Jaro Institute of Technol. Mgt. and Research Ltd Management Discussions

The NEP 2020 targets an increase in the Gross Enrolment Ratio (GER) in higher education to 50% by 2035, acting as a catalyst for online education. As per the most recent All India Survey on Higher Education (AISHE 2021-22, released January 2024), the GER stood at approximately 28.4%.

The total addressable market for Jaro, in India, for the online higher education and upskilling sector is INR 13,200 crores in FY 2023 and is expected to grow at a CAGR of 25.7% over the next five years, thus reaching the market size of INR 41,500 crores in FY 2028.

Indias median age of approximately 29 years and a working age (15-64) population of roughly 68% the largest such cohort globally, fall within a demographic dividend window expected to last through the mid 2050s. This combination of a young, work ready population and policy support for Al-led, employability linked learning is expected to sustain demand for the Companys executive education and professional upskilling offerings over the medium term.

The Union Budget 2026-27 reaffirmed the Government of Indias commitment to building a future ready education ecosystem through enhanced investments in higher education, skilling, employability and digital learning.

Union Budget Allocation of 21,39,289.48 crore (up 8.27%), with higher education rising 11.28% to 255,727.22 crore, signals sustained policy support for the online and executive higher-education segment in which the Company operates through its university and institute partnerships.

The 2500 crore Centre of Excellence in Al in Education, and five industry corridor University Townships directly reinforce the Companys positioning in employability focused, Al-led and industry aligned programmes for working professionals.

AVGC Content Creator Labs across 15,000 schools and 500 colleges (targeting two million professionals by 2030), expanded girls hostels, and the broader push on digital learning and lifelong upskilling widen the addressable base of learners for the Companys technology enabled certification, executive and degree programmes over the medium to long term.

A high powered standing committee has been proposed to strengthen the linkage between education, employability, entrepreneurship and industry requirements. The Companys programme catalogue over 279 programmes, predominantly in degree formats and led by MBA, PGDM and executive certificate offerings is already structured around the "education to employment" outcome that this committee is mandated to optimise for.

• Government policy tailwinds, including an increase in the Union Budgets higher education allocation, the proposed University Townships near industrial corridors, and continued NEP 2020 emphasis on ODL / online formats and vocational, industry aligned skilling.

• A pronounced policy focus on Al, digital technologies, future of work skills and industry aligned education. With more than 12 programmes incorporating Al, machine learning and Generative Al in the curriculum, the Company is well placed to address this opportunity.

• Expansion of the corporate / B2B learning vertical, addressing enterprise workforce upskilling demand

and broadening the revenue base beyond individual learners.

• Distribution reach into Tier 2 and Tier 3 markets through technology and consumer-platform tie-ups, extending access beyond metropolitan centres.

Risks and Concerns

• Intensifying competition in the online higher education and upskilling segment, which may affect pricing, learner acquisition cost and market share.

• Continued dependence on partner universities retaining valid UGC / AICTE / ODL approvals; loss of approval at a partner institution would directly affect the programmes the Company can offer through that partner.

• Regulatory risk: changes in the UGC framework, or in the entitlements of partner institutions, could affect the Companys ability to offer certain programmes.

• Concentration of revenue in degree programmes, which exposes the Company to programme specific and partner specific factors.

• Sensitivity of enrolments to the quantum and timing of marketing and brand building expenditure.

The Company operates an asset light, partner led model that connects learners with established academic institutions, without the need to deploy its own capital expenditure to capture rising higher education spend. The Company benefits as partner institutions expand seats and programmes funded by their own budgets, while the Companys own balance sheet remains near debt free.

• A steady multi year shift in the Companys programme mix toward shorter certification formats (from 20.4% of the catalogue in FY22 to 30.1% in FY26) is well aligned with the broader industry move toward working-professional upskilling alongside full degree programmes.

• During the year the Company offered 12 live Al, machine learning and Generative Al, linked programmes across Tier-1 partners, including IIT Delhi, IIT Roorkee, XLRI Jamshedpur and IIM Indore.

• Approximately 77% of the live partner base carries a NIRF top-100 credential, rising to approximately 83% once affiliated foundations and units are included. 42% of the programs are from NIRF top-20 ranked institutions, underpinning the quality and credibility of the Companys academic ecosystem.

• The Companys degree programme offerings are delivered through partner institutions operating under the UGC (Open and Distance Learning Programmes and Online Programmes) Regulations. The Companys ability to offer such programmes is consequently linked to the continuing entitlements and approvals of its partner institutions under the applicable UGC framework. Government recognition of online degrees on par with conventional degrees, together with rising acceptance of flexible, career oriented learning among working professionals, continues to support sector demand.

