­­Established track record and great range of courses offered in the university
The key trustee of the Unacco Social Development Trust, Mr. Ningombam Irabanta Singh has 12 years of experience in microfinance business and promoter of Unacco Financial Services Private Limited. Mr. Longjam Shyamananda Singh has 31 years of teaching experience and Mr. Kuber Singh is a businessman by profession. The principal of the school, Mr. Potshangbam Surachandra Singh is a leading academician of the state and has 19 years of teaching and administrative experience of various other institutes. The Trust operates 4 schools and 1 college in the state of Manipur presently. Acuité believes that the trustee’s extensive experience has helped the schools to establish its position in the state of Manipur.
 

Steady scale of operations with improvement in margin:
The trust recorded revenue growth to Rs.34.98 crore in FY25 from Rs.31.03 crore in FY24, supported by a 7% increase in average fees, the addition of 156 students in AY 25–26, and improved hostel occupancy, though overall scale remained partly affected by student migration due to the Manipur unrest. With Rs.22.70 crore already achieved in 9M FY26, the trust’s performance is expected to reflect marginal moderation. Profitability improved sharply, with the EBITDA margin rising to 39.51% in FY25 from 31.52% in FY24 owing to reduced employee costs, while the PAT margin also strengthened to 15.39% in FY25 from 6.49% in FY24. Acuité notes that sustaining these profitability margins remains a key sensitivity factor.

Above average financial risk profile:
Unacco School’s financial risk profile is above average marked by moderate corpus fund, low gearing and moderate debt protection metrics. The corpus fund of the trust increased to Rs.49.13 Cr. as on March 31, 2025 from Rs.43.75 Cr. in March 312024 on account of accretion to reserves. Gearing remained below unity at 0.62 times as on March 31, 2025 as against 0.84 times as on March 31, 2024. The Total outside Liabilities/Tangible Net Worth (TOL/TNW) stood comfortable at 0.97 times as on March 31, 2025 from 1.18 times as on March 31, 2024. The debt protection metrics of the company is marked by Interest Coverage Ratio at 3.97 times and Debt Service Coverage Ratio (DSCR) at 1.50 times as on March 31, 2025. NCA/TD stood at 0.34 times in FY2025 as against 0.19 times in FY2024. Going forward, Acuité believes that the financial risk profile of the Trust will remain at comfortable levels backed by steady accruals and no major debt funded capex plans.

Intense competition and stringent regulatory framework for the educational sector in India:
Unacco School is affiliated to Central Board of Secondary Education and has to adhere to regulation pertaining to student faculty ratio and intake capacity. Further, the school also faces competition from other schools in the vicinity and government school. Any major change in regulatory framework  or change in policy by affiliated boards could have impact on the revenue, financial and operating performance of the trust.