Indian
Education Sector Report 2025
Unlock the full potential of India's education revolution through our extensive report 2025 that
will be available for access. Discover the emerging trends, latest innovations and policy updates
into the education sector along with the top institutions, EdTech players, areas of investment
opportunities, growth drivers fueling India's booming education landscape.
About Indian Education Sector Report 2025
This report delves into market trends, growth drivers, challenges, and opportunities. It is highly crucial for educational institutions,
EdTech companies, investors, and stakeholders to take cognizance of riding the changing waves of the evolving ecosystem, which
may come with such potential. Download now for the latest update.
List of Chapter
Chapter 1 : Introduction to Indian Education Sector 2024
Chapter 2 : Key Trends & Opportunities in the Indian Education Sector
Chapter 3 : Indian EdTech Sector
Chapter 4 : Case Study - Byju’s
Chapter 5 : Investment in Education Sector Stocks & Conclusion
Chapter 1 : Introduction to Indian Education Sector 2024
Overview
India hosts the world's largest network of higher education institutions. The education sector is likely to be around $225 billion by FY25.
It is home to more than any other country of over 250 million school-going students. According to AISHE, there were around 43.3 million
students enrolled in higher education institutions in FY22.
In the year 2023, the Indian education sector is estimated to be at $117 billion and is expected to reach $313 bn by FY30. Indian higher
education market is supposed to see a commendable Compound Annual Growth Rate of 8.46% between 2024 and 2032.
India has one of the largest education systems in the world; around 1.49 mn schools, 9.5 million Number of Colleges in India teachers
and nearly 265 Mn students. Being a world's most populous country, India has a glorious demographic advantage with a hefty youth
population.
o Pre-Schooling: With 25 mn children born every year, India's Pre-school market is expected to increase to $7.35 bn by 2028 with a
growth rate of CAGR of 11.2% over the period of 2023-28.
K12 Education: In modern K-12 education, 1.46 mn schools with 230 mn students of India are being enrolled successfully.
University Education: India boasts the world's largest networks of higher education systems with 45,000-degree colleges, over 1000
universities, and about 1500 top institutes.
Ed- Tech: India is emerging as the Ed Tech capital of the world; of 36 Ed-Tech unicorn companies, 7 are Indian and valued at $ 34.05 bn
in 2022-23.
As of July 2024, India has 50,577 colleges, and 1,265 universities have been reported as of March 2024. The edtech market in India is
expected to reach $30 billion by 2031, and the online education market is expected to grow by 23.06% between 2024 and 2029,
reaching a market volume of $18.94 billion by 2029.
The country has also reached 100% gross enrollment ratio at the primary level, which is at the par with developed countries. With NEP,
the government of India plans to uplift the Gross Enrolment Ratio in higher education inclusive of vocational education from the present
26.3% in 2018 to 50% in 2035.​​
101 Indian Institutions made it to the qualification list for Times Higher Education World University Rankings 2024. 10 Indian Institutes
in Top 500 in QS World University Rankings 2024.
The government of India recently launched the Study in India portal, a dedicated website that will provide comprehensive information
about the Indian Higher Education Institutions (HEIs).
Advantages
1. Competitive Advantage
▪ There is a huge population speaking the English language. Hence, it is easy to deliver educational products. India was ranked 52nd
out of 111 countries in the English Proficiency Index 2022.
▪ Nine Indian institutes-the Indian Institute of Science (IISc) in Bengaluru and eight Indian Institutes of Technology (IITs)-featured in the
top 500 universities in the QS World University Rankings 2023.
2. Strong Demand
• The population of 5-24 years in India is the largest in the world at 580 million.
• The country has more school-going students than any other country at 250 million.
• This market will have a significant gap in terms of demand and supply where there is a requirement of 200,000 more schools, 35,000
more colleges, 700 more universities and 40 million seats in vocational training centers.
• More than half a million foreign students for higher education in India by 2047 - Study In India.
• K-12 segment growth for India was at US$ 48.9 billion in 2023. It is, as of now, estimated to grow at a rate of 10.7%. The growth is
expected to hit an impressive US$ 125.8 billion by 2032.
3. Increasing Investments
▪ India's education market is likely to add up to US$ 225 billion by FY25.
▪ FDI equity inflow in the education sector from April 2000-March 2024 stood at US$ 9.51 billion.
▪ In the edtech space, it attracted private equity investments to an extent of more than US$ 4 billion in the last five years.
