Golden Crest Education & Services Ltd Management Discussions

Pursuant to Listing Regulation of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 aligned with Companies Act, 2013, the Management Discussion & Analysis Report for the year under review is given below;

Background:-

The Management Discussion and Analysis (MD&A) Report provides a comprehensive overview of the Companys business developments, operational performance during the year under review, and its future outlook. This Report forms an integral part of the Directors Report and should be read in conjunction with the Audited Financial Statements, together constituting a key component of the Annual Report.

Certain statements in this Report relating to the Companys projections, estimates, expectations, plans, objectives, future performance, and outlook may constitute forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on the managements current beliefs, assumptions, and expectations and are subject to inherent risks, uncertainties, and assumptions. Actual results, performance, or achievements may differ materially from those expressed or implied by such forward-looking statements.

Several factors could cause actual outcomes to vary significantly from those projected or implied. These include, but are not limited to, climatic conditions, economic conditions impacting demand and supply, changes in government regulations and policies, taxation laws, raw material availability and pricing, market competition, technological disruptions, foreign exchange fluctuations, interest rate movements, and natural calamities or other force majeure events, over which the Company has limited or no control. The Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

This Report also discusses key industry trends, opportunities, challenges, internal control systems, risk management initiatives, and the Companys strategy to enhance long-term stakeholder value while maintaining sustainable and responsible business practices.

Indian Economy and Outlook:-

Education is not only the foundation upon which our civilization has been built, but it is also the architect of humanitys future.

Education continues to remain a top priority for the Government of India. With the vision of transforming India into a global education hub and knowledge economy, the Union Budget 2026-27 has significantly increased focus on the sector. The Ministry of Education received a record allocation of 31,39,289 crore reflecting an increase of approximately 8.3% to 14% over the previous year (depending on revised estimates).

Key initiatives include expanding medical seats (10,000 new seats this year with a target of 75,000 over five years), further strengthening IITs and higher education institutions, establishment of National Centres of Excellence for Skilling, promotion of multilingual education through the Bharatiya Bhasha Pustak Scheme, AI-enabled learning, AVGC labs, Creator Labs, and deeper industry-linked education. These measures aim to improve access, equity, quality, and employability while better equipping Indian youth with future-ready skills.

Indias economy demonstrated strong resilience in FY 2025-26 , achieving a robust growth of 7.6% , one of the highest among major economies. The Union Budget 2026-27 has reinforced this momentum by prioritising education, skilling, and human capital development as critical drivers of long-term sustainable growth.

The Indian EdTech market, currently valued at around US$ 7.5 billion , is projected to reach approximately US$ 29-30 billion by 2030-31 , expanding at a healthy CAGR of nearly 20%. This positions India as the second-largest e-learning market globally after the United States, driven by rising digital penetration, smartphone adoption, vernacular content, and AI-powered personalised learning solutions.

This growth is underpinned by strong private consumption, rising public and private investment, robust performance in services and manufacturing sectors, and continued policy thrust towards infrastructure development, digitalisation, and ease of doing business.

Looking ahead, while global uncertainties - such as geopolitical tensions, trade disruptions, and commodity price volatility - persist, Indias strong macroeconomic fundamentals, favourable demographics, and ongoing structural reforms position the country well for sustained high growth in the medium to long term. The balanced focus on fiscal consolidation, human capital development, and inclusive growth will play a pivotal role in sustaining Indias position as the fastest-growing major economy.

Announcements for a Smarter, Inclusive India

? NEP 2020 Implementation (5+ years progress): o 5+3+3+4 structure adopted in many states. i. Foundational (5 years): Ages 3-8 (Pre-school + Class 1-2) Play-based learning ii. Preparatory (3 years): Class 3-5 Basic literacy & numeracy iii. Middle (3 years): Class 6-8 Experiential learning iv. Secondary (4 years): Class 9-12 Multidisciplinary & vocational education o Multilingual education push: JEE/NEET/CUET in 13 languages; 100+ UG books in 12 Indian languages; Bharatiya Bhasha Pustak Yojana for 2.46 lakh digital textbooks in 22 languages.

? Digital & Smart Learning : o PM e-VIDYA, DIKSHA, SWAYAM expanded with AI tools and personalized learning. o Smart classrooms, virtual labs, and Indian Sign Language content for Divyang students.

? Union Budget 2026-27 Highlights (MoE allocation: 31.39 lakh crore, up 8.27%): o 5 University Townships near industrial/logistics hubs (multidisciplinary education + skilling). o Girls Hostels in every district to boost STEM access and gender inclusion. o AVGC Content Creator Labs in 15,000 schools + 500 colleges (Animation, VFX, Gaming, Comics). o New National Institute of Design (Eastern India). o High-Powered Education to Employment and Enterprise Standing Committee.

