62
/
4
Min Read
Gurugram-based test-prep company Aakash Educational Services Ltd (AESL) managed to reduce its net loss in the financial year 2025-26. The company’s net loss declined 15.5% to ₹186.5 crore in FY26, compared with ₹220.8 crore in the previous financial year. However, the company’s operating revenue witnessed a marginal 0.4% increase during the period to ₹2,040.5 crore, compared with ₹2,032.1 crore in FY25.
Aakash is among India’s leading test-prep brands and focuses on preparing students for medical and engineering entrance examinations. According to the company, Aakash was started in 1988 and provides test-prep services to students through classroom, online, distance learning and hybrid modes. According to the company’s official platform, it has more than 200 centres and a record of more than 85,000 rankers in NEET and JEE. Meanwhile, recent reporting has indicated that Aakash has more than 300 centres.
Coaching Business Generated ₹1,956.2 Crore in Revenue
In FY26, Aakash’s revenue from its coaching business increased 0.3% to ₹1,956.2 crore. Meanwhile, franchise revenue increased by around 4% to ₹84.4 crore. Thus, the coaching business remained the largest contributor to the company’s operating revenue. Based on coaching revenue and total operating revenue, its share stood at around 96%.
The company also recorded a sharp increase in other income. In FY26, other income more than doubled to ₹113.7 crore. This included a ₹76.1 crore write-back of provisions or liabilities and a ₹19.7 crore gain from the remeasurement of lease liabilities. After including other income, the company’s total income increased 3.3% to ₹2,154.3 crore, compared with ₹2,085.1 crore in FY25.
Marginal Increase in Expenses, Pressure on Profitability
In FY26, Aakash’s total expenses increased by around 1% to ₹2,397.8 crore, compared with ₹2,378 crore in FY25. The company’s loss before tax and exceptional items declined by around 17% to ₹243.5 crore, compared with ₹292.9 crore in FY25. However, after an exceptional charge of ₹23.3 crore, the pre-tax loss stood at ₹266.8 crore. Subsequently, a deferred tax credit benefit of ₹80.3 crore brought the final net loss to ₹186.5 crore.
Meanwhile, the company’s operating profitability declined. In FY26, EBITDA fell 65% to ₹15.3 crore, compared with ₹43.3 crore in FY25. Along with this, the EBITDA margin declined from 2.13% to 0.75%. This indicates that despite the reduction in net loss, pressure remained on the company’s core operating earnings.
Employee Costs Remain Highest, Advertising Expenses Decline
Employee benefits remained the largest expense in Aakash’s total expenditure. In FY26, this expense declined 2.4% to ₹1,299.6 crore, compared with ₹1,331.5 crore in FY25. Meanwhile, depreciation and amortisation expenses declined 4.4% to ₹234.8 crore, compared with ₹245.6 crore in the previous financial year.
The company also reduced its spending on advertising and publicity. In FY26, this expense declined 6.9% to ₹145.7 crore, compared with ₹156.5 crore in FY25. Thus, amid a marginal increase in revenue, the company recorded a reduction in some key expenses related to employees, depreciation and advertising.
Changes in Aakash’s Ownership
There have been changes in Aakash’s ownership structure over the past few years. BYJU’S parent company Think & Learn acquired Aakash in 2021. However, the company’s shareholding structure has changed since then. In June 2025, the Competition Commission of India (CCI) approved the combination related to the acquisition of a stake in Aakash Educational Services by Manipal Health Systems and Manipal Education and Medical Group India.
According to a Reuters report from June 2026, BYJU’S stake in Aakash had been diluted to a minority holding, while Manipal Health had become the largest shareholder. The report also provided details of discussions by global lenders to acquire around 30% stake in Aakash. According to the report, Aakash was valued at around $2 billion under the potential settlement. However, the discussions were ongoing at the time and the parties concerned did not comment on the matter.
Aakash’s Education Focus in the Test-Prep Sector
Aakash Educational Services primarily focuses on preparing students for medical and engineering entrance examinations. According to the company, it has prepared more than 85,000 rankers in NEET and JEE and is working to advance test-prep education through technology-based learning solutions.
The FY26 figures show that Aakash’s operating revenue remained almost stable, while its net loss declined. However, the 65% decline in EBITDA indicates that pressure remains on the company’s operating profitability. Going forward, along with growth, improving operating margins will also remain important for Aakash.
