Investor Presentation

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Requyeotsukot i ntdalnkyoe ot fte h sea me. ThanYkoiun.g YouSrisn cerely, FoSrC hanAdn dC ompaLniym ited Jagdeep Singh CompaSneyc retary MemberNsohA:il p5 028 AddreAs-s22:7nd F, l oor, MohaCno -opeIrnadtuisvEtesr tiaatle , NewD elhi-110044 Encalsa: b ove CINNoL.2 2219DL1970PLC005400 S. Chand and Company Limited Investor Update Q2 – FY2026-27 5th November 2026 Contents Key Highlights – Q2FY27 Consolidated Financial Performance Status of Minority Investments 01 Key Highlights – Q2FY27 S CHAND GROUP - INTRODUCTION ✓India’s largest Education content company having pan India presence. 87+ 4,000+ 45,000+ ✓Country wide sales and distribution network driving deep market ◼Years of operating ◼Channel Partners ◼Number of reach. history Schools covered ✓New State-of-art printing and binding facility 3000+ 14,000+ 2,000+ ✓Keeping pace with the times – Print & Digital Content and ◼Authors ◼Unique Titles ◼Team size of S services. sold Chand Group MAJOR BRANDS MANAGEMENT COMMENTARY – Q2FY27 Q2FY27 was a steady quarter for the School and Higher Education segments in terms of sales on a YoY basis. Do note that the 2nd quarter is the smallest quarter in terms of revenues during the whole year. This is the quarter in which we execute our key marketing initiatives for the upcoming sales season. We would like to highlight certain points with regards to this quarter-: 1. We have made a conscious decision to advance Paper purchases this year since we are seeing double digit inflation in paper prices going ahead. This is a short- term strategic move which should help us in delivering our guided margins for the year. 2. This advancement of paper purchases in Q2 would impact our Inventory days and Net Working Capital days for the quarter in comparison to previous years but these metrics should normalize by MANAGEMENT COMMENTARY – Q2FY27 3. There has been a move of certain marketing spends which historically used to happen in Q3 to Q2. These spends are in the range of Rs50m- Rs60m which should be kept in mind while comparing the Other expenses for H1FY27 vs. H1 last year. 4. We have remained net debt free at the end of the quarter with net cash balance of Rs95m (Vs. Q2FY26: Rs235m). With this, we are on track to be net debt free for 3 quarters in FY27 as well. 5. On an absolute basis, we have billed content licensing (AI Datasets) revenues of Rs147m during H1FY27 vs. Rs142m during H1FY26 . We look forward to the full adoption of the new syllabus books in the FY27 sales season. RAW MATERIAL INVENTORY PURCHASES HAVE BEEN PREPONED IN Q2 • We have made a conscious decision to prepone our raw paper purchases in Q2 since we are seeing double digit inflation in paper prices going ahead. • This is a short- term strategic move which should benefit us in delivering our guided margins for year. • The impact on inventory days and working capital days should normalize by Q4. • Raw Material inventory has increased by Rs286m in Q2 vs. the same quarter last year. • FG inventory has increased by Rs327m as we have advanced some portion of our printing from Q3 to Q2 to smoothen the printing load in later quarters. IN TERMS OF INVENTORY DAYS, NUMBERS ARE COMPARABLE • In Absolute numbers, Raw/Finished/Total Inventory is higher over previous years, but in terms of number of days, the Raw/Finished/Total Inventory days are in a comparable range vs. historical numbers. WORKING CAPITAL METRICS • We expect receivable days to improve going ahead. • Net Working Capital days have increased on back of higher inventory levels on back of preponement of paper purchases to Q2 vs Q3. • We expect NWC days to normalize by Q4. WE CONTINUE TO BE NET CASH POSITIVE • We continue to be net cash positive at the end of Q2. With this, we are on track to be net debt free for 3 quarters in FY27 as well. KEY MARKETING & PROMOTIONAL ACTIVITIES EXECUTED IN Q2 Bhasha Mela - NSH Saraswati Shikshak Hindi Diwas – Samman – NSH (To Madhuban be held in Q3) EduVisit 2026 – Maths Summit – S Singapore Chand SE Key Marketing Channel Partner Teachers Conclave Product Briefing – & Promotional - Chaaya Thailand Activities LOOKING AHEAD – FY27 Focus on Content Licensing (AI Datasets) deals for content monetization. Target revenues in excess of Rs400m for FY27 from this Focus on working EBITDA margin band segment capital metrics and of 17%-19% for FY27 cash flows to continue. Operating revenues to grow in the range Evaluate Inorganic FY27 of 10%-15% Opportunities for enhancing our product (Excluding any portfolio acquisitions during the year) Consolidated Financial Performance CHANGING NATURE OF OUR BUSINESS • K-12 (National & Regional Board) have been growing steadily. • The acquisition of CPD Singapore would drive our K-12 (International Board) business. This was a gap area in the S Chand Group’s offerings and we expect this segment to scale up strongly given the number of schools being added in the International Curriculum segment across South East Asia, Middle East and India. Do not that FY26 revenues for this segment are only for 2 months post our acquisition. • Our Digital Businesses have scaled rapidly for the S Chand Group. This is a segment with immense potential and we expect it to contribute meaningfully in the years to come. CONSOLIDATED FINANCIAL PERFORMANCE H1FY27 Highlights Revenues: Up 7% Gross Margins: Up 9% Higher Other expenses on back of preponement of certain marketing activities from Q3 to Q2 has led to increased EBITDA and PAT Losses CONSOLIDATED FINANCIAL PERFORMANCE Q2FY27 Highlights This is the smallest Revenue quarter for the company. Higher Other expenses on back of preponement of certain marketing activities from Q3 to Q2 has led to increased EBITDA and PAT Losses CONSOLIDATED FINANCIAL PERFORMANCE CONSOLIDATED FINANCIAL PERFORMANCE • The decline in Operating Cash Flows between Q2FY27 vs. Q2FY26 is totally driven by increase in Inventory. • We took a conscious decision to prepone our raw material purchases to Q2 in light of increasing paper prices. • During Q2, our inventory has increased by Rs544m while in the same period last year, the inventory had increased by only Rs164m. • Thus, inventory alone impacted the OCF of the two periods by Rs380m while the actual OCF is lower by Rs286m between two periods. CONSOLIDATED FINANCIAL PERFORMANCE • We expect Operating flows to normalize by • We have delivered an average OCF of approx. Rs1,000m over the past 5 years and we are working towards delivering OCF of over Rs1,000m for FY27 as well. WORKING CAPITAL METRICS • Working Capital Metrics • Trade Receivables increased to Rs2,105m during Q2FY27 vs. Rs1,611m at the same time last year. • In terms of receivable days, it stood at 95 days (vs. 81 days in Q2FY26). • Inventory increased to Rs2,178m (vs Q2FY25: Rs1,565m). Our inventory includes raw material paper inventory of Rs755m (vs. Q2FY26: Rs469m). • In terms of inventory days, it stood at 307 days (vs. 237 days in Q2FY26). • We have made a conscious decision to prepone our raw paper purchases in [Showing first 8,000 characters — download PDF for full document]