Summary:

According to CRISIL Ratings, revenue growth in Indian schools and colleges is expected to range between 12% and 14%, driven by increased enrolments and fee adjustments. This rise is predicted despite already high post-pandemic income levels, with double-digit gains anticipated in the coming years. The K-12 segment, particularly secondary schools, benefits from growing demand for quality education as disposable incomes rise, making parents more willing to accept a 5-10% tuition hike.

Many Tier-1 schools are adopting digital platforms, leading to higher costs for parents. CRISIL's research of 96 educational institutions projects a total fee income of nearly $2.38 billion in 2024. Despite placement challenges, computer science remains in demand, with 60-70% of Tier-2 students securing jobs. Strong cash flow is driving an 18-20% increase in capital investment, with institutions allocating 14-16% towards infrastructure and new courses this year.

Source: IBEF 

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