iifl-logo

Zee Learn Ltd Management Discussions

9.37
(-0.74%)
Oct 3, 2025|12:00:00 AM

Zee Learn Ltd Share Price Management Discussions

Indian economic review

In FY 2025, Indias GDP grew by 6.5% supported by strong investment activity, increased government spending on infrastructure and a rebound in private consumption. Rural demand improved due to better agricultural output, while urban areas saw a rise in spending on goods and services. Both the manufacturing and services sectors contributed significantly to the economys recovery, especially after a slow start to the fiscal year.

Inflation eased during the year, averaging at around 4.6. The decline was largely due to a sharp drop in food prices, especially vegetables and grains. Fuel prices remained low and global commodity prices softened, which helped reduce cost pressures. The Reserve Bank of India responded by cutting interest rates to support growth economic growth.1

In FY 2025, the education sector saw continued investment and support through the Union Budget. The total budget allocation for the Ministry of Education stood at H1,21,597 crore. The Department of School Education and Literacy received H73,498 crore, with funds directed toward major schemes such as Samagra Shiksha, PM-POSHAN and PM-SHRI. The Department of Higher Education was allocated H47,999 crore, supporting institutions such as central universities, IITs, IIMs, NITs and other autonomous bodies. These investments aimed to improve infrastructure, access to quality education and skill development. The focus during the year remained on strengthening human capital by enhancing learning opportunities across all educational institutions.2

Outlook

Indias economy is anticipated to expand steadily, with real GDP projected to increase by 6.5% in FY 2026. This growth is supported by strong rural demand, a recovery in urban spending, healthy investment levels and continued government support for infrastructure. Inflation is likely to remain stable, with the Consumer Price Index (CPI) inflation projected at 4.0% in FY 2026, driven by good crop production and lower food and fuel prices. The budget for FY 2026 includes several plans for the future of the education sector. Over the next five years, 50,000 Atal Tinkering Labs will be set up in government schools to encourage innovation among students. In the next three years, all government secondary schools will have broadband connections under the BharatNet project. There will be 10,000 fellowships offered for research in IITs and IISc with better financial support. New projects include digital books in Indian languages, five skill centres with global partnerships for manufacturing jobs and an AI Centre for Education with an allocation of H500 crore to improve learning through technology.3

Indian education industry4

The Indian education system has witnessed significant transformation over the years and currently serving about 24.8 crore students through 14.72 lakh schools, supported by 98 lakh teachers. Government schools form the backbone of this system, constituting 69% of all schools, enrolling 50% of students and employing 51% of teachers. Private schools also play a crucial role, comprising 22.5% of total schools, enrolling around 32.6% of students and employing 38% of the teaching staff. This blend of public and private institutions highlights the evolving landscape of Indian education, focusing on broader access and improved quality.

Enrolment rates in schools have steadily improved, especially since the launch of the National Education Policy (NEP) 2, which aims to achieve a 100% Gross Enrolment Ratio (GER) by 2030. Primary-level enrolment has nearly reached universality at 93%, while secondary and higher secondary levels are at 77.4% and 56.2%, respectively. Continued efforts are aimed at reducing these gaps and ensuring student retention through higher levels of education.

At the same time, school dropout rates have seen a decline. At the primary level, the dropout rate is now 1.9%, rising to 5.2% at the upper primary level and 14.1% at the secondary level. The higher education sector has also grown in number, particularly in medical education. Between previous years and FY 2025, the number of medical colleges increased from 499 to 780. MBBS aspirants rose from 16 lakh to 24 lakh, with MBBS seats increasing from 70,012 to 1,18,137. Postgraduate medical seats nearly doubled, growing from 39,583 to 73,157. India has about 13.86 lakh registered doctors, with a current doctor-to-population ratio of 1:1263, moving steadily toward the World Health Organizations (WHO) target of 1:1000 by 2030.

The number of universities expanded significantly as well, going from 723 to 1,213 by FY 2025, a growth of nearly 60%. School infrastructure has also improved. The percentage of schools with girls toilets rose from 96.9% to 97.2%, access to libraries or reading rooms increased from 84.1% to 89% and the availability of electricity went up from 83.4% to 91.8%. More schools are now equipped with computers (rising from 38.5% to 57.2%) and internet access (from 22.3% to 53.9%), making learning more effective and technology-driven.

Indias preschool industry5

The Indian preschool market is expected to grow steadily over the next few years. It is estimated to expand by $45.1 million between 2025 and 2029, with an annual growth rate of 9.3% during this period. This growth is driven by several factors, including a rising number of women joining the workforce, which is increasing demand for early childhood education There is a greater focus on teacher training, rising disposable incomes and an overall favourable economic environment.

Online preschool options are gaining traction, emerging as a significant growth segment. Furthermore, premium preschool services are becoming increasingly popular among urban families.

The preschool industry is divided into several categories. These include urban and rural areas and by age groups such as children under three years and children between three to six years. The types of services offered include full-day care, after-school care and half-day care. Preschools are also classified by location such as standalone centres, school campuses and office premises and by ownership, such as private, public or franchise-based models. Each of these segments is expected to grow during the forecast period. Emerging technologies such as Artificial Intelligence (AI) are also beginning to shape the preschool sector, influencing how services are delivered and how parents evaluate preschool options.

