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    S Chand & Compan

    SCHAND
    Media, Entertainment & Publication·28 May 2026
    Management Summary

    S Chand & Company reported a strong Q4 FY26, achieving ₹8,000 million revenue and ₹1,449 million EBITDA with an 18.1% margin, alongside 21% PAT growth. The company maintained a net cash positive position and completed its first international acquisition of CPD Singapore. While working capital metrics saw a temporary increase, management expects normalization and is guiding for 10-15% revenue growth and 17-19% EBITDA margin for FY27, acknowledging cost pressures.

    Highlights

    6

    • FY26 Revenue of ₹8,000 million, in line with guidance of ₹8,000m.

    • FY26 EBITDA of ₹1,449 million, with an 18.1% margin, meeting guidance range of 18%-20%.

    • FY26 PAT of ₹731 million, representing 21% profit growth.

    • Net cash balance of ₹1,048 million at FY26 end, despite ₹362 million Capex and ₹107 million Acquisition Outgo.

    • Strong operating cash flows of ₹747 million for FY26.

    • Successful acquisition of CPD Singapore in January 2026, expanding international curriculum capabilities.

    Concerns

    3

    • Working capital metrics saw an increase in receivable days to 160 (from 140 in Q4FY25) and inventory days to 232 (from 223 in Q4FY25) due to NCF rollout and digital business shifts.

    • FY27 EBITDA margin guidance of 17-19% is lower than FY26's 18.1% due to anticipated increases in paper, logistics, fuel, and employee costs.

    • The higher education segment continues to experience degrowth, now contributing only 8% of the market (down from 20% pre-COVID), primarily due to piracy and reduced book purchases.

    Key financials

    Single quarter

    07 metrics
    1. 01Revenue8,000 Mn
    2. 02Gross Margin68%
    3. 03EBITDA1,449 Mn
    4. 04EBITDA Margin18.1%
    5. 05PAT731 Mn+21%YoY

    Capital allocation

    5
    high confidence
    CategoryHeadline
    Capex

    ₹362 million

    internal accruals

    Debt

    Net ₹0 crores

    Dividend

    ₹4/share (interim)

    M&A

    CPD Singapore

    acquisition · closed · Consideration ₹NaN (cash)

    Liquidity

    Cash ₹1,048 million

    Net cash balance at FY26 end.

    Guidance & targets

    9
    CategoryTargetPriority
    Revenue
    Operating revenues growth
    10%-15%
    		High
    Profitability
    EBITDA margin
    17%-19%
    		High
    Operating Cash Flow
    Operating Cash Flow
    over Rs1,000m
    		High
    Content Licensing
    Content Licensing revenues
    more than Rs400m
    		High
    Content Licensing
    Content Licensing business size
    US$8-US$10 Mn
    		Medium
    Content Licensing
    Content licensing business size
    at least Rs100 crores
    		Medium
    Syllabus Adoption
    K-12 segment new syllabus adoption
    complete adoption
    		High
    Raw Material Costs
    Paper price increase
    10% to 15%
    		Medium
    Pricing
    Product price hike
    6% to 8%
    		Medium

    Working Capital Normalization

    1H FY27
    CurrentReceivable days 160, Inventory days 232 (Q4FY26)
    TargetNormalization to pre-Q4FY26 levels (e.g., Receivable days 140, Inventory days 223)

    Why it matters

    Improvement in working capital directly impacts cash flow and operational efficiency, which management has prioritized.

    We expect Receivables and Inventory to normalize during the 1H of FY27.

    How to verify

    key_financials.metrics[label='Receivable Days']

