1. At a Glance
Ladies and gentlemen, grab your chai and calculators — CL Educate Ltd (NSE: CLEDUCATE) just dropped itsH1 FY26performance, and it’s a cocktail of expansion dreams, digital pivots, and debt-fuelled drama. The ₹452 crore market-cap EdTech–MarTech hybrid reported consolidated revenue of₹319 crore, EBITDA of₹50 crore, and a wafer-thinPAT of ₹1.5 crore. That’s right — the profit margin is slimmer than the patience of a CAT aspirant during DILR section.
Trading at₹83.4, down 24% in three months, CL Educate’s share has clearly been schooled by the market. WithROCE of 2.93%,ROE of -2.41%, and a debt pile of ₹284 crore, the balance sheet looks more like a case study for “Corporate Finance: What Not To Do” at IIM Ahmedabad. Add to that50.1% promoter pledge, and you have the perfect suspense thriller:“Kestone Chronicles: The Pledge of Two Founders.”
But don’t write them off yet — this company just completed the₹231.8 crore acquisition of NSEIT’s Digital Examination Business, aiming to dominate the new-age “Test Delivery” ecosystem. If this integration plays out right, CL Educate might graduate from “coaching CAT aspirants” to “conducting exams for entire universities.”
2. Introduction
If the Indian education sector were a movie, CL Educate would be that overachieving kid juggling tuition, side hustle, and debt repayment — all while pretending everything is fine. Founded in 1996, CL Educate Ltd started as a humble coaching institute under the “Career Launcher” brand, helping students crack competitive exams. Fast forward to today, and it has evolved into a diversified education and marketing-tech ecosystem spanningtest prep, publishing, corporate solutions, and virtual event management.
It’s not just about CATs and CLATs anymore — the company also sells textbooks, operates event-tech platforms, and offers marketing services to corporates under theKestonebrand. Essentially, it’s like Byju’s met a PR agency, shook hands with NSEIT, and decided to enter the metaverse.
The most fascinating part? CL Educate manages to operate across India and abroad — from Delhi to Dubai, Singapore to Sharjah. It’s an Indian education brand that’s trying to go global — and it’s doing so while carrying adebt-equity ratio of 1.03and interest coverage of0.83x(ouch). The dream is big, but so is the EMI.
So as we unpack the H1 FY26 results, one question looms large: Can this education veteran teach itself how to make profits again?
3. Business Model – WTF Do They Even Do?
CL Educate isn’t just about tuitions anymore. The company operates like a four-headed hydra — each head representing a unique segment of its business empire:
1. EdTech (Career Launcher & GK Publications)This is the heart of the operation. It’s where the company earns its intellectual street cred — coaching students forMBA, Law, Banking, Civil Services, and even international tests likeGRE and GMAT. It also sells educational books underGK Publications, which dominate technical and non-technical exam categories. Basically, if you’ve ever crammed from a “GKP guide,” you’ve funded CL Educate’s EBITDA.
2. MarTech (Kestone)This is where CL Educate gets its digital swagger. Kestone provides marketing and engagement solutions for corporates — from virtual events and metaverse conferences to content-driven digital engagement campaigns. So while one side of CL helps studentscrackexams, the other helps brandscrackaudiences.
3. Enterprise Institutional (Accendere + CL Institutional)Here, the company partners with colleges and universities to provide business advisory, research incubation, and student outreach services. It’s like consultancy meets academia — because why not complicate education even more?
4. Corporate Training & Strategic SolutionsThrough Kestone and affiliated units, CL also provides corporate upskilling programs, recruitment assessments, and B2B marketing support. It’s education with a PowerPoint and coffee.
The model is asset-light (because they sold most of their land), brand-heavy, and globally scattered — spanning subsidiaries inSingapore, the U.S., and Africa. The only thing heavier than the buzzwords? The₹284 crore debtfrom funding acquisitions like NSEIT’s Digital Examination unit.
4. Financials Overview
Quarterly Results Lock: Q2 FY26 (Half-Yearly Data)
| Metric | Latest Qtr (Q2 FY26) | YoY Qtr (Q2 FY25) | Prev Qtr (Q1 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 164.35 | 97.60 | 145.68 | 68.4% | 12.8% |
| EBITDA (₹ Cr) | 23.69 | 10.74 | 17.51 | 120.6% | 35.3% |
| PAT (₹ Cr) | 5.19 | 3.37 | -3.71 | 54.0% | Big jump |
| EPS (₹) | 0.96 | 0.65 | -0.71 | 47.6% | Bounce from loss |
Annualised EPS = 0.96 × 4 = ₹3.84At ₹83.4/share, that’s an effectiveP/E of ~21.7x, quite reasonable for a hybrid EdTech-MarTech play in recovery mode.
Commentary:Revenue grew68% YoY, which looks great until you remember that last year’s base was depressed. EBITDA margin at14.4%shows operating recovery, thanks to higher-margin digital services. PAT is up too, though net profit is still fragile given the interest cost explosion (₹13.4 crore this quarter). CL is profitable again — but only just.
Think of it as a student who passed the exam by one mark — technically a win, but still sweating.
5. Valuation Discussion – Fair Value Range Only
Let’s decode CL Educate’s fair value using three classic tools — and a pinch of sarcasm.
(i) P/E ApproachAnnualised EPS = ₹3.84Industry P/E = ~27.8→ Theoretical Fair Value Range = ₹3.84 × (20–28) =₹76.8 to ₹107.5
(ii) EV/EBITDA MethodEV = ₹464 CrEBITDA (TTM) = ₹58 CrEV/EBITDA = 8.0x (already near peer average)If CL achieves post-acquisition EBITDA of ₹70 Cr, and sector multiple expands to 10x:→ Implied EV = ₹700 Cr→ Less Debt ₹284 Cr → Equity Value = ₹416 Cr → Fair Price ≈₹76/share
(iii) Simplified DCF (5-year CAGR @15%, terminal growth 3%, WACC 11%)→ Intrinsic range =₹85–₹115/share
So, the fair value band emerges around₹75–₹110/share, which means the stock at ₹83 sits right in the middle of its educational curve — not a dropout, not a topper, just average.
Disclaimer:This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
CL Educate’s news feed lately reads like a Netflix mini-series.
- The Big One – NSEIT Acquisition:In February 2025, CL completed the ₹231.8 crore acquisition of NSEIT’sDigital Examination Business, marking its shift from training aspirants toconducting exams itself. That’s like an IAS coaching center buying UPSC’s exam hall.
- Debt Diaries:To fund this acquisition, the company took on ₹200 crore debt. Interest cost in Q2 FY26 hit
