Elevate Campuses revenue rises 31% as profit declines 24%

Elevate Campuses Limited reported consolidated revenue from operations of Rs 236.06 crore for the quarter ended September 30, 2026, up 31% from Rs 180.89 crore a year earlier, but net profit fell 24% to Rs 32.99 crore as finance costs, depreciation and operating expenses increased. The Board approved the quarterly results on November 12, 2026.

Why did Elevate Campuses' profit fall despite revenue growth?

Elevate Campuses' quarterly net profit declined because cost increases exceeded the revenue gain. Revenue from operations increased by Rs 55.17 crore year on year, while total expenses rose by Rs 30.00 crore, finance costs increased by Rs 24.04 crore and depreciation and amortisation climbed by Rs 12.05 crore. Those changes reduced profit before tax to Rs 41.16 crore from Rs 53.65 crore.

Employee-benefit expense more than doubled to Rs 21.20 crore in the September 2026 quarter from Rs 10.06 crore a year earlier. Other expenses increased to Rs 56.68 crore from Rs 37.82 crore, finance costs rose to Rs 86.08 crore from Rs 62.04 crore, and depreciation and amortisation reached Rs 42.31 crore from Rs 30.26 crore.

Tax expense decreased to Rs 8.18 crore from Rs 10.48 crore, partly limiting the reported profit decline. Basic earnings per share, not annualised, were Rs 3.48 for the quarter compared with Rs 4.88 a year earlier, while total comprehensive income was Rs 51.18 crore, including a Rs 18.19 crore foreign-operation translation gain. The September 2025 comparative information was not audited or reviewed, according to the auditor's report.

Which businesses drove Elevate Campuses' September-quarter revenue?

Elevate Campuses' India student-accommodation business and overseas K-12 schools generated the revenue increase. India student-accommodation revenue rose to Rs 130.15 crore from Rs 93.76 crore, while K-12 revenue outside India increased to Rs 59.23 crore from Rs 37.39 crore. India K-12 revenue declined to Rs 46.69 crore from Rs 49.74 crore.

India student accommodation was the largest reported segment by quarterly revenue, contributing about 55% of the Rs 236.06 crore consolidated total. Its segment result was Rs 35.37 crore, below Rs 36.43 crore a year earlier despite higher revenue. The company defines this segment as owning, operating and managing student accommodation for higher-education institutions.

Overseas K-12 schools recorded a segment result of Rs 48.07 crore, up from Rs 28.35 crore in the September 2025 quarter. India K-12 schools recorded Rs 32.43 crore, down from Rs 37.98 crore. Total segment results rose to Rs 115.87 crore from Rs 102.75 crore across the three businesses, but the Rs 86.08 crore finance-cost charge reduced the amount reaching profit before tax.

For the six months ended September 30, 2026, consolidated revenue from operations grew to Rs 455.20 crore from Rs 347.78 crore. Half-year net profit nevertheless fell to Rs 67.04 crore from Rs 161.91 crore. The earlier half year included a Rs 108.57 crore exceptional gain on sale of a hostel undertaking, whereas the current period included a Rs 6.93 crore impairment loss on intangible assets and goodwill after customer-contract terminations.

How did Elevate Campuses' balance sheet change after the IPO?

Elevate Campuses' total equity rose to Rs 3,675.91 crore at September 30, 2026 from Rs 536.28 crore at March 31, 2026, following its initial public offering, or IPO, and conversion of securities into equity. Equity share capital increased to Rs 16.85 crore from Rs 2.71 crore, while other equity rose to Rs 3,659.02 crore from Rs 577.40 crore.

Elevate Campuses listed its shares on the Bombay Stock Exchange and National Stock Exchange on September 30, 2026. It issued 5.801 crore fresh equity shares at Rs 362 each, generating gross IPO proceeds of Rs 2,100 crore. The half-year cash-flow statement records Rs 2,100 crore of proceeds from issuing equity shares and Rs 7.64 crore of IPO expenses paid from the current account.

The IPO utilisation disclosure showed Rs 2,100 crore of gross proceeds as unutilised at September 30, 2026. The proposed allocation comprised Rs 1,100 crore for acquisition of special-purpose vehicles, or SPVs, Rs 750 crore for investment in existing subsidiaries to repay external debt, Rs 129.61 crore for general corporate purposes, and Rs 120.39 crore for IPO-related expenses.

Non-current borrowings decreased to Rs 3,752.72 crore at September 30 from Rs 4,668.89 crore at March 31. Current borrowings rose to Rs 166.81 crore from Rs 163.36 crore. Total assets increased to Rs 9,716.18 crore from Rs 7,391.12 crore, while current assets reached Rs 2,740.18 crore from Rs 554.85 crore, reflecting higher investments, other bank balances and financial assets.

What does Elevate Campuses' cash flow statement show about funding and investment?

Elevate Campuses generated operating cash flow of Rs 437.07 crore in the six months ended September 30, 2026, compared with Rs 227.44 crore in the corresponding 2025 period. Cash generated from operations before tax rose to Rs 454.97 crore from Rs 243.42 crore, supported by Rs 104.81 crore of movement in other assets and Rs 74.78 crore of movement in other liabilities.

Investing activities used Rs 2,592.96 crore during the 2026 half year, compared with Rs 2,346.40 crore a year earlier. The largest disclosed item was a Rs 2,100 crore increase in other bank balances designated as restricted cash from IPO proceeds. The group also invested Rs 1,035.88 crore in mutual funds and spent Rs 275.79 crore on property, plant, equipment and investment property.

Financing activities supplied Rs 2,065.39 crore, versus Rs 2,392.96 crore in the prior-year half. Beyond IPO proceeds, the group received Rs 225.60 crore from long-term borrowings, repaid Rs 84.09 crore of such borrowings and paid Rs 156.46 crore in interest. Net cash and cash equivalents decreased by Rs 90.51 crore during the 2026 half year, compared with an increase of Rs 274.00 crore in the comparable period.

Conclusion

Elevate Campuses delivered 31% revenue growth in the September 2026 quarter, led by India student accommodation and overseas K-12 schools, but net profit declined 24%. Higher employee costs, other expenses, depreciation and finance costs outweighed the improvement in total segment results, while the half-year comparison was also affected by the prior year's exceptional gain on a hostel sale.

The next disclosed development to watch is the proposed acquisition by GHS Sonipat II Private Limited of hostel-accommodation and allied-services undertakings at O. P. Jindal Global University for Rs 1,350 crore, payable over nine years. The agreement remains subject to conditions precedent, closing actions and necessary approvals. Elevate Campuses also disclosed plans to deploy IPO proceeds toward SPV acquisitions and repayment of subsidiaries' external debt.