Crizac (CRIZAC) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue from operations was INR 2,012 million, down 4% year-on-year, mainly due to an unfavorable university partner mix and seasonality, with Q4 being the peak intake quarter and Q1 the trough.

• Application processing moderated by 6.2% year-on-year, but active counseling partners grew up to 2.1% and student enrollments rose 15% year-on-year, reflecting network expansion and a quality-led approach.

• Market share gains continued in key markets, with U.K. student visa share rising from 3.5% in FY 2024 to 6% in FY 2026 and U.S. share for Indian students increasing from 9% to 13.9%.

• Strategic acquisitions included ForeignAdmits (education financing, visa prep) and Inova Consultancy (expanding into Mexico and the Netherlands), supporting geographic and service diversification.

• Leadership transition: Eric Wijmenga appointed Regional Director, U.K. and Europe; Christopher Nagle moves to Non-Executive Director and Chairman, ensuring continuity and governance.

Financial highlights

• EBITDA for Q1 FY27 was INR 600 million, down 7.6% year-on-year; EBITDA margin at 29.8% vs. 31% in Q1 FY26.

• PAT for Q1 FY27 was INR 471 million, up 2.9% year-on-year; PAT margin expanded by 152 bps to 22.6%.

• EPS for Q1 FY27 was ₹2.69 (consolidated) and ₹3.02 (standalone).

• The company remains debt-free with net cash of INR 5,695 million and strong free cash position of ₹5,711 million as of June 2026.

• Dividend payout ratio for FY26 was 63.9%, supported by strong cash generation.

Outlook and guidance

• FY27 revenue and performance expected to be broadly in line with FY26, as Q1 and Q2 are impacted by external disruptions, with pent-up demand anticipated in Q3 and Q4.

• EBITDA margin for the year expected to remain in the 25%-27% range.

• Dividend payout policy to continue at a minimum of 40% of PAT for at least the next two years.

• Management expects volume trends to remain sensitive to policy changes in visa regimes and currency movements in the near term.

• Acquisition of Inova Consultancy Limited by UK subsidiary expected to complete by October 15, 2026, to expand international presence.