**S Chand Q2/H1 FY26 Insights:** **Business Performance:** S Chand reported steady Q2 sales for School and Higher Education.

Consolidated revenue jumped 32% YoY to Rs 49.3 Cr in the quarter, while H1 saw 3% YoY growth to Rs 152 Cr, partly from shifted AI content licensing.

Gross margins declined due to sourcing third-party digital content.

Q2 EBITDA loss was Rs 60.1 Cr and H1 loss Rs 69.3 Cr.

Notably, the company achieved its lowest working capital metrics for a Q2 and remains net debt-free with Rs 23.5 Cr net cash. **Growth Drivers & Strategy:** Management is optimistic about new NCERT syllabus books driving growth in FY26-27. Strategic focus includes boosting CUET exam prep via TestCoach, expanding AI content deals, and strict working capital management.

FY26 targets: operating revenues over Rs 800 Cr and 18-20% EBITDA margin. **Recent Developments:** Investee Smartivity (STEM learning) saw its valuation rise to ~Rs 150 Cr in a recent transaction, valuing S Chand's 16% stake at ~Rs 23 Cr.

Smartivity's H1FY26 revenue surged 70%+ with EBITDA/PBT turning positive.

Another investee, ixamBee, also turned profitable in H1FY26. **Key Financial Metrics:** * Q2 Revenue: Rs 49.3 Cr (+32% YoY) * H1 Revenue: Rs 152 Cr (+3% YoY) * Net Cash: Rs 23.5 Cr (vs Rs 9.3 Cr YoY) * Q2 Inventory Days: 237 (vs 302 YoY)