💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: coaching services. Total revenue grew by 34.93% YoY, reaching INR 42.58 Cr in FY 2024-25 compared to INR 31.55 Cr in FY 2023-24. For H1 FY 2025-26, revenue from operations stood at INR 32.33 Cr, representing approximately 76% of the previous full year's revenue.

Geographic Revenue Split

The company primarily operates in India, specifically in Maharashtra and Rajasthan. It recently expanded into Gujarat (Ahmedabad) through an MOU with Nankani’s Education Service LLP. Specific percentage splits per state are not disclosed, but the company is actively diversifying its geographic footprint.

Profitability Margins

Net Profit Margin improved significantly to 10.96% in FY 2024-25 from 5.11% in FY 2023-24. This 114.48% increase in margin was driven by higher turnover and operational efficiencies during the expansion phase.

EBITDA Margin

EBITDA grew by 124.04% YoY to INR 7.78 Cr in FY 2024-25 from INR 3.47 Cr. Operating Profit Margin increased to 14.14% in FY 2024-25 from 5.94% in FY 2023-24, a growth of 138.05% due to the scaling of operations.

Capital Expenditure

The company is in an aggressive expansion phase, with INR 8.53 Cr spent on Property, Plant, and Equipment (PPE) and Intangible Assets in H1 FY 2025-26 alone, compared to INR 2.66 Cr in the previous half-year period.

Credit Rating & Borrowing

The company maintains a low debt profile with a Debt-Equity Ratio reported as NA or negligible. Finance costs for FY 2024-25 were minimal at INR 0.026 Cr (2.60 Lakhs), indicating very low reliance on external debt.

⚙️ Operational Drivers

Raw Materials

As a service-oriented coaching business, traditional raw materials are not applicable. The primary operational cost is Employee Benefit Expenses, which amounted to INR 7.46 Cr in FY 2024-25, representing 17.5% of total income.

Import Sources

Not applicable as the company provides educational services. Procurement is localized within India for office and center maintenance.

Key Suppliers

Not applicable for the service model; however, the company collaborates with NSE Academy Limited for specialized certificate programs.

Capacity Expansion

The company is expanding its physical presence with new branches capitalized during FY 2024-25. It recently entered the Ahmedabad market to launch FinTech and Analytics programs, though specific unit/seat capacity is not disclosed.

Raw Material Costs

Direct material costs are negligible. The focus is on human capital and infrastructure. Employee costs increased from INR 3.43 Cr in FY 2023-24 to INR 7.46 Cr in FY 2024-25 to support growth.

Manufacturing Efficiency

Efficiency is measured by the Net Capital Turnover Ratio, which was 1.58% in FY 2024-25, down from 2.76% in FY 2023-24, reflecting the heavy capital investment in new, yet-to-be-fully-utilized branches.

Logistics & Distribution

Distribution is handled through physical coaching centers and digital platforms. Costs are part of the expansionary capital and operating expenditure.

📈 Strategic Growth

Expected Growth Rate

35%

Growth Strategy

Growth is driven by geographic expansion into Gujarat and Rajasthan, the launch of new specialized courses like the Certificate Program in Financial Technology and Analytics in association with NSE Academy, and inorganic growth through associates like Zen Education and Learning (25.5% stake).

Products & Services

Coaching services for competitive exams and professional certifications, including the Certificate Program in Financial Technology and Analytics.

Brand Portfolio

Arihant Academy.

New Products/Services

Certificate Program in Financial Technology and Analytics launched in late 2025. This program marks an entry into professional fintech education with expected high-margin contributions.

Market Expansion

Expansion into Ahmedabad, Gujarat (Nov 2025) and ongoing scaling in Rajasthan and Maharashtra.

Market Share & Ranking

Not disclosed, but the company is a listed SME player on the NSE EMERGE platform.

Strategic Alliances

MOU with Nankani’s Education Service LLP and collaboration with NSE Academy Limited (a subsidiary of National Stock Exchange of India).

🌍 External Factors

Industry Trends

The coaching industry is shifting toward specialized professional certifications (FinTech, Analytics) and hybrid learning models. Arihant is positioning itself by partnering with NSE Academy to capture this high-growth niche.

Competitive Landscape

Competes with both local unorganized coaching centers and large national test-prep companies.

Competitive Moat

The moat is built on brand recognition in the coaching sector and strategic institutional tie-ups (NSE Academy), which are difficult for smaller local players to replicate. Sustainability is supported by a 22.90% ROCE.

Macro Economic Sensitivity

Highly sensitive to domestic economic conditions and employment trends that drive demand for professional coaching and competitive exam preparation.

Consumer Behavior

Increasing preference for industry-aligned certifications over traditional coaching, prompting the company's shift toward FinTech and Analytics.

Geopolitical Risks

Low, as the business is focused on the Indian domestic education market.

⚖️ Regulatory & Governance

Industry Regulations

Subject to local state regulations governing private coaching institutes and the Companies Act, 2013. CSR provisions became applicable in FY 2025-26.

Environmental Compliance

Not applicable for educational services; ESG focus is primarily on CSR and social betterment.

Taxation Policy Impact

Current tax expense for H1 FY 2025-26 was INR 1.49 Cr. The company is subject to standard Indian corporate tax rates.

Legal Contingencies

The company has a pending litigation as of March 31, 2025. Additionally, it received a monetary claim from a third party on December 13, 2025, which is currently under legal review but deemed non-material to operations at present.

⚠️ Risk Analysis

Key Uncertainties

Regulatory changes in the coaching industry and the success of geographic expansion into Gujarat represent key uncertainties with a potential 10-20% impact on projected growth.

Geographic Concentration Risk

High concentration in Maharashtra, though expanding into Rajasthan and Gujarat to mitigate this risk.

Third Party Dependencies

Dependency on NSE Academy for the new FinTech program and Nankani’s Education Service LLP for the Ahmedabad expansion.

Technology Obsolescence Risk

Risk of digital-only platforms disrupting physical coaching centers; mitigated by the company's own digital initiatives and specialized course offerings.

Credit & Counterparty Risk

Trade receivables stood at INR 2.22 Cr in H1 FY 2025-26. Debtors Turnover Ratio was 97.23% in FY 2024-25, indicating efficient collection but a slight decline from 127.50% in the previous year.