Indias preschool industry is competitive, with around 25 key providers. The prominent players include FirstCry, Footprints Childcare, KLAY, Hello Kids, Podar Education Network, Tree House and Kidzee, (Power by the Zee Learn limited), among others.

Source: https://www.sanfortschools.com/preschool-market-forecast-in-ndia-2025-2032/

4https://www.pib.gov.in/PressReleasePage.aspx?PRID=2101363

5Preschool Market in India Growth Analysis - Size and For ecast 2025-2029

Indias K-12 industry6

The Indian K-12 education sector was valued at about $ 91.97 billion in FY2025 and is expected to grow rapidly to $ 256.03 billion by 2033. This growth is driven by increased adoption of digital learning tools, government support such as the National Education Policy, rising enrolment in private schools and growing investments in Educational Technology (EdTech). Parents are becoming more aware of quality education, prompting and schools to integrate AI-based learning, international curricula and skill-development programmes aimed at preparing students for the future.

Key trends shaping the industry include the rise of digital learning, with growing number of students turning to online courses and AI based tutors. There is a clear shift towards private schools offering advanced programmes such as STEM and bilingual education. The market is divided by school levels, type (public/private), learning mode (online/offline) and region. Major companies are active in this space and recent developments include new digital products and EdTech solutions aimed at improving learning and fostering entrepreneurship among students.

Opportunities in Indias education industry

In FY25, Indias education sector saw major changes and opening up many new opportunities through the incorporation of advanced technologies, structured policies and higher government spending. Below are the key areas of growth.

EdTech and digital learning

Indias digital education space is evolving rapidly. By CY 2025, the online education market is expected to reach $10.4 billion, mainly due to the increasing use of modern technologies such as Artificial Intelligence (AI), Virtual Reality (VR) and various content creation tools. These developments are making learning more engaging and personalised. Most educational institutions are now leveraging both online and offline learning methods, making the process more flexibility for those in remote areas. The Government of India is also supporting this shift by expanding broadband access to all government aided schools and by developing study materials in Indian languages. These efforts are making digital learning more inclusive and accessible for everyone.

Skill-based learning and vocational education

There is a growing focus on practical education that prepares students for real jobs. Training programmes are now being offered in high demand areas, such as AI, cybersecurity and blockchain. These initiatives provide students with opportunities for hands-on learning through short-term courses and internships. In the FY25 budget, the Government of India has increased spending to support skill development. As a part of the initiative, national centres of excellence are being established to promote research, innovation and advanced training. These centres are designed to prepare the youth for both Indian and global job markets by giving them the right skills and industry exposure.

Industry-academia collaboration

Educational institutions and industries are working together to bridge the gap between classroom learning and real-world work. Colleges are teaming up with companies to offer internships, project-based learning and opportunities for joint research. This gives students practical experience and helps them understand workplace needs. The government is also funding in Research and Development (R&D) activities in the private sector, encouraging companies to innovate.

Personalised and inclusive learning

Technology is playing an important role in making learning more personalised and inclusive, making the education system supportive of all learners. AI-powered systems can now track each students progress and offer customised lesson plans based on individual learning needs. There is also greater focus on making education all inclusive, by making efforts to provide equal learning opportunities for students from Tier-II and Tier-III cities, as well as from underserved communities.

Micro-credentialsandlifelonglearning

Short-term certifications and micro-courses are becoming popular as they allow people to quickly gain new skills. These courses are useful for working professionals who want gain new skills according to the evolving needs of industries. Micro-credentials offer a flexible way to learn without the need to commit to full-time study. Lifelong learning is also being encouraged, allowing people to gain knowledge at any age. This approach helps build a workforce that is adaptable and ready for future challenges.

Green and sustainable campuses

Educational institutions are starting to focus more on sustainability. At present, many schools and colleges are turning into green campuses by using solar power, recycling waste, conserving water and promoting eco-friendly practices. In addition to this, topics relating to the environment protection are being added to the curriculum, helping students understand the importance of safeguarding natural resources and encouraging them to think about solutions to environmental problems.

Government support and funding

Government support is a major reason behind the ongoing changes in the education sector. In FY25, the education budget was increased to H1,28,650 crore, the money being used to improve digital tools, fund student research and establish innovative labs such as ATAL Tinkering Labs in schools. The Government of India is also investing in projects that build research capacity, promote the use of new technology and digitise traditional Indian knowledge systems. These steps are helping to modernise the education system while preserving Indias rich cultural and academic heritage.7

Challenges8

Outdated curriculum and excessive focus on theory

Many educational institutions still rely on outdated curricula that fail to reflect the evolving demands of the modern world. The focus remains on rote learning and textbook based rather than practical knowledge and real-world skills. As a result, graduates often face themselves ill-equipped for careers in areas such as technology, finance, or entrepreneurship. They may also struggle with problem-solving, creativity and effective communication skills that are crucial in todays workplaces.

Poor infrastructure and frequent school closures

Numerous schools, especially in rural and remote areas, face serious infrastructure challenges. These include dilapidated buildings, lack of electricity, limited access to clean drinking water and inadequate sanitation facilities especially for girls. Furthermore, many schools are not equipped with computers or internet access. These conditions hinder both learning and teaching processes. In some cases, due to low enrollment or insufficient resources, schools are shut down completely, depriving children of educational opportunities.