? PM Vidyalakshmi Scheme : o Collateral-free, guarantor-free education loans for meritorious students. o Outlay 33,600 crore; portal + Digital Rupee App; over 68,000 loans sanctioned (39,118 crore) by early 2026.

? Inclusion & Equity Focus : o APAAR ID & Academic Bank of Credits (4.71+ crore students registered). o Special support for girls, SC/ST, rural, and Divyang students via scholarships, accessible content, and infrastructure. o Indian Knowledge Systems and mother-tongue education.

These initiatives align with Viksit Bharat -2047 for a tech-enabled, equitable, and skill-focused education system. .

? Government Budget Support (Union Budget 2026-27) : i. Total education allocation increased to Rs. 1,39,289 crore (8.27% rise over previous year). ii. Continued focus on AI in education, digital infrastructure, skill development, and Centres of Excellence.

Policy Support

? 100% FDI (automatic route) is allowed in the education sector in India.

? The Government of India has taken initiatives like National Accreditation Regulatory Authority Bill for Higher Educational and the Foreign Educational Institutions Bill.

? UGC Guidelines (2023) i. Allowed foreign universities ranked in the top 500 globally to set up campuses in India. ii. Permitted flexible legal structures, including for-profit companies, with freedom to repatriate profits. iii. Regulatory oversight remains with UGC to ensure quality and compliance.

Robust Demand

? Demographic Tailwind : India has the worlds largest population in the 5-24 age group (~580 million), creating enormous baseline demand for K-12, higher education, skilling, and edtech. This underpins long-term structural growth.

? Enrollment and Revenue Growth : Educational institutions (schools, colleges, etc.) are expected to see 11-13% growth in total income in FY26 and FY27. This comes from a combination of: i. Rising enrollments (modest but steady growth). ii. Fee hikes across segments. iii. Steady/strong demand, especially in K-12 and higher education.

? Broader Sector Outlook :

The overall Indian education market is on track for significant expansion (projected toward $300+ billion in the coming years). K-12 remains the largest segment with strong demand. Higher education and edtech benefit from skill-focused programs, NEP 2020 implementation, and digital adoption. Operating margins for institutions are expected to stay healthy (around 27-28%) despite cost pressures like staff salaries.

Competitive Advantage

? India continues strong performance with multiple IITs and IISc consistently ranking high in Asia.

? IIT Delhi remains the top Indian institution in regional rankings.

? Steady improvement in employer reputation, academic reputation, and research metrics.

Increasing Investments

? Market Size : The Indian education market is projected to reach US$ 313 billion by FY30 , showing strong long-term growth momentum. K-12 segment alone is estimated at ~ US$ 103 billion in 2025 , expected to grow at ~11.5% CAGR.

? FDI Inflows : From April 2000 to June 2025, FDI equity inflow in the education sector stood at Rs. 96,558 crore (US$ 10.82 billion) , reflecting increasing foreign investor confidence.

? Edtech Investments : i. Cumulative PE/VC funding in edtech crossed US$ 14.4 billion over the last decade (2015-2025). ii. Funding rebounded in H1 2025 with a fivefold surge to ~ US$ 120 million across 11 deals, driven by AI-focused startups.

SWOT analysis Strengths

These factors support your success:-

? Expert faculty with strong industry experience and research credentials

? Flexible learning options (hybrid & online modes)

? Strong and active alumni network providing mentorship and placement support

? Innovative, industry-aligned curriculum with focus on emerging technologies (AI, Data Science, Sustainability)

? Personalized learning supported by modern pedagogical tools

? Strong brand equity in chosen niche/domain

Weaknesses

These factors sabotage your success:-

? Limited marketing reach and low digital visibility compared to larger players

? High operational costs (faculty salaries, infrastructure maintenance)

? Relatively niche program offerings limiting broader student intake

? Outdated technology infrastructure in certain areas

? Inconsistent student support services and response times

? Moderate brand recognition outside regional presence

Opportunities

These factors accelerate your growth:-

? Robust Demand: Strong demographic tailwind with rising enrollments and willingness to pay higher fees

? Expanding online & hybrid learning market in India

? Policy Support & Government Funding under NEP 2020 and skill development schemes

? Growing interest in lifelong learning and upskilling/reskilling programs

? Potential for collaborations with industry and foreign universities

? Increasing FDI and investment flow into the education sector

? Rising demand for AI, vocational, and job-oriented specialized programs

Threats

These factors slow you down :-

? Intense competition from established online platforms and new edtech players

? Rapid technological advancements requiring continuous heavy investment

? Regulatory changes and stricter compliance requirements

? Economic slowdowns or inflation impacting affordability and enrollments

? Negative perception or online reviews affecting brand reputation

? Talent retention challenges due to competition from top institutions and corporate sector

Global Education Market Size & Growth

The global education and training market (encompassing K-12, higher education, early childhood, vocational, and related services) is valued at around $7.3-7.6 trillion recently and is projected to reach approximately $10 trillion by 2030 . It grows at a CAGR of around 4.4-5% (some broader estimates reach 7%+ for educational services), driven by population growth in emerging markets, digital transformation, rising demand for skills, and government investments. Education typically accounts for 5-6%+ of global GDP.

