S Chand And Company Limited is India's largest educational content company, with an operational history spanning over 86 years. The company has established a dominant, pan-India presence, supported by a vast sales and distribution network of over 2,800 channel partners that reaches more than 45,000 schools across the country. Its business model is vertically integrated, featuring state-of-the-art printing and binding facilities that support a massive portfolio of over 12,500 unique titles developed by more than 4,000 authors. S Chand operates through a portfolio of major brands including S. Chand, Madhubun, and Vikas. The company is actively adapting to the evolving educational landscape by offering both traditional print content and modern digital services, positioning itself as a comprehensive solutions provider. With a team size exceeding 1,900 professionals, the group is focused on leveraging its deep market penetration and legacy to capitalize on new educational trends and expand its product offerings.

Official Website: www.schandgroup.com

• Q3 FY26 Performance: The company reported consolidated revenues of Rs 990 million for the quarter ended December 31, 2025. It posted a Net Loss After Tax (PAT) of Rs 287 million, which was primarily driven by higher operating expenses related to wage hikes, new hiring, and increased sales and marketing expenditures in anticipation of the new National Curriculum Framework (NCF) rollout.

• 9M FY26 Performance: For the nine months ended December 31, 2025, revenues stood at Rs 2,977 million. Profitability saw a decline compared to the previous year, attributed to a change in the sourcing mix for digital content licensing revenues and a general increase in operating expenses.

• Working Capital Management: The company has demonstrated significant improvements in operational efficiency.

• Net Working Capital Days: Reduced to 143 days in Q3 FY26 from 152 days in the prior year, marking the lowest level for a third quarter in the company's history.

• Inventory Days: Decreased to 316 days from 366 days year-over-year, also the lowest Q3 figure in history. Total inventory has been reduced by Rs 270 million over the past three years.

• Receivable Days: Stood at 88 days, an increase from 80 days in Q3 FY25.

• Debt Profile: The company has actively deleveraged its balance sheet.

• Net Debt: Reduced to Rs 359 million as of December 2025, down from Rs 539 million a year prior. This represents a 77% reduction in Q3 net debt since December 2021.

• Debt Target: The company aims to be net debt-free for three out of four quarters in the year.

The company is showing strong discipline in working capital and debt reduction, though near-term profitability is impacted by strategic investments and shifts in revenue mix.

• Market Leadership and Scale: As India's largest education content company, S Chand possesses unparalleled scale with a reach extending to over 45,000 schools through a robust network of 4,000+ dealers.

• Vertically Integrated Operations: The company owns and operates state-of-the-art printing and binding facilities, which provides control over the supply chain, quality, and production timelines.

• Hybrid Business Model: S Chand has evolved beyond traditional print publishing to incorporate digital content and services, allowing it to cater to the modern needs of the education sector.

• Pronounced Business Seasonality: The business is highly cyclical, with 70% to 80% of annual revenues being recorded in the fourth quarter (January-March) ahead of the new academic session. The second and third quarters are typically characterized by content development, inventory buildup, and lower sales, leading to net losses during these periods.

S Chand's distinctiveness lies in its market leadership, integrated operations, and a highly seasonal business model that investors must understand to correctly interpret quarterly financial results.

• National Curriculum Framework (NCF) Adoption: A significant industry catalyst is the adoption of the new NCF. The company expects maximum adoption of new syllabus books during FY26 and FY27, which is anticipated to drive a strong growth cycle in its core CBSE/ICSE market.

• Growth in International Curriculum: The market for international curriculum (IB, IGCSE) schools in India is expanding rapidly. There are currently over 1,000 such schools, and the number is increasing, presenting a new, high-growth market segment.

The educational publishing industry is at an inflection point, driven by curriculum changes and the rapid growth of the international school segment in India.

• Content Licensing (AI Datasets): This has emerged as a key growth driver. The company is targeting over 50% year-over-year growth in this segment for FY26 and projects revenues to exceed Rs 300 million, a significant increase from Rs 195 million in FY25. Management views this as a high-potential revenue stream for future monetization.