    Risks & concerns

    5
    RiskSeverity

    Delay in collections from Middle East schools

    Minor increase in receivables due to delay in collections from Middle East due to the ongoing conflict. — Management acknowledged

    medium

    Increased raw material and operating costs

    Escalation in prices of paper, logistics, transportation, packaging due to currency depreciation and higher fuel prices, impacting FY27 EBITDA margins. — Management acknowledged

    high

    Limited ability to pass on cost increases

    Cannot take too much of a price hike (max 6-8%) due to market pushback and need for affordability, limiting margin expansion. — Management acknowledged

    medium

    Degrowth in higher education segment

    Higher education segment has degrown from 20% to 8% of market due to piracy and reduced book purchases, an industry-wide phenomenon. — Management acknowledged

    medium

    Temporary increase in working capital metrics

    Receivable days increased to 160 and inventory days to 232 in Q4FY26 due to NCF rollout and digital business shifts, but expected to normalize. — Management acknowledged

    low

    Q&A highlights

    8

    “NCF rollout will be completed, we hope that this year, that exercise should be completed and the implementation will start this year or maybe early next year. That is what we have from the market, and we believe that the benefit will definitely come to the company in that regard. ... 10% to 15% is a good guidance because it's not a small number. It's a big number. Like this year, we have grown by around 11%. So, these advantages are already we have taken care of and this year also, we should get 10% to 15% growth.”

    Clarifies the timeline for NCF rollout and confirms that the FY27 revenue guidance already incorporates its benefits, addressing analyst's concern about potential upside.

    asked by Niteen Dharmawat

    3 min read7 chapters

    Detailed Narrative

    01

    Q4 FY26 Financial Performance Overview

    S Chand & Company reported a strong Q4 FY26, achieving ₹8,000 million in revenue, aligning with its guidance. The company sustained a high gross margin of approximately 68% despite a 6% GST hike on paper. FY26 EBITDA reached ₹1,449 million, resulting in an 18.1% EBITDA margin, within the guided range of 18-20%. Profit after tax (PAT) grew by 21% to ₹731 million, and operating cash flows were robust at ₹747 million.

    02

    New Syllabus (NCF) and K-12 Segment Outlook

    The FY26 sales season was strong, with good volume growth in both Old and New Syllabus books. The company is optimistic for FY27 as new syllabus books for K-8 are already released, and CBSE is launching new syllabi for Classes 9-12 in the coming months. Management expects FY27-28 to see complete adoption of the new syllabus books for the K-12 segment, which is anticipated to strongly support growth over the next two years.

    03

    AI Dataset Content Licensing Business

    The AI Dataset content licensing revenue stream experienced significant growth, with over 60% YoY revenue growth during FY26. The company views this as a high-potential area, targeting over ₹400 million in revenues for FY27 and projecting it to become an US$8-US$10 million business in a few years. The licensing model is a mix of one-time📎 and period-based contracts, with 70% being period licenses (2-5 years) and 30% one-time📎.

    04

    International Expansion (CPD Singapore Acquisition)

    In January 2026, S Chand completed its first international acquisition of CPD Singapore for an outgo of ₹107 million. CPD Singapore, a publisher of supplementary books adhering to international curricula, had a revenue of approximately USD0.5 million (₹5-6 crores) in the prior year. This acquisition aims to expand curriculum capabilities for India and Asia markets, targeting over 4,000 IGCSE schools globally and 6,000 IB schools worldwide, with a focus on South Asia and the Middle East.

    05

    Working Capital and Cash Flow Management

    The company maintained a net debt-free status at FY26 end, with a net cash balance of ₹1,048 million, even after a Capex of ₹362 million and acquisition outgo. However, trade receivables increased to ₹3,503 million (from ₹2,753 million in Q4FY25), extending receivable days to 160 (from 140). Inventory also rose to ₹1,634 million (from ₹1,401 million), increasing inventory days to 232 (from 223). Management expects these working capital metrics to normalize in 1H FY27.

    06

    Cost Pressures and Pricing Strategy

    Management anticipates increased costs in FY27 due to rising paper prices (expected 10-15% increase), logistics, transportation, packaging, and higher fuel and employee costs. To offset this, the company plans a product price hike of 6-8%. However, they acknowledge limitations on price increases due to market pushback and the need to keep books affordable for students. This cost pressure is a key factor in the FY27 EBITDA margin guidance of 17-19%, which is slightly lower than FY26's 18.1%.

    07

    Higher Education Segment Challenges

    The higher education segment continues to face challenges, experiencing a degrowth from constituting 20% of the market pre-COVID to about 8% currently. This decline is attributed to increased piracy and a reduction in students purchasing books. Management noted that this is an industry-wide phenomenon, and the company's focus remains on the growing K-12 segment.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.