Navneet Education Limited reports strong growth in Q3 and 9M FY25: revenue Up 2.7%, EBITDA Surges 15.1%

• Export stationery business shines with 17% growth, while strategic gains bolster profitability 

MUMBAI: Navneet Education Limited (NEL) is one of the largest educational syllabus-based supplementary content &Stationery providers has released its unaudited financialresults for the quarter andnine months ended 31^stDecember 2024.

Consolidated Financial Highlights–9MFY25 

*Note:9MFY25-Includes Rs.189crstowardsrealized gainonstake salein K12(5.32%)& Rs.497Crs.towardsfair value gainon remainingstake(14.92%)in K12 as the same is being considered as financial asset.

Q3FY25-Rs.25.5crs.towardsfair valuegainonremainingstake(14.92%)inK12

9MFY24-Rs.30.23crs.towardsprofit onsaleland&building atGhuma&Rs.37.93crs.ondilution ofgroupsharesfromanassociatecompany9M FY24 numbers are restated after giving merger effect

9MFY25 Stand alone Highlights (Y-o-Y)

• 611croresascomparedtoRs.592croresin 9MFY24
• Total Revenue from Stationery Business stood at Rs. 734 crores registering a growth of 3% as compared to same period last year
  • 505crores,agrowthof11%ascomparedtosameperiodlastyear
  • 225 crores,ade-growthof12%ascomparedtosameperiodlast year
• WorkingCapitalCycleason31^stDecember2024:
  • ReceivableDays–42 days
  • FGInventoryDays–100days
  • RMInventoryDays– 103days

Performance Highlights, Mr. Gnanesh(Sunil) Gala, Managing Director:

“We are pleased to report our financial and operational performance for Q3 and 9M FY25, which reflects a mix of strong growth driven by our export stationery business, steady growth in publication business and some challenges in the domestic stationery business. While we navigated a competitive landscape, we continued to make strategic progress in key focus areas, ensuring long-term sustainable growth.

Quarterly Highlights

Our revenue from the publication business grew by 28% year-on-year to approximately Rs. 113 crores. This growth was primarily driven by a few institutional orders that significantly contributed to our topline, reaffirming our market leadership and deep-rooted presence in the education sector. Our strong execution capabilities and ability to fulfill large institutional orders position us well for future opportunities in this space.

Our domestic stationery business faced challenges due to a continuous decline in raw material prices, leading to slower procurement demand from dealers and distributors, which impacted both growth and margins. Revenue from this segment declined by 24% year-on-year to approximately Rs. 52 crores. Whilewe experienced short-term pressures on growth and margins in Q3, stable paper prices in January are expected to drive demand recovery in Q4 FY25. Additionally, we are actively implementing operational efficiencies and a prudent pricing strategy to stabilize margins and support long-term growth

On a positive note, our Exports Stationery business continued to perform exceptionally well, registering strong growth of 17% year-on-year to approximatelyRs. 115 crores. This growth was on account of the introduction of new product categories and expansion into newer geographies. Our sustained focus on product innovation, customer acquisition, and deeper market penetration in international regions hasbegun to yield tangible results. This segment remains a key pillar of our long-term growth strategy, and we are optimistic about scaling up our global presence further.

From a profitability perspective, overall EBITDA stood at ~Rs. 28 crores, while EBITDA margins stood at 10.1%.

FY26 and beyond

Looking ahead, we remain confident in our ability to navigate market challenges and capture emerging opportunities. Our strategic focus remains on strengthening our core businesses, driving innovation, and expandingourfootprintinbothdomesticandglobalmarkets.Withastrongbrandlegacy,robust distributionnetwork,andcontinuedinvestmentsingrowthareas,wearewell-positionedtodeliver

sustainablevaluetoallourstakeholders.”

About Navneet Education Limited

NavneetEducation Limited(NEL)isoneofthelargesteducational syllabus-based supplementary content provider forthe state-board based curriculum and quality content across Print and Digital mediums. The company also offers Scholastic Paper and Scholastic Non-Paper stationery, publish General & Children books. With 60+ years of experience as an educational publisher & stationery manufacturer, the Company enjoys a high brand recognition and market standing in theeducational content and scholasticstationery segment. It’srichindustry experienceand insightfulendeavorsenabled the business to achieve a robust leadership position in the industry. It owns a market share of approximately 65% in Western India. Going ahead, as the Company continues to transform in line with ever-evolving trends. It aims to build a strong presence in the EdTech domain by leveraging its existing businesses. Backed by proficiency, responsiveness and preparedness, the Company emphasises on consistently ‘Transforming with Times’.