Crizac (CRIZAC) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 operating income fell 36.7% YoY to INR 1,027mn amid travel disruption, currency movements, visa headwinds and student deferrals; management viewed the impact as timing-related, with demand returning in Q3.

• H1 FY27 operating income was INR 3,039mn, operating EBITDA INR 930mn and PAT INR 840mn; management expects H2 to be stronger than H1 and FY27 performance to be in line with FY26.

• H1 consolidated net profit was Rs. 10,497.19 lakh; the Board declared an interim dividend of Rs. 4 per share, totaling Rs. 6,999.30 lakh.

Financial highlights

• Q2 FY27 consolidated revenue was Rs. 10,266.53 lakh and net profit Rs. 4,013.28 lakh; operating EBITDA was INR 330mn, down 44% YoY, and PAT INR 369mn, down 23.7%.

• H1 FY27 operating income was INR 3,039mn, down 18.3% YoY; operating EBITDA was INR 930mn, down 24.9%, and PAT INR 840mn, down 10.7%.

• H1 consolidated net profit was Rs. 10,497.19 lakh versus Rs. 12,695.36 lakh in H1 FY26; standalone H1 revenue was Rs. 15,460.71 lakh and net profit Rs. 9,840.88 lakh.

• Q2 PBT was INR 401mn, down 38.1% YoY; diluted EPS was INR 2.11 versus INR 2.76 in Q2 FY26. Consolidated H1 EPS was INR 4.80 versus INR 5.38.

• H1 cost of services was INR 1,796mn, or 59.1% of operating income, versus 67.5% in FY26.

Outlook and guidance

• Management expects Q3 FY27 revenue growth of 10%-12% YoY, with admissions and visas approved for most students expected to drive the quarter; deferred demand is also expected to support Q4.

• FY27 revenue and profit are expected to be in line with FY26, with H2 significantly stronger than H1 and ahead of H2 FY26, barring a black swan event.

• Steady-state EBITDA margin expectation is 25%-26%; salary costs are expected at 3%-4% of sales over the medium to long term.

• Non-U.K. destinations are forecast to contribute 30% of revenue by FY30, subject to destination-country policy developments.

• A Rs. 1,270.10 lakh deferred tax asset was recognized on U.K. accumulated tax losses, based on projections for future taxable profits, cost efficiencies and planned loss-reversal measures.