Earning Call Transcript - Q1FY27

SC hanAdn dC ompaLniym ited RegisOtfefriAec-de2 :27 n,d F loMoorh,aC no -OperIantdiuvsEets rtiaNatelewD , e lh1i1 0-04I4n,d ia. S.CHAND P:+19114 97138 0I0F :+19114 97138 0I1E i:n fo@schanIdwww q.rsocuhpa.ncdogmr oup.com GROUP DatAeu:g u1s32t,0 26 To To LisDteipnagr tment ListDienpga rtment, BSELimited NatiSotnoEacxlkc haofnI gneLd iimai ted 2th5 FloPohri,rJ oezeej eTeobwheorys , ExchaPnlgaCez- aB1,l, o Gc,k BaKnudrrlaa DalSatrleM eutm,b Maaih,a ra4s0h0t0r0a1 CompBlaenx(d,Er M)au, m bMaaih,a rashtra 400051 DeaSri r, ReT:r ansocfcr oinpfetr cean-lcOle1 FY-2p7u rsutaoRn etg ul3a0to ifTo hnSe E B(IL isting ObligaatniDdoi nssc lRoesquurier eRmeegnutlsa)2t 0i1(o5"n Lsi,sR teignugl ations") ThCeo mpoarngya naci oznefedr ceanfolcrtle h A en alaynsIdtn sv eosnTt uoerssAd uagyu1,s1 2t,0 26 at1 2:P3.0Mt .od i stchufisens a nrceisafoulrlt thqseu aerntdeJirun 3ng0e 2 ,0 2T6h.te r anosftc hrei pt said conhfeerwleidntt chheAe n caalalynlsId tn sv esetnocrlsho esiresed w ith. TheC ompasnhyaa lllsd oi ssemtihaneba otivene fo rmaotnti howene bsoiftt heCe o mpany­ www. scghraonudp. . corn Requyeotsuokt i ntdalnkyoe ot fte h sea me. ThanYkoiun.g YouSrisn cerely, FoSrC hanAdn dC ompaLniym ited Jagdeep Singh CompaSneyc retary MemberNsohA:i1 p5 028 AddrAe-s2s2:7nd ,F loor, MohaCno -opeIrnadtuisvEtesr tiaatle , NewD elhi-110044 Encalsa: b ove CINNo L.2 2219DL1970PLC005400 “S Chand and Company Limited Q1 FY27 Earnings Conference Call” August 11, 2026 MANAGEMENT: MR. HIMANSHU GUPTA – MANAGING DIRECTOR – S CHAND AND COMPANY LIMITED MR. SAURABH MITTAL – GROUP CHIEF FINANCIAL OFFICER – S CHAND AND COMPANY LIMITED MR. ATUL SONI – HEAD – INVESTOR RELATIONS, STRATEGY AND M&A - S CHAND AND COMPANY LIMITED Page 1 of 14 S Chand and Company Limited August 11, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the S Chand and Company Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this call is being recorded. I now hand the conference over to the senior management of the S Chand Group for their opening remarks. Thank you, and over to you, sir. Himanshu Gupta: Thank you. Good afternoon, ladies and gentlemen. I am Himanshu Gupta, the Managing Director of S Chand and Company Limited. I would like to welcome you all to our first quarter results conference call for FY27 and thank you all for taking the time-out and joining us here today. Q1FY27 was strong quarter for the School Education segment. Our refreshed curriculum businesses including Mylestone, My Zen, SmartK and Solid Steps got multiple repeat adoptions from across the country. Along with this our new partnerships with Allied, Jump Maths, Penguin and Speedlabs further strengthened our product offering helping us offer more to our customers. We generated Rs91 million revenues from content licensing during the quarter. We expect growth acceleration in this segment in the coming quarters. We are also diversifying the dataset base to include non-academic data licensing. Happy to share that our group brand, Madhubun Educational Books partnered with IIT Madras Pravartak Technologies Foundation and BodhBridge Education to offer future-ready skills programs for school students from Class 7th to Class 12th and educators across India. The majority of the courses are being offered in online mode with live Page 2 of 14 S Chand and Company Limited August 11, 2026 interactive sessions from experts, course materials, and case studies, besides access to the recorded sessions. Madhubun serves as the official learning solutions partner to manage program delivery. We at S Chand consistently engage with all our stakeholders throughout the year. In the coming few months we have an active engagement calendar lined up like our Product Briefing for our top Channel Partners, Best Practises in Education Visit to Singapore for School owners and Principals, Connecting