▪ Overall, Indian ed-tech start-ups have invested a US$ 3.94 billion of overall deals done in the company 155 deals, up FY 22
▪ The edtech, in June 2022, had PhysicsWallah becoming the 101 unicorn through ed-tech platform of securing the deal of funding
around US$ 100 in series -A deal secured through the West Bridge and GSV ventures into value around the company valued into the
sum of around $ 1.1 billions.
4. Policy Support
▪ This is an attempt to open up the sector, whereby the government has introduced the National Accreditation Regulatory Authority Bill
for Higher Educational, as well as the Foreign Educational Institutions Bill.
▪ The government programs, primarily RISE and EQUIP, are helping the government take away some of the outstanding issues
confronting the sector.
▪ 100% FDI (automatic route) is allowed in the Indian education sector.
5. Improving Higher Education Ecosystem
University Grants Commission of India (UGC) in April 2022, had sanctioned regulations for foreign collaboration to offer joint, dual, or
twinning programs. It has also issued Draft Regulations 2023 that would allow foreign universities to open physical campuses in India.
Key Barriers
Unequal Access to Education
All the growth and progress in the economy of India could not be a panacea for all the sections, rural areas, and socially
marginalized groups, and they have been kept out of quality education. Therefore, dropout rates are pretty high, more than 40%
at the secondary level, and the literacy rate is less compared to other countries, i.e., 64.1% in rural areas while it is 84.1% in
urban areas. Such inequality will lead to intergenerational poverty and less socio-economic mobility.
Costly Higher Education
Higher education is no longer affordable for most Indians due to the skyrocketing cost of education. Assocham's study reveals
that primary and secondary education inflation has increased by a whopping 169% in the last six years-from 2005 to 2011. This
primarily happens because of the increasing costs of specialized institutions, colleges, and private universities. The average
annual fee for professional courses like engineering and management can range from ₹50,000 to ₹2 lakhs, increasing the
financial burden on students and families.
Lack of Infrastructure
The education sector in India has always suffered from chronic infrastructure deficiencies. As a result, students lose learning
opportunities. According to various researches, 95.2% schools fail to meet the infrastructure requirements set by the RTE, and
such basic facilities are also not available in the school such as:
Sanitation and cleanliness
Drinking water
Electric supply
Play area and sports equipment
Toys libraries and digital facilities
Because of which the quality of delivery of instruction has suffered much.
Teacher-to-Student Ratio and Teacher Shortage
According to the UNESCO 2021 report on India's State of the Education, a critical shortage was noted with 11.16 lakh teaching
positions as such in over 1.3 million schools. Too much pressure is put upon the teacher to handle mundane non-academic tasks
other than teaching and mentoring skills. The Student-teacher ratio still remains high-1:30, leaving behind the recommended
1:20. This creates an opportunity cost for proper education quality and student output.
Chapter 2 : Key Trends & Opportunities in the Indian Education Sector
Trends
Rise of Virtual Learning
The COVID-19 pandemic has speeded the adoption of technology in schools. Today, online programmes range from
business analytics to data analytics and artificial intelligence.
According to a recent market research report by KPMG India and Google, the online education space in India is ready for an
explosion.
The Union Budget 2023 announced ₹1.043 trillion for promoting digital learning resources by integrating technology with
age-old teaching methods.
Key initiatives include:
Development of the digital infrastructure
Online learning platforms
Virtual reality-based learning
AI-based adaptive assessment
Learning Through Gamification
The Indian education system is now embracing gamification to enhance engagement and learning outcomes particularly for
Gen Z-ers.
Examples include MBA programs in hospital administration in which a lot of gamification techniques are applied for:
Promoting critical thinking
Develop decision-making skills
Develop problem-solving skills
Experiential learning through gamification prepares students for the economically digitally driven economy.
Focus on Conceptual Learning
The National Education Policy 2020 clearly emphasises conceptual understanding rather than rote-based learning.
Some of the key objectives include:
Holistic development
Analytical and investigative skills.
Technology integration
Hands-on application
The teaching method today encourages students to learn by doing, helping them find their passions and interests.
Banking and financial services, business management, and hospital administration deal with real-life problems in the
courses.
Demand for Non-Conventional Courses
Vocational courses are increasingly being asked for:
Marketing and digital marketing
Banking and financial services
Health care management
Data science and analytics
MBAs in demand but with an inclination towards:
Creativity
Critical thinking
Logical thinking
Innovation
These courses prepare students with industry-specific skills so the gap between academics and industries is bridged.
