CL Educate Ltd. (CLEDUCATE) AI Stock Analysis

• Market Cap: ₹2.08B
• Dividend Yield: N/A
• Average Volume (3M): 3.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.88
• Revenue Growth: 43.91%
• EPS Growth: -249.30%
• Country: IN
• Employees: 337
• Sector: Services
• Sector Strength: N/A
• Industry: Education & Training Services
• EPS (TTM): -3.12
• Shares Outstanding: 54,223,957
• 10 Day Avg. Volume: 1,502
• 30 Day Avg. Volume: 3,857
• PEG Ratio: 0.35
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 1.25
• P/FCF Ratio: -31.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ₹41.00 ▼(-50.60% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back primarily by very weak technicals (deep downtrend with bearish momentum) and profitability/cash flow issues (net loss and negative free cash flow). These are partially offset by solid revenue growth and strong EBIT margin, but leverage and negative ROE keep the overall profile moderate-risk.

Positive Factors

Revenue Growth

CL Educate's 12.42% YoY revenue growth indicates sustained demand across its test-prep and training offerings. Durable top-line expansion supports scale economics, strengthens pricing power in exam niches, and provides cash generation potential to reinvest in content and hybrid delivery over multiple quarters.

Operating Efficiency (EBIT Margin)

An 18.89% EBIT margin shows persistent operating efficiency in core coaching operations. Strong operating margins create a buffer to absorb marketing and product development spend, enable profitable scaling of digital/offline mix, and support sustainable operating cash generation even before addressing financing and tax impacts.

Capital Structure Cushion

A 30.28% equity ratio gives the company a solid capital base to support seasonal enrollment swings and working capital needs. This structural cushion reduces immediate insolvency risk, allows continued investment in content or franchise expansion, and buys time to resolve operational cash shortfalls without urgent dilution.

Negative Factors

Net Profitability / ROE

Despite operating strength, negative net margin and ROE mean the company is not generating shareholder returns after finance and tax items. Persistent bottom-line losses erode retained earnings, limit internal funding for strategy, and force reliance on external capital, reducing long-term return prospects.

Free Cash Flow

Free cash flow turning negative signals that cash outflows (capex, working capital) exceeded operating cash generation. Over time negative FCF constrains ability to reinvest in scalable digital content, repay debt, or fund growth without new financing, increasing liquidity and execution risk.

Leverage

A near-1.0 debt-to-equity indicates materially higher leverage. Elevated debt raises interest and refinancing risk, particularly when combined with negative FCF and net losses. Higher leverage reduces financial flexibility for marketing, acquisitions, or product development and increases sensitivity to rate moves.

CL Educate Ltd. Business Overview & Revenue Model

Company Description

CL Educate Limited provides education and test preparation training programmes in India and internationally. It operates through Partner, Digital, Consumer publishing, Enterprise corporate, Enterprise institutional, and Others segments. The company offers coaching for higher education entrance exams, such as MBA, Law, BBA, RBI Grade-B, GRE, and GMAT, as well as non-test preparation courses comprising python, machine learning, artificial intelligence, CFA, FRM, and NCFM under the Career Launcher brand; and GATE coaching through franchisees, as well as digital/online mode and offline counselling-cum-service centers. It also publishes and sells educational books to related and third parties, such as test preparation guides, books, and other academic materials under the GK Publications brand. In addition, the company offers experiential marketing and event management, digital and marcomm, and manpower management and training services, as well as customized engagement programs and strategic business solutions under the Kestone brand; integrated solutions, including business advisory and outreach support services to educational institutions and universities under the CL Media brand; and student enrollment services, and research and incubation services, as well as operates a career development center. Further, it provides soft skills, infrastructure facilities, and other support services to schools and senior secondary studies. As of August 2021, the company operated 200 test-prep centers across 100 cities in India, as well as in the United Arab Emirates. CL Educate Limited was incorporated in 1996 and is based in New Delhi, India.

