Aakash Educational Services Performance in FY26
Aakash Educational Services (AESL) has showcased impressive academic results in FY26, with students achieving nine ranks among the Top 100 in JEE Advanced 2026 and 41 ranks in the NEET Top 100. However, this impressive academic performance did not lead to substantial financial growth as the test-prep firm’s operating revenue remained mostly unchanged, and its EBITDA saw a significant decline of 65% over the last fiscal year.
Revenue Overview
Aakash’s revenue from operations was recorded at Rs 2,041 crore in FY26, a slight increase from Rs 2,032 crore in FY25, as stated in its financial reports submitted to the Registrar of Companies (RoC). The vast majority of Aakash’s operating revenue originates from its coaching segment, which includes classroom programmes conducted at its own centres. This segment brought in Rs 1,956 crore in FY26, a figure that remained largely unchanged compared to Rs 1,951 crore from the previous fiscal year, making up about 96% of the company’s operating revenue.
Franchisee Revenue
The remaining revenue stemmed from Aakash’s franchisee network, where partnered centres operate under the Aakash name. Revenue from this sector increased by 3.7% to Rs 84 crore in FY26, up from Rs 81 crore the year prior.
Income and Expenses
The overall income of the company rose by 3.3% to Rs 2,154 crore in FY26, compared to Rs 2,085 crore in FY25, supported by a more than twofold rise in other income reaching Rs 113 crore. Employee benefit costs, being the largest expense category for Aakash, saw a reduction of 2.4% to Rs 1,300 crore in FY26 from Rs 1,332 crore in FY25. Depreciation expenses decreased by 4.5% to Rs 235 crore, and advertising costs went down by 7% to Rs 146 crore.
Other Expenses
On the other hand, additional expenses rose by 6.5% to Rs 626 crore, which included costs related to security, housekeeping, subvention, and legal services, among other liabilities. Franchise service fees also witnessed a significant rise of 66% to Rs 91 crore during the fiscal year. In total, the company’s expenses increased slightly to Rs 2,398 crore from Rs 2,378 crore in FY25.
Profitability and Losses
Despite the small uptick in revenue, the firm experienced a sharp decline in its operating profitability. EBITDA dropped by 65% to Rs 15.3 crore in FY26 from Rs 43.3 crore in FY25, leading to a decrease in the EBITDA margin from 2.13% to 0.75%. The return on capital employed (ROCE) for the firm was recorded at -46.1% in FY26.
Year-on-Year Losses
Overall, Aakash managed to reduce its loss before tax and exceptional items by 17% year-on-year, recording a loss of Rs 244 crore in FY26 compared to Rs 293 crore in FY25. The company posted a net loss of Rs 186.5 crore for the fiscal year, influenced by deferred tax adjustments and exceptional items. For a clearer perspective of its core operating performance, the analysis focused on losses before tax and exceptional items.
Current Assets
By the end of FY26, Aakash had total current assets amounting to Rs 325 crore, which included a cash and bank balance of Rs 112 crore.
Ownership Dispute Context
This financial performance comes amid an ongoing ownership dispute concerning Aakash. Byju’s, which acquired the test-prep company for roughly $1 billion in 2021, has seen its stake diluted, with Manipal Health now being the principal shareholder. As part of a proposed settlement, Byju’s lenders are currently negotiating to obtain about 30% of Aakash at an estimated valuation nearing $2 billion.