Established track record of operations and experienced management
Jayawant Shikshan Prasarak Mandal (JSPM), a charitable educational trust based in Pune, was established in 1998 by Dr. Tanaji Jayawant Sawant. The directors include Mr. Pramod Vitkar, Mr. Ravi Joshi, Mr. Madhukar Takale, Mr. Kanhyyala Barbole, Mr. Vasant Bugade, Mr. Sudhir Bhilare and Mr. Rahul Karale. JSPM operates 31 institutes and schools across its four campuses in Pune. The schools under the trust are affiliated with the CBSE board, while the technical courses are affiliated with Savitribai Phule Pune University. The trust offers over 60 courses, spanning from pre-primary education to technical programs such as MBA, MCA, Engineering, and Pharmacy. Acuite believes, the established track record of the institutes and promoters experience would benefit the trust in positioning themselves in the industry well.

Revenue growth albeit moderation in profit margins
The trust recorded a revenue of Rs. 322.33 crore in FY25 (Prov.), compared to Rs. 310.35 crore in FY24 and Rs. 271.20 crore in FY23, reflecting a year-over-year increase of approximately 14.44 percent in FY24. This growth was attributed to higher fee receipts, increased student intake capacity, and the launch of the new JSPM University at the Wagholi campus. In FY24, the launch of JSPM University at the trust’s Wagholi campus significantly contributed to revenue improvement however pressurised the margins to some extent. The total sanctioned seats increased to 40,658 in FY25 from 35,878 in FY24. As of March 31, 2025. The occupancy levels stood at 105 percent as of March 31, 2025 (Prov.). Additionally, the new courses started under the University model are likely to aid the company in improving its business risk profile. The operating margins stood at 26.72 percent in FY25 (Prov.) compared to 28.52 percent in FY24, while the PAT margins remained range-bound at 9.89 percent in FY25 (Prov.). Acuite believes, that the operating performance would improve steadily on account of launch of new university.

Moderate financial risk profile
The trust maintains a moderate financial risk profile characterized by high net worth, low gearing, and moderate debt protection metrics. As of March 31, 2025 (Prov.), JSPM’s net worth increased to Rs. 398.50 crore, up from Rs. 366.62 crore as of March 31, 2024, due to profit retention. The company's gearing ratio stood at 0.43 times on March 31, 2025 (Prov.), compared to 0.48 times the previous year. The TOL/TNW ratio was 0.49 times as of March 31, 2025 (Prov.). The company’s interest coverage ratio stood at 4.82 times in FY25 (Prov.), with a DSCR of 2.48 times for the same period. Acuite believes that the financial risk profile of the trust will continue to remain moderate over the medium to long term in the absence of major debt-funded capex.

Working capital intensive operations
JSPM’s operations remained working capital intensive, marked by GCA of 262 days in FY25 (Prov.), compared to 276 days in FY24. The student mix includes both open category and backward category students, with around 60 per cent being from the backward category. While fees from open category students are received at the time of admission, fees for backward category students are provided by the government. After the admission process in August, the grant proposal is sent in December, and the government grant is received by April-May, resulting in high debtor days. Also, the fees receivable from students are recorded as sundry debtors. Debtor days stood at 201 days for FY25 (Prov.), compared to 220 days in FY24. The average utilization of bank limits is moderate at around 85.84 percent, for the last six months ending March 2025. Acuite believes, the operations of the trust would remain working capital intensive on the back of nature of industry the trust operates in.

Dependence on scholarships; stringent regulatory framework
Most of the institute's admissions are based on government scholarships, leading to delays in revenue recognition. The institutes face intense competition from other private institutions offering similar courses. Given this competition, attracting the requisite number of students in line with its sanctioned intake is a challenge. The Indian education industry is highly regulated, and trust-operated institutes must adhere to this stringent regulatory framework. Any significant changes in the regulatory framework by the Government of India or policy changes by various affiliated boards will significantly impact the trust's revenue, financial, and operating performance.