Crizac Limited — Q2 FY26 earnings call

Call held 16 Oct 2025

Management summary

Crizac Limited reported strong Q2 FY26 results, with revenue from operations reaching INR162 crores and PAT at INR48.33 crores, significantly higher year-on-year. The improved profitability was attributed to annual bonuses from universities and a forex gain. Management reiterated its 25-30% revenue growth guidance for FY26 and outlined strategic initiatives including diversification from the UK market, expansion into new geographies like the Middle East, and the upcoming launch of student loan distribution services.

Highlights

  • Revenue from operations grew to INR162 crores in Q2 FY26, up 25.58% YoY from INR129 crores in Q2 FY25.

  • Net profit (PAT) for Q2 FY26 was INR48.33 crores, a significant increase from INR20 crores in Q2 FY25 (141.65% YoY growth).

  • EBITDA margin for Q2 FY26 was 39%, boosted by annual bonuses from universities and a forex gain of INR4 crores.

  • The company maintains a sustainable EBITDA margin guidance of 24-25% for the future.

  • Total university tie-ups increased to over 250 by end of Q2 FY26, up from 170 last year.

  • Revenue growth guidance for FY26 is set at 25-30%.

  • Student loan distribution services are expected to go live in Q3 FY26, with an eventual contribution of 1-2% of EBITDA.

  • UK revenue concentration has reduced from 95% to less than 90%, with ongoing diversification into Middle East, Australia, and New Zealand.

Key financials

  1. Revenue from Operations ₹162 Cr +25.6%YoY
  2. PAT ₹48.33 Cr +141.7%YoY
  3. EBITDA Margin 39%
  4. Expenses ₹105 Cr
  5. Forex Gain ₹4 Cr

What they filed

Q1 FY27: revenue down 4.3%, net profit up 0.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue130 218 341 210 162 +25%279 +28%392 +15%201 −4%
EBITDA32 63 65 61 63 +97%66 +5%95 +46%61 +0%
Net profit20 43 50 46 48 +140%51 +19%74 +48%46 +0%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Profitability

  • Sustainable EBITDA Margin Profitability · Ongoing · High confidence 24-25%
    Sustainable EBITDA margin will be around 24%, 25%.

    — Manish Agarwal

Revenue

  • Annual Revenue Growth Revenue · FY26 · Medium confidence 25-30%

    Previously 25% → 25-30%

    No Deepak, we have given a guidance of 25%. We believe because of lot of tailwinds, we should grow a bit higher than that. But we will still keep our guidance conservative saying between 25%-30%.

    — Vikash Agarwal

  • Q3 Revenue Share of Annual Total Revenue · Q3 (annual mix) · High confidence 30%
    Q3 would be closer to 30%, Q4 will be 40%.

    — Vikash Agarwal

  • Q4 Revenue Share of Annual Total Revenue · Q4 (annual mix) · High confidence 40%

    — Vikash Agarwal

Business Expansion

  • Student Loan Distribution Launch Business Expansion · Coming quarter (Q3 FY26) · High confidence Go live
    Yes, we have signed up with more than 7 or 8 NBFC and banks. And we believe the company should go live with loan as a distributor in coming quarter, quarter 3.

    — Vikash Agarwal

Business Contribution

  • Student Loan Revenue Contribution Business Contribution · Eventually · Low confidence 1-2%
    I mean, it will take time but eventually it will end up between 1%-2% of our EBITDA.

    — Vikash Agarwal

University Partnerships

  • Number of Universities Represented University Partnerships · End of Q2 FY26 · High confidence >250

    From 170 today

    Normally, with universities, today we represent more than 250 universities as on end of quarter 2, which was I think 170 last year.

    — Vikash Agarwal

Geographical Diversification

  • UK Revenue Contribution Geographical Diversification · As of now (and further reduction expected) · High confidence <90%

    Previously 95% → <90%

    In terms of our UK constitution, it has gone down from 95% to less than 90% as of now. And we expect this to go down further and further.

    — Vikash Agarwal

Cost Management

  • Employee Cost as % of Revenue Cost Management · Roughly (future) · Medium confidence 2-3%
    I mean roughly the employee cost should be between 2% and 3%.

    — Vikash Agarwal

  • Tech Cost (with employee cost) as % of Revenue Cost Management · Roughly (future) · Medium confidence 4%
    Plus tech cost added together would be roughly 4% altogether.

    — Vikash Agarwal

Risks & concerns

  • High concentration of revenue from the UK market

    medium

    UK revenue share has reduced from 95% to less than 90%, with active diversification into Ireland, Middle East, Australia, New Zealand, Singapore, and Malaysia.

    Analyst acknowledged

  • Tightening immigration rules in the UK

    medium

    Management believes changes are aimed at preventing abuse by 'non-genuine students' rather than deterring legitimate academic pursuits, and diversification mitigates this risk.

