| Revenue H1 FY27 | ₹70.06 Cr74% YoY Growth |
|---|---|
| Market Cap | ₹134.86 CrCommercial Services |
| PE Ratio | 8.87Sector PE 43.13 |
| Day RSI | 46.16Neutral Zone |
Key highlights
- H1 FY27 revenue grew 74% YoY to ₹70.06 Cr compared to ₹40.23 Cr in H1 FY26
- Net profit for the half-year increased 29% to ₹9.71 Cr from ₹7.51 Cr YoY
- EBITDA margins contracted to 21% from 28% YoY due to raw material inflation
- Company targeting ₹150 Cr revenue in FY27 and up to ₹230 Cr in FY28
- Proposed ₹10-15 Cr acquisition of Hara Communications to integrate EdTech software
- Internal notebook manufacturing capacity 'PageCraft' set to contribute ₹25 Cr annually
- Management plans to increase MRP by 10% to offset rising paper costs
Raw Material Volatility Impacts Operational Margins
Despite the sharp top-line expansion, Dachepalli Publishers faced operational headwinds in H1 FY27. EBITDA for the period stood at ₹14.63 crore, up from ₹11.71 crore in the previous year, but margins dipped from 28% to 21%. This contraction was primarily attributed to the surge in paper prices and significant front-loaded marketing expenditure aimed at securing future market share.
Management noted that paper prices rose from ₹79-81 to ₹93 per kg during the period. To stabilize margins, the company has secured 90% of its raw material requirements in advance and intends to implement a 10% hike in Maximum Retail Prices (MRP) for the upcoming season.
Diversification Strategy and In-House Manufacturing
- Transitioning from a pure-play publisher to an integrated school supply provider through Pelican Edu Supply
- Launched 'PageCraft', an in-house notebook brand to reduce dependence on external suppliers
- Notebook manufacturing capacity estimated at ₹30-40 crore annually at peak utilization
- Onboarded 100 schools for the integrated supply model, targeting a 50 crore revenue contribution
- Expansion into interactive classroom displays through a partnership with WikiKids
- Active presence in 13 states with significant seasonal demand expected from Northeast regions in Q3
Acquisition and Growth Outlook
With the acquisition of notebook manufacturing machinery, we are working towards greater control over product quality, customization, and supply timelines. This also gives us an opportunity to reduce our dependence on external suppliers.
Strategic Acquisition of Hara Communications
The company is finalizing the acquisition of Hara Communications Private Limited for an estimated ₹10-15 crore. The move is designed to integrate software solutions with traditional textbooks, offering a bundled ed-tech package to schools. The deal includes significant physical assets, including land and premises, which will support future production scaling.
Dachepalli plans to fund the acquisition using a combination of ₹7-8 crore in debt and internal accruals from trade receivable recoveries. Management expects the acquisition to be reflected in the balance sheet by December 2026, strengthening their competitive position in the classroom technology segment.
| Date | Announcement | Amount |
|---|---|---|
| 24 Oct 2026 | H1 FY27 standalone net profitSource: crisp.scoutquest.in | ₹9.71 Cr |
| 28 Jul 2026 | FY27 revenue guidance on Q1 FY27 earnings callSource: stockscans.in | – |
| 23 Jul 2026 | Q1 FY27 standalone net profitSource: sahi.com | ₹6.31 Cr |
| 11 May 2026 | FY27 revenue guidance on Q4 FY26 earnings callSource: stockscans.in | – |
| 07 May 2026 | Q4 FY26 standalone net profitSource: angelone.in | ₹5.16 Cr |
| 12 Feb 2026 | Q3 FY26 standalone net profitSource: angelone.in | ₹1.44 Cr |
What to watch next
- Completion of Hara Communications acquisition expected by December 2026
- Recovery of approximately ₹100 crore in trade receivables across October-November 2026
- Impact of 10% MRP price hike on demand volumes in the upcoming academic season
- Scaling of Pelican Edu Supply e-commerce model across additional 20 pipeline schools
“Usually, our average of margin should be considered with the Q4 and Q1. That's when the whole it will average out together at the promised returns what we offer.”
“We are targeting around 150 crores plus or minus 10% for the current financial year.”
| Share price | ₹90.05 |
|---|---|
| Market capitalisation | ₹134.86 Cr |
| Revenue (annual) | ₹91.36 Cr |
| Net profit (annual) | ₹15.20 Cr |
| Revenue (latest quarter) | ₹24.83 Cr-45.04% vs previous quarter |
| Net profit (latest quarter) | ₹3.40 Cr-46.01% vs previous quarter |
| P/E (TTM) | 8.87×Sector 43.13× |
| Promoter holding | 64.78%0.00% QoQ |
| FII holding | 0%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Dachepalli Publishers Ltd announcing half-yearly financial results and hosting an earnings call. Market figures from a third-party data provider.
