Zee Learn Limited (ZEELEARN) AI Stock Analysis

• Market Cap: ₹1.67B
• Dividend Yield: N/A
• Average Volume (3M): 27.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: 28.91%
• EPS Growth: -94.80%
• Country: IN
• Employees: 316
• Sector: Services
• Sector Strength: N/A
• Industry: Education & Training Services
• EPS (TTM): -0.08
• Shares Outstanding: 327,062,000
• 10 Day Avg. Volume: 32,923
• 30 Day Avg. Volume: 27,529
• PEG Ratio: -0.15
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 2.48
• 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: 55 Neutral
• Price Target: ₹5.50 ▼(-20.52% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by mixed financial performance (better operating efficiency and cash flow, but high leverage and inconsistent profitability) and weak technicals (below key moving averages with negative MACD). Valuation is moderate (P/E ~19.66) but lacks dividend support.

Positive Factors

Asset-light franchise/licensing model

Zee Learn’s core model of operating and licensing school and preschool brands is structurally asset-light and scalable. By growing through franchises/affiliates rather than capital‑intensive owned schools, the company can expand reach with lower capex, preserving cash for support services and investment in curriculum and teacher training over the medium term.

Recurring academic and support-service revenue

A meaningful portion of revenue comes from recurring academic support, curriculum, training and quality audits. These contractual, periodic service fees create a more predictable revenue base than one‑off sales, supporting cash flow stability and enabling multi-year relationships that sustain margins and cross‑sell of learning materials.

Improving margins and positive free cash flow

Operational efficiency gains reflected in rising EBIT/EBITDA margins, coupled with sustained positive free cash flow, strengthen the company’s ability to service debt and fund brand/support investments. These durable improvements in cash generation reduce reliance on external financing and support reinvestment into the network over the next several quarters.

Negative Factors

Elevated leverage

The balance sheet shows a high debt‑to‑equity ratio, indicating elevated leverage. Over a multi‑month horizon this increases interest expense sensitivity and limits financial flexibility for acquisitions or working capital needs. High leverage also raises refinancing and covenant risks if cash flow weakens.

Inconsistent revenue and net profitability

Historical inconsistency in revenue growth and variable net margins undermines predictability of earnings and cash flow. For a franchise/support business, such volatility complicates planning for marketing, training and quality programs, and can strain relationships with partners who rely on stable economics to renew affiliations.

Dependence on partner network performance

A structural reliance on franchisee/partner recruitment, renewal and student enrollment means the company’s topline is exposed to partner economics and local enrolment trends. Adverse enrollment or partner churn can materially reduce recurring fees and service revenues for months, pressuring margins and growth sustainability.

Zee Learn Limited Business Overview & Revenue Model

Company Description

Zee Learn Limited, together with its subsidiaries, operates in the education industry in India. The company operates through Educational, Construction and Leasing for Education, and Training Manpower and Related Activities segments. It operates Kidzee, a chain of approximately 1900 pre-schools in approximately 750 cities; Mount Litera World Preschool, an international standard preschool; Mount Litera Zee Schools, a chain of schools in the private-unaided category with approximately 120 schools in approximately 110 cities; and Mount Litera School International, a co-educational day school. The company also operates Zee Institute of Creative Art, a classical and digital animation training academy that trains youth in classical 2D, modern 3D animation, visual effect, and gaming; and Zee Institute of Media Arts, an entertainment and media institute that offers media education in the field of film making, direction, acting, voicing and TV presentation, screenwriting, executive producer, ad filmmaking, cinematography, sound recording, editing, TV journalism, autodesk smoke and flame, and other related areas. In addition, it provides consultancy and advisory services in the area of human resources, such as manpower placement, recruitment, selection, business process, and others; and E - Learning online education and testing services. Further, the company is involved in the construction and leasing of properties for commercial use. Zee Learn Limited was incorporated in 2010 and is based in Mumbai, India.

How the Company Makes Money

Zee Learn primarily makes money through (1) school network monetization and (2) education services and support delivered to its branded partner institutions. 1) Franchise/licensing and affiliation fees: A significant portion of Zee Learn’s model is built around expanding its school and preschool network via franchisee/partner-operated institutions. Under this approach, Zee Learn earns fees from partners for the right to use its brand(s) and academic systems. These arrangements commonly include upfront one-time fees (e.g., joining/initial setup) and ongoing recurring fees linked to continued affiliation (e.g., periodic franchise/royalty-type fees). If a specific fee structure (exact % or slabs) is not publicly available for a given period, that detail is null. 2) Recurring academic and support-service revenue: Zee Learn supplies ongoing academic inputs—such as curriculum frameworks, academic planning, teacher training, assessments, quality audits, and operational guidance—to its network institutions. Revenue is earned through periodic charges for these services and support. The exact split between academic/support fees and pure brand royalties varies by agreement; if not disclosed in a source, that split is null. 3) Sale/supply of educational products and learning solutions: The company also earns from providing learning materials and solutions used by its institutions (for example, curriculum-linked content, assessments, and other school/preschool learning resources). Where Zee Learn sells these directly to franchisees/schools or facilitates procurement as part of the affiliation package, it generates revenue from such supplies. Detailed product-level contribution is null if not separately reported. 4) Company-operated centers/schools (where applicable): To the extent Zee Learn directly operates any education centers rather than only franchising them, it can earn institution-level operating revenue (such as student fees). The extent and materiality of company-operated versus partner-operated revenue is null if not clearly disclosed. Key factors influencing earnings: Revenue is driven by network size (new center additions), retention/renewal of existing partner institutions, enrollment performance at network schools (which impacts partners’ ability and willingness to pay recurring fees), and the strength/recognition of Zee Learn’s brands and academic systems. Significant partnerships or brand-specific arrangements are null if not explicitly and reliably disclosed.

