IPO closes on 25 Sep'25
Jaro Institute of Technology Management & Research Ltd
Minimum Investment
₹ 14,240 / 16 shares
Our Verdict:
Neutral
- Jaro Institute of Technology Management & Research Ltd (Jaro) has demonstrated strong revenue and PAT growth over the last three years. The company currently has an outstanding debt of Rs 51 crore, with Rs 45 crore set to be repaid through IPO proceeds. This repayment will significantly reduce borrowings, lower interest costs and strengthen the balance sheet, enhancing financial flexibility for future growth.
- The total addressable market for Jaro in India’s online higher education and upskilling sector was valued at Rs 1.72 lakh million in FY24 and is expected to grow at a CAGR of 24.6%, reaching Rs 4.15 lakh million by FY28.
- However, the company’s future growth will heavily depend on securing additional marquee university partnerships, as only a select few top-tier universities may be willing to offer online programs without diluting the exclusivity and brand value of their traditional courses.
- Given these factors, investors with a higher risk appetite may consider subscribing for potential listing gains. However, for those with a long-term investment horizon, it is crucial to closely monitor the company’s ability to scale sustainably before making any investment decisions.
About the company
Founded in
9 Jul'09
Managing director
Sanjay Salunkhe
- Jaro acts as a bridge between working professionals and universities, assisting in the design, marketing and delivery of executive education and online learning programs. Rather than creating its own courses, it collaborates with reputed institutions both in India and internationally and provides them with a technology platform, marketing reach and student acquisition support. While the partner institutions issue the final certifications or degrees, the company generates revenue through a shared fee for its services.
- Around 80% of Jaro's revenue comes from partnerships with Tier-2 universities, with the remaining income derived from collaborations with IITs and IIMs. The company currently partners with 36 institutions, offering 268 courses.
STRENGTHS
- Solid Growth: Jaro has recorded exceptional growth from FY23 to FY25, achieving a 44% CAGR in operating revenue, 81% in EBITDA and 111% in net profit.
- Margin Expansion: Jaro has continuously expanded its margins, with the net margin rising from 9.35% in FY23 to 20.34% in FY25 and EBITDA margin growing from 20.92% to 33.13%. These trends highlight the scalability of its asset-light model and sustained demand for higher education programmes.
- Healthy Return Metrics: Jaro boasts impressive return metrics, with a Return on Equity (ROE) of 35.76% and a Return on Capital Employed (ROCE) of 37.38% in FY25, showcasing its ability to generate significant shareholder value and deploy capital efficiently.
- Asset-Light Model: Jaro operates an asset-light model with 39 offices and studios across India, without owning physical campuses or developing its own courses. This approach enables scalability while minimizing fixed costs, contributing to strong profitability and capital efficiency.
RISK FACTORS
- Heavy Dependency on PIs: Despite efforts to diversify, Jaro's top 5 partner institutions contribute significantly to its revenue, accounting for 62% in FY25. While reliance on these partners has decreased over time, it remains a considerable risk. If key partners like IITs and IIMs reduce Jaro's revenue share as their programs mature and attract enrolments independently, it could negatively impact revenues.
- Geographic Concentration: While Jaro maintains a strong online presence accessible beyond specific regions, its operations remain heavily concentrated in the Western region, particularly Maharashtra, which accounts for ~73% of its business in FY25. This concentration makes the company partially reliant on regional economic conditions despite its broader digital reach.
- Cash Flow Concerns: Jaro reported negative cash flow from operations in both FY25 and FY24. It invests significantly in marketing, brand building and learner acquisition to drive growth due to its partnership-driven revenue model. These investments involve substantial upfront cash outflows, with revenue recognition occurring gradually over the course duration. Persistent negative cash flows may disrupt operations and negatively impact the firm’s financial stability.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 450 crore
Fresh Issue
₹ 170 crore
OFS
₹ 280 crore
Price range
₹ 846 - 890
Lot size
16 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for the following purposes:
- Marketing, brand building and advertising activities;
- Repayment / prepayment of certain outstanding borrowings availed by the Company; and
- General corporate purposes.
Dates
Bidding open
23 Sep'25
Bidding close
25 Sep'25
Allotment date
26 Sep'25
Refund date
29 Sep'25
Listing
30 Sep'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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