Jaro Institute of Technology Management and Research Limited Q3 FY26 Earnings Call Summary

Summary

Jaro Institute of Technology Management and Research Limited - Q3 FY 2026 Earnings Call Summary Friday, January 30, 2026 4:00 PM

Event Participants

Executives 2 Ranjita Raman (CEO and Whole-Time Director), Sanjay Namdeo Salunkhe (Chairman and Managing Director)

Analysts 7 Apoorv Singh (Panchratna Investors), Disha (Sapphire Capital), Gunmeen Kohli (GSK Capital Partners), Rachit (Evitas), Rushil (PINC Wealth), Sheetal (SMN), Smith Gala (RSPN Ventures), Sucrit Patil (Eyesight Fintrade Private Limited), Yash Shah (Ekvity Investment Managers)

Financials & KPIs

Geographic & Segment Commentary

• Regional Expansion: Opened new centers in Kolkata and Indore to penetrate Tier 2 and Tier 3 markets. Management noted these markets show growing demand for structured professional education and are key to the “democratization of education.”
• Degree vs. Certification: Degrees and diplomas represent approximately 82% of the business, while certifications account for 18%. While degrees remain the primary driver due to regulatory parity (NEP 2020), there is a rising trend toward short-duration upskilling certifications (3-6 months).
• Partner Portfolio: Currently maintains 32 institutional partnerships, having added IIT Bombay, Delhi Technological University, J.K. Shah Classes, and Harvard Publishing in the last nine months. Management discontinued negligible partnerships that failed to meet delivery or content standards.

Company-Specific & Strategic Commentary

• Strategic Partnerships: Launched “School Connect” vertical with IIT Madras to extend skilling to school-aged children. Secured an exclusive partnership with J.K. Shah Classes to digitize their commerce coaching model, targeting a market of 4.2 million students.
• Operating Efficiency: Targeting a shift from performance marketing to organic and referral leads. Referrals currently account for 35-36% of enrollments, which management views as a critical lever for margin expansion and reducing Customer Acquisition Cost (CAC).
• Content & Technology: Operates 17 in-campus studios at various IIMs to facilitate high-quality delivery. While institutions currently control content, Jaro is prepared to enter content development if regulatory frameworks (UGC) shift further toward private participation.
• Market Positioning: Focus remains on high-margin, white-collar professional education. Management emphasizes a “human capital” over “equity capital” approach, noting that key management personnel have average tenures exceeding 15 years.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Business Model & Strategy

• Question: What early signs do you track for learner engagement and growth? (Sucrit Patil)
• Answer: We use business intelligence to map corporate needs and provide learning outcomes to institutes. We track demand patterns and learner feedback on whether faculty are providing practical case studies vs. pure theory (Sanjay Salunkhe).

Partnership Rationale

• Question: Why did J.K. Shah choose Jaro? (Rushil)
• Answer: They needed a partner to handle the online transition of their brick-and-mortar model. We hold an exclusive partnership for their online vertical, leveraging our marketing and tech capabilities (Sanjay Salunkhe).

Financial Guidance

• Question: You previously guided for ₹85 crore PAT for FY26; is this still achievable given 9M PAT is ₹31.5 crore? (Apoorv Singh)
• Answer: We are doing our best and have issued 600 offers for sales executives to drive growth. Q4 is our strongest quarter, and we will try to reach the target (Sanjay Salunkhe).

Student Outcomes

• Question: What is the split between students looking for jobs vs. upskilling? (Apoorv Singh)
• Answer: 30% join for career transition/jobs, while 70% join to upskill and remain relevant. Our internal tracking shows a 70-80% success rate in students achieving their set goals (Ranjita Raman).

Take Rates

• Question: What is the take rate for Jaro across different programs? (Gunmeen Kohli)
• Answer: It varies from 25% to 60%, with a blended average range of 45% to 50% (Sanjay Salunkhe).

Key Takeaway

Jaro Institute reported a strong Q3 FY26 with a 42% YoY revenue jump to ₹61.80 crores, demonstrating a successful post-IPO transition toward scalable growth. The company achieved a 9M EBITDA margin of 26.12% and is aggressively expanding its ARPU, which has doubled to ₹84,000 through a focus on premium IIT/IIM partnerships. Strategically, Jaro is diversifying into the commerce segment via an exclusive tie-up with J.K. Shah Classes and deepening its tech integration with 17 in-campus studios. While Q3 showed seasonal softening in margins due to higher marketing spend and incentive costs, management maintains a positive outlook for Q4, traditionally their strongest period. The company remains focused on a “Viksit Bharat” vision, targeting 20-25% annual growth while aiming to restore steady-state EBITDA margins to 30% through improved productivity and a higher mix of referral-based enrollments. Management’s primary watch-point remains the conversion of a significant ₹225 crore unbilled revenue book into cash over the next 12-30 months.