with the Teachers, Head of Departments and Students in schools through events like Math Summit, Hindi Diwas, Bhasha Mela, Knowledge Quest Quiz, Teachers Conclave etc. We look forward to NCERT releasing the remaining books on the new syllabus over the course of the year. We expect the full adoption of the new syllabus books in FY27. With that, I would now request our CFO, Mr. Saurabh Mittal to apprise all of us on the financial performance of S. Chand. Saurabh Mittal: Thank you, sir. Good afternoon, everyone and thank you for your time. I am Saurabh Mittal, Group CFO of S Chand and Company Limited. Now coming to numbers for the quarter, we reported consolidated revenues of Rs1,145 million (up 12% YOY), Improved Gross Margin, EBITDA Loss of Rs97 million and a PAT Loss of Rs187 million. There were some marketing expenses which were expensed in Q1 but relate to activities in Q2. Higher tax expenses due to a one-time adjustment of Tax rate to a lower rate, led to increased PAT losses this quarter vs last year. I would like to give some colour on our working capital metrics for the quarter-: Page 3 of 14 S Chand and Company Limited August 11, 2026 • Our Receivable days were stable during the quarter. Geo-political instability in the Middle East continues to hamper our collections from the region. We expect this to normalize going ahead. • We took a conscious decision to advance Paper purchases since we are pre-empting higher paper prices, supply disruptions and elongated shipping timelines for imported paper. This should be seen as a short-term strategic move considering the Geo-political environment that the world is facing. This is leading to higher Raw Material and Finished Goods Inventory vs. previous years. • Both the factors led to slightly higher Net Working capital days than last year. We continued our strong cash flow generation and remained Cash Surplus at the end of the quarter with the highest net cash balance at the end of Q1 in the company’s history of Rs1,182m (Vs. Q4FY26: Rs1,160m) after distribution of dividend of Rs141m. As we continue into FY27, I would like to reiterate for this year-: • Firstly, we are looking to grow Operating revenues by 10%-15% for the year. • Secondly, we are giving an EBITDA margin band guidance of 17%- 19%. • Thirdly, we look forward to continuing our focus on margins, working capital metrics and cash flows. • Fourthly, we are evaluating M&A opportunities which fill in the gaps in our portfolio. We aim to leverage our Group’s strengths in such acquisitions to deliver superior value to our customers and stakeholders. • Fifth, We are looking to target revenues in excess of Rs400m in the Content Licensing opportunities of our text, images, audio, videos and non-academic datasets and growing the number of clients from 5 to 10 this year. Page 4 of 14 S Chand and Company Limited August 11, 2026 With this, I would like to open the call for your questions. Thank you. Moderator: Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Chandramouli, an Investor. Chandramouli: Sir, in your presentation you mentioned the new Mylestone curriculum was adopted by 650 plus schools and that the Zen curriculum has adopted by over about 500 schools. Any revenue that you can share out of this initiative now, sir? What is your expectation for the year? Saurabh Mittal: The current revenues from both of these is around Rs55 crores to Rs60 crores. Chandramouli: For the first quarter? Saurabh Mittal: No, no, for the full year last year. Chandramouli: For the full year last year. Okay, okay. So which is on the uptrend? Saurabh Mittal: Yes, yes. Chandramouli: And you have done a new acquisition, CPD Singapore. What is the contribution, top line contribution this quarter, and what is the expectation, sir? Saurabh Mittal: It [Showing first 8,000 characters — download PDF for full document]