CL Educate , a leading player in the education and technology sector, has reported a significant 58% year-on-year increase in consolidated revenue for the first quarter. The company's financial results highlight both growth opportunities and challenges as it integrates recent acquisitions and navigates market shifts.

Financial Highlights

• Consolidated revenue rose to Rs 149.84 crores, up 58% from Rs 95.00 crores in the same quarter of the previous year
• Operating EBITDA increased by 66% to Rs 17.50 crores
• Net loss of Rs 3.71 crores, compared to a profit of Rs 4.20 crores in the same quarter last year
• Finance costs surged to Rs 12.70 crores due to the Rs 200.00 crore loan for the DEXIT acquisition

DEXIT Global Performance

The integration of DEXIT Global (formerly NSEIT) has been a key driver of growth:

• DEXIT revenue grew 54% year-on-year to Rs 59.20 crores
• EBITDA more than doubled to Rs 12.80 crores
• Executed over 17 lakh assessments in the quarter
• Signed new contracts worth Rs 53.00 crores, including deals with AYUSH Ministry, IIBF, and NISM

Segment-wise Performance

MarTech Division

• Revenue grew modestly by 7% to Rs 37.20 crores
• EBITDA slightly decreased from Rs 2.80 crores to Rs 2.50 crores
• International and technology businesses showing promising growth

EdTech Division

• Test prep revenues declined marginally
• Market shift towards self-preparation models in the MBA segment
• Introduced new low-value SKUs to adapt to changing student preferences
• BBA and IPM products recorded a 12% increase in billing

Strategic Initiatives and Outlook

CL Educate is undertaking several initiatives to drive growth and profitability:

1. Focusing on AI-first practices in the MarTech division
2. Expanding into international markets
3. Developing synergies between different business practices
4. Building IP-based revenue streams
5. Exploring potential IPO or strategic investments for DEXIT Global

Management Commentary

Satya Narayanan R, Chairman of CL Educate, commented on the results: "This has been a transformative period for our company, marked by significant strides in revenue growth. With the full integration of DEXIT Global and strategic challenges that have also impacted our bottom line this quarter, we are confident that these short to medium-term hurdles will ease in the coming quarters as the new assets begin to deliver value."

Gautam Puri, Vice Chairman and Managing Director, added: "The test prep industry, especially the graduate student segment, is in a churn. We have introduced many new initiatives and variants to realign ourselves to the changing situation. While the revenues from the test-prep domain have come down by about 11%, we are hopeful of being able to increase numbers over last year significantly by the end of the year."

As CL Educate navigates through this transformative phase, the company remains focused on enhancing margins, leveraging AI, expanding in international markets, and building scalable platforms across verticals. The management expects the finance costs and depreciation impacts to ease in coming quarters as the acquired assets begin delivering value, potentially leading to improved profitability in the medium to long term.

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.