Aptech Limited reported a sharp recovery in profitability for the first quarter of FY27, with net profit rising 329.8% quarter-on-quarter (QoQ) to ₹7.65 crore.

The vocational training company posted operating revenue of ₹133.75 crore, an 11% increase year-on-year (YoY) and a 20.5% rise QoQ. EBITDA expanded significantly to ₹12.92 crore, reflecting improved operational leverage across its retail and institutional segments.

Financial Performance

Total income for the quarter stood at ₹137.55 crore. Operating expenses were ₹124.63 crore, resulting in an EBITDA margin of 9.39%, up 342 basis points from the previous quarter’s 5.97%. Profit before tax reached ₹10.31 crore, aided by lower tax provisions of ₹2.66 crore compared to ₹2.83 crore in Q4FY26.

Segmental Breakdown

The retail segment contributed ₹102.11 crore, accounting for 76% of total revenue. This represents a 25% QoQ growth in segment revenue, although segment results dipped 9% YoY to ₹12.59 crore. The institutional business saw robust growth, with revenue rising 38% YoY to ₹31.64 crore. Segment results for this unit surged 229% YoY to ₹3.00 crore, highlighting improved contract execution and margin realization.

What the Numbers Show

The divergence between top-line growth and bottom-line expansion indicates significant operating leverage. While revenue grew 20.5% QoQ, EBITDA nearly doubled (88.3%), suggesting that fixed costs remained stable while variable revenues scaled efficiently. Additionally, the institutional segment’s EBIT margin jumped 833 bps QoQ to 9%, contrasting with the retail segment’s slight margin compression, pointing to a shift in profitability drivers toward B2B contracts.

Balance Sheet & Cash Flow

As of March 2026, total assets stood at ₹427.75 crore. Cash and bank balances were ₹35.24 crore, providing liquidity for ongoing operations. Trade receivables increased to ₹67.00 crore from ₹35.95 crore in March 2025, warranting monitoring of collection cycles amidst revenue growth. The company maintained a debt-free structure with no long-term borrowings disclosed in the current liabilities.

Strategic Initiatives

Aptech continues to expand its footprint with 574+ operational centers across India and 181 centers globally. Key initiatives include the launch of AI-integrated curriculum under brands like Arena Animation and MAAC, targeting the growing creator economy and AVGC sectors. The company also emphasized a ‘phygital’ model to scale into Tier-2 and Tier-3 cities with lower capital expenditure.

Aptech has secured a contract worth ₹7.23 crore from a state government for the provision of computer-based exam services.

Contract details

The following table summarises the key details of the contract as disclosed:

The contract represents an order win in the government examination services segment, where computer-based testing has seen growing adoption across state-level recruitment and certification processes.

Significance of the order

The award of this contract underscores Aptech's presence in the public sector examination services space. Computer-based exam delivery involves end-to-end management of test infrastructure, candidate management, and secure result processing for government bodies.