Dachepalli Publishers Ltd Q4 FY26 Earnings Analysis

- Current turnover expected to close at around INR 90 crores for the financial year. - With the e-commerce vertical (Pelican platform) scaling, targeted turnover around INR 150 crores next year. - Pelican platform tied up with 50 schools this year, aiming for 150 schools next year and 300 schools thereafter. - Plans to expand from supplying 10,000 schools currently to 25,000 schools across 28 states and 8 union territories within the next 3 years. - Expecting growth from new product lines like NCERT workbooks and financial literacy textbooks. - Aiming to increase adoption of technology with AI integrated test tools in schools to boost product engagement. - Capacity expansion with a new factory to support increased volume and e-commerce scaling. - E-commerce segment expected to grow from presently ~10% revenue to higher margins as scale increases.

- The company targets a revenue of around INR 90 crores for the current financial year FY '26, with confirmation orders of INR 25-30 crores expected to contribute to achieving this target. - For the next year, they plan to increase turnover to INR 150 crores, supported by the e-commerce vertical kicking in. - Post-IPO, they aim to expand supplies to 25,000 schools across 28 states and 8 union territories within the next 3 years. - PEAK capacity utilization is expected during Q2 and Q3, driving production and revenues. - PAT margins are anticipated to stabilize at a steady-state level of around 18% to 20% annually. - EPS for Q3 was INR 1.28, and with growth plans and margins, EPS is expected to improve steadily. - Investment in new initiatives like Pelican platform and distribution expansion supports future earnings growth.

- Planning to buy additional machinery after Q2 to stabilize production due to more than 80% utilization in a single 8-hour shift. - New factory opening next year to support scaling, enabling concentration on 150 to 200 schools for e-commerce. - Recently purchased new land to build a 60,000 sq. ft. shed dedicated to scaling the e-commerce vertical. - Considering investment in large-scale international printing machines (INR 4-5 crores for web printing; INR 20-25 crores for sheet-fed horizontal printing) to improve quality and speed. - Current production mostly in-house (90%), with plans to increase capacity to reduce outsourcing. - Gradually scaling e-commerce through Pelican Edu Supply, indicating strategic investment in technology and supply chain.

- The company has cleared an existing INR 6 crores term loan with HDFC Bank using IPO proceeds. - Out of INR 25 crores raised in the IPO, raw material purchases and working capital needs have been funded. - No explicit mention of current or immediate future plans for new fundraising through debt or equity. - Focus appears to be on scaling operations using existing resources and IPO funds. - Planned capacity expansions and e-commerce vertical growth will utilize internal accruals and IPO capital. - There is an emphasis on leveraging improved financial flexibility post-IPO rather than raising additional funds soon. In summary, as of February 2026, no announced plans for new debt or equity fundraising; the company is deploying IPO proceeds and internal accruals for its growth initiatives.

- The company has significant orders from CBSE and ICSE schools placed between January to March, and State Board schools from April to June. - 90% to 95% of the business (textbook sales) occurs in Q4 and Q1 due to academic calendar seasonality. - Orders require 3 to 4 months for packing and distribution across multiple states and districts. - Revenues start coming mainly post school reopening (around June 15th). - The current orderbook is supported by orders from around 10,000 schools. - The company is scaling its e-commerce vertical (Pelican platform) with 50 schools tied up this year expected to generate INR 30 crores revenue. - The company plans to increase school tie-ups to 150 next year and 300 subsequently, indicating growing order inflows. - Inventory built post-IPO is confident to be liquidated in the next two quarters based on confirmed orders.