Crizac Limited

Crizac Limited reported a strong Q3 FY26, with revenue reaching ₹278.63 crores, marking a 28% year-on-year growth. The company achieved a Profit After Tax (PAT) of ₹50.52 crores, representing an 18% margin. The EBITDA margin stood at 23.19%, reflecting the operating leverage of its asset-light model. Management noted that Q3 is typically their strongest quarter due to the peak international student recruitment cycle, and they are well-positioned to exceed FY25's profit of ₹155 crores.

The company's growth is driven by both organic momentum and strategic investments. The recent acquisition of Studies Planet Limited, a Latin American-based company, for an investment of ₹4 crores (enterprise value ~₹8 crores), aims to establish a footprint in that region. Additionally, the acquisition of Global Tree, a B2C company with expected 50% margins, will be consolidated in Q4 FY26. Crizac also launched accommodation and financial assistance services, which, while currently generating negligible revenue, are expected to become substantial line items within 2-3 years, enhancing the student value chain.

Crizac is actively diversifying its sourcing base, with India remaining dominant (50% of application volumes) but accelerating growth seen from Asia (excluding India) and Africa. The company aims to reduce its UK revenue share from the current ~90% to 50% over the next five years, with the balance coming from markets like the US, Australia, and Canada. Management views recent UK international education strategy announcements as positive, targeting a boost to exports to GBP40 billion by 2030 and encouraging source country diversification.

The company's asset-light, tech-led model contributes to its strong operating leverage, allowing application volumes to scale without proportional increases in fixed costs or headcounts. This efficiency is reflected in the 23.19% EBITDA margin and expected normalized EBITDA margins of 23-25%. Crizac maintains a debt-free and fully self-funded status, with ₹450 crores in cash reserves as of December 31, 2025, providing significant strategic flexibility for future growth and acquisitions without external debt.

Management addressed concerns regarding UK regulatory changes, including the reduction of post-study visa duration from 24 to 18 months and the 5% visa refusal rate limit for universities. They stated that these changes have not materially impacted Crizac's growth, as the company's visa refusal rate is extremely low. They view increased regulation around agents as a benefit, raising barriers to entry and entrenching Crizac's position due to its sophisticated compliance processes.