Educomp Solutions Limited (EDUCOMP) AI Stock Analysis

• Market Cap: ₹127.37M
• Dividend Yield: N/A
• Average Volume (3M): 4.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 32
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): N/A
• Shares Outstanding: 122,467,170
• 10 Day Avg. Volume: 2,373
• 30 Day Avg. Volume: 4,065
• PEG Ratio: -0.08
• Price to Book (P/B): >-0.01
• Price to Sales (P/S): 5.68
• P/FCF Ratio: -17.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: ₹0.99 ▼(-0.10% Downside)
• Action: N/A Date: 02/19/26
• Date: Action: N/A 02/19/26

The score is primarily constrained by very weak financial performance—persistent losses, negative equity with heavy debt, and negative cash generation—indicating elevated solvency and funding risk. Technicals also remain bearish with price below key moving averages and negative MACD; valuation is neutral due to missing P/E and dividend data.

Positive Factors

EdTech product offering

Educomp’s product set—digital curriculum, smart-classroom hardware/software, and assessment tools—aligns with a structural shift toward technology-enabled K–12 learning. Durable institutional adoption and recurring content/license models can support revenue stability if execution and school budgets remain favorable.

Recent revenue rebound

A visible revenue rebound in 2025 indicates demand recovery after prior declines. If sustained, this trend can help stabilize top-line volatility and provide a platform to rebuild margins through operational leverage, making future cash generation and restructuring efforts more feasible.

Smaller cash burn and low headcount

Reduced cash burn combined with a very small reported headcount suggests a lean cost structure and lower fixed overhead. That can extend runway and make turnaround plans more achievable, as lower ongoing cash needs reduce refinancing frequency and support gradual reinvestment into product offerings.

Negative Factors

Negative equity & heavy leverage

Deeply negative shareholders’ equity paired with very large debt relative to a small asset base creates acute solvency and refinancing risk. This capital structure severely limits strategic flexibility, increases default probability under stress, and can force dilutive recapitalizations or creditor-driven restructurings.

Persistent operating & net losses

Sustained operating and net losses erode retained capital and mask product-market fit issues or pricing/scale problems. Without consistent path to profitability, the business will struggle to self-fund growth, attract investment on favorable terms, or rebuild equity, undermining long-term viability.

Consistent negative cash generation

Recurrent negative operating and free cash flow indicate the company cannot self-fund operations or investments. This persistent cash consumption increases reliance on external financing, raising refinancing, dilution, and covenant risks that threaten continuity absent meaningful profitability improvements.

Educomp Solutions Limited Business Overview & Revenue Model

Company Description

Educomp Solutions Limited provides education solutions primarily in India. It operates through four segments: Higher Learning Solutions; School Learning Solutions; K-12 Schools; and Online, Supplemental & Global Business. It offers vocational, higher education, professional development, and smart class solutions; internet based educational services and coaching services. The company was incorporated in 1994 and is based in Gurgaon, India.

How the Company Makes Money

null

Educomp Solutions Limited Financial Statement Overview

Summary

Financials indicate severe stress: persistent operating and net losses, deeply negative shareholders’ equity alongside very large debt relative to assets, and mostly negative operating/free cash flow. Recent revenue rebound and a smaller 2025 cash burn are minor positives but do not offset the ongoing solvency and profitability issues.

Income Statement

Operating performance remains very weak. Revenue is volatile (down sharply from 2020 levels, with a rebound in 2025), but profitability is consistently negative: operating profit and net income are deeply loss-making across all years provided. Gross profit also swings, turning negative again in 2025, highlighting ongoing pressure in the core business model and limited evidence of sustainable margin recovery.

Balance Sheet

The balance sheet is severely stressed. Shareholders’ equity is deeply negative in every period (roughly -29B to -31B), while total debt remains extremely large (~26B–27B) relative to a small asset base (~2.4B–3.0B). This structure indicates heavy leverage, limited financial flexibility, and elevated solvency risk, with only modest year-to-year movement in the debt load.

