Highlights
| Issue Size – 5,80,11,049 shares | Issue Open/Close – 23 Sep / 25 Sep, 2026 |
| Price Band (Rs.) 343 – 362 | Issue Size (Rs.) – 21,000 mn |
| Face Value (Rs) 1 | Lot Size (shares) – 41 |
Elevate Campuses Limited (ECL) incorporated in 2005, is an education infrastructure company engaged in owning, operating and managing on-campus student accommodation for higher education institutions (HEIs) and owning K-12 school assets. ECL operates its student accommodation business under the Good Host Spaces and ScholarZ brands.
ECL’s portfolio comprises both owned and managed assets. Owned Portfolio comprises seven student accommodation campuses totalling 20,368 beds across six Indian cities and two K-12 Assets in Dubai. While its Managed Portfolio comprises 14 student accommodation campuses, totalling 55,487 beds under management.
ECL targets HEIs based on academic reputation, enrolment trends, governance and growth potential, while K-12 assets are selected based on academic performance, local reputation and enrolment potential. ECL is also evaluating collaborations with accredited educational institutions to expand its business portfolio.
Out of the total proceeds of Rs. 21,000 mn, Rs. 11,000 mn would go towards payment of the purchase consideration for the acquisition of the K-12 Entities and Campuses, Rs. 7,500 mn would go towards repayment of certain outstanding borrowings and prepayment penalties, and Rs. 2,500 mn would go towards funding inorganic growth through unidentified acquisitions, other strategic initiatives and general corporate purposes.
Key Highlights
- India’s higher education system is among largest globally with around 58,642 institutions and 43.3 mn students, accounting for 17.5 pct of global enrolment, while the professionally managed student accommodation (PMSA) market remains nascent, serving less than 0.5 pct of students. Whereas, India’s K-12 system comprises over 246.9 mn students across 1.47 mn schools, representing around 15 pct of global enrolment.
- ECL’s offers end-to-end operating capabilities across deal sourcing, site selection, development, asset acquisition, repositioning and community engagement, enabling it to streamline non-core operations for HEIs and K-12 Assets, allowing to focus on academic outcomes, curriculum and skill development which is core to their business.
- ECL typically enters into long-term contracts with HEIs for its Owned Portfolio, supported by minimum occupancy guarantees (87.55 pct currently on blended-basis), providing predictable cash flows. For its Managed Portfolio, ECL typically enters into contracts of up to five years, enabling asset-light expansion, strengthening brand presence and improving returns on capital.
- ECL’s K-12 asset business model involves the acquisition of existing K-12 Assets through definitive sale agreements. Following acquisition, they lease school properties to K-12 Operators under long-term agreements while retaining full ownership. To further expand in these segment, ECL intends to acquire 16 K-12 Assets across India from the promoter affiliated entities funded through proceeds from issue.
- ECL’s key growth strategies include (i) To leverage significant growth opportunities in a large, underserved market, (ii) pursue organic and inorganic growth with prudent capital allocation, (iii) expand the Elevate Platform by exploring strategic adjacencies to its existing portfolio, and (iv) invest in data analytics and technology enabled solutions to drive business growth and enhance.
- The sales of the company have grown by 28.01 pct CAGR over FY24-26 and EBITDA/Adjusted profit has grown 37.43 pct CAGR/17.62 pct CAGR over same year. In FY26 the company reported sales of Rs. 5,686 mn rose by 53.76 pct YoY. EBITDA of the company rose by 66.93 pct YoY to Rs. 4,053 mn. In FY26 the company posted profit of Rs. 689 mn, which increased by 14.07 pct YoY.
Key Risk
- Growth of online and education technology alternatives businesses may adversely affect the demand for the traditional in-person education delivery, and in turn affect it business and results of operations.
- ECL business is dependent on the growth and stability of the education sector and any adverse developments in this sector may adversely affect its business and results.
Financial Performance
| Particulars (in Rs. mn) | FY24 | FY25 | FY26 | CAGR | YoY |
| Sales | 3,470 | 3,698 | 5,686 | 28.01% | 53.76% |
| EBITDA | 2,146 | 2,428 | 4,053 | 37.43% | 66.93% |
| EBITDA Margin % | 61.84% | 65.66% | 71.28% | ||
| Adjusted Profit | 498 | 604 | 689 | 17.62% | 14.07% |
| Adjusted Profit Margin % | 14.35% | 16.33% | 12.12% | ||
| ROCE % | 9.72% | 9.90% | 6.42% | ||
| Net Debt to EBITDA (X) | 3.32 | 2.71 | 4.98 |
Source: – RHP.
Financial Performance (Proformo Basis)
| Particulars (in Rs. mn) | FY24 | FY25 | FY26 | CAGR | YoY |
| Sales | 5,617 | 6,105 | 8,069 | 19.86% | 32.17% |
| EBITDA | 3,876 | 4,401 | 6,168 | 26.15% | 40.15% |
| EBITDA Margin % | 69.01% | 72.09% | 76.44% | ||
| Adjusted Profit | 271 | 1,134 | 1,362 | 124.18% | 20.11% |
| Adjusted Profit Margin % | 4.82% | 18.58% | 16.88% | ||
| ROCE % | 9.51% | 9.64% | 7.72% | ||
| Net Debt to EBITDA (X) | 3.98 | 4.25 | 4.59 |
Source: – RHP.
Valuation
Elevate Campuses Limited (ECL) own, operate and manage on-campus student accommodation across HEIs own and K-12 Assets. ECL enable HEIs and K-12 school operators offer quality learning environment that support students development and foster all round growth. At the upper end of the price band of Rs. 362, the issue is priced at an EV/EBITDA of 23x its FY26 post issue capital. The issue appears to be fully priced.
Disclaimer: The views shared in blogs are based on personal opinions and do not reflect the company’s views. Investment involves risk, and it is advisable to consult a financial advisor before making any investment through the app. The decision to invest is solely that of the investor, and the company or its communication cannot be held responsible for it.
