Educomp Solutions Limited (EDUCOMP) AI Stock Analysis

Educomp Solutions Limited

(NSE:EDUCOMP)

Select Model

Rating:37Underperform

Price Target:INR 0.84▼(-5.39% Downside)

Action:initiatedcoverage

Date:02/19/26

Educomp Solutions receives the minimum score of 37, reflecting extreme financial distress and high risk of permanent capital loss. The company is technically insolvent with negative equity of ₹30.9 billion, overwhelming debt of ₹27 billion, and persistent operating losses. Despite modest revenue growth of 42% in FY2025, the company cannot generate profits at any level and continues to burn cash. Technical indicators confirm the bearish outlook with the stock trading below all major moving averages in a sustained downtrend. Traditional valuation metrics are inapplicable given the absence of earnings. This represents a highly speculative, distressed situation requiring substantial debt restructuring and operational turnaround that has not materialized despite years of losses.

Positive Factors

Digital learning product portfolioEducomp's core offerings are technology-enabled K–12 and higher-education solutions (digital curriculum, smart-classroom tech, content and assessment). This product set aligns with structural adoption of digital learning and can support recurring institutional contracts and scalable content distribution if execution and funding stabilize.

Negative Factors

Deeply negative shareholders' equity and heavy leverageNegative equity and a debt load near the size of the historical equity hole create acute solvency and refinancing risk. With assets far smaller than liabilities, the company has constrained financial flexibility, limited capacity to fund operations internally, and elevated creditor-driven restructuring risk over months.

Educomp Solutions Limited (EDUCOMP) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 112.67M
Dividend Yield: ―
Average Volume (3M): 19.49K
Price to Earnings (P/E): -0.3
Beta (1Y): -0.14
Revenue Growth: ―
EPS Growth: ―
Country: India
Employees: 29
Sector: General
Sector Strength: 55
Industry: Education & Training Services

Educomp Solutions Limited Business Overview & Revenue Model

Company Description

Educomp Solutions Limited, an Indian firm headquartered in Gurgaon and established in 1994, primarily delivers educational services across India. The company's operations are segmented into four distinct areas: Higher Learning Solutions, School Learn...

How the Company Makes Money

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Educomp Solutions Limited Financial Statement Overview

Summary

Educomp Solutions exhibits severe financial distress. The income statement shows persistent losses with net loss of ₹357.1 million in FY2025, negative gross profit, and deeply negative EBITDA of -₹27.7 million. The balance sheet is critically impaired with negative equity of -₹30.9 billion and ₹27 billion in debt against only ₹2.4 billion in assets, indicating technical insolvency. Cash flow remains negative at -₹7.5 million operating cash flow, though cash burn has moderated. The 42% revenue growth is the sole positive but insufficient to offset fundamental structural problems.

Income Statement

8Very Negative

Balance Sheet

3Very Negative

Cash Flow

10Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Dec 2021
Income Statement
Total Revenue	23.37M	36.23M	41.39M	39.82M	13.81M	193.30M
Gross Profit	1.32M	-510.00K	19.04M	6.11M	-14.95M	69.78M
EBITDA	-69.26M	-27.65M	-277.16M	-748.23M	-386.38M	-1.68B
Net Income	-339.08M	-357.14M	-334.01M	-799.90M	-443.85M	-1.83B
Balance Sheet
Total Assets	2.39B	2.39B	2.47B	2.62B	2.68B	3.30B
Cash, Cash Equivalents and Short-Term Investments	113.47M	130.55M	125.22M	177.09M	212.10M	166.44M
Total Debt	26.98B	26.98B	26.74B	26.58B	26.01B	25.32B
Total Liabilities	33.24B	33.24B	32.97B	32.77B	32.04B	31.24B
Stockholders Equity	-30.87B	-30.87B	-30.51B	-30.17B	-29.37B	-27.97B
Cash Flow
Free Cash Flow	-12.48M	-11.68M	-27.85M	-18.96M	-28.30M	-71.50M
Operating Cash Flow	-12.47M	-7.47M	-7.12M	-17.91M	-26.19M	-71.48M
Investing Cash Flow	5.92M	-4.21M	-13.68M	6.13M	24.08M	-103.47M
Financing Cash Flow	0	0	0	21.95M	0	-300.00K

Educomp Solutions Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:EDUCOMP against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:APTECHT	62Neutral	INR 4.50B	18.41	―	5.80%	8.60%	17.77%
IN:PWL	57Neutral	INR 375.66B	1433.22	―	―	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:TREEHOUSE	45Neutral	INR 249.63M	-0.92	―	―	-35.49%	-84.14%
IN:ZEELEARN	44Neutral	INR 1.81B	3.63	―	―	-2.80%	458.04%
IN:EDUCOMP	37Underperform	INR 109.00M	-0.30	―	―	―	―
IN:CLEDUCATE	36Underperform	INR 2.36B	-10.53	―	―	28.52%	-21.18%

* General Sector Average

Performance Comparison

IN:EDUCOMP and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:EDUCOMP	Educomp Solutions Limited	0.89	-0.51	-36.43%
IN:APTECHT	Aptech Limited	77.51	-29.44	-27.53%
IN:CLEDUCATE	CL Educate Ltd.	43.46	-45.46	-51.12%
IN:TREEHOUSE	Tree House Education & Accessories Limited	5.90	-1.90	-24.36%
IN:ZEELEARN	Zee Learn Limited	5.51	-2.99	-35.18%
IN:PWL	PhysicsWallah Ltd.	129.15	-26.05	-16.78%

Educomp Solutions Limited Corporate Events

NCLT Orders Fresh Bids and 100-Day Timeline in Educomp Insolvency Case

Mar 16, 2026

Educomp Solutions Limited has disclosed that the National Company Law Tribunal has ordered the issuance of a fresh Form G for re-bidding of the company and mandated that the corporate insolvency resolution process be completed within 100 days. The mo...

Educomp Sets March 2026 Virtual AGM Amid Ongoing Insolvency Proceedings

Feb 11, 2026

Educomp Solutions Limited has scheduled its 31st Annual General Meeting for March 10, 2026, to be held via video conferencing and other audio-visual means in line with regulatory guidance from corporate and securities authorities. Shareholders as of...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Feb 18, 2026

Educomp Solutions Limited AI Stock Analysis