CL Educate Limited , a prominent player in the education sector, has reported a mixed financial performance for the first half of the fiscal year 2026 (H1FY26). The company's consolidated results show significant revenue growth, but a decline in net profit due to increased finance costs and depreciation.

Revenue Growth and Segment Performance

CL Educate's consolidated operating revenue saw a substantial increase of 62% year-on-year, reaching Rs 310.00 crores for H1FY26. This growth was primarily driven by the strong performance of the DEX (Digital Examinations) segment, which contributed Rs 139.00 crores compared to Rs 124.00 crores in the previous year.

EBITDA Improvement

The company's consolidated operating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed a remarkable improvement, increasing by 92% to Rs 40.90 crores. This growth in EBITDA indicates enhanced operational efficiency across the company's business segments.

Profitability Challenges

Despite the strong top-line growth, CL Educate faced challenges in maintaining profitability. The consolidated net profit declined to Rs 1.50 crores from Rs 7.60 crores in the previous year. This decline can be attributed to two main factors:

1. Increased Finance Costs: Finance costs rose significantly to Rs 26.00 crores, compared to Rs 4.40 crores in the previous year.
2. Higher Depreciation: Depreciation expenses increased to Rs 19.00 crores, up from Rs 8.30 crores in the previous year.

Segment-wise Performance

The DEX segment emerged as the star performer, with a 72% year-on-year revenue growth and a 9% increase in EBIT (Earnings Before Interest and Taxes).

Standalone Performance

On a standalone basis, CL Educate's performance was less impressive:

• Operating revenue decreased by 11% to Rs 154.00 crores
• Operating EBITDA declined by 60% to Rs 5.50 crores
• The company reported a standalone net loss of Rs 10.00 crores

Business Highlights

CL Educate highlighted several key achievements during the period:

• Conducted 27 lakh assessments for clients including IRDAI, NISM, ICAI, and NTA
• Retained market share in the MBA segment
• Expanded into schools through institutional partnerships
• Successfully retained clients across various segments

Looking Ahead

As CL Educate navigates through increased finance costs and depreciation expenses, the company's ability to maintain its revenue growth momentum while improving profitability will be crucial. The strong performance of the DEX segment provides a positive outlook, but the company may need to address the challenges in its standalone operations to achieve balanced growth across all segments.

Investors and stakeholders will likely keep a close eye on how CL Educate manages its cost structure and capitalizes on growth opportunities in the evolving education and assessment landscape.

CL Educate , a leading player in the EdTech and MarTech sectors, has announced robust financial results for the half year ended September 30, 2025, showcasing significant growth across key metrics.

Financial Highlights

• Revenue Surge: Consolidated Revenue from Operations grew by 62% year-over-year to ₹310.03 crore, up from ₹190.82 crore in H1 FY25.
• EBITDA Growth: Operating EBITDA saw a substantial increase of 92%, reaching ₹40.87 crore compared to ₹21.23 crore in the same period last year.
• Profit Before Tax: Stood at ₹5.55 crore, down from ₹15.17 crore in H1 FY25.
• Net Profit: Decreased to ₹1.49 crore from ₹7.55 crore in H1 FY25, primarily due to increased finance costs and depreciation.

Key Financial Metrics (H1 FY26 vs H1 FY25)

*All figures in ₹ crore

Quarterly Performance (Q2 FY26 vs Q1 FY26)

• Revenue from Operations increased by 13% to ₹164.34 crore in Q2 FY26, compared to ₹145.68 crore in Q1 FY26.
• Operating EBITDA improved to ₹23.36 crore from ₹17.50 crore.
• Net Profit after tax turned positive at ₹5.20 crore in Q2 FY26, compared to a loss of ₹3.71 crore in Q1 FY26.

Impact of DEXIT Global Limited Acquisition

The acquisition of DEXIT Global Limited (formerly NSEIT Limited) on February 20, 2025, has significantly impacted CL Educate's financial structure:

• Finance costs increased from ₹1.46 crore in H1 FY25 to ₹26.15 crore in H1 FY26.
• Depreciation rose from ₹8.34 crore to ₹18.54 crore.

These increases have contributed to the reduction in net profit despite strong revenue growth.

Management Commentary

Arjun Wadhwa, Group CFO of CL Educate, commented on the results: "The first half of FY26 reflects the strength of CL Educate's diversified business model. While EdTech is stabilizing post structural shifts, our MarTech and Assessments businesses continue to deliver solid double-digit growth."

He added, "The integration of DEXIT Global has expanded our opportunity horizon significantly, and we are already seeing early benefits from shared technology, customer pipelines, and cost synergies. As a group, we remain focused on improving profitability and achieving our stated goal of zero net debt within the next 24 months."

Business Segment Performance

1. EdTech: Showing signs of stabilization after structural shifts in the industry.
2. MarTech: Continues to deliver strong double-digit growth.
3. DEX (Digital Assessments): The newly acquired DEXIT Global is contributing positively, with scalable solutions in professional certifications, recruitment exams, and other assessment areas.

Future Outlook

CL Educate is leveraging its diversified business model to navigate the evolving EdTech and MarTech landscapes. The integration of DEXIT Global is expected to enhance the company's position in the digital assessments market, which is projected to grow at a CAGR of 16% over the next 5 years.

The management's focus on improving profitability and achieving zero net debt in the next 24 months indicates a strategic approach to financial management and growth.

Investors and stakeholders will be watching closely to see how CL Educate balances its growth initiatives with financial prudence in the coming quarters.