Low teaching quality and shortage of educators

The quality of education remains substandard in many schools due to lack of trained and qualified teachers, especially in subjects such as science, mathematics and English. In rural areas, educators are often underqualified or burdened with teaching multiple subjects. Many schools operate with only one or two teachers for all classes, resulting in overcrowded classrooms and limited individual attention.

Unequal access and Language barriers

Children from disadvantaged backgrounds, such as those living in rural areas or from low-income families often face unequal access to quality education. Also, education in India is often delivered in English or Hindi, while many children speak different regional languages at home. This language gap creates barriers to understanding, causing some students to struggle academically or even drop out.

High dropout rates and overcrowded classes

A large number of students, especially in secondary school, drop out before completing their education. Common reasons include poverty, need to support their families, early marriage and unengaging learning methods. Overcrowded classrooms hinder personalised training, making it difficult to support struggling students

Increasing expenses in education

The cost of education is rising quickly, especially in private schools. Families not only have to pay high tuition fees, but also extra money for books, school uniforms, transport and digital learning tools. For low- and middle-income households, these costs can be too much, forcing them to either cut back on other needs or send their children to lower-quality schools. In some cases, children are pulled out of school altogether.

Limited government spending

Education often receives insufficient funding, Limited budgets mean that many schools do not have proper infrastructure, teaching materials or enough teachers. Funds are often delayed or poorly managed, especially in rural and government-run schools. Without proper financial support, it is difficult to improve the quality and reach of education across the country.

Brain drain and weak research ecosystem

Many students move abroad for better education and job prospects, leading to brain drain. Domestic universities lack the resources for advanced research and innovation. This weakens Indias ability to lead in science, technology and other research-based fields.

Favourable government policies

National Education Policy (NEP)9

The National Education Policy (NEP) 2020, brought major changes to Indias education system, one of them being replacing the old 10+2 system with a new structure called 5+3+3+4,. The policy focuses on giving students quality education and helping them learn useful skills. From Grade 6 onwards, students will also be taught job-related and practical skills, along with their regular subjects.

NEP 2020 envisions an education system that is fully equipped with to meet the demands of the modern world. It supports early childhood education, aims to improve reading and writing skills and makes learning a lifelong process by encouraging the use of new technology and Artificial Intelligence (AI) in classrooms. The objective is to reduce the gap between regular education and skill training, so that students are better prepared for the future.

Bharatiya Bhasha Pustak Scheme:

The Bharatiya Bhasha Pustak Scheme is a new plan announced in the Union Budget for FY 2025–26. The goal is to make digital learning materials available in different regional languages, so the students can study in their own mother tongue. This will help students understand better and do well in their studies.

Initiatives taken by the
Government of India for students
PM POSHAN (Mid-Day Meal Scheme)
National Means-cum-Merit Scholarship Scheme (NMMSS)
National Scholarship Portal (NSP)
Vidya Lakshmi Education Loan Scheme
SWAYAM (Study Webs of Active-Learning for Young
Aspiring Minds)
Diksha Portal
e-Pathshala
NIPUN Bharat Mission
Atal Tinkering Labs (ATL)
Fit India Movement
National Apprenticeship Promotion Scheme (NAPS)
Pragati and Saksham Scholarships
PM eVIDYA
List of government schemes for schools
Samagra Shiksha Abhiyan
PM SHRI Schools (Prime Minister Schools for Rising India)
PM POSHAN (Earlier Mid-Day Meal Scheme)
NIPUN Bharat (National Initiative for Proficiency in
Reading with Understanding and Numeracy)
Rashtriya Avishkar Abhiyan
Strengthening Teaching-Learning and Results for States (STARS)
School Health Programme (under Ayushman Bharat)
Ek Bharat Shreshtha Bharat (EBSB)
Government initiatives for
digital education
PM eVIDYA
DIKSHA Portal
SWAYAM
e-Pathshala
Operation Digital Board
National Digital Education Architecture (NDEAR)
Government initiatives for girls
Beti Bachao, Beti Padhao (BBBP)
National Scheme of Incentives to Girls for
Secondary Education
Pragati Scholarship Scheme
Kasturba Gandhi Balika Vidyalaya (KGBV)
Gender Inclusion Fund (under NEP)
Sukanya Samriddhi Yojana (SSY)
CBSE Udaan Scheme
Scheme for Adolescent Girls (SAG)
Balika Samriddhi Yojana
Savitribai Phule Scholarship for Girls
Government initiatives for disabled students
InclusiveEducationforDisabledatSecondaryStage(IEDSS)
Samagra Shiksha Abhiyan (SSA)
Scholarship for Students with Disabilities
Accessible India Campaign
Government initiatives for school teachers
National Initiative for School Heads and Teachers
Holistic Advancement (NISHTHA)
Integrated Teacher Education Programme (ITEP)
DIKSHA for Teachers
Performance Appraisal of Teachers (Shala Siddhi)
Government initiatives for students mental well-being
School Health Programme (under Ayushman Bharat)
MANODARPAN
Life Skills Education (by NCERT)
Guidance and Counselling Programs (by CBSE and NCERT)

Company overview

Zee Learn Limited continues to be a prominent name in the Indian education sector, delivering high-quality education and training through its diverse portfolio of brands—Kidzee, Mount Litera Zee Schools (MLZS), Zee Institute of Media Arts (ZIMA), and Zee Institute of Creative Art (ZICA). In FY 2024–25, the company built further on its legacy of innovation and excellence in pedagogy, expanding its reach across India and Nepal, and launched a new curriculum solution, ZNIUS.

