Revenues For Schools, Colleges To Chalk Up A Doubling In Revenue Growth

An uptick in enrolment, especially for higher education, and a modest hike in fees after two years will drive up the revenue of schools and colleges by over 10% this fiscal, compared with a compound annual growth rate of 4% between fiscals 2018 and 2022, an analysis of 110 education entities rated by CRISIL Ratings shows.

The formal education segment comprising K-12 (kindergarten to class 12) and higher education (graduation and post-graduation), accounts for almost 65% of the ~Rs 10 lakh crore revenue of the sector. The informal segment, which covers coaching/test preparation, pre-schools and digital learning, accounts for the rest.

"In fiscal 2021, as Covid-19 surged and lockdowns began, enrolments for higher education, except to study medicine, fell. In the K-12 segment, enrolments were stable, but fees were stagnant on-year, and other sources of revenue such as transportation, hostel and canteen dried up completely. Last fiscal, enrolments for higher education improved, while for K-12 it was steady. But with no hike in fees, revenue growth was limited to 5%," CRISIL ratings show.