Altman Z″
Needs current assets and current liabilities.
KLASSROOM · Educational Institutions · INE1LMA01010
Analyst mean 0.00 · 0 analysts · 0% bullishThis company listed within the last twelve months, so its prospectus is still the primary source. The figures below were extracted from the DRHP and RHP before listing and scored then, and they are shown here as they stand in the IPO record rather than restated.
Each flag is a fact read in the filing, shown with the context that makes it meaningful.
Stated objects, as worded in the offer document. Deployment against them is tracked separately.
Claims made in the offer document, to be read against what the company has reported since.
Fusion Klassroom Edutech Limited operates an edtech business delivering education through a hybrid model combining online OTT platform delivery, offline partner centres, and institutional and government projects. Its course offerings span school education, test preparation, professional and vocational courses, and emerging technology skills such as AI and ML. The company operates a network of 30 offline partner centres across India as of March 31, 2026. Operations are supported by 22 permanent employees, 4 contractual personnel, and 63 faculty members engaged as consultants. Digital learning content is distributed directly to learners via app and web subscriptions, as well as B2B client licensing, channel partners, distributors, and government/NGO projects. Key revenue-contributing states include Uttar Pradesh, Maharashtra, and Rajasthan, with institutional partners and top customers accounting for significant revenue contribution.
Proprietary AI-powered Education OTT platform, asset-light digital core, multi-layered distribution network comprising channel partners, distributors, NGOs, and government implementation partners, and proprietary content library.
Fusion Klassroom Edutech Limited is an education technology company operating a scalable, AI-enabled hybrid learning ecosystem in India, delivering academic education, competitive examination preparation, skill development, and employability-oriented training.
Source: p. 28, 120, 145, 161, 231
The comparable set the company chose, which is itself a disclosure.
| Name | Margin | Pb | Pe | Roe | Source |
|---|---|---|---|---|---|
| Physicswallah Limited | 8.15 | -15.96 | p. 122 | ||
| MPS Limited | 30.73 | 18.42 | 29.05 | p. 122 | |
| Veranda Learning Solutions Limited | 42.36 | 13.54 | p. 122 | ||
| Arihant Academy Limited | 22.21 | 31.18 | 27.15 | p. 123 | |
| Fusion Klassroom Edutech Limited | 56.38 | 53.45 | p. 122 |
As presented in the offer document. Post-listing figures are in the statements above.
| Basis | Period | Related party revenue cr | Pat cr | Ebitda cr | Pat margin | Revenue cr | Pat margin derived |
|---|---|---|---|---|---|---|---|
| standalone | FY26 | 7.6012 | 12.99 | 32.99% | 23.0395 | yes | |
| standalone | FY25 | 2.9042 | 4.0635 | 28.79% | 10.0865 | yes | |
| standalone | FY24 | 0.3438 | 1.0154 | 7.5% | 4.583 | yes |
Written before listing, answered from the document itself.
How are the net proceeds of the fresh issue being deployed?
The net proceeds from the fresh issue are allocated towards Tech & AI/ML model development, servers, and cloud infra (Rs 6.71 Cr), content development capex (Rs 5.35 Cr), marketing initiatives (Rs 5.22 Cr), loan repayments (Rs 2.36 Cr), desktop/laptop capex for offline AI/ML labs (Rs 1.95 Cr), and general corporate purposes / inorganic growth.
p. 100, 552
Who are the promoters and what is their acquisition cost?
The promoters are Mrs. Alka Nikhil Javeri, Mr. Dhruv Nikhil Javeri, and Mr. Dhumil Nikhil Javeri, who collectively hold 54.73% pre-issue. Due to a 400:1 bonus issue in December 2025, their weighted average cost of acquisition is Rs 0.02 per equity share.
p. 3, 4, 48, 75, 92, 95, 201
Are there material related party transactions or IP transfers with promoters?
Yes. The company acquired its trademark and logo rights from promoter Mrs. Alka Javeri for Rs 5.00 Lakhs in December 2025. The company also pays annual office lease rent of Rs 10.69 Lakhs to Mrs. Alka Javeri and pays director remuneration totaling Rs 49.50 Lakhs to the executive promoters.
p. 61, 222, 987
Does operating cash flow align with reported profitability?
