S Chand & Company

Vikas Publishing House Private Limited, a wholly-owned subsidiary of S Chand and Company Limited, has approved the sale of its printing business to Shri Shyamlal Printing Press Private Limited through a slump sale agreement. The printing business generated Rs 45.82 crores in turnover, representing 21.20% of Vikas Publishing's total revenue, with a net worth of Rs 18.78 crores (9% of total net worth). The sale consideration is Rs 53 crores, comprising Rs 23 crores through banking channels and Rs 30 crores via subscription to compulsory convertible debentures. The transaction was executed on October 1, 2025, between two wholly-owned subsidiaries of S Chand, structured as an arm's length related party transaction based on independent valuation.

S Chand And Company Limited reported consolidated revenues of Rs1,026 million for the quarter ended June 30, 2025, with an EBITDA loss of Rs91 million and PAT loss of Rs141 million. The decline was primarily driven by a shift in content licensing (AI Datasets) revenues from Q1 to Q2, with AI dataset revenues falling to Rs30 million versus Rs115 million in Q1FY25. The company achieved historic low working capital metrics for Q1, with receivable days at 89 days, inventory days at 218 days, and net working capital days at 119 days. Net cash position increased to Rs1,161 million from Rs1,036 million in Q4FY25, after dividend payment of Rs141 million. The company maintained its revenue guidance of over Rs8,000 million for FY26 and upgraded EBITDA margin guidance to 18-20%. Management expects NCERT to release new syllabus books for Classes 4, 5, 7, and 8 during the year, with full adoption expected by FY27. The company is evaluating three acquisition opportunities totaling less than Rs50 crores in revenue across test preparation, international board, and regional segments. Paper prices declined 5-7% and are expected to remain soft. The AI dataset business is expanding from two to seven potential clients, with opportunities expected to continue for the next 2-3 years.

S Chand has announced plans to achieve revenues exceeding ₹8,000 crores by FY26 while maintaining EBITDA margins of 18-20%. The company's growth strategy includes capitalizing on the NCERT new syllabus rollout expected by FY27, expanding its AI dataset licensing business, and pursuing strategic acquisitions. The company plans to leverage its historically low working capital position to drive sustained cash flow growth.