The companys strong brand equity and reputation for quality education remain key differentiators, reinforced by multiple awards and recognitions. Zee Learn operates through a robust franchise network and has made strategic investments in infrastructure, digital platforms, and curriculum innovation—most notably with the launch of Litera Nova and a suite of Value Added Services (VAS) across its K-12 segment. The newly launched ZNIUS offers a comprehensive, end-to-end academic solution tailored to meet the evolving needs of schools.

Financially, Zee Learn has demonstrated resilience and adaptability. Despite sectoral challenges, the company maintained stable revenue streams and pursued operational efficiencies. Strategic partnerships and acquisitions, including an investment in Vidyasea, an AI-driven study abroad and career guidance platform, have further strengthened its position in the education ecosystem.

Supported by a seasoned management team with deep expertise in education and business operations, Zee Learn is well-positioned to navigate evolving market dynamics and continue delivering innovative, learner-centric solutions across its verticals.

Operational highlights

Kidzee

Kidzee continues to be a pioneer in Early Childhood Care and Education (ECCE), maintaining its leadership with a robust network of over 2,200 preschools across 600+ cities in India and Nepal. As of FY24–25, Kidzee has positively impacted the lives of more than 1.8 million children and their families, reinforcing its commitment to nurturing future generations.

Kidzee operates on a franchise model, where the Kidzee Business Partner invests in infrastructure and pays a one-time franchise fee. In return, franchisees receive:

Center set-up kit along with branding kit and furniture

Age-appropriate curriculum and content

Pedagogically aligned child kits

Teacher and counsellor training

Academic delivery support

Operational and marketing guidance

Kidzee continues to empower local education entrepreneurs, especially women, through a structured onboarding and support process designed to ensure long-term success.

Pedagogical Framework: P?ntemind Program

The Kidzee P?ntemind program remains central to its educational philosophy. It offers a holistic, age-appropriate learning experience that supports self-paced development across key milestones. Guided by the "Whats Right for the Child" (WRFC) ethos, the program ensures a safe, respectful, and nurturing environment for every child.

All Kidzee centres implement the P?ntemind curriculum, with differentiated experiences based on the centres tier classification:

Standard Tier: Core academic experience with the Essential Curricular Kit

Classic Tier: Includes six Culmination activities based on the Extended Learning Guide Kit, in addition to the Essential Kit

Select Tier: Offers the same as Classic Tier, with additional six Culmination activities and added emphasis on enriched learning environments and community engagement

FY24–25 Highlights & Strategic Focus

Digital Expansion: Enhanced presence through the Kidzee app and digital platforms

Curriculum Innovation: Continued refinement of the P?ntemind pedagogy to align with evolving ECCE standards

Operational Strengthening: Focus on compliance, centre performance, and network optimization.

Brand Positioning: Reinforced through updated brand guidelines and messaging that emphasize safety, innovation, and child-centric values

K-12

Mount Litera Zee Schools (MLZS) continues to be a prestigious chain of CBSE-affiliated schools across India, offering education from kindergarten to Grade 12. In FY 2024–25, MLZS has deepened its commitment to delivering 21st-century skills through launch of new curriculum, Litera Nova, that blends academic rigor with holistic development.

Litera Nova

During the Financial Year, Zee Learn launched Litera Nova, a transformative curriculum aligned with NEP 2020 and NCF 2023, aimed at personalizing education through neuroscience-based development. It integrates AI and AR technologies to enhance classroom engagement and supports interdisciplinary learning and critical thinking. The curriculum is delivered via the NOVA App ensuring seamless access to the schools. It also includes interactive kits such as AR flashcards, board games, and DIY activities. Teachers use dashboards to monitor student progress and engagement. Nationwide training sessions were conducted to ensure smooth implementation. Digital content for Grades 6–12 includes updated assessments and teaching aids. Litera Nova marks a strategic shift toward personalized, tech-enabled, and competency-driven education. A key feature of Litera Nova is the Unique Learner Profile, which captures each students learning style, pace, and preferences. This profile enables educators to tailor instruction and feedback, ensuring every child receives a truly individualized learning experience.

Value Added Services

MLZS has expanded its offerings with a suite of Value-Added Services aimed at enriching the student experience. These included Model United Nations—simulated global conferences that fostered diplomacy, public speaking, and awareness of international issues. STEM and robotics labs were introduced for MLZS Schools, enabling students to explore scientific concepts and technological innovation through hands-on experimentation. A structured mentorship program provided personalized academic and career guidance. Reading and literacy enrichment initiatives promoted language development through storytelling, book clubs, and digital tools. We also introduced specialized sports coaching Academy focused on cricket. Additionally, MLZS launched a dedicated School of Music, offering structured training in vocal and instrumental performance to nurture artistic expression and musical talent.

Vocational Courses (ZICA and ZIMA)

ZICA (Zee Institute of Creative Art) is Indias first full-fledged Animation, VFX, Gaming, and Design training academy. With over 25 years of legacy and 60+ centres across 45+ cities, ZICA offers industry-aligned programs that cover the entire animation production pipeline—from visualization and pre-production to post-production. The curriculum emphasizes creativity, design fundamentals, and hands-on training using high-end tools and software. Students benefit from centralized assessments, online masterclasses, and placement support, with many alumni working on Hollywood films and series. ZICA runs various short term courses to full-fledged degree course in animation.