    Analyst downplayed

  • Negative cash flow from operations due to delayed university payments

    medium

    Delayed receipts from universities lead to delayed payments to channel partners, resulting in negative trade payables and other financial liabilities, explained as a timing difference.

    Analyst acknowledged

Areas of evasion (1)

  • Specific breakdown of cash flow line items (trade payables, other financial liabilities)

Q&A highlights

2 direct
Negative cash flow from operations and working capital management Partial
This quarter, the amount of money which were expected to receive from the university, that gets a bit delayed. As a result, we have not paid to our channel partners. So the trade table is negative.

Highlights a potential working capital issue or timing mismatch in payments, which can impact liquidity, and the CFO could not provide immediate granular details.

Asked by Utkarsh Somaiya

Impact of H-1B visa changes in the US and UK immigration rules on student destinations Direct
With reference to H-1B visa, yes, there is some sentimental impact for US education. But for us, the number or the revenue contribution from US operations is very low. So for us, any kind of negative news for US is positive. Reason being, the students who want to study abroad, instead of choosing US, they are choosing UK as a destination or one of the destinations.

Explains how macro policy changes in key destination countries affect student flows and Crizac's business strategy, showing a positive impact for UK and diversification.

Asked by Naitik Mohata

High concentration of revenue from the UK and diversification strategy Direct
In terms of our UK constitution, it has gone down from 95% to less than 90% as of now. And we expect this to go down further and further. We are expanding to other countries as well. For example, over the last 2 years, we became quite big for Ireland. And that constitute roughly 7% of our revenues in last year.

Addresses a key risk of over-reliance on a single market and outlines concrete steps for geographical diversification into Middle East, Australia, New Zealand, and Southeast Asia.

Asked by Nilabja Dey

3 min read 7 chapters

Detailed narrative

Strong Q2 FY26 Performance Driven by Bonuses and Forex Gains

Crizac reported robust Q2 FY26 results, with revenue from operations growing 25.58% year-on-year to INR162 crores, up from INR129 crores in Q2 FY25. Net profit (PAT) saw an even more significant increase of 141.65% YoY, reaching INR48.33 crores compared to INR20 crores in Q2 FY25. The strong performance was attributed to annual bonuses received from universities and a forex gain of approximately INR4 crores, which helped recover prior quarter losses.

Maintaining Growth and Margin Guidance for FY26

Management reiterated its revenue growth guidance for FY26 at 25-30%, expressing confidence in exceeding the lower end due to tailwinds. Despite the high Q2 EBITDA margin of 39%, the company maintains its sustainable EBITDA margin guidance at 24-25%, acknowledging that Q2 is typically a lighter quarter with specific one-off benefits. This suggests a normalization of margins in subsequent quarters.

Strategic Diversification Beyond the UK Market

Addressing concerns about high reliance on the UK, Crizac highlighted successful diversification efforts. The UK's contribution to revenue has decreased from 95% to less than 90%, with Ireland now accounting for roughly 7% of last year's revenues. The company is actively expanding into new destination markets such as the Middle East, Australia, New Zealand, Singapore, and Malaysia, aiming to further reduce concentration risk over the next 1-2 years.

Expansion into Student Loan Services and University Partnerships

Crizac is set to launch its student loan distribution service in Q3 FY26, having partnered with 7-8 NBFCs and banks. This new revenue stream is projected to eventually contribute 1-2% of the company's EBITDA. Furthermore, the number of university tie-ups has significantly increased to over 250 by the end of Q2 FY26, up from 170 last year, enhancing its portfolio and reach.

Impact of Global Immigration Policies on Student Flows

Management noted that changes in H-1B visa rules in the US are positively impacting Crizac, as students are increasingly choosing the UK as an alternative destination. While acknowledging the UK's tightening immigration rules, management clarified these measures target 'non-genuine students' and are not expected to deter legitimate academic pursuits, further reinforcing the company's strategic focus on the UK and diversification.

Cash Flow and Cost Structure Insights

The company's cash flow from operations was negative in Q2 FY26, primarily due to delayed receipts from universities leading to delayed payments to channel partners (negative trade payables and other financial liabilities). Management explained this as a timing difference. On the cost front, employee costs are expected to be around 2-3% of revenue, with total employee and tech costs combined roughly at 4%, indicating efficient cost management as revenue scales.

Geographical Source Mix and Conversion Rates

India remains a significant source country, contributing roughly 50% of applications, with Africa being the largest contributor among other regions at approximately 25%. Conversion rates vary significantly by region: China shows a high conversion rate of 25-30%, while Africa is typically 5-6%, and the standard conversion rate is between 8-10%. This data provides insight into the efficiency of student acquisition across different markets.

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