Aakash Educational Services, the test-preparation business acquired by Byju’s before the edtech group’s financial crisis, reported largely flat revenue of around ₹2,041 crore in FY26, while EBITDA plunged 65% during the year. The sharp deterioration in operating profitability highlights the pressure on the education business even as Aakash remains one of the most valuable assets associated with the collapsed Byju’s group.
The FY26 performance comes at a complicated time for Aakash, which is at the center of a continuing ownership and insolvency dispute involving Byju Raveendran’s Think & Learn, Manipal Education and Medical Group, and lenders to Byju’s. Manipal currently controls about 58% of Aakash, while Think & Learn had held roughly 25.75% before a rights issue that could materially alter its stake.
Aakash Revenue Stays Flat At ₹2,041 Crore
Aakash’s FY26 revenue remained broadly unchanged at approximately ₹2,041 crore, indicating that the test-preparation chain maintained its overall top-line scale despite a difficult operating environment.
The bigger concern was profitability.
EBITDA declined by around 65%, showing that a relatively stable revenue base translated into significantly weaker operating earnings.
Aakash FY26 Financial Performance
| Metric | FY26 | YoY Trend |
|---|---|---|
| Revenue | ~₹2,041 crore | Broadly flat |
| EBITDA | Down ~65% | Sharp decline |
| Revenue growth | ~0% | Limited growth |
| Operating profitability | Significantly lower | Negative trend |
| Business | Test preparation | Core education |
The divergence between revenue and EBITDA is particularly important because it suggests that the pressure was concentrated below the top line rather than being driven solely by a collapse in student demand.
EBITDA Decline Is The Biggest Concern
A 65% decline in EBITDA against largely flat revenue represents a substantial compression in operating profitability.
EBITDA, or earnings before interest, taxes, depreciation and amortization, is widely used to assess the underlying profitability of an operating business.
When revenue remains stable but EBITDA falls sharply, it generally indicates that operating costs have increased faster than revenue or that the company’s revenue mix has become less profitable.
Revenue Vs EBITDA
FY26 Revenue
~₹2,041 crore
│
│ Broadly flat
▼
Revenue remains stable
│
▼
Operating costs / margins under pressure
│
▼
EBITDA falls ~65%
│
▼
Sharp operating-margin compression
For Aakash, the development is significant because the business has traditionally been viewed as one of the stronger and more established assets within Byju’s wider portfolio.
What The Numbers Suggest
The FY26 results indicate that Aakash was able to preserve its revenue base but struggled to convert that revenue into operating earnings.
That distinction matters.
A revenue decline would suggest weaker demand or loss of market share. A flat revenue number accompanied by a steep EBITDA decline points instead toward profitability and cost pressures.
Possible Drivers Of EBITDA Pressure
| Potential Factor | Possible Impact |
|---|---|
| Employee costs | Higher teaching and administrative expenses |
| Center expansion | Additional fixed operating costs |
| Marketing expenses | Higher customer-acquisition costs |
| Technology spending | Investment in digital learning |
| Course mix | Changes in contribution margins |
| Competitive intensity | Pricing and promotional pressure |
| Integration costs | Costs associated with organizational changes |
The available reported figures do not establish how much each individual factor contributed. The key takeaway is the sharp disconnect between revenue stability and operating profitability.
Aakash Remains A Key Byju’s Asset
Aakash became part of Byju’s aggressive acquisition strategy when Think & Learn acquired the test-preparation company for approximately $950 million.
The acquisition gave Byju’s a major physical presence in India’s competitive medical and engineering entrance-examination preparation market.
Aakash’s network of physical learning centers and established brand complemented Byju’s primarily digital education model.
The strategy was designed to create an integrated online-offline education platform.
Byju’s-Aakash Strategy
Byju's
│
┌────────┴────────┐
▼ ▼
Digital learning Aakash
│
▼
Physical centers
│
┌──────────┼──────────┐
▼ ▼ ▼
JEE NEET School
preparation preparation education
│ │ │
└──────────┼──────────┘
▼
Hybrid education
platform
The acquisition later became one of the most important assets in the financial restructuring of Byju’s.
Manipal Now Controls About 58% Of Aakash
Ownership of Aakash has changed substantially since the Byju’s crisis began.