The Company operates in a single reportable business segment. Education Programme Services. Within this segment, revenue is derived principally from degree programmes and from certification programmes. The composition of revenue from operations for FY2025-26 is set out below:

Degree programmes remained the predominant contributor to revenue. The Company is developing its certification and corporate (B2B) offerings as part of a deliberate strategy to diversify its revenue base over time. The corporate learning vertical, launched in FY 26, is in an early stage and revenue is not separately

reported at this time. The number of certificate programmes have increased year on year, as these programs are for shorter duration than the degree programs, the degree programs contribute more to the revenue than the certificate programs

The Companys standalone financial performance for FY 2025-26, with prior-year comparatives, is summarised below:

Revenue from operations for FY 2025-26 was 227,387.8 lakhs, an increase of 8.6% over the previous year. Total income, including other income, was 228,500.2 lakhs (FY 25: 225,401.9 lakhs). EBITDA was 28,321.2 lakhs (FY 25: 28,358.3 lakhs) and the EBITDA margin was 30.4% (FY 25: 33.1%). Profit after tax was 25,291.6 lakhs (FY 25: 25,166.9 lakhs). Total operating expenses for the year increased by approximately 16.8%, primarily reflecting investments in marketing, brand building, IPO related expenses and people in support of the Companys growth initiatives, including the new corporate learning vertical. The company is working towards building Al driven process which could result in cost savings going forward.

The Company recorded 32,236 admissions during the year (FY 25: 31,434). As at 31 March 2026, total assets stood at 242,881.4 lakhs (FY 25: 227,670.3 lakhs) and total liabilities reduced to 26,838.7 lakhs (FY 25: 210,515.3 lakhs). Net cash generated from operating activities was 25,744.7 lakhs, against a net cash outflow from operating activities of 22,345.4 lakhs in the previous year. Cash and cash equivalents at year end were 22,394.7 lakhs (FY 25: 2507.8 lakhs).

In accordance with Schedule V to the SEBI Listing Regulations, key financial ratios, together with explanations for material movements, are set out below:

The Company completed its initial public offering and was listed on 30 September 2025. The status of utilisation of the net proceeds of the fresh issue as at 31 March 2026 is set out below. Utilisation was in accordance with the objects stated in the prospectus, and the monitoring agencys report (CRISIL Ratings) confirmed no deviation in the use of proceeds.

The unutilised amount as at the year end was held in instruments permitted under the prospectus and the applicable regulations, pending deployment towards the stated objects. The unutilised amount would be spent in FY 27 to fund the growth of the company.

In FY 2026-27, the Company intends to pursue a focused set of priorities aimed at deepening its platform and broadening its revenue base.

First, the Company is prioritising the scale up of its corporate (B2B) learning vertical, launched during the year, as a strategic avenue for diversifying revenue beyond individual learners. The Company intends to expand its enterprise client base and deepen engagement with existing corporate partners over the coming year.

Second, the Company is investing in Al-driven capabilities across the learner lifecycle from programme discovery and counselling to engagement and support with the objective of improving conversion, enhancing learner experience and strengthening operating efficiency. These investments are expected to be supported in part by the deployment of the unutilised IPO proceeds earmarked for marketing and technology.

Third, the Company will continue to strengthen and deepen its academic partnerships, including expanding its portfolio of industry aligned and Al-linked programmes with leading Tier-1 institutions, consistent with the policy emphasis on employability and digital learning described in Section 1.

On near-term momentum, the Company notes that percentage increase in gross bookings which represent committed enrolments and serve as a leading indicator of revenue to be recognised in subsequent periods provide visibility into the forward revenue pipeline. The Company remains focused on converting this pipeline efficiently while managing learner-acquisition costs.

The medium-term outlook for the sector remains supported by the policy and demographic factors set out in Sections 1 and 2, subject to the competitive and regulatory factors described therein. This outlook constitutes a forward-looking assessment and is subject to the cautionary statement in Section 9.

The Company has an adequate internal financial control system commensurate with the size, scale and complexity of its operations. It has put in place adequate controls, procedures and policies for ensuring the orderly and efficient conduct of its business, including adherence to policies, the safeguarding of its assets, the prevention and detection of frauds and errors, and the accuracy and completeness of accounting records. Appropriate frameworks have been designed for internal controls over financial reporting, which ensure the integrity of the financial statements of the Company and reduce the possibility of errors and omission. The design of key processes and various policies is reviewed periodically from the standpoint of the adequacy of controls.

The Board of Directors and management at all levels of the Company demonstrate, through their directives, actions and behaviours, the importance of integrity and ethical values in supporting the functioning of the system of internal control. The Code of Conduct and the Whistle blower / Vigil Mechanism policies form an integral component of the internal control system. Compliance with the Code of Conduct is mandatory for employees, and the Whistle blower / Vigil Mechanism policy enables employees and vendors to raise genuine concerns about any actual or suspected ethical or legal violations, misconduct or fraud, with adequate safeguards against victimisation, fear of punishment or unfair treatment.

Internal controls are tested for effectiveness across all departments and functions by the Internal Audit team. The results are reviewed by management for corrective action from time to time, and deviations, if any, are reported to the Audit Committee periodically. The FY 26 audited financial results were reviewed by the Audit Committee and approved by the Board on 7 May 2026, and were audited by M/s. MSKA & Associates LLP, who issued an unmodified opinion.

The Company regards its employees as central to its performance and continues to invest in learning, leadership development and employee engagement. As at the year-end, the Company had a workforce of approximately 957 employees (FY 25: 860 employees). Industrial relations remained cordial throughout the year. The Company also allotted equity shares to eligible employees under its Employee Stock Option Plan 2022 during the year.

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could influence the Companys operations include economic and political conditions in the markets in which the Company operates, changes in government regulations and policies (including those affecting higher education), tax laws, competitive dynamics, the availability and renewal of academic partnerships, and other incidental factors. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments, information or events, except as required by applicable law.