Yes. The company reported positive Operating Cash Flow of Rs 10.71 Cr in FY26 (against PAT of Rs 7.60 Cr). However, Cash Flow from Investing Activities was strongly negative at -Rs 12.44 Cr due to Rs 10.67 Cr spent on intangible asset additions (study content and customer data acquisition).
p. 58, 213, 218, 219
What structural market parameters apply to this SME offer?
The offer comprises up to 19,89,400 fresh equity shares and 4,65,800 offer for sale shares. Pune E-Stock Broking Limited acts as the designated market maker with 1,23,200 shares reserved. Minimum application size is 2 lots (above Rs 2 Lakhs), with 5% circuit filters applying post-listing.
p. 2, 6, 7, 12, 53, 75
What the issue priced at, on the figures in the document.
| Date | Name | Shares | Price per share | Category | Issue type | Source |
|---|---|---|---|---|---|---|
| 2016-11-03 | Alka Nikhil Javeri | 5200 | 10 | promoter | initial | p. 76 |
| 2016-11-03 | Dhruv Nikhil Javeri | 2400 | 10 | promoter | initial | p. 76 |
| 2016-11-03 | Dhumil Nikhil Javeri | 2400 | 10 | promoter | initial | p. 76 |
| 2017-01-02 | Deepti Choudhary | 1192 | 377.52 | other | rights | p. 76 |
| 2017-02-13 | Sunil Himmatlal Jain | 359 | 1671.31 | other | rights | p. 76 |
| 2017-02-13 | Ghanshyam Rameshbhai Parmar | 359 | 1671.31 | other | rights | p. 76 |
| 2017-07-15 | Dhaval Pradip Patel | 265 | 7553 | other | rights | p. 76 |
| 2017-07-26 | Dhaval Pradip Patel | 66 | 7575.76 | other | rights | p. 76 |
| 2017-12-26 | Nachiket Pramod Dighe | 128 | 9375 | other | rights | p. 76 |
| 2017-12-26 | Pramod Dattatraya Dighe | 128 | 9375 | other | rights | p. 76 |
| 2017-12-26 | Mohan Mechem Projects Private Limited | 384 | 9375 | other | rights | p. 76 |
| 2018-04-12 | Mohan Mechem Projects Private Limited | 640 | 9375 | other | rights | p. 76 |
| 2025-09-29 | Series Seed CCPS Holders (36 Allottees) | 1547 | financial investor | preferential | p. 76, 77 | |
| 2025-09-29 | Series A1 CCPS Holders (38 Allottees) | 1250 | financial investor | preferential | p. 76, 77, 78 |
Numbered markers are corporate actions and, once the filings are read, capital and governance events. Prices are split-adjusted so the series is continuous.
What the numbers mean when read together — computed from the filings, not a score.
Free cash flow is negative — the business consumes more than it generates once capex is paid. Fine if it is deliberate growth investment; a problem if it is structural.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Latest free cash flow ₹-4 cr, negative in 4 of 4 years. Check whether the burn funds expansion (dark stores, plants, ports) or merely sustains operations.
Operating cash is 141% of trailing profit — the earnings are converting to real cash, not just accruals.
Why this reading: A positive signal: cash conversion at or above ~0.9 means reported profit is showing up as actual cash.
Operating cash ₹11 cr against trailing net profit ₹8 cr. Consistent conversion near or above 1.0 is a hallmark of genuine earnings.
Debt rose over 3 years, and most of it (861%) has turned into fixed assets and projects under construction — the borrowing is building the business.
Why this reading: A positive signal: leverage taken on is visibly becoming productive capacity, not disappearing.
New borrowing ₹2 cr largely matched by an asset build of ₹17 cr. Debt that funds capacity is a different thing from debt that funds nothing.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs current assets and current liabilities.