Opportunities in the Indian Education Sector
1. Investment in Education
▪ 100% FDI is allowed in the Indian education sector through the automatic route. Foreign Direct Investment (FDI) equity inflow in the
education sector for April 2000-March 2024 was US$ 9.51 billion.
▪ Announcing in 2020, the Indian government was planning to spend Rs. 10 crore (US$ 13.63 million) on model ITI institutions to focus
on developing skills among youth. Within this initiative, nearly 15,000 model ITIs would be opened across the nation.
▪ In August 2022, Indian higher education company upGrad raised US$ 210 million in a funding round, which values the company at
US$ 2.25 billion.
2 Policy support
▪ The Central Government accepted the "New India Literacy Programme" for FY 2022-27 to cover all aspects of adult education that
would align with National Education Policy 2020 and Budget Announcements 2022-23.
▪ In February 2022, the Ministry of Education approved the scheme of Rashtriya Uchchatar Shiksha Abhiyan (RUSA) for continuation up
to 2026. ▪ DoSE&L, of Ministry of Education, will release online public consultation through a survey to seek inputs from different
stakeholders. Such a development will be really useful in gathering very relevant and important inputs for the National Curriculum
Framework formulation.
3 High growth prospects
▪ India has the worlds largest number of populations from 5-24years - 500 million peoples, which is its greatest growth opportunities for
education.
▪ The Indian education industry will experience steady growth in a phase because demand for good quality education is high.
The India education market is estimated to be close to US$ 225 billion by FY25.
▪ India K-12 segment was US$ 48.9 billion in 2023 and is estimated to grow up to US$ 125.8 billion by 2032.
4 Public Private Partnership (PPP)
▪ Set up formal educational institutions under PPP and expand upon the existing ones.
In the case of PPP, government considers several models such as the basic infrastructure model, outsourcing model, equity/hybrid
model, and reverse outsourcing model.
▪ Institutions of national importance like NIDs will be able to establish PPP and collaborate with research labs across the country.
5 Opportunities for foreign investors
▪ Increased scope for private and foreign companies dealing with academia by providing financial partnerships to Indian institutions.
▪ In February 2022, fintech firm Propelld, focusing on education, raised US$ 35 million in series-B funding from WestBridge Capital,
Stellaris Venture Partners, India Quotient, among others.
In January 2022, edtech startup Super Scholar raised $ 400,000 in funding from the MAGIC Fund, 2am VC, Astir VC, JITO Angel
Network, among others.
6 Opportunities for innovative services
▪ The private coaching sector brought in revenue of Rs. 25,000 crore (US$ 3.35 billion) in 2020, growing by 35% over the past 5 years.
This shows that there lies a huge market for coaching and tutoring services that can be imparted through innovative means.
▪ The Indian coaching industry currently stands at Rs. 58,088 crore (US$ 7 billion) as of December 2022. The market is estimated to
grow further to reach Rs. 1,33,995 crore (US$ 16.16 billion) by 2028.
▪ STEM-based edtech companies are teaming up with Niti Aayog and the government to build a STEM ecosystem by establishing ATL
across the country to spread knowledge about STEM, STEAM, AI, ML, and robotics for K-12 students.
Chapter 3 : Indian EdTech Sector
Growth of EdTech in India
As of 2024, India's EdTech market is valued at around $7.5 billion. It is expected to reach $29 billion by 2030, with over 100 million paid
users. In 2024 YTD, the Indian EdTech sector raised $215M, showing a modest rebound from the $321M secured in 2023. However,
this is still a long way from the sector's peak in 2021, when it raised $4.1B.
The 2023 figure marked an 87% drop from the $2.4B raised in 2022, showing further decline in the sector.
There are more than 11,000 active companies in the Indian edtech ecosystem. Its ranking as the third-highest-funded globally is
unprecedented, next only to the US and China. It boasts six unicorns in the world, second to the US. The sector continues to be
depressed with over 11,000 active companies because of macroeconomic factors and the shift back to more traditional learning with the
resumption of classes. This means that although innovative courses and professional upskilling stay in demand, especially for areas
where education cannot be applied offline, hope for positive growth still prevails.
Why EdTech Is Flying High ?
Several factors are driving the growth of EdTech in India:
Interactive Learning: EdTech platforms have made the process of learning much more interactive and fun. Tools like Virtual Labs by IIT
Delhi and IIT Kharagpur enable students to do online experiments and make complex subjects easier to grasp.
