Edtech Growth with LEAD Group in FY26: A 10% Revenue Increase
Edtech growth is evident as LEAD Group saw a return to double-digit growth in FY26, with its operating revenue climbing 10%. The company significantly improved its operating EBITDA, which surged seven times, while effectively reducing losses by 20% compared to the previous year.
Financial Growth Overview
The company’s operating revenue increased to Rs 386.6 crore for the fiscal year ending March 2026, up from Rs 351.5 crore in FY25, according to annual financial reports from the Registrar of Companies (RoC).
About LEAD Group
Founded in 2012 by Sumeet Mehta and Smita Deorah, LEAD Group provides integrated curriculum and technology solutions encompassing books, workbooks, smart classes, teacher training, ERPs, Math-Science kits, teaching aids, and devices. Currently, LEAD has established a presence in over 9,000 schools across more than 400 towns and cities, impacting nearly 41 lakh students and supporting upwards of 65,000 teachers.
Revenue Breakdown
Revenue derived from products such as books, teaching aids, and devices constituted over 71% of LEAD Group’s operating income, amounting to Rs 275.4 crore, while platform services contributed Rs 76.5 crore.
Total Income and Expenses
LEAD’s total income reached Rs 392 crore in FY26, which includes Rs 5.4 crore in non-operating income, compared to Rs 367.4 crore in the preceding fiscal year. The principal expense for the edtech firm remained employee benefits, yet these decreased by 6% to Rs 131.2 crore from Rs 139.7 crore the previous year. The cost of materials declined by 5.4% to Rs 104.9 crore, while travel and conveyance expenses increased by 7.1% to Rs 25.5 crore. Additionally, advertising expenses rose by 10% to Rs 18.9 crore.
Depreciation and Other Costs
Depreciation and amortisation expenses surged by 84.3% to Rs 47.9 crore, up from Rs 26 crore in FY25. Overall, various overhead costs, including legal and professional fees, impairment losses, transport charges, and miscellaneous expenses, culminated in total expenses of Rs 426.5 crore for FY26.
Operational Improvements
LEAD Group’s operating EBITDA rose sevenfold to Rs 30 crore in FY26 from Rs 4 crore in FY25. This remarkable growth is attributed to enhanced operational efficiencies as the company scales its business. The combination of growth in its core operations and existing school network, along with controlled operating expenditures, enabled LEAD to reduce overall losses by 20% year-on-year, resulting in Rs 34.5 crore in FY26, down from Rs 43.3 crore in FY25.
Investment and Cash Flow
On a unit level, LEAD spent Rs 1.1 to generate every rupee of operating revenue during the fiscal period. The firm also noted that the advancements in its offerings were significantly influenced by the larger deployment of technology and AI throughout the year, as the company concentrated on AI-enabled solutions for both students and teachers. Backed by WestBridge Capital, LEAD’s cash and bank balances decreased to Rs 55 crore by the end of FY26, from Rs 89.5 crore a year earlier, while current assets stood at Rs 346 crore. To date, LEAD has secured over $180 million in funding, including a notable $100 million round led by WestBridge Capital in 2022, which established the company as a unicorn.