S Chand targets 15% growth as paper costs squeeze margins
The publisher posted record FY26 EBITDA of ₹1,449 million, but management expects margin compression in FY27 as input inflation outpaces price hikes.
— 2 earlier stories on S Chand And Company Ltd. →What's new
- FY26 net profit rose 21% to ₹731 million on revenue of ₹8,000 million.
- Management expects 10-15% revenue growth in FY27.
- AI licensing revenue hit ₹40 crore, a 60% increase, with a ₹100 crore long-term target.
Why this matters
S Chand faces a classic margin squeeze where input costs are rising by 10-15%, but the company can only pass on 6-8% to customers. While the AI licensing segment is growing rapidly, the core publishing business remains tethered to volatile paper prices.
What we're watching
- Whether the company can hit its 10-15% revenue growth target despite pricing limitations.
- The trajectory of AI licensing revenue as it moves toward the ₹100 crore goal.
- Sustenance of the net debt-free balance sheet.
The full read
S Chand closed FY26 with record EBITDA of ₹1,449 million on revenue of ₹8,000 million, marking a 21% rise in net profit to ₹731 million. Despite this performance, the outlook for FY27 is tempered by cost pressures. Management expects revenue growth of 10-15%, but EBITDA margins are set to compress to 17-19% from the 18.1% recorded in FY26. This margin contraction stems from a mismatch between input inflation, projected at 10-15% for paper and other materials, and the company's ability to pass those costs to customers, which is limited to 6-8%. A bright spot remains the AI dataset licensing business, which grew 60% to ₹40 crore and carries a long-term target of ₹100+ crore. The company maintains a net debt-free balance sheet with ₹1,048 million in cash and has declared an interim dividend of ₹4 per share.
Questions answered
- What is the primary driver of the expected margin compression?
- Management expects EBITDA margins to drop to 17-19% because paper and input costs are inflating by 10-15%, while the company can only pass 6-8% of those costs to its customers.
- How did the company perform in FY26?
- S Chand reported record EBITDA of ₹1,449 million on revenue of ₹8,000 million, with net profit increasing 21% to ₹731 million.
- What is the status of the company's AI licensing business?
- AI dataset content licensing brought in ₹40 crore in revenue, representing a 60% year-on-year increase. The company has set a long-term revenue target of over ₹100 crore for this segment.
- What is the company's current liquidity position?
- S Chand remains net debt-free with cash reserves of ₹1,048 million and has declared an interim dividend of ₹4 per share.
Story so far
All notes on SCHAND →- Today · 2:00 PM IST S Chand targets 15% growth as paper costs squeeze margins
- 3d ago S Chand nets ₹731 mn in consolidated profit for FY26
- 3d ago S Chand declares ₹4 interim dividend following Q4 results