NAVNETEDUL - Navneet Educat.

📊 NSE: NAVNETEDUL 🏢 Printing & Stationery 📅 Last Updated: 12/14/2025 10:23

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 3% in FY24 to INR 1,748 Cr and 2% in FY25 to INR 1,781 Cr. The stationery segment grew 7% in FY24 (contributing 57% of revenue), while the publishing segment (43% of revenue) remained flat. In Q2 FY26, publication revenue rose 12.3% to INR 91 Cr from INR 81 Cr, while stationery exports declined 17.5% to INR 155 Cr from INR 188 Cr.

Geographic Revenue Split

The publishing business is highly concentrated in Western India, with a 65% market share in the state-board supplementary content markets of Gujarat and Maharashtra. The stationery segment has a healthy presence in both domestic and global markets, including the US, Europe, and Africa.

Profitability Margins

Operating margins stood at 17.4% in FY24, improving to 20.8% in H1 FY25 due to low raw material prices. PAT margin was 14.4% in FY24 and surged to 45.1% in FY25 (INR 804 Cr PAT) due to a one-time exceptional gain of INR 683 Cr from the divestment of a stake in K12 Techno Services.

EBITDA Margin

EBITDA margin was 18.8% in H1 FY26 (INR 240 Cr EBITDA), down from 20.8% in H1 FY25. Core operational performance remains stable excluding exceptional items, with stationery EBITDA margins expected to stabilize at 12-13% over the medium term.

Capital Expenditure

The company plans to incur capex of INR 200 Cr over the next 2-3 years, primarily for capacity expansion in the stationery segment and maintenance in the publication segment. Approximately INR 100 Cr is invested annually, with INR 50 Cr already deployed for a new facility operational in 2025-26.

Credit Rating & Borrowing

Crisil Ratings and CARE Ratings maintain a favorable outlook based on a comfortable financial risk profile. The company has nil long-term debt as of September 30, 2024, and an interest coverage ratio of 16.93x in FY25.

⚙️ Operational Drivers

Raw Materials

Paper is the primary raw material for both publishing and stationery segments, representing a significant portion of the INR 1,413 Cr operating expenses in FY25. Non-paper stationery components are also sourced for the expanding non-paper portfolio.

Import Sources

Not disclosed in available documents; however, the company maintains strong supplier relationships to negotiate terms and mitigate price volatility.

Key Suppliers

The company engages over 400 authors on a contractual basis for content creation. Specific paper or chemical supplier names are not disclosed.

Capacity Expansion

Current stationery portfolio includes 1,250 SKUs in India and 1,500 SKUs internationally. A new manufacturing facility is expected to become operational in 2025-26 to support volume-led growth.

Raw Material Costs

Raw material costs are susceptible to volatility in paper prices. While margins improved to 20.8% in H1 FY25 due to lower input costs, the company uses pricing strategies to pass through costs, though a lag exists in the export stationery segment due to pre-booked orders.

Manufacturing Efficiency

The company has implemented Occupational Health and Safety (OHS) systems across all plants and uses sewage treatment plants to reuse water for gardening, enhancing resource efficiency.

Logistics & Distribution

The company utilizes an extensive distribution network to maintain its 65% market share in core publishing regions and serves global retail giants like Walmart, Target, and Staples.

📈 Strategic Growth

Expected Growth Rate

17%

Growth Strategy

Growth will be driven by curriculum changes in Gujarat and Maharashtra state boards, expansion into non-paper stationery segments, and increasing the revenue contribution of 'Rise' digital products from 5% to 10-11% within two years. The company is also expanding its export footprint in Europe and Africa.

Products & Services

Supplementary books (workbooks, digests), general books, scholastic stationery, e-learning tablets, cloud-based interactive exams, and application-based audio visuals.

Brand Portfolio

Navneet, Indiannica, Rise, Top Class, Navneet AI.

New Products/Services

Navneet AI and digital content distribution are being launched to complement physical products. 'Rise' products are being aggressively sold in Maharashtra and Gujarat, targeting a 100% increase in revenue share by 2027.

Market Expansion

Targeting expansion in CBSE and ICSE boards beyond Maharashtra and Gujarat, and diversifying export markets to minimize dependence on the US.

Market Share & Ranking

65% market share in the educational supplementary content segment in Gujarat and Maharashtra.

Strategic Alliances

Preferred partner status with global retailers including Walmart, Target, and Staples.

🌍 External Factors

Industry Trends

The industry is shifting toward a hybrid model of print and digital content. Navneet is positioning itself by integrating digital teaching solutions (Top Class) and AI-driven content to stay relevant as the National Education Policy (NEP) triggers curriculum updates.

Competitive Landscape

Intense competition in the fragmented stationery industry and limited geographical diversity in publishing are primary constraints.

Competitive Moat

Sustainable moat derived from 60+ years of brand recognition, a dominant 65% market share in core geographies, and established relationships with 400+ authors and major global retailers.

Macro Economic Sensitivity

Highly sensitive to paper price inflation and changes in state educational policies/curriculums.

Consumer Behavior

Surge in second-hand book usage during years without curriculum changes affects new book sales; shift toward exploratory and digital learning is driving demand for Indiannica and Rise products.

Geopolitical Risks

US tariffs on stationery exports are a key monitorable that could impact medium-term demand and margins.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by state board curriculum mandates and environmental norms for manufacturing sites.

Environmental Compliance

Maintains ISO 45001 certification; implements water treatment and reuse systems mandated by the State Pollution Control Board.

Taxation Policy Impact

The company reported a tax expense of INR 120 Cr in FY25 on a PBT of INR 861 Cr (inclusive of exceptional items).

⚠️ Risk Analysis

Key Uncertainties

Timing of syllabus changes (high impact on publishing revenue), volatility in global paper prices, and the impact of US trade tariffs on the export segment.