Cl Educate in its Q4 and full year FY26 financial results yesterday reported a sharp jump in revenue, EBITDA and cash flow from operations, reflecting the first full year of business performance of the digital examination business DEXIT Global acquired from the National Stock Exchange (NSE).
Consolidated FY26 – Key Highlights (YoY)
- Revenue from Operations grew 55% YoY to ₹570 crore, driven by the first full-year integration of DEXIT revenues.
- EBITDA increased 113% YoY to ₹69 crore from ₹33 crore last year, supported by strong contribution from the high-margin Edtech Assessment (DEXIT) business.
- Reported Net Loss After Tax of ₹26 crore compared to PAT of ₹11 crore last year, largely due to higher interest costs on the ₹210 crore acquisition loan for DEXIT and increased depreciation from acquired assets.
- Interest and depreciation costs rose 198% YoY to ₹85 crore versus ₹29 crore last year.
- Cash generated from operations increased 383% YoY to ₹79 crore, aided by DEXIT integration.
DEXIT Highlights
- FY26 DEXIT operating revenues grew 9% YoY to ₹223 crore.
- FY26 DEXIT Operating EBITDA rose 49% YoY to ₹51 crore.
- Achieved 100% client rollover post acquisition.
- Added 20 new customers, expanding the annuity revenue base.
- Completed the technology backbone build-out and rolled out mySATHI.
Other Businesses
- Martech (Kestone business) revenues grew 11% YoY to ₹161 crore.
- Martech EBITDA stood at ₹13 crore, down 7% YoY due to higher initial costs associated with the new Utsav business.
- International business contributed 31% of Martech revenues in FY26 compared to 29% in FY25, reflecting its higher growth momentum compared to the domestic business.
- Edtech (the Career Launcher business) revenues declined 11% YoY to ₹163 crore, impacted by lower industry ARPUs and evolving student study patterns.
- Edtech (Learning & Development) enrolment volumes increased 4% YoY.
Loan Servicing
- As on FY26 year end, the long-term acquisition loan was down to Rs 180 crore, down from Rs 210 crore at the same time last year.
- Including working capital, total debt stood at Rs 240 crore, compared to Rs 276 crore as on 31st March 2025.
- Cash profit of the standalone business stood at Rs 32 crore, compared to around Rs 17 crore last year. At the consolidated level, cash profit stood at Rs 59 crore in FY26, compared to Rs 17 crore for FY26.
- The company has taken cost control measures to increase internal cash generation, and is now confident of being able to service principal from internal cash generation plus cash on books. In other words, the fund raise plan mentioned in the Q3 earnings call now stands deferred. The company may revisit it when the valuations reflect business value.
The current entity value of CL Educate is around Rs 360 crore, implying and EV/EBITDA of around 7x. The DEXIT business itself would command an EV more than this. CL Educate had acquired DEXIT at an EV of Rs 230 crore last year. Since then, the business has shown its strength: all clients have renewed contracts, 20 new logos have been won, EBITDA has growth 51%. The business is on a growth trajectory, and both revenues and EBITDA are likely to improve further in FY27, as mentioned in the earnings call.
In other words, CL Educate represent negligible downside at current levels.
(Wisdom IR assists CL Educate in Investor Relations)