Motion Reports Flat Performance in IIT-JEE and NEET Coaching Sector

Motion, a coaching institute focused on IIT-JEE and NEET, experienced no growth in the fiscal year ending March 2025. The firm, based in Kota, noted a small drop in profit during this period. Revenue from operations reached Rs 108 crore in FY25, a slight decrease from Rs 109 crore in FY24, as per the financial statement obtained from the Registrar of Companies (RoC).

Founded in 2007, Motion provides coaching for competitive exams such as JEE and NEET. The offerings include classroom training at offline centres and online learning solutions. The revenue primarily stems from course fees paid by students enrolled in its programs. The firm also added approximately Rs 2 crore from non-operating income, maintaining total income at Rs 110 crore in FY25.

Expenditure Overview

Employee benefit expenses formed the largest portion of the company’s expenditures, increasing by 4% to Rs 49 crore in FY25, which accounted for nearly 48% of total costs. Advertising and promotional expenses decreased by 8% to Rs 12 crore in the past fiscal year.

Legal expenses surged by 33% year-on-year, amounting to Rs 10 crore during FY25, while rental costs rose by 17% to Rs 5.2 crore. Overall, total expenses slightly rose to Rs 103 crore in FY25 from Rs 102 crore in FY24.

Profitability Metrics

Despite maintaining consistent income, Motion’s profit dipped by 6.7% to Rs 5.6 crore in FY25 from Rs 6 crore the previous fiscal year. The company’s ROCE and EBITDA margin improved to 12.29% and 10.74%, respectively. On a unit cost basis, the company spent Rs 0.95 to generate one rupee in operating revenue during the fiscal year.

As of FY25, Motion’s total assets were valued at Rs 115 crore, an increase from Rs 81 crore in FY24. The company reported cash and bank balances of Rs 10 crore, with current assets totaling Rs 23 crore by the end of FY25.

Industry Context and Competition

Motion has not yet secured any additional funding and finds itself competing with established names like Aakash, Career Point, Allen, and Resonance. For instance, Allen recorded revenues of Rs 3,067 crore in FY25; however, its profit plummeted 70% to Rs 41 crore. Meanwhile, Aakash experienced a significant loss of Rs 2,443 crore in FY24, mainly due to exceptional items associated with its parent company, Byju’s, although its revenue from operations remained stable at Rs 2,438 crore.

Motion’s stagnant performance in FY25 mirrors broader trends within the coaching industry. Larger entities like Allen and Aakash also faced limited growth during this timeframe. While Allen’s profit sharply declined despite high revenue, Aakash’s scale appears to remain relatively unchanged in FY25. In light of this context, Motion’s consistent revenue points to a stable, albeit slow-moving, period for traditional coaching institutes amidst increasing competition and evolving student preferences.