Jaro Institute IPO Q2 FY26 – ₹450 Cr Fundraise, 38x P/E, and an EdTech Makeover in a Byju’s Hangover Market
1. At a Glance
Breaking news: A 2009-born Mumbai outfit that started by selling online MBAs at traffic signal hoardings now wants to raise ₹450 crores from you and me. The issue? ₹846–890 per share, a P/E north of 38, and promoters who are reducing their holding from a fat 78% to 57% (translation: “humne paisa bana liya, ab aap sambhalo”). If you thought Byju’s was the final episode of India’s edtech comedy show, Jaro wants to reboot the season.
2. Introduction – The Auditor’s Opening Statement
Ah, education. The noble sector where Indian parents willingly trade kidneys to buy their children “foreign degree certificates” that hang like cursed paintings in living rooms. Enter Jaro Institute of Technology Management & Research Ltd. (mercifully shortened to Jaro Education), which has been quietly selling online MBAs, DBAs, and PGDMs since 2009.
Unlike the chaotic edtech startups that bled billions, Jaro is trying to look… institutional. They have 22 offices, 17 studio setups inside IIM campuses, and 36 partner universities on their roster. Basically, they’re like that relative who insists they’re not a startup because they pay GST on time.
Financially, they’re not bad either:
₹254 crore revenue in FY25
₹51.6 crore profit after tax
20% PAT margins (rare in edtech, almost like spotting a sober engineering student on Saturday night)
So why the IPO? Simple: Brand building, debt repayment, and the timeless Indian promoter hobby – wealth monetization.
But here’s the kicker: Market cap post-IPO? ₹1,972 crore. That’s 10.5x book value. For an online degree seller. You see why auditors like me can’t sleep at night?
3. Business Model – WTF Do They Even Do?
Imagine a talent broker who doesn’t sing but introduces singers to labels. Jaro is that middleman – only instead of singers, they have 36 universities; instead of music, it’s online degrees.
They don’t actually “own” the degrees. Partner institutions run the programs, Jaro markets them, does admissions, and sets up fancy studios inside IIM campuses to give students the “we’re sitting in IIM” vibe (while they’re actually on Zoom).
Their product basket:
MBA, PGDM, DBA – the classics.
M.Sc, MCA, B.Com, BCA – the filler content.
Certification Courses – the “gym membership” equivalent.
Revenue model is straight out of “Sharma Ji ka Tuition”: commission cuts. They charge partner institutions, while also pocketing student fees in some models. And thanks to repeat enrolments and long course durations, they claim predictable revenues.
Now, if you squint, this sounds like a stable SaaS business. But zoom out, and it’s still an admission agent in a blazer.
4. Financials Overview
Here’s the quarterly masala:
Source table
Metric
Latest Qtr (Q4 FY25)
YoY Qtr (Q4 FY24)
Prev Qtr (Q3 FY25)
YoY %
QoQ %
Revenue (₹ Cr)
63.50
50.60
61.20
25.5%
3.8%
EBITDA (₹ Cr)
20.80
15.80
20.00
31.6%
4.0%
PAT (₹ Cr)
12.90
9.30
12.40
38.7%
4.0%
EPS (₹)
5.83
4.20
5.60
38.8%
4.1%
Annualised EPS = ₹23.3 → P/E = 38x at upper band.
Commentary: If your college ever taught compounding, this is it – compounding P/E ratios.
5. Valuation Discussion – The Fair Value Range
Let’s do the dirty math auditors love:
Method 1: P/E Peers in higher edtech (say upskilling players like NIIT, upGrad’s dream valuation, or even offline training institutes) hover between 18x–28x. Jaro at 38x is stretching like Baba Ramdev in a morning show. → Fair Value (P/E method): ₹540–₹720.