Sector-Specific Projections:

? Early Childhood Education (ECE) : Strong growth due to rising awareness, government policies, working parents, and tech integration. The market was around $300-390 billion recently (2024-2025 estimates vary) and is projected to reach $480+ billion by 2030 , with CAGRs commonly in the 9-12% range (higher than the original 7%). Workforce shortages and demand for qualified educators remain key challenges.

? K-12 Education : Dominates overall education spending. Supported by enrollment growth in emerging economies, digital infrastructure investments, and blended learning. Growth is around 3.5-12% CAGR depending on the exact sub-segment (broader K-12 ~10%+ in some reports; pure market size in trillions when including public spending). Declining birth rates in developed regions constrain growth, while edtech and personalized learning drive innovation.

? Post-Secondary / Higher Education : Valued at ~$700-1,000 billion recently, with strong growth projected (CAGRs of 9-12%+ to 2030-2035 in various reports). Drivers include online/hybrid learning acceptance, vocational focus, and government incentives. Challenges: high costs, competition from alternative credentials/micro-credentials, immigration policies, and economic pressures.

? Workforce Training / Corporate Learning : Fueled by upskilling/reskilling needs, digital transformation, and government skill programs. The broader corporate training market is ~$350-400+ billion recently, projected to grow at 7-12% CAGR (some segments higher). Constraints include economic volatility and discretionary spending limits. Corporate e-learning is a fast-growing subset.

Educational services include teaching, learning, research, apprenticeships, and training. Major 2024-2026 trends: AI integration, personalized/hybrid learning, focus on engagement/retention/well-being, alternative credentials, and greater tech/legislative oversight.

? Government Education Spending : Significant public funding (often 60-70% of total education spend). Older figures cited ~$558 billion in 2023 with high CAGRs (e.g., 17.8%); newer broader estimates align with overall market growth. Governments drive much of the expansion through policy and infrastructure.

? EdTech : Investments reached billions annually (North America leads). The market is valued at ~$150-250 billion recently and is forecast to grow at 13-16%+ CAGR , reaching hundreds of billions by 2030. AI, adaptive platforms, and immersive tools are key drivers.

? E-Learning / Online Education : Much larger than older $332B (2022) figures. Recent estimates place it at $230-370+ billion , with projections to $700 billion-$1.5 trillion by 2030-2033 at CAGRs of 9-24% (varying by scope: consumer, corporate, higher ed). High competition and demand for flexible, AI-enhanced learning continue.

Note : Market sizes and CAGRs vary by source, scope (e.g., public vs. private, digital-only vs. total), and geography. The $10T by 2030 figure remains a widely referenced benchmark. Objectives of Indias New Education Policy (NEP 2020):

The text refers to Indias National Education Policy (NEP) 2020 (sometimes updated or referred to in 2024 contexts). There isnt a wholly new NEP 2024 replacing it; implementation and refinements continue. Core objectives align closely with what you listed and emphasize:

? Universal access, equity, and inclusion.

? Foundational Literacy and Numeracy (FLN) by Grade 3.

? Holistic, multidisciplinary, and flexible education (5+3+3+4 structure).

? Skill development, vocational education, and 21st-century competencies (critical thinking, creativity, logical reasoning).

? Integration of technology, Indian knowledge systems/culture, and multilingualism.

? Teacher training/professional development and robust assessment reforms (shift from rote learning).

? Research, innovation, and equitable public investment (aiming for 6% of GDP).

? Learner-centric approaches recognizing individual potential.

The policy promotes practical, job-centric skills, technology in classrooms, and cultural rootedness while preparing students for global opportunities.

Business Segment:

The Company is into the business of Consultancy services and other allied services. Currently, the company is engaged in providing consultancy Services, including Operations Advisory, Strategy Advisory, HR Advisory, Educational Advisory to the educational institutes for establishment, development, promotion E-learning, E- Business, Online education, Technical and Non - Technical Centre and other allied services of education. The company operates mainly in Indian Market.

Outlook:

The Companys primary objective is to develop a new value system where total commitment to the client is the ultimate goal. This value system will ensure client satisfaction through high-quality service delivery, strict adherence to work schedules, and, most importantly, consistently prioritizing the clients interests.