Reaching to every nook and corner, the internet has reached 1.4 billion Indians with 57% consuming regional language content. The
EdTech platforms teach in several languages, and this quality education for the rural child or the urban child has reached within arm's
distance.
Learning through Play: Gamification makes boring subjects fun to learn. Kahoot! and FunBrain keep the students motivated because
learning feels like a game.
Flexible Upskilling: Online platforms are increasingly getting used by professionals and job hunters for upskilling themselves. This is
possible on short, flexible courses acquired without having to leave any job; thus, becoming more convenient and practical online
training.
India’s Global EdTech Footprint
India's EdTech market thrives not only on Indian soil but also outside India. What was once exclusively operating from the US is
currently the second largest market following this country. India is quickly turning into the hub for digital learning, as companies like
PhysicsWallah, upGrad, Eruditus, and Vedantu have turned themselves into unicorns.
Several factors have contributed to the rapid growth of the edtech industry in India:
Better Access to the Internet: The government is making internet more accessible in small towns and villages, so
more and more students can take cost-effective and flexible online courses.
Demand from Working Professionals: With AI, machine learning, and other technologies changing at breakneck
speed, working professionals have to update their skills continually. Edtech platforms allow them to reskill and upskill in
collaboration with other institutions of repute.
Cost-Effective Education: Online education is far cheaper compared to traditional education conducted offline.
Students may study from their homes without changing places, thus saving much time and money.
Government Support
The Indian government has led the growth of EdTech. Plans such as the National Education Policy 2020 and the National Digital
Education Architecture focus on reaching quality education for all.
In the budget for 2024-25, the government has given ₹73,498 crore to the Department of School Education and Literacy to increase
digital education.
For example, programs like the National Educational Alliance for Technology, or NEAT, made online learning free for students from lowincome backgrounds as well.
Chapter 4 : Case Study - Byju’s
An inspiration for the whole Indian ed-tech Industry, Byju's, is struggling to stay afloat today as the biggest unicorn in the country. The
company people loved is getting abused.
A passion-filled inspirational journey of innovation, dedication, mistakes, and failures - Byju Raveendran: the small-town teacher
becomes one of the founders of one of the world's largest ed-tech platforms, BYJU'S.
At first, the very distinct teaching approach where simplicity went hand in hand with profundity might attract the students. But he found
the scope and potential of reaching more audience through technology. Thus, in 2011 BYJU'S — The Learning App was created with
the intent of making the learning experience personalized, interactive, and available to all learners across India.
BYJU'S revolutionized the traditional education system with interactive videos and animations using adaptive learning techniques in its
curriculum. The lessons were personalized as per the learning style of the learner, making education enjoyable and effective.
As the platform grew, so did Byju's vision grow global. Partnerships with schools, extensive marketing campaigns, and strategic
acquisitions have fueled BYJU'S rapid growth. The success of the app has attracted significant investments, making it one of the most
valuable ed-tech startups in the world.
The company said in 2016 that its app had been downloaded more than 5.5 million times in the last one year out of which 250,000
consumers were paid annual subscribers and from there on their user base kept on exploding by 2019. Not just millions but 100s of
millions of students were using their resources, the greatest star in the country was endorsing them and within no time, it became an
epitome of the booming Ed tech industry of India by 2021.
The last audit put it at 3,569 crores in 2022. Here, three sources have been adopted to garner revenue - sale of tablet and SD cards,
sale of reference books and tution and service fee. It is during this time that the valuation of BYJU skyrocketed to $2 billion and BYJU
became a benchmark for all ed-tech companies to follow after being valued at over $22 billion in October 2022. India's most-valued
startup at $22 billion, the golden-eyed boy of the Unicorn Club CEO BYJU Ravindran said in a statement and quote, "BYJU'S is now at
that sweet spot of its growth story where the unit economics and the economies of scale both are in its favor.".
Acquisitions
The company is very aggressive with its acquisition strategy, especially in the years 2021 and 2022. Some of the major acquisitions by
the company are as follows
White Hat Jr.- an American-based company, which provided live online coding classes for kids. (August 2020)
Great Learning – is an Indian platform that focuses on professional upskilling and reskilling. (April 2021)
Aakash Institute - An Indian chain of coaching centers for competitive exams, Aakash Educational Services was acquired.
(April 2022).
