Elevate Campuses' EBITDA grew 26% year‑on‑year, eclipsing the 5‑6% contractual escalations embedded in its university and school agreements. The jump is largely powered by a 25% CAGR in its asset‑light managed beds unit, where the company runs student accommodation contracts without owning the property. CEO Narasimha Jayakumar said the firm’s operating leverage and long‑duration contracts—some up to 60 years—provide a steady revenue base.
Revenue climbed 20% CAGR over three years, outpacing sector averages that hover around 8‑10%. The company’s gross block sits at ₹7,000 crore, while net debt was ₹3,400 crore before the fresh issue. CFO Vinod Rao mentioned that the IPO will bring net debt down to ₹2,650 crore, cutting interest costs by roughly ₹60 crore annually.
The ₹2,100 crore fresh issue will allocate ₹1,100 crore to acquire K‑12 school assets from the promoter group and ₹750 crore to repay debt. The remaining ₹250 crore is earmarked for asset expansion or working capital. Jayakumar highlighted the advantage of long‑term contracts, noting that they provide long‑term revenue visibility and steady escalations.
India’s student accommodation market remains largely underserved, with more than 1,000 private universities fitting Elevate’s model. The company sees room to grow through new assets and acquisitions, and analysts point to the 4.5× net debt‑to‑EBITDA ratio as evidence of manageable leverage.
Moving forward, Elevate plans to deploy IPO proceeds for further expansion and maintain its debt‑free trajectory. The firm will continue to focus on asset‑light operations, capitalising on the rising demand for managed beds, while Rao said there are no immediate plans to reduce debt further, prioritising growth instead.