CPCAP - CP Capital

📊 NSE: CPCAP 🏢 Non Banking Financial Company (NBFC) 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue grew 9.3% YoY to INR 59.39 Cr in 9M FY25. Education segment revenue (pro-forma) reached INR 39.55 Cr, driven by Formal Education (INR 12.00 Cr, up 52.3% from INR 7.88 Cr) and Residential Campus (INR 8.50 Cr, up 18.4% from INR 7.18 Cr). Test-Prep revenue declined 8.1% to INR 10.05 Cr.

Geographic Revenue Split

Not explicitly disclosed by region, but operations are centered in India with key facilities in Kota (Rajasthan) and Mohali (Punjab).

Profitability Margins

Standalone PAT margin improved significantly to 53.6% in 9M FY25 from 47.4% in 9M FY24. Consolidated PAT margin stood at 51.6% for 9M FY25. The improvement is driven by higher operational efficiencies following the strategic restructuring.

EBITDA Margin

Standalone EBITDA margin increased to 68.1% in 9M FY25 from 66.3% in 9M FY24. Consolidated EBITDA margin was 70.1% for 9M FY25. Core profitability is high due to the annuity-driven nature of the education and financing businesses.

Capital Expenditure

Property, Plant, and Equipment (Standalone) stood at INR 19.37 Cr as of March 31, 2025, a slight decrease from INR 19.88 Cr in the previous year, reflecting a shift toward an asset-light model via the CPEL demerger.

Credit Rating & Borrowing

Finance charges for 9M FY25 were INR 0.96 Cr, up 29.4% from INR 0.74 Cr. Total current financial liabilities (borrowings) were INR 32.16 Cr as of March 31, 2025, compared to INR 22.80 Cr in the prior year.

⚙️ Operational Drivers

Raw Materials

Study materials and books represent the primary physical input, costing INR 1.32 Cr in 9M FY25 (2.2% of total standalone income).

Import Sources

Sourced domestically within India, primarily for the publication of educational books and test-prep materials.

Key Suppliers

Not specifically named in the documents; however, the company manages its own publication division for books and study materials.

Capacity Expansion

The company is transitioning its education business into Career Point Edutech Limited (CPEL) to operate as an asset-light entity, focusing on scaling digital and vocational services without heavy physical infrastructure investment.

Raw Material Costs

Cost of study materials increased 13.6% YoY to INR 1.32 Cr in 9M FY25. Procurement is managed to support the 9.3% growth in standalone revenue.

Manufacturing Efficiency

Operating EBITDA margin for the standalone entity improved to 66.5% in 9M FY25 from 62.6% in 9M FY24, indicating better cost absorption.

Logistics & Distribution

Distribution of books and study materials is a key component of the INR 8.78 Cr revenue generated by that sub-segment.

📈 Strategic Growth

Expected Growth Rate

13%

Growth Strategy

Growth will be achieved through the demerger of the education business into CPEL to create an asset-light, high-ROE entity. Simultaneously, the merger of Srajan Capital into CP Capital strengthens the NBFC/financing arm. The company is targeting large addressable markets in test-prep and formal education while leveraging annuity-driven cash flows.

Products & Services

Test-prep coaching, formal school and university education, vocational skills training, educational books, residential campus services, and NBFC financing/loans.

Brand Portfolio

Career Point, CP Capital, Srajan Capital, Career Point Edutech (CPEL).

New Products/Services

Expansion into vocational skills (currently INR 0.23 Cr) and enhanced digital delivery through CPEL are expected to contribute to future revenue growth.

Market Expansion

Focusing on the 'New Horizon' strategy to unlock potential through the strategic merger and demerger scheme approved by NCLT.

Market Share & Ranking

Not disclosed, but positioned as a legacy player in the Kota coaching hub and expanding in the formal education sector.

Strategic Alliances

The Composite Scheme of Arrangement involves the amalgamation of Srajan Capital Limited and the demerger into Career Point Edutech Limited.

🌍 External Factors

Industry Trends

The industry is shifting toward asset-light, technology-enabled delivery. CP Capital is positioning itself by demerging its physical education assets to focus on high-margin financing and edutech services.

Competitive Landscape

Faces intense competition from both traditional coaching institutes in Kota and well-funded edutech startups.

Competitive Moat

Moat is built on a 20+ year legacy brand in education and a fundamentally strong balance sheet with a net worth of INR 572.8 Cr (Consolidated). The annuity-driven nature of formal education provides long-term revenue visibility.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles due to the INR 394.4 Cr loan portfolio and consumer spending on discretionary education services.

Consumer Behavior

Shift toward integrated school-plus-coaching models, which CP Capital addresses through its Formal Education and Residential Campus segments.

Geopolitical Risks

Low, as operations are primarily domestic; however, changes in Indian education policy (NEP) could impact formal education structures.

⚖️ Regulatory & Governance

Industry Regulations

Subject to NCLT approvals for the Composite Scheme of Arrangement. Education services must comply with state-specific coaching regulations and university affiliation norms.

Environmental Compliance

Not a material factor for the education/financing business; ESG costs are not separately disclosed.

Taxation Policy Impact

Current tax liabilities (Standalone) were INR 0.69 Cr as of March 31, 2025, significantly down from INR 4.37 Cr in 2024 due to restructuring and timing of payments.

Legal Contingencies

The company has disclosed the impact of pending litigations in Note 33 of the Standalone Financial Statements; however, the specific INR value of these contingencies was not provided in the summary documents.

⚠️ Risk Analysis

Key Uncertainties

The successful execution of the demerger and the transition to CPEL poses an operational risk. System limitations in the audit trail feature (Note 51) were noted by auditors.