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    Addictive Learning Technology Q1 FY27 earnings call

    ADDICTIVE
    Consumer Services·17 Aug 2026
    Management Summary

    Addictive Learning Technology Ltd reported a strong turnaround in Q1 FY27, driven by significant revenue growth, positive PAT, and robust operating cash flow. The company achieved its internal net cash generation targets, primarily due to AI-driven reductions in customer acquisition costs and scaled boot camp operations. While year-on-year growth is moderate, management is focused on sustaining profitability and expanding into new markets, acknowledging ongoing risks related to ad cost management and sales team scaling.

    Highlights

    5

    • Q1 FY27 revenue grew 59% QoQ and 18% YoY, indicating a strong turnaround from the previous quarter.

    • Reported a PAT of 31 lakh and a robust operating cash flow of 4 Cr in Q1 FY27.

    • Successfully achieved the internal net cash generation goal of 2 Cr per month in July, with June at 1.8 Cr and August showing similar positive trends.

    • Significantly reduced customer acquisition costs (CAC) for free registrations from approximately 120 Rs/lead to 50-70 Rs/lead through AI-driven optimization.

    • Increased boot camp operations from 4 per month to 8 per month, with a clear target to reach 10 per month in the next period.

    Concerns

    3

    • The year-on-year revenue growth of 18% is considered not as high as desired, especially following a loss-making Q4 FY26.

    • Amortization charges of 4-4.5 Cr per year are expected to persist for the next 2-3 years, which will continue to impact reported PAT.

    • Management highlighted the historical instability in sales team growth and the risk of ad costs ballooning again as ongoing concerns, despite current improvements.

    Key financials

    Single quarter

    06 metrics
    1. 01Revenue Growth59%+59%QoQ
    2. 02Revenue Growth18%+18%YoY
    3. 03PAT₹0.31 Cr
    4. 04EBITDA₹4.9 Cr
    5. 05Operating Cash Flow₹4 Cr

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹1.9 crores

    Debt

    Gross ₹0 crores · Net ₹0 crores

    Liquidity

    Cash ₹9.5 crores

    Includes 7 Cr of undeployed IPO cash which management intends to reclassify for other purposes.

    Guidance & targets

    9
    CategoryTargetPriority
    Profitability
    Net Cash Generation (internal metric)
    2 Cr/month
    		High
    Profitability
    Net Cash (from 10 Cr Rev / 7 Cr Cost)
    3 Cr/month
    		High
    Profitability
    Amortization Charges
    4-4.5 Cr/year
    		High
    Revenue
    Sales Team Revenue
    4 Cr/month
    		High
    Revenue
    Monthly Revenue
    10 Cr/month
    		High
    Capacity
    Boot Camp Count
    10/month
    		High
    Cost
    Monthly Cost
    ~7 Cr/month
    		High
    Market Expansion
    US University Expansion
    Start pursuit
    		Medium
    Liquidity
    Cash Level
    24 Cr
    		Low

    What to watch in Q2 FY27

    5

    Net Cash Generation (internal metric)

    next quarter
    Current>2 Cr/month (July, August)
    TargetSustained 2 Cr/month

    Why it matters

    This is a key internal metric for financial health and a prerequisite for future expansion plans, including the US university initiative.

    Our goal now is to make 2 cr every month. Right? So in June for the first time we hit 1.8 cr and in July we did much more than 2 cr and August is also in similar direction.

    Risks & concerns

    4
    RiskSeverity

    Ad costs ballooning

    Past spike in October 2022, current low costs are due to AI-driven optimization, but risk of recurrence exists and is a critical watch item. — Management acknowledged

    high

    Bad hires in important positions

    Identified as one of two key risks that could derail improved performance, alongside ad costs. — Management acknowledged

    medium

    Rapid scaling of sales team leading to instability

    Past experience showed that scaling too fast without proper management and training led to crashes, now being managed carefully. — Management acknowledged

    medium

    Amortization impact on PAT

    Amortization charges of 4-4.5 Cr/year from past investments will continue for 2-3 years, keeping reported PAT lower despite operational profitability. — Management acknowledged

    medium

    Q&A highlights

    8

    “So no effect at all because we are not in that space at all. So he's talking about the competitive exams like JEE, NEET we are not affected. We are in professional education - most of our students are above 30 years of age so I don't think.”

    Clarifies that the company operates in a distinct professional education segment, insulating it from competitive exam market dynamics.

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance and Turnaround

    Addictive Learning Technology Ltd reported a significant turnaround in Q1 FY27, with revenue growing 59% QoQ and 18% YoY, achieving a PAT of 31 lakh and an operating cash flow of 4 Cr. This positive performance follows a challenging, loss-making quarter in Q4 FY26. The company successfully met its internal net cash generation goal of 2 Cr per month in July, with June at 1.8 Cr and August continuing this upward trend, demonstrating improved financial health.

    02

    AI-Driven Operational Efficiency and Cost Reduction

    A key factor in the company's turnaround was the strategic implementation of an AI-driven technology platform. This platform drastically reduced customer acquisition costs (CAC), with free registration costs dropping from approximately 120 Rs/lead to 50-70 Rs/lead. The AI system automates ad creation, deployment, and monitoring, leading to improved ad quality, efficiency, and a better customer post-click experience, which directly contributed to cost savings and increased lead generation.

    03

    Scaling Sales and Boot Camp Operations

    The company is actively scaling its sales and boot camp operations, which are crucial revenue drivers. Sales team revenue reached 3.5 Cr last month and is targeted to achieve 4 Cr per month. The number of boot camps has increased from 4 per month in Q4 FY26 to 8 per month currently, with a clear target to reach 10 per month in the upcoming period. This expansion is supported by a strategic shift towards establishing physical sales teams in cities like Indore and Gurgaon to enhance consistency and motivation.

    04

    Capital Allocation and Liquidity Position

    Addictive Learning Technology maintains a strong liquidity position, holding 9-10 Cr in cash in the bank, supplemented by an additional 7 Cr in undeployed IPO cash. Q1 FY27 saw a significantly reduced investing outflow of 1.9 Cr, compared to 17.5 Cr in the previous financial year, as major new build activities have largely concluded. The company operates with zero debt and plans to seek reclassification for its IPO funds, indicating a focus on efficient capital deployment.

    05

    Future Growth Initiatives and Market Expansion

    The company is developing new, high-demand courses in areas such as quantitative finance and algorithmic trading, leveraging AI for cost-effective development. Management aims to achieve 10 Cr in monthly revenue with associated costs around 7 Cr within the next six months. A significant future growth avenue is the planned expansion into the US university market, targeted for October-November, contingent on sustaining the current net cash generation of 2 Cr per month.

    06

    Risk Management and Lessons Learned

    Management acknowledged past operational challenges, including a spike in ad costs in October 2022 and issues related to rapid, unmanaged sales team scaling. They are now actively mitigating these risks by maintaining low ad costs through AI optimization and ensuring stable, measured growth of sales and boot camp delivery teams. The ongoing amortization charges of 4-4.5 Cr per year from past investments will continue to impact reported PAT for the next 2-3 years.

    This is an AI-generated summary of a publicly available earnings call transcript.