Byju’s Acquisition of Aakash Educational Services: Performance Insights

When Byju’s acquired Aakash Educational Services (AESL) for approximately $950 million in 2021, it was a central element of its strategy to expand offline. The aim was to merge Aakash’s extensive classroom network and test-preparation knowledge with Byju’s technological capabilities and outreach. Aakash experienced a significant increase in revenue following the acquisition. Its operating revenue surged by 44.6% to Rs 1,421 crore in FY22, up from Rs 983 crore in FY21. The company continued to increase its network of centres and number of students. By March 2023, Aakash anticipated closing FY23 with around Rs 3,000 crore in revenue. At that time, it had grown to 320 centres and had over 4 lakh students. However, the company ultimately reported operating revenue of Rs 2,399 crore for the fiscal year.

Byju’s raised expectations further a few months later. In June 2023, while announcing intentions to go public with Aakash by mid-2024, the company stated that AESL was on track for Rs 4,000 crore in revenue and Rs 900 crore in EBITDA in FY24. The IPO was largely believed to offer a liquidity solution for Byju’s, facilitating further expansion plans without further equity dilution.

Unfortunately, that revenue target also proved unattainable. Aakash’s operating revenue saw a slight increase to Rs 2,438 crore in FY24, leaving it more than Rs 1,500 crore shy of the figure projected by Byju’s. Additionally, Byju’s worsening financial situation complicated IPO possibilities as well.

The slowdown became increasingly apparent in subsequent years. Aakash’s revenue fell by 16.7% to Rs 2,032 crore in FY25. In FY26, the operations showed only a slight recovery, with revenue rising to Rs 2,041 crore. Profitability was also under stress, as Aakash’s EBITDA declined by 65% to Rs 15.3 crore in FY26, down from Rs 43.3 crore in FY25.

The statistics illustrate how dramatically the growth trajectory has shifted. Aakash’s revenue rose from Rs 983 crore in FY21 to Rs 1,421 crore in FY22 and Rs 2,399 crore in FY23. However, since then, it has faced challenges to maintain growth beyond the Rs 2,400 crore benchmark. Five years post acquisition, Aakash is now reporting less than half of the Rs 4,000 crore revenue that Byju’s had anticipated for FY24.

The acquisition initially enabled rapid scaling for Aakash, but the aggressive growth that was expected following those early successes has not been realised. Rather, the company has spent the last two financial years without breaking past the Rs 2,000 crore revenue threshold, alongside deteriorating profitability.

After Manipal acquired a controlling stake, the group now possesses around 73% of Aakash Educational Services. In contrast, Byju’s stake has decreased to 13.74%, while Bisy Philip holds a 5.16% share in the company. During the fiscal year concluding in March 2026, Aakash founder JC Chaudhry completely exited the company. Chaudhry’s exit may leave the management installed by Manipal with an opportunity to reshape the firm, although it remains uncertain if they can deliver results, with impact on FY27 continuing to appear unlikely.