Existing research on “school effectiveness” indicates that differences at the school level contribute significantly towards variation in student outcomes; however, less is known about the effectiveness of schooling in low- and middle-income countries (LMICs). This paper addresses this gap using quantitative analysis of data from two states in India. It compares four multilevel model specifications to explore how school performance can be measured in the Indian context. The analysis reveals a large “school effect”, while also offering evidence that a considerable proportion of between-school variation stems from student intake. Findings suggest that school “value-added” models could offer better understanding of school performance and learning equity in India, and indicate the importance of recognising how differences in model specification affect those schools identified as “more effective”.