Epic – US-based digital children's library platform (July 2021)
Osmo - US-based company providing educational games for children in January 2019
TutorVista and Edurite - These are Indian companies providing online tutoring and educational content. (July 2017)
In the short run, these acquisitions helped boost BYJU's growth and diversification. But heavy debt, operational inefficiencies, and the
blow to organic growth created problems.
Downfall:
While on one side they were killing it with thousands of crores in revenue, on the other side their losses also shot up from 49 crores in
2016 to 249 crores in 2020 and then it shot up by 18x to touch 4,588 crores in 2021, as per the most recent filings.
During this time, their valuation has also dropped from $22 billion in 2022 to below $3 billion today.
Reasons:
So the question is how did this company incur such heavy losses and how did the valuation of the company go from $22 billion to $3
billion ?
1. First and most obviously, their marketing budget. Their advertising and promotional expenses was their single largest
cost in FY21, and business promotion expenses alone accounted for 32% of their total expenses-from title sponsorships
in IPL to the FIFA World Cup, from bringing Shahrukh Khan as its brand ambassador to even getting Lionel Messi. It
was spending more on Advertising than its own employees and operation.
As a matter of fact in 2021 while they spent 22509 crores on marketing their revenue itself was 24283 crores and this
revenue to marketing expense ratio was absolutely dangerous and as we move forward you will see how it snowballed
into a catastrophe for the company.
2. Loss of Reputation and Trust due to their sales methodology where the parents blamed BYJU's marketing personnel for
giving them nightmares about their kids' future in this increasingly competitive World. These moves have sapped the
confidence and perception in the company brand. Says the sources in the Hindu Frontline, that sales associates had to
bring leads from schools malls even temples and convert people who would sign this also incorporated low-income
laborers in the market salespersons selling fruits and vegetable vendors hawking eatables as well as the lowly rickshaw
and auto driver and asked whether they had children and did they desire them to attain better educational and a
superior life for which if it was answered in the positive then they must sign on for: and once customers downloaded the
app, the salespeople asked them to sign on for a free 15-day trial on their cell phone number. Once byju's had their
mobile number, their sales teams would constantly follow up and they would convince the parents to buy a subscription
and now again is following up a problem not at all but furthermore, According to Hindu front line employees revealed
that BYJU put them under immense pressure to make their weekly sales targets of 1 lakh rupees or else they would be
fired as a result, they made misleading statements to parents and frighten them into believing that their children would
fail if they didn't purchase a byju's course or they would push them to buy a multi-year package now the question over
here is even if the salesman was very pushy when the courses cost as high as 1.35 lakhs for JEE prep how could
people with low incomes offer these courses.
As a result, many people used to purchase that course on loan. An investigation by Ken analyzed that 110 consumer complaints
and they found that 54 of these people were unaware that they were being signed up for loans when they signed up for
subscriptions and the problem was that the average ticket size of these purchases was 66,000rupees and they have to pay
interest if they pay in parts now the question over here is how did this lending happen so easily because taking out a loan in India
is a very big hassle especially if you have less income right then how did these people with less income end up getting loans so
easily.
It was then that Byju's lending Partnerships came with something called the First Loss and Deposit Guarantee strategy. It can be
described as this arrangement between a third party and a financial institution wherein the third party guarantees to compell the
lender in case the borrower defaults. In this case, BYJU acted as a guarantee for its customers who borrowed from its financing
Partners so if the customer defaults then BYJU would be liable to make the loan repayments this is the reason why the financing
Partners were very easily able to lend money to people even with low incomes. This was the second issue the company faced,
wherein a few desperate salesmen went overboard with their efforts and because of the first loss deposit guarantee people
started taking up loans for these courses. But this apart, when many such incidents of pushy follow-ups and Loan stories were
brought into light, most customers of BYJU began to lose faith in the brand.
3. Third reason has been their accounting practices. The CEO Byju Ravindran is blamed for mishandling the firm's growth.
The one's high-flying startup has not filed its Financial accounts in time. Investors have accused Byju's of hiding half a
billion dollars which have been troubled by mass layoffs, mounting losses, valuation cuts and several other issues.
There are Foreign Exchange violation allegations.
In addition, when the coronavirus lockdown was over, in spite of the fact that most students suddenly decided to drop the course
and come back to offline classes again, many left due to bad reviews and publicity about it. This is when Byju's sales started to
decline Byju's Revenue declined by 38% from 2020 to 2021 in India but simultaneously the company saw growth of 133% in their
US business and 103% growth in the Middle East. But still BYJU went on a shopping spree to acquire companies one after the
other and paid two times sales for white hat Junior and 300 million on the books India's Ed Tech startup and coaching Center
Chain Akash was acquired for $950 million so while they have gained enormous growth in their users' numbers they are also
bearing growing costs at top of that not all such companies were profitable so alongside user growth they also have come to earn
more losses out from their acquired companies.
