CL Educate has announced its financial results for the first quarter, showcasing strong top-line growth but a net loss due to acquisition-related expenses.

Key Financial Highlights

• Consolidated Revenue from Operations surged by 56% year-over-year to ₹145.68 crore
• Operating EBITDA grew by 66% to ₹17.50 crore
• Reported a consolidated Net Loss of ₹3.71 crore
• Finance costs increased to ₹12.76 crore from ₹0.72 crore in the previous year's corresponding quarter
• Depreciation expense rose to ₹8.74 crore from ₹4.13 crore in the previous year's corresponding quarter

Segment Performance

DEX Acquisition Impact

The company completed the acquisition of DEXIT Global Limited (DEX) on February 20, 2025. DEX, now the fourth largest standalone digital assessments company globally, contributed significantly to CL Educate's growth this quarter. DEX's Revenue from Operations grew by 55% year-over-year to ₹56.20 crore, with an operating EBITDA of ₹9.85 crore.

Management Commentary

Mr. Arjun Wadhwa, CFO of CL Educate, stated: "This quarter marks the first full quarter of financial consolidation with the DEX business. While our top-line and operational EBITDA performance remain strong and aligned with our strategic plans, the impact of finance cost and depreciation related to the DEX acquisition has temporarily impacted the bottom line. The value accretion through the acquisition of DEXIT has already started and is positively reflecting in the overall financial performance of the CL Educate Group."

Business Segment Overview

EdTech

The Education segment faced challenges, with revenue declining by 8.7% year-over-year. The company noted structural changes in student preparation habits, including a shift towards self-preparation and online learning.

MarTech

The Marketing Technology segment showed modest growth of 3.8% year-over-year. The segment offers integrated solutions for corporates through experiential marketing, event management, and digital services.

DEX

The newly acquired Digital Examinations segment emerged as a strong contributor, accounting for 38.6% of the total revenue. DEX offers specialized services for secure, scalable, and technology-driven assessment solutions.

Future Outlook

CL Educate remains optimistic about its growth prospects, particularly in the digital assessments ecosystem. The company expects the DEX segment to capitalize on the growing market for professional certifications, recruitment exams, and employability enhancement programs.

Additional Notes

• The company has discontinued its Engineering, Medical, CA, and Bank-SSC product offerings in India to avoid potential conflicts of interest with DEX's operations.
• CL Educate is facing a GST demand of ₹1,281 lacs related to the supply of books as part of composite supply of commercial coaching services. The company is in the process of appealing this demand.

CL Educate continues to evolve its business model, focusing on technology-driven solutions across its EdTech, MarTech, and DEX segments. While the recent acquisition has impacted short-term profitability, the company believes it is well-positioned for long-term growth in the education and assessment markets.

CL Educate has announced its financial results for the first quarter of fiscal year 2026, showcasing significant revenue growth despite reporting a net loss. The company's performance reflects the impact of its recent acquisition of DEXIT Global Limited and strategic business decisions.

Revenue and EBITDA Growth

For the quarter ended June 30, 2025, CL Educate reported a robust 56% year-over-year increase in consolidated revenue from operations, reaching ₹145.68 crore. This substantial growth was accompanied by a 66% rise in Operating EBITDA, which stood at ₹17.50 crore for the quarter.

Net Loss and Financial Costs

Despite the strong top-line performance, the company reported a consolidated net loss of ₹3.71 crore. This loss was primarily attributed to increased finance costs and depreciation expenses related to the acquisition of DEXIT Global Limited (DEX). Finance costs surged to ₹12.76 crore in Q1 FY26, up from ₹0.72 crore in Q1 FY25, while depreciation expenses rose to ₹8.74 crore from ₹4.13 crore in the same period last year.

DEXIT Global Limited Performance

The acquisition of DEXIT Global Limited, completed on February 20, 2025, has started to show positive results. DEX, now the fourth largest standalone digital assessments company globally, reported a 55% growth in revenue from operations, reaching ₹56.20 crore in Q1 FY26. The segment also delivered an operating EBITDA of ₹9.85 crore, compared to ₹3.34 crore in Q1 FY25.

Segment Performance

CL Educate's financial results revealed strong performances across its business segments:

Strategic Decisions and Discontinued Operations

The company has decided to discontinue its Engineering, Medical, CA, and Bank-SSC Product offerings in India. This strategic move aims to avoid potential conflicts of interest with DEXIT's examination business. As a result, CL Educate recognized a loss of ₹97.27 lacs from discontinued operations in Q1 FY26.

Management Commentary

Mr. Arjun Wadhwa, CFO of CL Educate, commented on the results: "This quarter marks the first full quarter of financial consolidation with the DEX business. While our top-line and operational EBITDA performance remain strong and aligned with our strategic plans, the impact of finance cost and depreciation related to the DEX acquisition has temporarily impacted the bottom line. The value accretion through the acquisition of DEXIT has already started and is positively reflecting in the overall financial performance of the CL Educate Group."

Board Approvals and Appointments

The company's Board of Directors has approved several key appointments and re-appointments:

1. Mr. Yatrik Vin appointed as Additional Independent Director for a 5-year term.
2. Re-appointment of Mr. Satya Narayanan R as Chairman and Executive Director for 3 years from April 2026.
3. Re-appointment of Mr. Gautam Puri as Vice-Chairman and Managing Director for 3 years from April 2026.
4. Re-appointment of Mr. Nikhil Mahajan as Executive Director and Group CEO Enterprise Business for 3 years from April 2026.

Additionally, the Board approved the renewal of the company's employee stock option plan and granted up to 35,000 options to employees.

As CL Educate continues to integrate its recent acquisition and streamline its operations, the company remains focused on leveraging its strengths in the EdTech and MarTech sectors to drive long-term growth and profitability.