ZIMA (Zee Institute of Media Arts) is a premier film and media school offering specialized programs in Direction, Cinematography, Editing, Audio Engineering, Acting, and Film & TV Production. ZIMA blends traditional filmmaking with modern digital techniques. Its faculty includes seasoned industry professionals, and the institute provides practical exposure through internships and collaborations, including recent tie-ups with reputed media houses.

Both institutes operate under a structured franchise model, offering setup support, academic training, and operational guidance. They continue to empower creative talent across India, preparing students for successful careers in the media and entertainment industry.

Curriculum & Comprehensive School Solutions – ZNius

During the financial year, Zee Learn launched ZNIUS, a comprehensive and learner-centric curriculum aligned with NEP 2020 and NCF-SE 2023. It covers core subjects along with digital literacy, coding, STEAM, financial literacy, and soft skills for Grades 1–8. Classrooms are equipped with interactive flat panels and teacher tablets to enable immersive, tech-enabled learning. The curriculum emphasizes spiral learning, project-based activities, and competency-driven assessments. ZNIUS also includes a parent portal for progress tracking and teacher enablement tools for instructional support. Two product variants—ZNIUS Ignite (scholastics) and ZNIUS Advanced (co-scholastics)—were introduced to suit different school needs. In the financial year, 7 schools have signed up for ZNIUS, with full operational rollout underway.

Financial review- Standalone results

Income

The Companys Revenue from operations increased by 8% to H 27,384 lakhs in FY25 over H 25,263 lakhs of FY24, reflects a steady improvement in the companys operational performance. An increase in student numbers contributed significantly to the revenue rise. The company expanded its network by signing up more franchisee schools, boosting revenue and tailored approach toward development and implementation of new business products like branding kits etc. which resulted in an increase in revenue.

The statement notes that while the companys total income increased by 9% in FY25 compared to FY24, this growth reflects our continued focus on operational efficiency, strategic initiatives, and commitment to delivering sustainable value to our stakeholders. Company also managed to improve its overall financial performance through effective planning, execution, and strategic marketing efforts.

Total expenditure

The statement outlines that the companys total expenditure increased by 9% to H 21,121 lakhs in FY25 from H 19,303 lakhs in FY24. The rise in costs is mainly due to increase in manpower strength and other expenses. It is imperative that as the business grows, revenue expansion remains aligned with the contribution of our workforce and the costs incurred in sustaining it.

As we scale, our focus remains on growing revenues efficiently—ensuring that every investment in our people drives productivity, controls costs, and delivers sustainable value to our shareholders.

Operational expenses

Operational expenses decreased by 1% to H 6,756 lakhs in FY25, from H 6,797 lakhs in FY24. This marginal reduction reflects the companys continued focus on cost optimization and operational efficiency, contributing positively to the overall financial performance for the year.

Employee benefit expenses

The statement indicates that employee benefits expenses rose by 39% to H 5,195 lakhs in FY25, compared to H 3,727 lakhs of FY24. This increase is primarily due to the rise in headcount from 316 employees in FY25 to 397 employees in FY24. Our growth strategy focuses on scaling revenues in line with workforce productivity, ensuring that employee-related investments translate into measurable financial returns.

Selling and marketing expenses

Marketing expenses decreased by 15% to H 2,471 lakhs in FY25 against H 2,902 lakhs of FY24 reflecting optimized spending and improved marketing efficiency. Despite the reduction in marketing expenses, the company achieved higher revenue, indicating more effective campaigns and stronger returns on marketing investments.

Finance costs

Finance costs decreased by 4% to H 2,241 lakhs in FY25 over H 2,325 lakhs in FY24, primarily due to the repayment of a credit facility (refer Note 19 of standalone financial statement), resulting in interest cost savings for Zee Learn. The 4% reduction in finance costs reflects effective debt management through repayment of a credit facility, leading to lower interest expenses and improved financial efficiency.

Depreciation and amortisation expenses

Depreciation and amortization expenses increased by 26% to H 504 lakhs in FY25 over H 401 lakhs in FY24 on account of IND AS adjustment of Lease accounting & increase in Right of use assets.

EBIDTA

EBIDTA stands for Earnings Before Interest, Depreciation, Taxes and Amortisation. The Companys EBIDTA increased by 4% to H 9,008 lakhs in FY25 over H 8,686 lakhs in FY 24 on account of significant growth in revenue, efficient cost management, increased productivity and decrease in several expenses by optimized resource utilization, reflecting overall business growth and operational stability by strong business fundamentals.

EBIDTA % to Operating revenue achieved 33% in FY25 over 34% in FY 24.

Profit

The Companys profit before tax and profit after tax increased by 8% in FY25 over FY24.

Source Of Funds (SOF)

Other equity

The statement notes that other equity increased by H 5480 lakhs, rising from H 7,533 lakhs as of 31 March 2024 to H 13,013 lakhs as of 31 March 2025. This substantial increase is largely attributed to the net profit generated during the year which has contributed to strengthening the companys financial position and enhancing shareholder value.

