Auxilo reports Rs 528 Cr revenue and Rs 112 Cr PAT in FY25

After doubling its revenue in FY24, education-focused non-banking financial company (NBFC) Auxilo has delivered another strong performance in FY25, going past Rs 500 crore in revenue and posting over Rs 100 crore in profit after tax (PAT).

Auxilo’s revenue from operations grew 48.3% to Rs 528 crore in FY25, up from Rs 356 crore in FY24, as per its annual financial statements sourced from the Registrar of Companies.

The Mumbai-based NBFC provides education loans to students pursuing higher studies in India and abroad. Its offerings cover the complete cost of education, including tuition fees, pre-visa expenses, travel, and other related costs.

Interest income formed the bulk of its business, contributing 90.5% of total operating revenue, which grew 49.4% to Rs 478 crore in FY25. Fees, commissions, and other operating income collectively stood at Rs 50 crore during the year. Including other income of Rs 16 crore, Auxilo’s total revenue reached Rs 544 crore in FY25.

On the expenditure side, interest costs accounted for 71.5% of total expenses, rising in line with disbursements to Rs 282 crore in FY25. Employee benefits were recorded at Rs 56 crore, while overall costs increased to Rs 394 crore in FY25, compared to Rs 275 crore in FY24.

The company’s controlled cost structure supported profitability, leading to a 62.3% jump in PAT to Rs 112 crore in FY25, against Rs 69 crore in FY24. Auxilo’s expense-to-revenue ratio also improved to 0.75 in FY25.

Earlier this year, Auxilo raised Rs 50 crore from Motilal Oswal. Since its inception, it has secured over $100 million across equity and debt. The company competes with other well-funded education-financing players such as Grayquest, Avanse Financial, Financepeer, Propelld, Leap Finance, and Eduvanz.

While it is no secret about the hit to Indian students going abroad to study in the new geopolitical rumblings, especially in the US, the fact is, the whole category needs to be seen with mixed feelings by people who matter here. Auxilo will be hard pressed to keep the momentum going under the new circumstances.  But even the steady inflation in domestic education should worry policy makers, and while difficult to put a timeline on it, expect protests to boil over more visibly at some stage in the near future. 

While it is no secret that political investments in education have protected the blatant profiteering, it simply cannot last at this rate. The pressure on engineering education for instance is already obvious, with medical education next in line. China’s edtech moment came in 2021, destroying a thriving VC backed sector overnite with the hard push towards non-profit status. While those moves have not exactly achieved their objectives like reducing pressure on students or costs, as many tuition costs simply moved outside the organised market , India’s challenge remains equally dire, and at par with the crisis in healthcare where the government has tried to insure everyone out of trouble. Unfortunately, cheap insurance is not an option in education, and it remains to be seen how far the industry is allowed to go before the brakes are pressed.