Jaro Institute of Technology Management and Research Ltd. share price target

Jaro Education (JARO IN) reported Q1FY27 revenue broadly in line with our expectations, while EBITDA margin contracted 755bps QoQ to 21.4%, below estimates, due to elevated employee and marketing investments ahead of the key Q2 intake season. Revenue grew 16.6% YoY to Rs 708mn, supported by healthy learner demand, a 11.6% YoY increase in enrollments and a 4.5% YoY improvement in ARPU. Gross bookings increased 17% YoY to Rs 1.9bn, reflecting sustained traction across higher education and executive learning programs, while Jaro take rate was largely steady. Despite the margin...

We expect Jaro to deliver a strong earnings trajectory over the medium term, supported by sustained enrolment growth, improving monetisation and operating leverage.

IPO Note

The Company is uniquely positioned in the industry, as it among the very few of the players, which provide bundle services including counselling and digital platform equipped with managing the entire learner journey, allowing academic institutions to only focus on academic quality and curriculum delivery.