Consolidated revenue reached ₹430.5 crore following the acquisition of DEXIT Global Limited, though associated financing and depreciation costs led to a quarterly net loss. The company continues to scale its digital assessment and MarTech segments while focusing on long-term operating leverage.
CL Educate Ltd (NSE: CLEDUCATE) reported a 65% year-on-year increase in consolidated revenue from operations, totaling ₹430.5 crore for the period ended December 31, 2025. Despite a 111% rise in operating EBITDA to ₹44.5 crore, the company reported a net loss of ₹15.7 crore for the period. This shift from a profit of ₹4.4 crore in the corresponding period last year is primarily attributed to higher finance costs and depreciation charges following recent inorganic growth.
Strategic Acquisition Enhances Digital Assessment Capabilities
The primary driver of the group’s financial performance was the consolidation of DEXIT Global Limited (formerly NSEIT Limited), which was acquired on February 20, 2025. As the world’s fourth-largest standalone digital assessments company, DEXIT holds a relative market share of over 20% and provides scalable solutions for professional certifications and recruitment exams. While the acquisition significantly increased the company’s enterprise capabilities and top-line scale, it also resulted in aggregated finance and depreciation costs of ₹68.1 crore, compared to ₹15.0 crore in the previous year.
Financial Performance
On a year-on-year basis, finance costs surged to ₹39.6 crore from ₹2.4 crore, while depreciation rose to ₹28.5 crore from ₹12.6 crore. The loss before tax was recorded at ₹9.4 crore, a reversal from the ₹11.8 crore profit reported in the same period last year. Sequentially, revenue from operations decreased by 27% to ₹120.4 crore for the quarter ended December 31, 2025, compared to ₹164.3 crore in the quarter ended September 30, 2025. One-time exceptional expenses related to changes in labor codes further impacted the bottom line by ₹5.3 crore.
Segment Performance
- EdTech: Revenue growth was supported by the assessments business and renewed interest in the MBA segment following a difficult Common Admission Test (CAT). The company is expanding its Common University Entrance Test (CUET) vertical, which currently has 17 lakh registered students and an anticipated growth to 70 lakh registrations over the next three to five years.
- MarTech: This segment reported revenue of ₹121 crore, up 9% year-on-year, with new client acquisitions including PwC, Himalaya, and Zoho.
- DEXIT (Assessments): The unit conducted nearly 70 lakh exams during the period and maintained a 100% client rollover rate post-acquisition, generating ₹194 crore in revenue with improved margins.
Integrating DEXIT and Launching New Assessment Products
Management is currently focused on the integration of DEXIT and the realization of synergies to improve operating leverage and drive sustainable growth. A key part of the forward-looking strategy is the launch of “SATHI,” a new assessment product measuring critical thinking and creativity, designed for school and university admissions. The company aims to add over 100 physical centers dedicated to CUET and board exam coaching and is targeting network expansion in the student mobility sector, which currently sees 6 million students studying in non-native countries.
Growth Trends in Digital EdTech Sectors
CL Educate operates within the EdTech and MarTech sectors, characterized by an asset-light, technology-enabled approach. The digital assessments ecosystem, in which DEXIT is a significant player, is projected to grow at a CAGR of 16% over the next five years. The company maintains a pan-India omnichannel presence with 150 centers and an international footprint across the Middle East and Southeast Asia.