Education – Jul-Sep’25 Earnings Preview – GST transition to weigh down growth
Published on 08 Oct 2025
Education companies under our coverage are expected to report 10.5% YoY growth in top-line in 2QFY26E. DOMS IN is likely to report 15.0% growth in stationary business as distributor off-take has seen deferment following recent reduction in GST rates. Nonetheless, rise in syndication revenue is likely to bolster SCHAND IN’s top-line while NELI IN’s struggle for growth would stem from rising usage of second-hand books and levy of tariffs by the US on stationery exports. On the operating performance front, DOMS IN is likely to witness 147bps compression in EBITDA margin amid consolidation of low-margin diapers business. On the other hand, SCHAND IN and NELI IN are likely to report a loss at operating level.