Manipal Education and Medical Group has steadily increased its stake and currently owns approximately 58% of Aakash, according to recent reports.
Think & Learn, Byju’s parent company, previously held around 25.75%.
The ownership structure has become particularly contentious because of a rights issue that could dilute Think & Learn’s stake.
Aakash Ownership Context
| Stakeholder | Approx. Position |
|---|---|
| Manipal Education and Medical Group | ~58% |
| Think & Learn / Byju’s | ~25.75% before rights issue |
| Other investors / entities | Remaining stake |
| Key dispute | Rights issue and creditor claims |
The ownership dispute is important because Aakash is widely considered one of the most valuable operating businesses still connected to Byju’s.
Byju’s Creditors Are Fighting Over Aakash
The financial problems at Think & Learn have turned Aakash into a key battleground between creditors and stakeholders.
GLAS Trust, representing Byju’s U.S. lenders, has opposed moves that it believes could reduce creditor recoveries.
The dispute has included objections to Aakash’s rights issue and questions over how Think & Learn’s ownership should be treated during the insolvency process.
The Supreme Court allowed the rights issue to proceed but recorded Aakash’s undertaking to ring-fence Think & Learn’s 25.75% stake until the National Company Law Appellate Tribunal (NCLAT) decides the matter.
Aakash Ownership Dispute
Think & Learn
│
▼
Byju's financial crisis
│
▼
Insolvency proceedings
│
▼
Aakash becomes key asset
│
├── Manipal ~58%
│
├── Think & Learn ~25.75%
│
└── Rights issue dispute
│
▼
Creditor objections
│
▼
NCLT / NCLAT
The outcome could determine how much of Aakash ultimately remains within the Byju’s estate.
Why Aakash’s Profitability Matters
Aakash’s financial performance has implications beyond its own business.
If the company generates strong cash flows, it can potentially support a higher valuation and improve recoveries for stakeholders.
If profitability deteriorates sharply, the value of the asset could come under pressure.
The 65% EBITDA decline therefore matters to both operating managers and creditors evaluating the company’s underlying value.
Financial Health Indicators To Watch
| Indicator | Why It Matters |
|---|---|
| Revenue growth | Measures student demand and market expansion |
| EBITDA | Measures operating profitability |
| EBITDA margin | Shows efficiency of revenue conversion |
| Student enrollment | Indicates future revenue potential |
| Center utilization | Measures physical-network efficiency |
| Faculty costs | Major operating expense |
| Cash generation | Important for business valuation |
| Debt / obligations | Relevant to ownership and restructuring |
The company’s ability to restore EBITDA margins will likely be closely watched in future financial periods.
India’s Test-Prep Market Remains Competitive
Aakash operates in one of India’s most competitive education segments.
Demand for JEE and NEET preparation has supported a large ecosystem of coaching centers, digital platforms and hybrid education providers.
Traditional coaching companies have increasingly added digital offerings, while online-first education companies have moved toward physical centers.
This has intensified competition for students and teachers.
Major Test-Prep Models
| Model | Main Advantage |
|---|---|
| Physical coaching | Classroom interaction and established brands |
| Online learning | Lower geographic barriers |
| Hybrid model | Combines classroom and digital access |
| Test-series model | Lower-cost preparation |
| Premium coaching | Higher-value intensive programs |
Aakash’s historical strength has been its physical coaching network combined with its established brand in competitive-exam preparation.
Aakash’s Offline Network Remains Important
Unlike many online education platforms, Aakash has a large physical learning-center footprint.
That provides access to students who prefer classroom-based preparation and allows the company to build local relationships with students and parents.
However, physical centers also create a substantial fixed-cost structure.
Rent, faculty, administrative employees, utilities and center-level operations continue regardless of short-term enrollment changes.
That can amplify the effect of weaker margins.
Hybrid Education Could Remain Aakash’s Growth Engine
The long-term opportunity for Aakash lies in combining its offline network with digital learning.
Students increasingly use multiple forms of preparation, including classroom lectures, online revision, recorded lessons, test series and digital assessments.
Aakash can potentially use its physical presence as an anchor while expanding digital engagement.
