DailyRounds delivers Rs 363 Cr profit on Rs 641 Cr revenue in FY25

Following a 16% year-on-year growth in FY24, healthcare-focused edtech platform DailyRounds maintained steady momentum in FY25, as its operating scale increased 13% while its profits surged another 13% to Rs 363 crore in the same period. It is something that wasn't too difficult to predict, which takes nothing away from being a credit to DailyRounds strengths. 

Dailyround’s operational revenue grew to Rs 641 crore in the fiscal year ending March 2025 from Rs 568 crore in FY24, its consolidated financial statements sourced from the Registrar of Companies show.

DailyRounds’ flagship product, Marrow, is an online learning platform offering medical students and practitioners subscription plans that include video lectures, question banks, and test series. These plans, spanning 3 to 36 months, contributed 88% of the operating revenue, which increased to Rs 641 crore in the last fiscal year.

The remaining operating income came from book sales to students under specific plans, which contributed Rs 75 crore, with the balance from market research services.

The company also earned Rs 132 crore in non-operating income from interest on deposits and investments, which took its total revenue to Rs 773 crore during the last fiscal year.

On the expense side, legal and professional fees formed the largest cost center for the firm, contributed nearly 31% of total expenses, and amounted to Rs 91 crore in FY25. This cost increased 42% compared to FY24. Its employee benefits expenses surged 25% to Rs 85 crore in FY25.

Web hosting, payment gateways, advertising, business promotion, and other overheads pushed the Bengaluru-based company’s total expenditure to Rs 295 crore in FY25 from Rs 225 crore in FY24.

Stable year-on-year growth in scale, coupled with controlled expenditure, enabled the Microsoft-backed DailyRounds to report a 13% increase in profits to Rs 363 crore in FY25 from Rs 320 crore in FY24. Its ROCE and EBITDA margin stood at 21.21% and 57.29%, respectively.

On a unit level, DailyRounds spent Rs 0.46 to earn a rupee of operating revenue. At the end of March 2025, its total current assets stood at Rs 1,826 crore, including cash and bank balances of Rs 1,756 crore, nearly 2.5 times higher than FY24.

As a completely knowledge intensive firm, it should be fascinating to see how DailyRounds copes with the onset of AI. The firm has a lot to protect, and surprising little to benefit from AI, considering the established nature of its course materials etc. The medical market it serves is also relatively steady, and that makes the job tougher. One hopes FY25 is not peak profitability for the firm, that has managed to build an enviable business so far.