Growing online enrolments, rising tuition fee to drive revenue for education sector: Ind-Ra

India Ratings and Research (Ind-Ra) has maintained a positive outlook for the education sector in FY25, citing growing enrolments and rising tuition fees per student as key drivers. The agency anticipates increased investments in infrastructure and facilities within educational institutions, driven by rising middle-class income and demand for quality education. Additionally, the growing importance of digitalization and e-learning content, evolving group structures, and expanding financing options, including private equity and government initiatives, are expected to fuel sectoral growth.

Ind-Ra expects a revenue boost for educational institutions, with tuition fee hikes post-COVID-19 contributing significantly. Despite regulatory challenges, foreign investments have surged, reflecting a compound annual growth rate of 7.76% from 2012-13 to 2022-23. As enrolment demand continues to rise, Ind-Ra has revised its rating outlook for educational institutions to positive for FY25, anticipating increased enrolment and revenue growth. This optimism is supported by a rise in student headcount reported by most rated institutions in 2023-24, signalling a recovery to pre-pandemic levels and setting the stage for further growth in the upcoming fiscal year.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.