CHETANA - Chetana

📊 NSE: CHETANA 🏢 Printing & Stationery 📅 Last Updated: 12/13/2025 21:03

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 9.6% in FY25 to INR 102.5 Cr from INR 93.5 Cr in FY24. H1FY26 revenue stood at INR 58.5 Cr, a marginal 1% YoY increase. The digital segment (Dijaa Education) contributed INR 0.11 Cr in its first quarter of operations (Q2 FY26).

Geographic Revenue Split

Maharashtra accounts for approximately 50% of total revenue. The company has a presence in 18 states through 22 branches and international presence in the UAE and Sri Lanka.

Profitability Margins

PAT margin improved from 12.57% in FY24 to 13% in FY25 (INR 13.6 Cr). H1FY26 PAT margin stood at 16% (INR 9.4 Cr), though absolute PAT declined 7% YoY from INR 10.1 Cr due to higher base and moderation in sales activity.

EBITDA Margin

EBITDA margin was 21% in FY25 (INR 21.6 Cr). In H1FY26, the margin improved to 24% (INR 13.8 Cr) compared to 13% in H2FY25, driven by disciplined cost management, though it was down from 27% in H1FY25.

Capital Expenditure

The company follows an asset-light model with no major manufacturing facilities. IPO proceeds of INR 45.9 Cr were utilized for debt repayment (27%) and working capital. No major capex plans are disclosed for the near term.

Credit Rating & Borrowing

Assigned CARE BBB-; Stable / CARE A3 in December 2025. Previously rated [ICRA]BB+ (Stable). Interest coverage ratio significantly improved from 5.74x in FY24 to 19.70x in H1FY26 due to debt reduction from IPO proceeds.

⚙️ Operational Drivers

Raw Materials

Paper is the primary raw material, representing the bulk of production costs for the 10 million+ books produced annually. The company also invests in content through 400+ contractual authors.

Import Sources

Sourced primarily from domestic paper mills and suppliers in India to support its Mumbai-based operations and warehouse in Bhiwandi.

Key Suppliers

Not specifically named, but the company engages in responsible procurement from the paper industry and utilizes over 400 contractual authors for content development.

Capacity Expansion

Current capacity allows for the production of approximately 10 million+ books (FY25). The company operates an asset-light model, outsourcing manufacturing while maintaining a catalogue of 750+ titles.

Raw Material Costs

Raw material costs are susceptible to volatile paper prices. The company manages this through an asset-light model and responsible procurement, though specific cost % of revenue is not disclosed.

Manufacturing Efficiency

The company does not operate direct manufacturing facilities, focusing instead on content creation and distribution efficiency through 22 branches.

Logistics & Distribution

Distribution is handled through 22 branches and a sales team of 250+ employees to reach 30,000+ schools.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth will be driven by the rollout of the 'DottStar' OTT platform (150 schools already onboarded) and an expected surge in demand in Q4 FY26 following CBSE and State Board syllabus changes. The company is also leveraging its 15 distinct brands to cross-sell digital and physical products.

Products & Services

K-12 textbooks, workbooks, supplementary learning materials, QR code-enabled books, and the DottStar digital OTT learning platform.

Brand Portfolio

Chetana, DottStar (OTT platform), and 15 other distinct brands covering 750+ titles.

New Products/Services

Launched 'DottStar' OTT platform in June 2025; introduced QR code-linked books that provide educational videos to enhance the interactive learning experience.

Market Expansion

Expanding digital footprint to 150+ schools; targeting stronger demand from Q4 FY26 onwards across 18 Indian states and international markets like UAE and Sri Lanka.

Market Share & Ranking

Established player in the West India zone (Maharashtra) with a 48-year legacy; specific national ranking not disclosed.

Strategic Alliances

Maintains relationships with 400+ contractual authors and 500+ distributors; Dijaa Education Ltd is a 100% wholly-owned subsidiary for Edtech.

🌍 External Factors

Industry Trends

The industry is shifting toward 'Phygital' models (physical books with digital links). The K-12 segment is growing but faces disruption from Edtech platforms and free government resources.

Competitive Landscape

Highly competitive and fragmented; competes with local publishers, national brands, and digital-first Edtech startups.

Competitive Moat

Moat is built on a 48-year brand legacy, a massive library of 750+ titles, and deep-rooted relationships with 400+ authors and 30,000 schools, which are difficult for new entrants to replicate quickly.

Macro Economic Sensitivity

Highly sensitive to changes in the National Education Policy (NEP) and state-level curriculum changes which dictate product obsolescence and renewal cycles.

Consumer Behavior

Increasing preference for interactive and video-based learning, prompting the company's shift toward QR code books and OTT platforms.

Geopolitical Risks

Exposure is limited primarily to domestic regulatory changes in the Indian education system.

⚖️ Regulatory & Governance

Industry Regulations

Subject to curriculum standards set by CBSE and State Boards; compliance with the National Education Policy (NEP) is critical for content alignment.

Environmental Compliance

Exposed to tightening regulations on the paper industry; the company aims to reduce its carbon footprint via import substitution and responsible procurement.

Taxation Policy Impact

Effective tax rate is approximately 25-26% based on PBT of INR 12.6 Cr and Tax Expense of INR 3.2 Cr in H1FY26.

Legal Contingencies

No major pending court cases or legal disputes with specific values were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Seasonality of revenue (concentrated around the start of the academic year) and high working capital intensity (NWC/OI of 76% in FY24) pose liquidity risks.