Detailed Narrative
Q3 FY26 Financial Performance and FY26 Outlook
S Chand & Company reported consolidated revenues of ₹99.0 crores for Q3 FY26, alongside a PAT loss of ₹28.7 crores. Despite the Q3 loss, management expressed confidence in achieving its full-year FY26 operating revenue target of over ₹800 crores and an EBITDA margin band of 18-20%. A revenue gap in Q3 due to syllabus revision is expected to be covered in Q4 with new series launches, with Q4 revenue projected at over ₹550 crores and EBITDA at ₹250-260 crores.
International Acquisition: CPD Singapore
The company completed its first international acquisition of CPD Singapore in January 2026. This strategic move aims to enhance international curriculum capabilities for the India and Asia markets, filling a product portfolio gap. CPD Singapore, though small with a 5-person headcount, targets the fast-growing K12 segment, including over 1000 IGCSE schools in India and 6000 IB schools globally, presenting a huge potential for growth.
AI Dataset Content Licensing Growth
S Chand's AI Dataset content licensing revenues reached ₹17.1 crores during 9M FY26, compared to ₹19.5 crores in 9M FY25. Management is highly confident of achieving over ₹30 crores in this segment for the full FY26, up from ₹19.5 crores in FY25. This revenue stream is seen as having significant potential to grow and deliver for the Group in the coming years, with a long-term outlook of contributing 10-15% of total revenue in 3-5 years.
Working Capital and Liquidity Management
The company demonstrated strong working capital management in Q3 FY26, achieving its lowest Q3 Inventory days at 316 days (vs. 366 days in 3QFY25) and lowest Q3 Net Working Capital days at 143 days (vs. 152 days in 3QFY25) in its history. The company also maintains a healthy net cash position, with approximately ₹103 crores at FY25 end, projected to grow to ₹120-125 crores by FY26 end and over ₹150 crores by June end.
NCF Syllabus Adoption and Market Impact
The new National Curriculum Framework (NCF) syllabus adoption is progressing, with Class 4th, 5th, 7th, and 8th already having PDF versions of new NCERT books available. Management expects maximum adoption in FY26 and FY27, which should boost growth in the CBSE/ICSE market. While NCERT books are primarily for government schools, private schools often prefer more comprehensive private books, mitigating the impact of NCERT's increased in-house printing.
Future Growth Trajectory and Digital Initiatives
Post the full impact of NCF syllabus changes, the traditional publishing business is expected to achieve a normalized growth rate of 8-10%. Digital initiatives like SmartK and TestCoach are advancing with increased adoptions and enrolments. The company is also exploring EdTech platforms, focusing on long-term, problem-solving solutions rather than short-term plays, and aims to build out TestCoach for CUET and other exams over 4-5 years.