1. At a Glance
BITS Ltd reported a ₹7.39 lakh PBT in Q1 FY26 on ₹31 lakh revenue. No, that’s not a typo. Yes, that’s one of the lowest revenue-to-market cap ratios ever recorded in Indian public markets. Welcome to the educational startup that forgot the startup part.
2. Introduction with Hook
If BITS Ltd were a university, its financials would barely qualify it for a diploma in Hope Management.
- Revenue Q1 FY26: ₹0.31 Cr
- PAT Q1 FY26: ₹0.09 Cr
- Market Cap: ₹120 Cr
- P/E: 414
At ₹10.70/share, it’s less a stock, more a lottery ticket with a glossy annual report.
3. Business Model (WTF Do They Even Do?)
BITS Ltd claims to be in the business of providing education across:
- Streams: Arts, Commerce, Science, Engineering, Management, IT, Hospitality
- Modes: Institutes, Distance Learning, Universities
- Markets: India & Abroad (read: possibly a rented classroom in Kathmandu)
In reality, the company books ₹1 Cr of revenue a year. That’s what a coaching centre in Lajpat Nagar makes in a good quarter.
4. Financials Overview
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM (%) | ROE (%) | Book Value (₹) |
|---|---|---|---|---|---|
| FY23 | 0.80 | -0.06 | -28.7% | – | 1.81 |
| FY24 | 0.89 | 2.41 | 16.8% | – | 1.81 |
| FY25 (TTM) | 1.13 | 0.23 | 29.2% | 1.09% | 1.81 |
Takeaway: Margins are positive now (great). But revenue is still less than what Zomato charges for delivery of a large pizza in South Delhi (not great).
5. Valuation
Let’s not pretend. Here’s the brutal truth:
- EPS: ₹0.03
- P/E: 414x
- Book Value: ₹1.81
- CMP/BV: 5.93x
- Industry median P/E: 20x
Fair Value Range = ₹2 – ₹3/share
At current levels, you’re paying Ivy League tuition fees for a street-corner coaching class.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Result: Revenue ₹31.01 lakh, PAT ₹9 lakh
- Auditor’s Notes: Still to be scrutinized for past write-offs
- Zero Debt: Yes, but what are they leveraging – the office Wi-Fi?
- Shareholder Count: 42,000+ (A WhatsApp pump group’s dream come true)
No new strategic announcements. No acquisitions. No new tie-ups. No—literally—anything.
7. Balance Sheet
| Year | Equity Capital (₹ Cr) | Reserves (₹ Cr) | Total Assets (₹ Cr) | Borrowings (₹ Cr) |
|---|---|---|---|---|
| FY23 | 22.38 | -4.79 | 18.11 | 0.00 |
| FY24 | 22.38 | -2.37 | 20.58 | 0.00 |
| FY25 | 22.38 | -2.14 | 20.83 | 0.00 |
Key Observations:
- Negative reserves. This is basically a company operating with student loan energy.
- No debt. But also no growth, no asset expansion, no meaningful capex.
8. Cash Flow – Sab Number Game Hai
| FY | CFO (₹ Cr) | CFI (₹ Cr) | Net Cash Flow (₹ Cr) |
|---|---|---|---|
| FY23 | ₹0.16 | ₹0.03 | ₹0.19 |
| FY24 | ₹1.02 | -₹0.98 | ₹0.03 |
| FY25 | ₹6.55 | -₹6.68 | -₹0.13 |
Cash is flowing… out the door. Classic pump → dump → whimper scenario.
9. Ratios – Sexy or Stressy?
| Metric | FY24 | FY25 |
|---|---|---|
| ROCE (%) | 13.3% | 1.09% |
| ROE (%) | 1.09% | 1.09% |
| OPM (%) | 16.85% | 34.45% |
| Debtor Days | 4.10 | 45.22 |
| D/E Ratio | 0.00 | 0.00 |
OPM improving. Debtor days exploding. ROE barely registers a heartbeat.
10. P&L Breakdown – Show Me the Money
| Year | Sales (₹ Cr) | Operating Profit (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| FY23 | 0.80 | -0.23 | -0.06 |
| FY24 | 0.89 | 0.15 | 2.41 |
| FY25 (TTM) | 1.13 | 0.33 | 0.23 |
FY24 PAT was an anomaly, driven by “Other Income” of ₹2.32 Cr. Core operations? Still crawling.
11. Peer Comparison
| Company | CMP (₹) | P/E | ROCE (%) | OPM (%) | Revenue (Cr) | PAT (Cr) |
|---|---|---|---|---|---|---|
| Oracle Fin. Serv. | 8,821 | 32.2 | 40.6 | 44.9% | 6,846 | 2,379 |
| C.E. Info Systems | 1,829 | 77.5 | 24.1 | 38.0% | 463.2 | 127.8 |
| Nucleus Software | 1,083 | 21.6 | 22.6 | 20.2% | 832.3 | 133.8 |
| BITS Ltd | 10.7 | 414 | 1.09 | 34.5% | 1.19 | 0.29 |
The comparison is laughable. It’s like comparing a YouTube motivational speaker to Harvard.
12. Miscellaneous – Shareholding, Promoters
| Group | Shareholding |
|---|---|
| Promoters | 65.07% |
| DIIs | 0.07% |
| Public | 34.86% |
Other Points
- Shareholders grew from 16K to 42K in 2 years.
- No institutional buying.
- Could be a playground for operators.
13. EduInvesting Verdict™
BITS Ltd is what happens when ambition meets delusion. It’s in the business of education, but it’s been teaching investors the harsh lesson of valuation irrationality. Unless this turns into a full-blown restructuring story with genuine scale-up in FY26, it’s simply:
A “Bhaiya IPO nahi mila, yeh lelo” stock.
Metadata
– Written by EduInvesting Team | 21 July 2025
– Tags: BITS Ltd, Microcap, Penny Stock, EdTech, Screener Specials