Cash Flow

Cash generation is weak and inconsistent. Operating cash flow is negative in most years (2021–2025), and free cash flow is also negative in those periods, implying the business is not self-funding. A key positive is the improvement versus 2021’s very large cash outflow and the smaller cash burn in 2025, but the overall pattern still reflects ongoing cash consumption and funding dependence.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	25.54M	36.23M	41.39M	39.82M	13.81M	9.66M
Gross Profit	8.75M	-510.00K	19.04M	6.11M	-14.95M	-25.02M
EBITDA	-201.58M	-27.65M	-277.16M	-748.23M	-386.38M	-456.38M
Net Income	-250.75M	-357.14M	-334.01M	-799.90M	-443.85M	-511.87M
Balance Sheet
Total Assets	2.16B	2.39B	2.47B	2.62B	2.68B	2.79B
Cash, Cash Equivalents and Short-Term Investments	119.69M	130.55M	125.22M	177.09M	212.10M	247.68M
Total Debt	26.63B	26.98B	26.74B	26.58B	26.01B	25.74B
Total Liabilities	32.85B	33.24B	32.97B	32.77B	32.04B	31.71B
Stockholders Equity	-30.69B	-30.87B	-30.51B	-30.17B	-29.37B	-28.93B
Cash Flow
Free Cash Flow	-10.20M	-11.68M	-27.85M	-18.96M	-28.30M	-93.91M
Operating Cash Flow	5.96M	-7.47M	-7.12M	-17.91M	-26.19M	-93.34M
Investing Cash Flow	-11.72M	-4.21M	-13.68M	6.13M	24.08M	2.61M
Financing Cash Flow	0.00	0.00	0.00	21.95M	0.00	0.00

Educomp Solutions Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLOBAL	82 Outperform	₹4.98B	17.04	―	1.06%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ZEELEARN	55 Neutral	₹1.76B	-22.75	―	―	28.91%	-94.80%
CLEDUCATE	52 Neutral	₹2.59B	-6.96	―	―	43.91%	-249.30%
EDUCOMP	42 Neutral	₹127.37M	-0.58	―	―	―	―
MTEDUCARE	41 Neutral	₹96.06M	-1.48	―	―	-3.63%	24.10%

Educomp Solutions Limited Corporate Events

NCLT Orders Fresh Bids and 100-Day Timeline in Educomp Insolvency Case

Educomp Solutions Limited has disclosed that the National Company Law Tribunal has ordered the issuance of a fresh Form G for re-bidding of the company and mandated that the corporate insolvency resolution process be completed within 100 days. The move resets the resolution timeline and signals renewed efforts to find a viable bidder, with implications for creditors, shareholders and the company’s future operational structure.

The Tribunal has also directed the Insolvency and Bankruptcy Board of India to investigate the successful resolution applicant’s failure to implement the approved resolution plan, with potential prosecution if offences are established. In parallel, several related applications and contempt petitions by creditors and the ex-promoter were disposed of, with the ex-promoter granted liberty to make representations before the resolution professional, underscoring continued legal scrutiny of the stalled resolution process.

Educomp Sets March 2026 Virtual AGM Amid Ongoing Insolvency Proceedings

Educomp Solutions Limited has scheduled its 31st Annual General Meeting for March 10, 2026, to be held via video conferencing and other audio-visual means in line with regulatory guidance from corporate and securities authorities. Shareholders as of March 4, 2026, can participate and cast their votes through a remote e-voting facility between March 7 and March 9, managed by MUFG Intime India Private Limited.

The AGM and e-voting framework are being conducted under the supervision of the resolution professional appointed during Educomp’s ongoing insolvency resolution proceedings, as the approved resolution plan from October 2023 has yet to be implemented. The company remains under NCLT oversight, with the resolution professional acting as caretaker while contempt proceedings continue against the successful resolution applicant and its directors, underscoring continued uncertainty for stakeholders.