Non-current liabilities

Non-Current liabilities saw a increase of only H 1,924 lakhs from H 16,797 lakhs as on 31 March 2024 to H 18,721 lakhs as on 31 March 2025, mainly due to increase in borrowing on effect of finance cost & increase in Lease liabilities.

Non-current financial liabilities

Financial Liabilities saw an increase of H 2,243 lakhs from H 12,146 lakhs of 31 March 2024 to H 14,389 lakhs of 31 March 2025, mainly on account of increase in Lease liabilities by H 836 lakhs and increase in Borrowing by H 1368 lakhs on account of finance cost.

Non-current other liabilities

Other Liabilities saw a decrease of H 320 lakhs from H 4,651 lakhs of 31 March 2024 to H 4,331 lakhs of 31 March 2025 largely on account of discounting of security deposit repaid at present value as per IND AS adjustments.

Current liabilities

Current liabilities saw a net increase of H 36,933 lakhs from H 45,186 lakhs as on 31 March 2024 to H 82,119 lakhs as on 31 March 2025, largely on account of increase in other financial liabilities payable towards corporate guarantee obligation (Refer note 57).

Application of funds

Non-current assets:

Non-Current Assets saw a net increase of H 2,939 lakhs from H 36,984 lakhs as on 31 March 2024 to H 39,923 lakhs as on 31 March 2025, mainly due to increase in Right of use asset.

Current assets:

Current assets saw a increase of H 41,408 lakhs from H 35,792 lakhs as on 31 March 2024 to H 77,200 lakhs as on 31 March 2025, largely on account of increase in other financial assets by H 40,897 lakhs towards corporate guarantee obligation liabilities created under other financial liabilities.

Financial review - consolidated results

For the year ended March 31, 2025, Zee Learn Limiteds consolidated financials show its assets divided into long-term (non-current) and short-term (current) categories, with a large recoverable amount included under current financial assets linked to guarantees given for loans to four trusts. This recoverable amount is now with ACRE after a settlement ended and management believes it can be recovered through asset sales. However, auditors issued a Qualified Opinion because the Company did not complete the required assessment to confirm this amounts recoverability, leaving uncertainty about its accuracy. Auditors also raised concerns about the Companys financial health, noting that current liabilities exceed current assets, negative working capital, ongoing insolvency proceedings and large payables to ACRE. Despite these challenges, management prepared the accounts on the assumption that the Company will continue operating, supported by plans for asset monetisation and expected business growth and the auditors did not change their opinion on this going concern status.

Income

The Groups Consolidated Revenue from operations increased by 4% to H 37,194 lakhs in FY25 over H 35,627 lakhs in FY24, on account of increase in revenue of Holding company and one of the subsidiary viz. Liberium Global Resources Private Limited (LGRPL). Total income increased correspondingly by 4% to H 39,253 lakhs in FY25 over H 37,820 lakhs of FY24.

Although MT Educare Limited (MTEL) was deconsolidated in the previous year (refer note 60 of consolidated financial statement), the Group continued to post revenue growth in the current year, driven by strong performance across its core businesses.

Expenditure

The statement highlights that total expenditure increased by 6% to H 34,369 lakhs in FY25 from H 32,567 lakhs in FY24, in line with increase in sales. Though operational cost and marketing cost decreased, total expenditure increases mainly due to increase in employee cost and depreciation on investment property through DVPL (refer note 49 of consolidated financial statement). This suggests that the company has successfully managed to streamline its operations and reduce costs, leading to improved efficiency and profitability even as sales continued to grow.

Operational expenses

The statement indicates that operational expenses decreased by 29% to H 6,756 lakhs in FY25, compared to H 9,559 lakhs in FY24. This reduction in operational expenses is primarily attributed to a decrease in other operating cost through deconsolidation of MTEL. This reflects the company has optimized its inventory management and operational processes, leading to cost savings while maintaining operational effectiveness.

Employee benefit expenses

The statement notes that employee benefits expenses increased by 39% to H 13,290 lakhs in FY25 from H 9,574 lakhs of FY24. This is mainly due to corresponding increase of revenue of one of the subsidiary viz LGRPL and overall increase in top management staff, along with higher recruitment and training costs which help to increase in the revenue.

Other expenditure

Other expenditure increased by 14% to H 4,343 lakhs in FY 25 against H 3,802 lakhs in FY 24, however, despite the deconsolidation of MTEL and its expenses, the Group effectively managed to control overall cost.

Finance costs

The decrease in finance costs by 7 % from H 4,175 lakh in FY24 to H 3,869 lakh in FY25 is on account of deconsolidated of subsidiary company MTEL.

Depreciation and amortisation expenses

Depreciation and amortization expenses increased by 51 % to H 3,640 lakhs in FY25 against H 2,408 lakhs in FY24 through depreciation on investment property in DVPL (refer note 49 of consolidated financial statement).

EBITDA

The Companys EBIDTA achieved at H 10,334 lakhs in FY25 against H 9,642 lakhs in FY24 (growth of 7% over previous year) primarily due to enhanced business performance, better capacity utilization, and disciplined cost management.

EBIDTA % to Operating Revenue achieved at 28% in FY 25 against 27% in FY 24.

Source of Funds (SOF)

Equity attributable of Equity Holder of the parents

Equity attributable of Equity Holder of parents stands at H 19,610 lakhs as on 31 March 2025 over H 18,266 lakhs of 31 March 2024 largely on account of Net profit during the year.

