💰 Financial Performance

Revenue Growth by Segment

School Learning Solutions revenue declined by 12.26% from INR 4.13 Cr in FY24 to INR 3.62 Cr in FY25. Other segments including Higher Learning Solutions, K-12 Schools, and Online/Supplementary & Global reported zero revenue for both FY24 and FY25.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates primarily in India with its registered office in New Delhi.

Profitability Margins

Net Profit Margin was -568.81% in FY24, an improvement from -1576.62% in FY23. The standalone loss for FY25 was INR 32.14 Cr, narrowing by 4.93% from a loss of INR 33.81 Cr in FY24.

EBITDA Margin

EBIDTA/Net Sales margin was -466.29% in FY24 compared to -1470.29% in FY23. The negative margin reflects operating expenses significantly exceeding the minimal revenue generated during the insolvency process.

Capital Expenditure

Purchase of property, plant, and equipment was INR 0.42 Cr in FY25, a 79.71% decrease from INR 2.07 Cr in FY24.

Credit Rating & Borrowing

The company is in default and under Corporate Insolvency Resolution Process (CIRP). Finance costs were INR 6.62 Cr in FY25, up 13.86% from INR 5.82 Cr in FY24, primarily due to interest on existing debt.

⚙️ Operational Drivers

Raw Materials

Knowledge-based educational content (intangible assets) represents the primary 'material' for revenue generation, though it is fully amortized.

Capacity Expansion

No expansion planned; the company is currently operating with a minimal staff of 32 employees as of FY24 to maintain basic operations during insolvency.

Raw Material Costs

Not applicable as a service-based education firm; however, 'Purchases of stock-in-trade' was INR 0.045 Cr in FY25.

Manufacturing Efficiency

Not applicable; however, the company has fully amortized its intangible assets (content) which continues to generate the entirety of its INR 3.62 Cr revenue.

📈 Strategic Growth

Expected Growth Rate

0%

Growth Strategy

The company has no active growth strategy other than the 'Revival Plan' submitted under the Insolvency and Bankruptcy Code (IBC) 2016. Future growth depends entirely on the successful approval and implementation of a resolution plan by the NCLT.

Products & Services

Smartclass educational content, School Learning Solutions, and vocational training services.

Brand Portfolio

Educomp, Smartclass

New Products/Services

No new products launched; focus is on maintaining existing School Learning Solutions which contributed 100% of FY25 revenue.

Market Expansion

None; the company is in a contraction phase under insolvency.

Market Share & Ranking

Not disclosed; significantly diminished from previous leadership position due to insolvency.

Strategic Alliances

None active; previous subsidiaries like Educomp Learning Private Limited are no longer providing financial data to the parent.

🌍 External Factors

Industry Trends

The EdTech industry is shifting toward B2C and integrated hybrid learning; Educomp's B2B model is struggling due to lack of capital for technological upgrades and its status as an insolvent entity.

Competitive Landscape

Faces intense competition from new-age EdTech firms and established publishers who have transitioned to digital formats.

Competitive Moat

The company's primary moat was its vast library of K-12 digital content; however, this is eroding as the content has not been re-evaluated or significantly updated since 2021.

Macro Economic Sensitivity

Highly sensitive to government education policies and the digital adoption rate in Indian private schools.

Consumer Behavior

Schools are moving toward more interactive and AI-integrated platforms, which Educomp currently lacks the capital to develop.

Geopolitical Risks

Minimal direct impact as operations are primarily domestic, though global supplemental segments exist but currently generate zero revenue.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Insolvency and Bankruptcy Code (IBC) 2016. The company is also subject to SEBI Listing Obligations and Disclosure Requirements (LODR) which it has partially failed to meet regarding subsidiary reporting.

Environmental Compliance

Not disclosed; minimal impact for a service-based education company.

Taxation Policy Impact

The company reported a tax expense of zero for FY25 due to ongoing losses.

Legal Contingencies

The company has issued financial guarantees of INR 1,341.63 Cr to banks on behalf of subsidiaries. It also faces a dispute regarding excess managerial remuneration paid in 2014-15 and a failure to transfer INR 0.0031 Cr in unpaid dividends to the IEPF.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the outcome of the CIRP; if a resolution plan is not implemented, liquidation is likely. Auditors issued an 'Adverse Opinion' due to the inability to verify investments in subsidiaries totaling INR 70.17 Cr.

Geographic Concentration Risk

Concentrated in India; registered office in Mahipalpur, New Delhi.

Third Party Dependencies

High dependency on the NCLT and the Committee of Creditors (CoC) for any operational or strategic decisions.

Technology Obsolescence Risk

High risk; intangible assets are fully amortized and have not been re-assessed for useful life, potentially making the core product (Smartclass content) obsolete.

Credit & Counterparty Risk

Trade receivables stood at INR 3.08 Cr in FY25; the company made a provision for doubtful trade receivables/bad debts of INR 0.78 Cr in FY25.