maybe question banks. So from our own content also, we have to generate more data sets out of that.
Jayesh Shroff
All right, so safe to assume that the margins from this business as we outsource more would ease off over a period of time.
Saurabh Mittal
They’ll be good. I mean, they’ll be substantially good because a, there is. No inventory compared to.
Jayesh Shroff
What we’ve seen last year where maybe we’ve used most of our content, as you say that we outsource more should the margins also tip row so last.
Saurabh Mittal
Year we barely use maybe 10% of our content that we licensed. Right. Okay. Okay. License about 8 to 10% of our content. This is the potential is still a lot more. And what we understand, it’s getting more vernacular right now rather than just English.
Himanshu Gupta
English, no. But just to come to your point, I think your question was more about the margin part. So see, margins for own content will always be higher than the outsourced content. Yes. Okay, that doesn’t change. This is a ratio of content versus outsourced content will define the final margin. But as a trajectory, this rule will always stay.
Jayesh Shroff
All right, just one last thing from here. So as you outsource our own content, there is no exclusivity or no second use or no third use or any. Any of those things.
Himanshu Gupta
These are all non excuses.
Jayesh Shroff
Okay. So theoretically, I. You. We can sell our content to maybe 100 guys, 50 guys, whatever that number.
Himanshu Gupta
Yes, yes, yes.
Jayesh Shroff
Okay. All right, thank. Thank you so much. My question will be answered.
operator
Thank you, sir. Ladies and gentlemen, to ask a question, please press star and 1. Now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Nitin from Arum Capital. Please go ahead.
Niteen
Yeah, thank you for the opportunity. But just one clarification regarding this AI no content that we are supplying. So is there any recurring revenue for the same content that we have supplied? So for example, we have supplied some content this year. Will there be any recurring revenue from the same client for the same content next year?
Himanshu Gupta
Yeah. In one client, yes. The other perpetual. In one client, yes. There is a term period licensing. But I think going forward they are all moving to perpetualize. But having said that, what is happening is that the same content is getting repurposed and you know, delivered in a different format also. So one may be text, but then from the text we are creating questions that could of course go to the same customer separately, because again, that is for a different model or images.
Niteen
Yes. Okay, got it. Thanks.
operator
Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one. Now. Participants who wish to ask questions may please press star and one at this time. Ladies and gentlemen, that was the last question for today. I now hand the conference over to management for closing comments.
Himanshu Gupta
Thank you everyone for your questions and feedback and I hope I wish you all good health. Take care. Thank you. Take care.
Saurabh Mittal
Thank you. Thank you.
operator
Thank you, sir. On behalf of S. Chan and co, that concludes this conference call. Thank you for joining us. And you may now disconnect your lines.