Non-current liabilities

Non-Current liabilities saw a increase of H 4,053 lakhs from H 39,521 lakhs as on 31 March 2024 to H 43,574 lakhs as on 31 March 2025, mainly due to increase in borrowings and lease liabilities.

Non-current financial liabilities

Financial Liabilities saw an increase of H 4,733 lakhs from H 30,885 lakhs of 31 March 2025 to H 26,152 lakhs of 31 March 2024 on account of increase in borrowings and lease liabilities.

Non-Current Other Liabilities

Other Liabilities saw a decrease of H 680 lakhs from H 13,369 lakhs of 31 March 2024 to H 12,689 lakhs of 31 March 2025 largely on account of discounting of security deposit repaid.

Current Liabilities

Current liabilities saw a net increase of H 37,131 lakhs from H 50,616 lakhs as on 31 March 2024 to H 87,747 lakhs as on 31 March 2025, largely on account of increase in other financial liabilities payable towards corporate guarantee obligation.

Application of Funds

Non-Current Assets

Non-Current Assets saw a net increase of H 2,939 lakhs from H 36,984 lakhs as on 31 March 2024 to H 39,923 lakhs as on 31 March 2025, mainly due to increase in Right of use asset.

Current Assets

Current assets saw a increase of H 41,965 lakhs from H 37,896 lakhs as on 31 March 2024 to H 79,861 lakhs as on 31 March 2025, largely on account of increase of other financial assets of H 40,897 lakhs towards corporate guarantee obligation liabilities created under other financial liabilities.

Human Resources

The Company recognises that a motivated, skilled, and cohesive workforce is the cornerstone of operational excellence and sustainable growth. In FY 2024–25, several strategic initiatives were undertaken to strengthen human capital. These included:

Compensation & Benefit benchmark survey was done to ensure that we offer competitive salary , bonuses, Performance Incentives, Health Insurance, Retiral benefits , Leaves & perks.

Learning & Development and capability building to provide opportunity to develop & grow , through targeted training programs, leadership development initiatives specially at the middle management level , and continuous skilling interventions to ensure a future-ready workforce aligned with business needs.

Digitalisation of HR processes to streamline onboarding and administrative workflows, thereby improving efficiency and transparency in employee lifecycle management.

Focused recruitment of executive trainees, management trainees, and first-line managers to strengthen the talent pipeline and increase internal appointments for middle and senior leadership roles.

Workplace upgrades, including improved office spaces at manufacturing facilities and enhanced cafeteria infrastructure, to support employee well-being and productivity

Structured role rotations designed through Internal Job Posting (IJP) & planning next move to broaden employee capabilities, prepare talent for higher responsibilities, and drive superior performance.

As a result of these efforts, employee attrition reduced significantly—by 21% over the past year and 54% over the last two years ensuring market attrition benchmark while demonstrating improved retention and engagement. The Company also reinforced its people-first approach through Employee Satisfaction (ESAT) surveys, structured reward and recognition programs, DEI initiatives, festive celebrations, and health and wellness drives across locations. Employee relations remained harmonious throughout the year, while the team size grew from 316 to 397.

A key highlight of the year was Zee Learn receiving the prestigious "WOW Workplace 2025" Award, with one of the highest scores among participating organisations. The award, conducted by an independent agency, recognises companies with outstanding employee feedback and workplace culture.

Looking ahead, Zee Learn remains deeply committed to investing in its people and building a future-ready workforce. By fostering a professional, inclusive, and empowering environment, the Company ensures that every team member can unlock their potential and contribute meaningfully to its long-term vision and growth journey.

Key ratios

Standalone

Ratios 2024-25 2023-24
Trade receivable turnover ratio 14.32 16.57
(in times)
Inventory Turnover ratio (in times) 2.54 2.54
Current Ratio (in times) 0.94 0.79
Debt Equity Ratio (in times) 1.21 1.79
Net Profit Margin (in %) 20% 20%

Consolidated

Ratios 2024-25 2023-24
Trade receivable turnover ratio 9.51 11.12
(in times)
Inventory Turnover ratio (in times) 2.53 3.58
Current Ratio (in times) 0.91 0.75
Debt Equity Ratio (in times) 1.81 1.80
Net Profit Margin (in %) 3% 44%

Business outlook

Zee Learn Limited enters FY25 with cautious optimism, focusing on stabilising operations, strengthening its core education business and pursuing financial recovery. The Company continues to face challenges stemming from past financial obligations, including liabilities linked to corporate guarantees. However, management has taken strategic steps such as entering into supplemental facility agreements and asset monetisation plans to address these issues and restore long-term financial stability.

The Company is focused on expanding enrolments, enhancing digital learning infrastructure and optimising centre-level performance. The improvement in consolidated revenue and EBITDA in FY25 suggests early signs of recovery, supported by tighter cost controls and improved utilisation of resources. Going forward, Zee Learn aims to rebuild scale through quality education delivery, improved partner support and innovative academic offerings while maintaining a lean and agile cost structure.

Although external uncertainties and legacy financial exposures persist, the Companys business plan reflects a clear path to sustained cash flows, aided by increased operating efficiency and a restructured financial base.

