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.

CL Educate Ltd , a prominent player in the Indian education sector, has released its financial results for the fourth quarter of fiscal year 2024, revealing a mixed performance with significant challenges on the profitability front.

Revenue Growth Amidst Profit Decline

The company reported a substantial increase in Q4 revenue, which rose to ₹974.60 crore from ₹724.70 crore in the same quarter last year, marking a 34.5% year-over-year growth. However, this top-line growth was overshadowed by a sharp decline in profitability metrics.

Profitability Under Pressure

CL Educate's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q4 FY2024 dropped significantly to ₹11.60 crore from ₹50.60 crore in the corresponding quarter of the previous year. This resulted in a severe contraction of the EBITDA margin, which fell to 1.19% from 6.99% year-over-year.

The company's bottom line took a substantial hit, with CL Educate reporting a net loss of ₹157.20 crore for Q4 FY2024, compared to a profit of ₹18.80 crore in the same period last year. This stark reversal in profitability is a cause for concern for investors and stakeholders.

Exceptional Loss and Operating Performance

Adding to the company's woes, CL Educate recorded an exceptional loss of ₹41.90 crore during the quarter, which further impacted its financial performance. The operating profit for Q4 FY2024 turned negative at ₹-1.20 crore, compared to a positive ₹9.90 crore in the previous quarter, indicating significant operational challenges.

Financial Metrics at a Glance

Yearly Performance Overview

For the full fiscal year 2024, CL Educate reported:

• Total revenue of ₹332.40 crore, up 11.66% from the previous year
• Net profit of ₹15.80 crore, down 29.78% from FY2023
• EPS (Earnings Per Share) of ₹2.89, a 29.17% decrease from the previous year

Looking Ahead

The significant drop in profitability despite revenue growth suggests that CL Educate is facing challenges in managing its costs and operational efficiency. The company's ability to reverse this trend and improve its bottom line will be crucial for its future performance and investor confidence.

Stakeholders will be keenly watching CL Educate's strategic moves in the coming quarters to address these financial challenges and return to a path of sustainable profitability.