4. Now, another kind of risk that Byju's accepted which is a thing called Term Loan B and this is something which made
things very critical for BYJU during the year 2021 in the United States, this state was offering loans on interest rates
almost near to zero. This is because they printed trillions of dollars because of which the interest rates in the US
touched rock bottom and this was a very attractive offer for both startups. In simple words, it is a loan which requires
small instalments and is followed by a large bullet payment at the end. This increases the risk for the lender because in
between this time if the borrower company goes bankrupt then the lender will lose all the money so the risk for the
lenders is very, very high. This is why, to minimize this risk the lenders do three things number — one they demand high
rates of interest number two the banks sell these loans to institutional investors who are willing to take up such high
risks and finally, they attach some very stringent terms and conditions. In the case of BYJU's, it was requested to get
this loan rated by two Credit Agencies like Moody's or fit they were asked to publish their audited 2021 Financial results
on time and several such conditions were applied.
According to Economic Times in November 2021 Byju's raised $1.2 billion of Term Loan B in July 22. BYJU's said that it will announce
its delayed audited financials in August then MCA itself sent Byju's a letter over a 17 month delay in filing results and then finally in
September BYJU announced the results where the investors saw that the losses had risen by 18 times to 4,588 crores and Meanwhile
another thing had happened was the Russia Ukraine war and this pushed the interest rates of Western countries so high up that the
base interest rate went from 0.2% to 5.85% and this increase in interest rates increased the instalment amounts for many companies
that borrow during low interest times and this is exactly what happened with the Silicon Valley Bank. In addition, the Term Loan B has
tumbled sharply from 99 cents on the dollar 2022 to as low as 49 cents in September.
This year all this brought back lenders to the negotiating table and recently Byjus came out with saying that its Term Loan B would be
repaid by March next year but we can only wait and see what exactly happens and as if this was not enough their auditor delay and
three other board members resigned. BCCI took them to court on sponsorship-related issues and the enforcement directorate accused
them of over 9,000 CR Foreign Exchange violations. It also struggled to pay employees. This is the story of Byjus. Heavy marketing
accounting practices and sales methodology along with rapid acquisition and Term Loan collectively put a massive challenge before
Byju.
Chapter 5 : Investment in Education Sector Stocks & Conclusion
Analysis of top Education & Training Sector Stocks
Top Education & Training Sector Stocks #1 S Chand & Company
Market Cap - ₹ 734 Cr.
Current Price - ₹ 208
High / Low - ₹ 335 / 201
Stock P/E - 14.4
Book Value - ₹ 267
Incorporated in 1970 and listed in 2016, S Chand & Company engages mainly in publishing educational books with products ranging
from school books, higher academic books, competition and reference books, technical and professional books, and children's books.
The company offers its products and services both in printed as well as digital forms.
S Chand and Co, with a market capitalization of ₹734 crore, is currently trading at ₹208 per share, within a 52-week range of ₹335 to
₹201.. All the financials are looking steady for stability and growth. Other key highlights are RoCE and RoE standing at 6.30% and
5.22%, and the dividend yield standing at 1.44%. Sales were at ₹662 crore, and OPM was at 15.8%. Profit after tax was ₹51.0 crore.
The sales growth rate for 3 years is 15.9%, even though quarterly sales declined by -0.39%. Valuation looks attractive with a price-toearnings ratio of 14.4, much lower than the industry average of 26.8, and price-to-book value of 0.78. The balance sheet of the
company is healthy, with a low debt-to-equity at 0.14, and the current ratio was strong at 2.08. Promoter holding has been stable and
constant without any change in its records. Overall, the financial performance of S Chand and Co reflects a steady and profitable
business with attractive valuation metrics, thereby making it a possible investment opportunity.
Top Education & Training Sector Stocks#2 Zee learn
Market Cap - ₹ 277 Cr.
Current Price - ₹ 8.48
High / Low - ₹ 11.5 / 5.28
Stock P/E - 7.22
Book Value - ₹ 5.60
Incorporated in 2010, Zee Learn Ltd is offering learning solutions and training from its numerous products and services school
infrastructure on long lease agreements. It also is offering educational support and student coaching.