Zee Learn Limited Financial Statement Overview

Summary

Mixed fundamentals: improving EBIT/EBITDA margins and supportive free cash flow, but inconsistent revenue/profitability and elevated leverage (high debt-to-equity) increase risk.

Income Statement

The company shows a mixed performance in its income statement. Gross profit margin has been relatively stable, but net profit margin has seen fluctuations due to variable net income. Revenue growth has been inconsistent, with some periods of decline. EBIT and EBITDA margins have improved recently, indicating better operational efficiency.

Balance Sheet

The balance sheet reflects moderate financial health. With a high debt-to-equity ratio, the company is highly leveraged, which poses potential risks. ROE has been volatile, reflecting inconsistent profitability. However, the equity ratio shows that a moderate portion of assets is financed by equity, providing some stability.

Cash Flow

Cash flow analysis indicates a positive trend, with growing free cash flow and a reasonable operating cash flow to net income ratio. The company has managed to maintain positive free cash flow, which supports its operations and debt servicing. However, the variability in capital expenditures and financing activities could pose challenges.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.16B	3.93B	3.56B	3.24B	2.48B	2.57B
Gross Profit	1.72B	1.92B	2.61B	2.26B	1.93B	2.00B
EBITDA	1.15B	1.24B	2.41B	-3.76B	800.45M	966.04M
Net Income	88.72M	127.23M	1.63B	-4.43B	-27.24M	-87.93M
Balance Sheet
Total Assets	15.24B	15.09B	10.84B	10.24B	14.47B	14.72B
Cash, Cash Equivalents and Short-Term Investments	80.78M	295.19M	225.71M	347.40M	318.82M	129.87M
Total Debt	4.21B	3.99B	3.60B	4.63B	4.37B	4.44B
Total Liabilities	13.33B	13.13B	9.01B	8.83B	8.45B	8.57B
Stockholders Equity	1.92B	1.96B	1.83B	192.38M	4.63B	4.64B
Cash Flow
Free Cash Flow	-6.36M	718.21M	477.35M	378.08M	613.89M	110.92M
Operating Cash Flow	57.24M	828.90M	504.55M	419.79M	625.03M	124.30M
Investing Cash Flow	25.21M	-125.64M	-52.79M	-120.22M	-56.36M	142.58M
Financing Cash Flow	-298.87M	-633.50M	-609.65M	-298.83M	-368.95M	-291.19M

Zee Learn Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ZEELEARN, the sentiment is Negative. The current price of 6.92 is above the 20-day moving average (MA) of 5.54, above the 50-day MA of 6.10, and below the 200-day MA of 8.10, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 29.19 is Positive, neither overbought nor oversold. The STOCH value of 18.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ZEELEARN.

Zee Learn Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLOBAL	82 Outperform	₹5.05B	17.04	―	1.06%	―	―
INDBANK	71 Outperform	₹1.38B	20.15	―	―	-18.35%	-43.75%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ZEELEARN	55 Neutral	₹1.67B	-22.75	―	―	28.91%	-94.80%
MAHEPC	54 Neutral	₹3.21B	13.84	―	―	17.09%	―
CCHHL	42 Neutral	₹2.03B	-47.72	―	―	45.17%	―

Zee Learn Limited Corporate Events

Zee Learn Publishes Postal Ballot and E-Voting Notice for Shareholders

Zee Learn Limited has notified the stock exchanges that it has published newspaper advertisements regarding a Postal Ballot Notice dated February 20, 2026, and the availability of e-voting facilities for its members. The communication, made in compliance with SEBI’s Listing Obligations and Disclosure Requirements, underscores the company’s adherence to regulatory norms and its use of postal ballot and electronic voting to enable wider shareholder participation in corporate decision-making.

By publicizing the postal ballot process in both English and Marathi newspapers, Zee Learn aims to ensure that its diverse shareholder base is informed about the upcoming voting arrangements. This step is likely to support greater transparency and governance, giving investors a clearer opportunity to exercise their rights on key matters put before them by the company.

Zee Learn Board Clears Q3 FY26 Results and ESOP Re-pricing Plan

Zee Learn Limited’s board has approved the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, following a review by its audit committee and statutory auditors. The disclosure of these interim numbers provides investors and stakeholders with an updated view of the company’s financial performance ahead of the fiscal year-end.

The board also cleared a draft postal ballot to seek shareholder approval for regularising additional directors as full directors and for re-pricing outstanding employee stock options under the firm’s ESOP scheme. These governance and compensation moves signal an effort to stabilise the board structure and recalibrate employee incentives, potentially impacting management continuity and talent retention in a competitive education sector.

Zee Learn Independent Director Dattatraya Kelkar Completes Tenure and Steps Down

Zee Learn Limited announced that the second term of Independent Director Dattatraya Kelkar has concluded, and he has ceased to be an Independent Director with effect from the close of business on 29 December 2025. Kelkar, who served on key board committees including the Audit, Nomination & Remuneration, Stakeholders Relationship, and Corporate Social Responsibility committees, leaves at the completion of his prescribed tenure, with the board formally recording its appreciation for his contributions, signalling an upcoming reshuffle in the company’s board and committee compositions that stakeholders will watch for implications on governance and oversight.