Shoqan School Losses Widen to 744.5 Million Tenge Despite 24% Revenue Growth

Shoqan School's H1 2026 Loss Widens 6.5x to 744.5 Million Tenge

Kazakh private school operator Shoqan School reported a net loss of 744.5 million tenge for the first half of 2026, a 6.5-fold increase from the same period a year earlier, according to KASE disclosures cited by Forbes Kazakhstan. The loss came despite strong top-line growth: revenue rose 24.4% to 3.68 billion tenge, gross income climbed 55.3% to 1.59 billion tenge, and operating income nearly doubled, rising 95% to 1.2 billion tenge.

Management attributed the loss mainly to subsidized interest expenses, which totaled 211.1 million tenge in the half-year period, down from 525.3 million tenge a year earlier. Total interest costs, including loans and the school's KASE bonds, reached 499.2 million tenge, down 3.6%. The company said these costs do not cause cash to leave the school and pointed to positive operating cash flow.

The balance sheet shows an expansion program in progress. Total assets rose 2.8% to 18.1 billion tenge, with construction advances increasing nearly tenfold to 394.3 million tenge. Fixed assets reached 16.6 billion tenge as the school continues building a separate STEAM wing; it has already advanced 338.6 million tenge for that project and expects to complete it during 2026. Liabilities were almost flat at 10.3 billion tenge, though current borrowings fell 46.9% while long-term borrowings rose 4.3% to 5.15 billion tenge.

Shoqan School opened in Almaty in 2020, has about 1,200 students and is owned by Asel Tasmagambetova and Kenes Rakishev through Fincraft Group. The school is also operating under a changing regulatory framework: Kazakhstan has imposed a 2026 moratorium on new state orders for private schools and is increasing inspections of private-school finances and capacity.

Behind Shoqan School's Loss: Interest Costs, Owner Support and a Tougher Private-School Market

Interest costs, not the classroom, are driving Shoqan School's loss

The widening net loss is not evidence of a collapsing school operation. Revenue rose 24.4%, gross income 55.3% and operating income 95%, while the cost of services rose only 8%. The negative bottom line is largely explained by interest expenses of 499.2 million tenge, including 211.1 million tenge of subsidized interest. The school's June 2025 KASE bond of 1 billion tenge at 21% for three years is a material part of that interest burden. Because management says these costs do not involve a cash outflow from the school and operating cash flow is positive, the school's day-to-day business appears stronger than its reported net result.

Owner support is the school's main financial cushion

Management says it has received assurances from the owners to continue financing the school until breakeven, and the owners have the capacity to do so. Kenes Rakishev ranked 27th on Forbes Kazakhstan's 2026 rich list with a reported $402 million fortune, and Asel Tasmagambetova is among the country's most influential women with other business interests. For bondholders and suppliers, that backing reduces short-term liquidity risk, but it also means the school's viability is tied to the owners' continued willingness to fund it.

A tougher regulatory environment is now part of the equation

The results land as Kazakhstan tightens rules for private schools. The 2026 moratorium on state orders for new private schools protects existing operators such as Shoqan School from new state-funded competitors, but it also narrows the state-funding path to schools that close regional student-place deficits. Increased inspections of student numbers, building capacity and financial indicators mean a loss-making school expanding its fixed assets will face more scrutiny, even if its operational revenue is growing.

What the Shoqan School Results Mean for Bondholders, Parents and Rival Schools

• For bondholders and lenders: Focus on cash interest coverage, not the accounting loss. Total interest costs were 499.2 million tenge against operating income of 1.2 billion tenge in the first half; the school says it has positive operating cash flow and owner support, but the 21% coupon on its 1 billion tenge KASE bond makes repayment and refinancing conditions important.
• For parents: The school's service-cost increases were concentrated in meals, utilities, maintenance, learning materials and events. Parents should expect operational fees to reflect those costs, while the planned 2026 opening of the STEAM building will likely expand capacity and could affect admissions and tuition next year.
• For rival private schools: The 2026 moratorium on new state orders means the competition for existing students and regional capacity funding is intensifying. Schools that can demonstrate they close student-place deficits in their regions are best positioned for public funding under the revised rules.