• NCF-Led Growth: The nationwide implementation of the new syllabus is expected to be a primary driver for the core K-12 publishing business in FY26 and FY27.

• Inorganic Growth via Acquisition: The company completed its first international acquisition of CPD Singapore in January 2026. This move signals a clear strategy to grow inorganically by acquiring capabilities and entering new markets.

• Revenue Target: The company has set a target to cross Rs 8,000 million in operating revenues for FY26.

Growth is expected to be propelled by the NCF implementation cycle, aggressive expansion in digital content licensing, and strategic international acquisitions.

• International Curriculum Market: The acquisition of CPD Singapore provides S Chand with immediate access to the fast-growing international curriculum market (IB/IGCSE) in India, the Middle East, SAARC, and South Asia, a segment where it previously had no presence.

• Leveraging Distribution Strength: The company plans to utilize its extensive network of over 4,000 channel partners to significantly scale up the distribution of CPD Singapore's products within India, creating powerful revenue synergies.

• Test Preparation Segment: There is a stated focus on capturing opportunities in the Common University Entrance Test (CUET) examination market through its digital platform, TestCoach.

• Content Monetization: The ongoing deals for licensing content to AI companies represent a significant opportunity to monetize its vast repository of existing educational content with high margins.

The company is strategically positioned to capitalize on opportunities in the international curriculum, test preparation, and digital content monetization spaces.

• Revenue and Margin Expansion: For FY26, the company aims to surpass Rs 8,000 million in operating revenues and upgrade its target EBITDA margin band to 18%-20%, an increase from the 17%-19% band of the previous year.

• Strategic Focus Areas: Key priorities for FY26 include a concentrated effort on the CUET examination market via TestCoach, aggressively pursuing content licensing deals, and continuing to evaluate inorganic acquisitions to enhance the product portfolio.

• Operational Efficiency: A continued focus on optimizing working capital metrics and maintaining strong cash flows remains a core part of the company's operational strategy.

Future plans are centered on achieving specific top-line and margin targets while strategically expanding into new segments and maintaining financial discipline.

• Gross Margin Moderation: In 9M FY26, the company experienced a moderation in reported gross margins compared to the same period last year.

• Reason for Margin Dip: This was attributed to a shift in the revenue mix for content licensing deals. The recent deals involved a higher proportion of third-party content, which carries a lower gross margin compared to licensing the company's in-house content.

• EBITDA Margin Guidance: Despite the near-term dip, the company is guiding for an improved EBITDA margin band of 18%-20% for the full fiscal year FY26, indicating confidence in performance during the peak Q4 sales season and operational leverage.

While near-term margins were impacted by revenue mix, the full-year guidance suggests an expected improvement driven by operating leverage in the high-volume fourth quarter.

• First International Acquisition: S Chand acquired CPD Singapore in January 2026. This strategic acquisition fills a crucial gap in its product portfolio by providing content for the International Baccalaureate (IB) and IGCSE curriculums, targeting the K-12 segment in India and other Asian markets.

• Investee Companies (Hidden Value): The company holds strategic minority stakes in digital education startups, which represent potential hidden value on its balance sheet.

• Smartivity: A 16% stake in this S.T.E.M. learning and DIY kits company. An initial investment of Rs 20 million is now valued at approximately Rs 230 million based on a recent transaction. Smartivity is reported to be profitable (EBITDA and PBT positive) with ~60% revenue growth in 9M FY26.

• ixamBee: A 4.3% stake in this government exam preparation platform. The company has turned EBITDA and PBT positive in 9M FY26.

• Shareholding Structure: As of February 2026, promoters hold a 47% stake, while Foreign Portfolio Investors (FPI) & Foreign Companies hold a significant 42% stake, indicating strong institutional interest.

The company's strategic acquisition of CPD Singapore and the strong performance of its digital investee companies are key developments that enhance its long-term value proposition.