Piotroski F-Score — fundamental momentum — Joseph Piotroski, University of Chicago, 2000, in a study of whether accounting signals could improve returns among cheap stocks.
Nine yes-or-no tests across profitability, leverage and operating efficiency. Each pass scores one. It asks a narrow question: is this business getting better or worse on its own terms, year over year?
How to read it7 or more suggests improving fundamentals; 3 or fewer suggests deterioration. It measures direction, not quality — a weak company improving can score higher than a strong one holding steady.
Where it failsA single year of comparison, so one unusual year distorts it. Says nothing about valuation, competitive position or management. Piotroski designed it to rank already-cheap stocks, not to judge a company in isolation.
Needs trade receivables, current assets, other expenses.
Accruals are -16.6% of assets. Free cash flow negative in 4 of 4 years.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
Capital is going in far faster than revenue is coming out. For a business mid-build that is expected — the test is whether it converts.
cumulative operating cash flow ÷ cumulative net profit
₹15 cr ÷ ₹10 cr, over 4 years
1.46×
Above 1.0 means cash exceeds reported profit — the healthier reading.(net profit − operating cash flow) ÷ average total assets
(₹8 − ₹11) cr ÷ average assets
-16.6%
Negative means cash exceeded profit — the healthier reading. Positive above ~10% is where accruals start to dominate earnings.net margin × asset turnover × leverage
33.0% × 0.90 × 1.38
41.3%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹10 cr ÷ ₹0 cr
22.13×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹3 cr ÷ ₹18 cr
0.19×
Read against the sector — infrastructure carries more than software.growth in fixed assets + CWIP, against growth in revenue
capital +894% vs revenue +378%, FY2023 to FY2026
516pp gap
Money going in far faster than revenue coming out. For an incubator this is expected — the test is whether it eventually converts.Needs more balance-sheet detail (only 3 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
Some figures appear twice on this page with different values. That is not an error — they sit on different bases. The live feed reports a rolling twelve months; everything computed here comes from the last audited statements. Both are shown so you can see which is which.
Where the two disagree, every model, screen and ratio computed on this page uses the filed figure, because the rest of the page is on that basis.
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Rising debtor or inventory days against flat sales is the earliest visible sign of stress.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter held steady from 39.52% to 39.52% across these quarters.
FII held steady from 6.02% to 6.02% across these quarters.
Other held steady from 54.46% to 54.46% across these quarters.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Debtor days
How long customers take to pay | 0 | 0 | 24 | 10 |
| Cash conversion cycle
Debtor + inventory − payable days | 0 | 0 | 24 | 10 |
| Working capital days | -21 | -25 | 1 | -9 |
| ROCE %
Return on capital employed | — | 15.0% | 43.4% | 60.6% |
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Revenue from operations | 5 | 5 | 10 | 23 |
| Other income | 0 | 0 | 0 | 0 |
| Depreciation | 0 | 1 | 1 | 3 |
| Finance cost | 0 | 0 | 0 | 0 |
| Profit before tax | -1 | 0 | 3 | 10 |
| Net profit (owners) | -1 | 0 | 3 | 8 |
| EPS (₹) | -503.70 | 251.85 | 2,148.15 | 10.37 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Item | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Equity Capital | 0 | 0 | 0 | 7 |
| Reserves | 1 | 4 | 10 | 11 |
| Borrowings | 2 | 0 | 1 | 3 |
| Net block | 2 | 4 | 7 | 18 |
| CWIP | 0 | 0 | 0 | 0 |
| Investments | 0 | 0 | 0 | 0 |
| Total Assets | 3 | 4 | 12 | 25 |
| Line | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Cash from operations | 0 | 1 | 4 | 11 |
| Cash from investing | -1 | -2 | -6 | -12 |
| Cash from financing | 1 | 1 | 3 | 2 |
| Free cash flow | -2 | -2 | -1 | -4 |
| Net change in cash | -1 | 0 | 1 | 1 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
These are coverage counts, not ratings. Each one asks a fixed set of questions of the filings and reports how many the company answered. A company that discloses nothing counts nothing here — that is a statement about the disclosure, not about the business.