The company has mixed performances in terms of financials. On one hand, the return on equity was at a whopping 45.6%. The return
on capital employed has also touched 16.4%. This is again a clear indication of efficiency in using the capital funds. Sales were at ₹331
crore, with an impressive operating profit margin (OPM) of 30.5% and a profit after tax of ₹38.4 crore. Quarterly sales growth declined
by -24.0%, and 3-year sales growth was moderate at 11.5%. Valuation metrics appear attractive, with a price-to-earnings ratio of 7.22,
significantly lower than the industry average of 39.9, and a price-to-book value of 1.51. The balance sheet of the company, however,
brings out various concerns with the debt equity ratio standing at 1.97 and the current ratio at 0.75, relatively low in comparison to most
companies in the industry. The company does not declare any dividend, and the promoter holding has declined slightly by -0.03%. In
spite of all these concerns about growth, the profitability and valuation metrics of the company make it a good candidate to consider.
Top Education & Training Sector Stocks#3 NIIT Learning Systems Ltd.
Market Cap - ₹ 5,791 Cr.
Current Price - ₹ 426
High / Low - ₹ 577 / 365
Stock P/E - 24.9
Book Value - ₹ 79.7
NIIT Learning Systems Limited has its Managed Training Services arm it provides to corporate customers across 30 countries. NLSL's
complete spectrum of Managed Training Services involves Custom Content and Curriculum Design, Learning Delivery, Learning
Administration, Strategic Sourcing, Learning Technology, as well as L&D consulting services. The company provides special solutions
such as: Immersive learning Customer education Talent pipeline as a service DE&I training Digital and IT training Leadership and
professional Development services.
NIIT Learning Solutions boasts a market capitalization of ₹5,791 crore, with its current stock price at ₹426, trading within a 52-week
range of ₹577 to ₹365. The company's financials demonstrate robust health and growth prospects. Key highlights include a return on
capital employed (ROCE) of 33.6% and return on equity (ROE) of 24.8%, indicating efficient capital utilization. Sales have reached
₹1,594 crore, with a 3-year sales growth rate and a quarterly sales growth of 4.06%. The operating profit margin (OPM) stands at
23.2%, contributing to a profit after tax of ₹233 crore. NIIT's balance sheet is strong, with a low debt-to-equity ratio of 0.11 and a current
ratio of 1.89. The company distributes a dividend yield of 1.23%. Valuation metrics appear reasonable, with a price-to-earnings ratio of
24.9, in line with the industry average, and a price-to-book value of 5.34. Despite a slight decrease in promoter holding by -0.05%,
NIIT's overall financial performance suggests a well-managed and profitable business with attractive growth prospects.
Top Education & Training Sector Stocks #4 Veranda Learning Solutions Ltd.
Market Cap - ₹ 1,947 Cr.
Current Price - ₹ 273
High / Low - ₹ 366 / 135
Book Value - ₹ 52.3
Veranda Learning Solutions Limited (“Veranda”) was incorporated on November 20, 2018, and is engaged in the business of offering
diversified and integrated learning solutions in online, offline hybrid, and offline blended formats to learners enrolled with their courses
through a multitude of career-defining competitive exams, professional courses, exam-oriented courses, short-term up-skilling, and reskilling courses.
Here is a summary of Veranda Learning Solutions' financial performance in paragraph format:
Veranda Learning Solutions has a market capitalization of ₹1,947 crore, with its current stock price at ₹273, trading within a 52-week
range of ₹366 to ₹135. The company's financials present a mixed picture. On the positive side, sales have grown exponentially, with a
3-year compound annual growth rate (CAGR) of 422% and a quarterly sales growth of 72.7%, reaching ₹412 crore. The operating profit
margin (OPM) stands at 17.0%. However, the company has reported significant losses, with a profit after tax of -₹81.9 crore, resulting in
a negative return on equity (ROE) of -23.3% and a return on capital employed (ROCE) of -0.33%. The debt-to-equity ratio is relatively
high at 1.61, and the current ratio is low at 0.29, indicating potential liquidity concerns. The stock's valuation metrics are elevated, with a
price-to-book value of 5.22 and a price-to-sales ratio of 4.73. Notably, the company does not distribute dividends, and promoter holding
has decreased slightly by -0.09%. The lack of profitability and high debt levels are concerns, but the company's rapid sales growth
warrants close monitoring.
Top Education & Training Sector Stocks #5 Career Point Ltd.