Client feedback will continue to remain the key determinant for the selection of consultants in the market. Consultancy opportunities are expected to grow significantly in sectors such as education, management, finance, information technology, market research, and others. The Company aims to secure repeat business by delivering superior quality services backed by a strong service guarantee.

With the accelerated pace of economic reforms and liberalization, powerful winds of change are sweeping across Indian organizations. Consultants must act as proactive agents of change by adopting a modern work culture, progressive attitudes, and strong professional ethics, while continuously striving for greater competitiveness. They will increasingly be expected to participate in the implementation of their recommendations.

In short, the relationship between a consultant and the client will be strong, intimate, facilitative, and mutually beneficial.

Risk and Concerns:-

No industry is completely free from business risks, uncertainties, and uncontrollable external factors. Risks may arise from financial market volatility, legal liabilities, credit risks, operational accidents, natural disasters, and other unforeseen events. The Company is actively reviewing its operations and implementing robust processes and systems to identify, mitigate, and safeguard itself against such risks. While uncertainties in business can present downside risks, they also offer potential opportunities. The Company therefore recognizes the critical importance of a well-structured risk management framework to effectively identify, assess, and manage various elements of risk.

Internal Financial Control and their Adequacy:-

The Company has established robust and well-defined internal financial control mechanisms supported by comprehensive internal audit programs. These systems cover all key activities and operations across the organization, ensuring effective monitoring, compliance, and safeguarding of assets.

The internal control framework is periodically reviewed and strengthened to keep it relevant and adequate in line with the size, scale, and complexity of the Companys operations.

Human Resources:-

Human Resource Development is a key priority for the Company. It focuses on the holistic growth of employees in alignment with the organizations objectives. The Company strives to create an enabling environment that nurtures individual capabilities, enhances skills, and optimizes performance.

The Company places strong emphasis on attracting, developing, and retaining high-quality talent. It continues to recruit experienced professionals from diverse backgrounds to ensure smooth and efficient operations. Regular training and skill development programs are conducted to keep employees updated with industry best practices. HR policies are periodically reviewed and aligned with current market trends and best practices.

The Company firmly believes that its professionals and employees are its most valuable assets. The quality of service and commitment demonstrated by the team is a critical factor in the Companys growth and success.

To further strengthen leadership and operational efficiency, necessary changes were made in the top management and organizational structure.

Discussion of Financial Performance:-

Directors of your Company are very hopeful to build up the performance of the company and post better results in the forthcoming financial year and to add value to the shareholders. The Company is hopeful of improving its turnover and bottom line and hopeful of posting better revenue ahead. Financial Highlights with respect to Operational Performance is as under: (Amt. in Lakh)

Particulars	2025-2026	2024-2025	2023-2024
Profit Before Tax	23.86	22.19	8.93
Profit after Tax	17.51	16.32	6.57
Earning Per Share (in Rs.)	0.33	0.31	0.13

Ratios:

	Particular	F.Y. 25-26	F.Y. 24-25	Numerator	Denominator	Variation		Reason
Sl. No.						in %
1	Current Ratio	66.94	179.28	Current Assets	Current Liabilities	-62.66	This is due to increase in current liabilities
	Debt Equity Ratio	NA	NA	Total Debt	Shareholders	NA	NA
2					Equity
	Debt Service Coverage Ratio	NA	NA	Net Operating Income	Total debt Service	NA	NA
3
4	Return on Equity Ratio	0.02	0.02	Net Profit After Tax	Shareholders	5.55	NA
					Equity
5	Inventory Turnover Ratio	NA	NA	Cost of Goods Sold	Average Inventory	NA	NA
6	Trade Receivale Turnover Ratio	6.25	4.55	Average Receivable*12	Income from	37.48	This is due to Collection of overdue receivables at faster level
7	Trade Payable Turnover Ratio	NA	NA	Avereage Payable*12	Net Credit	NA	NA
					Purchases
	Net Capital Turnover Ratio	0.04	0.03	Sales	Net Assets	25.97	This is due to increase in revenue and net assets as well in
8							current year
9	Net Profit Ratio	0.36	0.40	Net Profit After Tax	Total Revenue	-8.67	NA
10	Return on Capital Employed	0.02	0.02	Earnings before	Capital Employed	5.77	NA
				Interest and Tax
11	Return on investments	-	0.06	Differce in amount of	Initial Investments	NA	NA
				investments

NA - Not Applicable Cautionary Statement:-

Statements made in the Management Discussion and Analysis Report describing the Companies objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement important factors that influence the Companys operations, include global and domestic supply and demand conditions. We undertake no obligation to publicly update any forward looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward looking statements that speak only of their dates.