Risk Mitigation

Zee Learn is not only exposed to generic macro risks such as political, economic, technological, governmental and natural calamities, it is also exposed to certain business-specific risks arising from its education-focused business model. These include:

Regulatory and Policy Risk: Changes in education policies, affiliation norms, or compliance requirements may impact operations, curriculum delivery, and long-term planning.

Franchise and Operational Risk: Variations in quality, compliance, or brand representation across franchise centres can affect reputation, stakeholder confidence, and overall service delivery.

IntellectualProperty(IP)Risk: Unauthorizeduseorreplication of proprietary content, curriculum, or brand assets could result in legal challenges and reputational damage.

Execution Risk: Timely and efficient execution of projects—whether related to the delivery of study materials, training programs, or assessments—is a critical revenue driver for the Company. Ensuring that commitments are met with quality, within stipulated timelines, and under budget is essential to maintaining client trust and operational success. Any failure in execution, whether due to logistical delays, resource constraints, or quality lapses, can result in loss of business, financial penalties, and reputational damage.

The Company recognises that risk is an inherent element of business and adopts a proactive and structured approach aimed at identifying, managing, and mitigating risks rather than avoiding them. The Company continues to strengthen its project management and operational controls to mitigate such risks and uphold service excellence. Enterprise Risk Management (ERM) is deeply embedded in Zee Learns operations and is guided by a robust framework covering identification, classification, assessment, prioritisation, mitigation, monitoring, and reporting of key risks.

Zee Learn employs both bottom-up and top-down approaches to ensure comprehensive coverage of risks. It integrates bottom-up risk identification and mitigation by business units with top-down oversight by Senior Management to ensure comprehensive coverage of operational, legal, strategic, and macro-level risks. This dual mechanism enables Zee Learn to respond effectively to both internal and external challenges, safeguarding its operations, reputation, and long-term growth objectives.

Internal controls

The Company has a proper internal control system in place to ensure smooth operations, protect its assets, prevent fraud and follow all rules and regulations. It manages risks related to operations, finance and compliance by checking how serious and likely they are. Responsibilities are clearly divided so that no single person has full control over any important task. This helps reduce the chances of mistakes or fraud, as key work requires more than one person to be involved. To keep data and systems safe, the Company uses strong IT controls such as user access restrictions, regular software updates, firewalls and systems to detect any unusual activity. Financial records, accounts and inventory are regularly checked and any differences are quickly investigated and corrected. The Company also has a clear reporting system and regular business reviews to support timely decisions. Internal audits are done by qualified professionals to make sure everything is in order and any major changes in the business are reported to the Board.

Cautionary statement

This Management Discussion and Analysis may include forward-looking statements that reflect the Companys views on the industry, future goals, projections and expectations. These statements are based on current assumptions and are subject to risks and uncertainties. Actual outcomes may differ significantly from those expressed or implied. The Company is not obligated to update or revise any forward-looking statements in light of future events or new information. Readers are advised not to rely heavily on these statements.

SWOT Analysis:

Strengths

Well-recognised and trusted brands including Kidzee, Mount Litera, ZICA, and ZIMA.

Rapidly expanding pan-India presence which penetrates deep, across 700 towns, cities and metros in pre-school, K-12 and vocational education segments.

Strong and long-standing business partner relationships.

Proven academic excellence with innovative pedagogy, interactive learning methods that keep pace with evolving education standards, regulatory requirements, and global best practices.

New and updated curriculum content tailored to diverse learner profiles, ensuring personalised learning experiences and measurable improvement in student outcomes.

Large, experienced and capable academic operations team, continuously adding value to partners through observations, trainings & development initiatives.

Blended delivery model combining offline classrooms with digital platforms, apps and online academic support.

Recognition as a "WOW Workplace 2025" winner, reflecting strong employee engagement and organisational culture.

Weaknesses

Continued dependency on franchisee partners for execution and local operations.

Attrition of trained teachers due to competition from new schools.

Infrastructure gaps impacting consistency in delivery.

Long gestation cycle of the education business, as academic changes take a full year to reflect in outcomes.

Limited international presence compared to global peers in early childhood and K-12 education.

Seasonality in business leading to the need for managing cashflow constraints.

Industry growth steadily shifting towards premium end of the market where Zee Learn is presently not offering services.

Opportunities

Low penetration of organised pre-school education in outskirts of metros, semi-urban and rural areas, offering significant growth potential.

Parental aspirations for quality education leading to student migration from other Boards towards CBSE and premium brands.

Launch of Znius to partner with and provide academic support to thousands of schools, enabling Zee Learn to expand presence to a market beyond own schools.

Evolving and increasing adoption of digital learning solutions and AI-driven personalised education.

Favourable government reforms in NEP 2020, K-12 education, and skill development, supporting expansion in curriculum and vocational training.

Growing demand for teacher training and capability building, creating opportunities for professional education programs.

Investment in Vidysea to leverage increasing trend in large cities to send children abroad for higher education and better job opportunities.

Threats

Edtech companies and new-age education models offering alternate learning formats.

Constantly changing regulatory environment and evolving compliance norms with policies varying across states, in the education sector.

Rising competition in school space, leading to talent poaching and higher operational costs.

Macroeconomic challenges that could affect discretionary spending on premium education.

Potential disruptions from technology risks, including cybersecurity and data privacy concerns.

Execution & project risks related to opening of new centers, logistics, training, academic and assessment delivery.

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.