Market Cap - ₹ 879 Cr.
Current Price - ₹ 483
High / Low - ₹ 570 / 187
Stock P/E - 14.5
Book Value - ₹ 292
CPL provides education from preschool to University through CP Universe, a complete educational hub for School Education, and
Coaching Services
Company is an integrated education service provider in segments i.e. play schools, test-preparations, formal schools, university
education, e-learning, and skill development through:
a) Education Consultancy
b) Management Services
c) Tutotrial Services
d) Residential Hostel Services
e) Leasing
f) Educational & Non educational Loans
The stock's valuation metrics appear attractive, with a price-to-earnings ratio of 14.5, significantly lower than the industry average of
73.9, and a price-to-book value of 1.65. The company's financial performance is robust, with a return on capital employed (ROCE) of
13.4% and return on equity (ROE) of 10.8%. Sales have grown at an impressive 3-year compound annual growth rate (CAGR) of
27.3%, reaching ₹103 crore, with an impressive operating profit margin (OPM) of 65.5% and profit after tax of ₹60.7 crore. The
company's balance sheet is healthy, with a low debt-to-equity ratio of 0.07 and a strong current ratio of 3.45. Additionally, the company
distributes a dividend yield of 0.62%. Notably, promoter holding has remained stable, with no change recorded. Overall, the company's
financials indicate strong growth, profitability, and liquidity.
Top Education & Training Sector Stocks #6 CL Educate Ltd.
Market Cap - ₹ 575 Cr.
Current Price - ₹ 108
High / Low - ₹ 133 / 63.0
Stock P/E - 45.2
Book Value - ₹ 51.9
CLEL is an asset light technology-driven company which focuses on diverse segments of education and caters to learners from multiple
age-groups. It is a recognized name in the education sector across a broad spectrum of segments including test preparation and
vocational training. At present, it has 170+ Centers and 140+ Institutional Clients.
Company is providing education and test preparation training programs which
include tuitions to school students and coaching to aspirants for a variety of entrance examinations both at the school and graduate /
post graduate levels.
CL Educate, with a market capitalization of ₹575 crore, is currently trading at ₹108 per share, within a 52-week range of ₹133 to ₹63.
The company's financial health is reflected in its key ratios: a price-to-earnings ratio of 45.2, significantly lower than the industry average
of 73.9, and a price-to-book value of 2.08. CL Educate's return on capital employed (ROCE) and return on equity (ROE) stand at 7.62%
and 5.10%, respectively. The company's sales have grown at a 3-year compound annual growth rate (CAGR) of 20.4%, reaching ₹323
crore, with an operating profit margin (OPM) of 7.25% and a profit after tax of ₹12.7 crore. The company's debt-to-equity ratio is
relatively low at 0.11, and its current ratio is 2.63, indicating a healthy liquidity position. However, the dividend yield is 0%, and there has
been a slight decrease in promoter holding by -0.38%.
Conclusion
India's education sector is poised for exponential growth, driven by its vast network of 1.49 million schools, 9.5 million teachers, and 265
million students. With an estimated market size of $225 billion by FY25 and $313 billion by FY30, and a CAGR of 8.46% in higher
education, India is emerging as a global education hub. Government initiatives like NEP 2020 and the Study in India portal, coupled with
a growing ed-tech market ($30 billion by 2031), position India for significant advancements in education, innovation, and economic
growth.
The education sector in India is at a crossroads as there are also promising signs of change, particularly in the private sector. For India
to achieve its goals of becoming a developed nation and a $3 trillion economy by 2047, it is essential to continue investing in education
and embracing reforms that improve the quality and accessibility of education for all citizens.
India's education sector offers immense opportunities, driven by a competitive advantage in English language proficiency, strong
demand from its 580 million population aged 5-24, and increasing investments ($9.51 billion FDI equity inflow). The sector is trending
towards virtual learning, gamification, conceptual learning, and non-conventional courses. With policy support (NEP 2020, 100% FDI
allowance) and high growth prospects (estimated $225 billion market size by FY25), opportunities abound for investment, public-private
partnerships, foreign investors, and innovative services like coaching, tutoring, and STEM-based ed-tech, making India an attractive
destination for education sector growth.
With an estimated market size of $225 billion by FY25 and a growing focus on digital learning, skill development, and innovative
services, the sector presents immense opportunities for investment, collaboration, and innovation. As India strives to become a global
knowledge hub, its education sector is expected to play a vital role in shaping the country's economic and social future.