💰 Financial Performance

Revenue Growth by Segment

LawSikho contributes approximately 30% of revenue, while Skill Arbitrage and other bootcamps contribute the remaining 70%. The company missed its H1 FY26 revenue target of INR 50-60 Cr due to challenges in scaling the sales team.

Geographic Revenue Split

Primarily India-based; however, the company is expanding globally with certificate programs and targeting the Philippines and Malaysia to leverage English-speaking markets.

Profitability Margins

The company reported an average net profit of INR 4.49 Cr over the preceding three years for CSR calculation purposes. Profitability is currently impacted by high investment in technology and management bandwidth for AI integration.

EBITDA Margin

Not explicitly disclosed for the current period, but the company is prioritizing growth over immediate dividends, maintaining 'enough cash in the bank' to fund AI-driven scaling.

Capital Expenditure

Development costs are capitalized as intangible assets and amortized over a 6-year period. Specific INR Cr values for total historical Capex were not disclosed, but significant investment is directed toward AI-driven delivery mechanisms.

⚙️ Operational Drivers

Raw Materials

Human Capital (Sales/Counselors) representing a significant portion of operational costs; Technology Infrastructure for AI-enabled delivery.

Import Sources

Not applicable for EdTech; talent is sourced primarily from India (freshers/trainees).

Key Suppliers

Not applicable; the company develops its own AI agents and course content internally.

Capacity Expansion

Current sales capacity reached 300 counselings per day in November 2025. The company is expanding its sales team with a new cohort of approximately 70 people including trainees.

Raw Material Costs

Sales personnel costs have been optimized by hiring freshers at INR 10,000 per month (trainee rate) compared to the previous team's INR 50,000-60,000+ salary, representing an 80% reduction in entry-level base pay.

Manufacturing Efficiency

AI-enabled sales experiments showed a conversion of 18 sales from 50 leads (36% conversion rate) within 48 hours, significantly higher than traditional manual methods.

Logistics & Distribution

Digital distribution via the LawSikho and Skill Arbitrage platforms.

📈 Strategic Growth

Expected Growth Rate

50-100%

Growth Strategy

The company is pursuing a 'Holy Trinity' strategy: 1) Controlling a Job Platform for leverage, 2) AI-Driven Delivery Mechanism to prevent copying, and 3) US University Certification to move beyond the 'unregulated bootcamp' status. Growth will be driven by scaling the AI-enabled sales team and launching global certificate programs.

Products & Services

California Bar Exam programs, Enrolled Agent (IRS) programs, Independent Director Training, Research and Academic Writing Automation, and Remote Work for Women courses.

Brand Portfolio

LawSikho, Skill Arbitrage.

New Products/Services

Research and Academic Writing Automation; IIT Roorkee top-up certifications which increase program pricing from INR 65,000 to over INR 1 Lakh (approx. 54% increase).

Market Expansion

Targeting Southeast Asia (Philippines and Malaysia) and global markets for US-accredited certificate programs.

Market Share & Ranking

Not disclosed.

Strategic Alliances

Partnership with IIT Roorkee for certification top-ups on top-selling programs.

🌍 External Factors

Industry Trends

The industry is shifting toward AI-integrated learning and 'Skill Arbitrage' where professionals from developing economies serve developed markets. Addictive is positioning itself as an AI-first organization to disrupt traditional IIM/KPMG training programs.

Competitive Landscape

Competes with traditional test prep for Judiciary/Supreme Court exams and executive programs from IIMs and Big 4 firms like KPMG.

Competitive Moat

Moat is built on a proprietary AI-driven delivery mechanism and US University accreditation, which are difficult for competitors to replicate quickly. The 'Job Platform' integration creates high switching costs for students.

Macro Economic Sensitivity

Sensitive to the global remote work trend and the 'Skill Arbitrage' market where Indian professionals seek US-based earnings.

Consumer Behavior

Shift toward seeking 'outcomes' (e.g., landing a Big 4 job or board seat) rather than just content, necessitating the company's focus on 'Roadmap' counseling.

Geopolitical Risks

Regulatory changes in US accounting (IRS) or legal (Bar Exam) requirements for foreign-trained professionals could impact core course demand.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI (LODR) Regulations 2015 and Companies Act 2013. The company is seeking US University accreditation to navigate the 'unregulated bootcamp' regulatory environment.

Environmental Compliance

Not applicable for digital EdTech operations.

Taxation Policy Impact

The company follows standard Indian corporate tax norms; its Canadian subsidiary reported a loss before taxation of 997.84 CAD.

Legal Contingencies

No significant or material orders were issued against the company by any regulatory authority, court, or tribunal during the year that could affect its going concern status.

⚠️ Risk Analysis

Key Uncertainties

Scaling the sales team remains the primary uncertainty, with multiple previous failed attempts noted by the CEO. Potential impact is a 40-50% variance in projected revenue.

Geographic Concentration Risk

High concentration in India, though diversifying into Southeast Asia.

Third Party Dependencies

Dependency on university partners (e.g., IIT Roorkee, US Universities) for certification validity.

Technology Obsolescence Risk

Risk of AI tools becoming commoditized; company is mitigating this by building proprietary AI agents integrated into the course delivery.

Credit & Counterparty Risk

Not disclosed.