CL Educate Q1 FY26: A Promising Start to a Transformational Year
CL Educate (BSE: 540403 | NSE: CLEDUCATE), a diversified education services company, has kicked off FY26 with strong momentum, driven by its newly acquired digital examination business DEX and continued growth in its Martech arm, Kestone. The Q1 FY26 results reflect a strategic shift in the company’s revenue mix and signal a potential inflection point in its growth trajectory.
DEX: The Growth Engine
The standout performer this quarter is DEX, CL Educate’s digital examination business, which was acquired from NSEIT. In its first full quarter under CL’s management, DEX reported revenues of ₹56.2 crore, a 55% jump over Q1 FY25. This ₹20 crore incremental revenue already represents a 10% growth over DEX’s full-year FY25 revenue of ₹200 crore. With new client wins including Ayush, IIBF, UIDAI, and Meazure, and retention of key accounts like IRDAI and NISM, DEX is well-positioned to deliver high-teen growth for the full year.
CL Educate’s strategic exit from JEE and NEET coaching further positions DEX to bid for these large-scale exams, potentially unlocking a ₹300–400 crore opportunity. The company’s guidance suggests Q2 may be flat due to a high base, but Q3 and Q4 are expected to drive further acceleration.
Kestone: Martech with Global Ambitions
Kestone, CL’s Martech division, continues to show robust growth, especially in international markets. Q1 FY26 saw a 27% YoY increase in international revenue, which now accounts for 33% of Kestone’s total revenue. The company aims to push this share beyond 50% in the coming years.
New initiatives like VIRSA, an AI-powered virtual event assistant, and Utsav, a luxe event series, are gaining traction. VIRSA has already signed marquee clients such as Salesforce, Infosys, and Redington, and is expanding through resellers in Singapore and Indonesia. These innovations could further strengthen Kestone’s growth momentum.
Career Launcher: Navigating Edtech Headwinds
The Career Launcher business, CL Educate’s original test prep arm, continues to face structural challenges. The shift to digital learning has fragmented demand and reduced ARPU, even as volumes remain stable. However, the BBA & IPM vertical is emerging as a strong third pillar, with 12% growth in Q1 FY26.
CL is experimenting with new growth ideas, including the EasyApply portal and synergies between Career Launcher and DEX. The recently launched CL Mobile App is another step toward digital transformation.
Financials and Valuation
With DEX’s EBITDA margins above 15%, CL’s overall margins could move into double digits, its EV/EBITDA valuation for FY26 could come under 10x, making it look attractive.
Investment Case
CL Educate’s diversified revenue mix, category leadership across segments, and asset-light model make it a compelling investment story. With strong growth drivers in DEX and Kestone, and strategic pivots in Career Launcher, the company is poised to cross ₹600 crore in topline for FY26. If it sustains double-digit EBITDA growth, the stock could see a favorable re-rating.
Conclusion: CL Educate is a stock to watch in FY26, as it transitions from consolidation to growth. Investors looking for exposure to the evolving education and Martech sectors may find CL’s story increasingly attractive.
PS: Wisdom-IR is investor relations advisor to CL Educate. In case you have any queries for the management, you can address them to us.