CLEDUCATE - CL Educate
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew 62% YoY to ā¹310.03 Cr. EdTech revenue grew approximately 12.6% to ā¹125 Cr; MarTech revenue grew 23.8% to ā¹104 Cr; and the newly acquired DEXIT (DEX) segment contributed ā¹139 Cr in H1 FY26.
Geographic Revenue Split
Not disclosed in available documents, though the company operates through subsidiaries in Singapore, Indonesia, USA, and Africa.
Profitability Margins
Operating EBITDA margin improved to 13.18% in H1 FY26 from 11.1% in H1 FY25. However, Net Profit margin declined sharply to 0.48% (ā¹1.49 Cr) from 3.9% (ā¹7.55 Cr) due to a 1,691% increase in finance costs.
EBITDA Margin
Consolidated Operating EBITDA margin stood at 13.18% (ā¹40.87 Cr), a 92% increase in absolute EBITDA value YoY. Group EBITDA (including other income) grew 101% to ā¹50 Cr.
Capital Expenditure
The company recorded Goodwill of ā¹166.32 Cr and Other Intangible Assets of ā¹134.06 Cr as of September 30, 2025, primarily following the acquisition of DEXIT Global Limited.
Credit Rating & Borrowing
Finance costs surged to ā¹26.15 Cr in H1 FY26 from ā¹1.46 Cr in H1 FY25, representing a 1,691% increase, primarily driven by debt-servicing requirements for the DEXIT acquisition.
Operational Drivers
Raw Materials
Material expenses represent 2% of total revenue. Primary costs are Service Delivery (48%) and Employee Expenses (13%).
Capacity Expansion
The company is positioning to capture a share of the digital assessments ecosystem, which is projected to grow at a CAGR of 16% over the next 5 years. DEXIT is now fully embedded to scale these operations.
Raw Material Costs
Material expenses remained stable at 2% of revenue in H1 FY26. Service delivery expenses decreased from 54% to 48% of revenue YoY, indicating improved operational efficiency.
Manufacturing Efficiency
Not applicable as a service-based entity; however, operating momentum is demonstrated by a 92% growth in Operating EBITDA.
Logistics & Distribution
Sales and Marketing expenses (distribution-related) increased from 1% to 3% of revenue YoY.
Strategic Growth
Expected Growth Rate
16%
Growth Strategy
Growth will be achieved by leveraging the DEXIT acquisition to capture the digital assessment market, rationalizing non-performing business lines, and expanding MarTech services into the metaverse and customized engagement programs.
Products & Services
Coaching, educational content, digital assessment platforms, professional certifications, recruitment exams, experiential marketing, and metaverse transition services.
Brand Portfolio
Career Launcher, DEXIT, Kestone, ICE Gate.
New Products/Services
Metaverse business transition services and expanded digital assessment ecosystems; DEXIT contributed ā¹139 Cr to H1 FY26 revenue.
Market Expansion
Expansion into digital assessments for professional certifications and employability enhancement, targeting a ā¹300-400 Cr annual market opportunity.
Strategic Alliances
Acquisition of DEXIT Global Limited (formerly NSEIT Limited) to integrate institutional assessment capabilities.
External Factors
Industry Trends
The digital assessment ecosystem is growing at 16% CAGR. The industry is shifting toward metaverse-based corporate engagement and digital-first entrance exams.
Competitive Landscape
Competes in the fragmented EdTech and MarTech sectors; DEXIT provides a competitive edge in high-stakes institutional assessments.
Competitive Moat
Durable advantage through a diversified model combining EdTech and MarTech. The integration of DEXIT creates a high-barrier-to-entry digital assessment platform with long-term institutional contracts.
Macro Economic Sensitivity
Sensitive to wage inflation and regulatory changes in the education and recruitment sectors.
Consumer Behavior
Shift toward digital test simulations and virtual corporate events is driving demand for DEX and MarTech segments.
Regulatory & Governance
Industry Regulations
Operations are subject to law and regulatory policies regarding recruitment, retention, and educational standards.
Legal Contingencies
A legal matter is currently sub judice before the High Court of Delhi with the next hearing scheduled for January 16, 2026.
Risk Analysis
Key Uncertainties
The primary uncertainty is the impact of high finance costs (ā¹26.15 Cr) on long-term net profitability and the successful completion of the capital reduction scheme in Q3/Q4 FY26.
Third Party Dependencies
Dependency on NSE investments for the conclusion of the capital reduction scheme and transfer of escrow funds.
Technology Obsolescence Risk
Risk of technology shifts in the EdTech space; mitigated by transitioning business lines to the metaverse.