Potential Hybrid Model
Physical classrooms
│
├── Live teaching
│
▼
Digital platform
│
├── Recorded lectures
├── Tests
├── Analytics
└── Revision
│
▼
Personalized preparation
│
▼
Higher student engagement
The challenge will be executing this strategy without allowing technology and operating costs to further compress margins.
Aakash’s Performance Contrasts With Its Strategic Value
The FY26 numbers present an unusual combination.
On one hand, Aakash generated roughly ₹2,041 crore in revenue, demonstrating the resilience of its underlying business.
On the other, a 65% EBITDA decline indicates that the business is currently converting significantly less of that revenue into operating earnings.
That creates a key question for investors and potential stakeholders: Can Aakash restore profitability while maintaining its revenue scale?
The answer could have a direct impact on how the company is valued during the broader Byju’s restructuring.
The Broader Byju’s Crisis Continues
The Aakash results come against the backdrop of one of India’s most significant startup insolvency cases.
Byju’s once became India’s most valuable edtech startup, raising billions of dollars and expanding rapidly through acquisitions.
Its financial problems later triggered insolvency proceedings, disputes with lenders and prolonged legal battles.
Aakash has remained relatively more resilient than many other businesses associated with the group, making it especially valuable to creditors and competing stakeholders.
Recent settlement discussions between Manipal and GLAS Trust have centered partly on how Aakash’s value should be divided among stakeholders.
Why Aakash Could Matter To Creditors
For creditors of Think & Learn, Aakash represents a potentially monetizable asset.
A profitable and growing Aakash could support a stronger recovery.
Conversely, sustained EBITDA deterioration could weaken the value of the stake held by Think & Learn and reduce the amount that creditors can potentially recover.
This makes the company’s operating results an important part of the broader insolvency equation.
Aakash And Creditor Recovery
Aakash operating performance
│
▼
Revenue + EBITDA
│
▼
Business valuation
│
▼
Value of Think & Learn stake
│
▼
Potential creditor recovery
The relationship is not one-to-one because ownership, liabilities, legal claims and transaction terms also affect recoveries.
What Happens Next For Aakash?
The immediate focus will be on whether Aakash can stabilize its operating margins after the sharp EBITDA decline.
At the corporate level, ownership and rights-issue disputes remain equally important.
The ongoing NCLT and NCLAT proceedings could determine how the Aakash stake is ultimately treated within the Byju’s insolvency process.
At the business level, management will need to balance expansion with profitability.
Key Developments To Watch
| Area | What To Watch |
|---|---|
| EBITDA | Whether profitability recovers |
| Revenue | Whether growth resumes |
| Student enrollments | Demand trends |
| Physical centers | Expansion and utilization |
| Digital business | Contribution to growth |
| Manipal stake | Ownership developments |
| Think & Learn stake | Rights-issue outcome |
| NCLT/NCLAT | Legal decisions |
| Creditor settlement | Recovery implications |
The Bigger Picture
Aakash’s FY26 performance shows a business caught between operational pressure and strategic importance. Revenue remained broadly flat at around ₹2,041 crore, but EBITDA fell 65%, pointing to a substantial deterioration in operating profitability. For a company that has remained one of the strongest assets associated with Byju’s, the decline raises questions about cost efficiency, margins and the ability to sustain growth in India’s increasingly competitive test-preparation market.
At the same time, Aakash’s importance extends beyond its financial statements. Manipal controls about 58% of the company, while Think & Learn’s stake and a disputed rights issue remain central to the broader Byju’s insolvency proceedings. GLAS Trust and other creditors are closely watching the value of Aakash because the business could influence recoveries from the failed edtech group.
Looking Ahead
The next phase for Aakash will be defined by its ability to rebuild EBITDA while maintaining its roughly ₹2,000-crore revenue base. Restoring margins could strengthen the company’s valuation and improve its strategic position as ownership negotiations and creditor proceedings continue. Conversely, another period of significant profit compression could increase pressure on the business and complicate assessments of its value within the Byju’s restructuring.
The ownership question will remain equally important. Manipal’s approximately 58% stake, Think & Learn’s remaining interest and the outcome of the rights-issue dispute could determine who ultimately controls Aakash. With settlement discussions between Manipal and GLAS Trust having focused on the company’s ownership and value, Aakash’s financial performance will increasingly become an important factor in the final restructuring equation.
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