Coaching centres

Indian test-prep chains earn from course fees per seat, multiplied by batch size and number of batches per centre. Profit depends on seat utilisation, faculty cost per teaching hour, student acquisition cost, renewals into longer courses, and upsells such as hostel, test series and study material. Batch-level contribution margin is the cleanest test of whether a centre scales.

Coaching centres earn fees per batch, not per student. Revenue is seats sold multiplied by fee; the big costs are faculty salaries, rent for classrooms and marketing. Because a full batch costs little more to run than a half-empty one, occupancy drives profit. Strong selection results let a centre raise fees and fill batches faster.

CAC payback is the number of months a customer's gross profit takes to repay the cost of acquiring them. In Indian edtech, CAC must include admissions counselling, demo classes, tele-sales and field sales, and revenue must be counted only as it is recognised, not as the full multi-year fee is collected.