How the Company Makes Money

CL Educate generates revenue through multiple streams, primarily from its test preparation services, which include both classroom and online coaching for competitive examinations. The company charges tuition fees for its courses, which vary based on the program and delivery format. Additionally, CLEDUCATE earns revenue from its vocational training programs and educational products, such as study materials and mock tests. Significant partnerships with educational institutions and government bodies enhance its offerings and help attract more students. The company's digital learning initiatives and subscription-based services also contribute to recurring revenue, further solidifying its financial stability.

CL Educate Ltd. Financial Statement Overview

Summary

Revenue growth is strong (+12.42% YoY) and EBIT margin is healthy (18.89%), but overall quality of earnings is pressured by a negative net margin (-3.14%), negative ROE (-4.14%), higher leverage (debt-to-equity 0.97), and free cash flow turning negative in 2025.

Income Statement

CL Educate Ltd. has demonstrated a strong revenue growth of 12.42% from 2024 to 2025, indicating positive market demand. The gross profit margin for 2025 stands at 25.05%, showing decent profitability, although there is a concern with the negative net profit margin of -3.14%. The EBIT margin is impressive at 18.89%, reflecting operational efficiency, yet the EBITDA margin is relatively low at 6.22% due to higher depreciation and amortization expenses.

Balance Sheet

The company maintains a healthy equity ratio of 30.28%, offering a stable financial foundation. However, the debt-to-equity ratio has increased to 0.97, indicating higher leverage which could pose risks if not managed carefully. The return on equity has turned negative at -4.14%, largely due to the net loss in 2025, which is a concern for investors seeking returns.

Cash Flow

Free cash flow has significantly declined, turning negative in 2025, indicating a potential liquidity issue. The operating cash flow to net income ratio is positive at 1.45, suggesting operational cash generation, but the free cash flow to net income ratio is negative, reflecting challenges in capital expenditures and liquidity management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.12B	3.58B	3.19B	2.91B	1.98B	1.74B
Gross Profit	1.06B	897.33M	2.39B	739.32M	1.59B	1.31B
EBITDA	328.21M	222.60M	378.26M	310.84M	284.95M	-8.24M
Net Income	-193.94M	-112.48M	150.88M	225.24M	139.31M	-124.59M
Balance Sheet
Total Assets	0.00	8.97B	3.88B	3.73B	3.48B	3.52B
Cash, Cash Equivalents and Short-Term Investments	2.32B	2.00B	990.36M	635.76M	578.36M	565.11M
Total Debt	0.00	2.64B	320.19M	166.63M	220.96M	454.43M
Total Liabilities	-2.69B	6.27B	1.10B	980.45M	861.46M	1.05B
Stockholders Equity	2.69B	2.72B	2.81B	2.75B	2.62B	2.47B
Cash Flow
Free Cash Flow	0.00	-141.47M	37.39M	-39.68M	124.21M	210.87M
Operating Cash Flow	0.00	163.58M	255.75M	243.15M	333.91M	261.49M
Investing Cash Flow	0.00	-2.45B	-42.68M	76.33M	-6.52M	-36.19M
Financing Cash Flow	0.00	2.08B	-55.87M	-221.30M	-348.04M	-168.69M

CL Educate Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 83.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CLEDUCATE, the sentiment is Negative. The current price of 83 is above the 20-day moving average (MA) of 51.45, above the 50-day MA of 68.92, and below the 200-day MA of 86.89, indicating a bearish trend. The MACD of -8.74 indicates Positive momentum. The RSI at 16.84 is Positive, neither overbought nor oversold. The STOCH value of 9.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CLEDUCATE.

CL Educate Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLOBAL	80 Outperform	₹4.97B	22.69	―	1.06%	―	―
APTECHT	61 Neutral	₹4.92B	19.00	―	4.65%	11.08%	8.22%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ZEELEARN	55 Neutral	₹1.93B	19.33	―	―	28.91%	-94.80%
NIITLTD	54 Neutral	₹9.35B	42.33	―	1.07%	12.25%	-28.69%
CLEDUCATE	52 Neutral	₹2.08B	-6.50	―	―	43.91%	-249.30%
TREEHOUSE	48 Neutral	₹386.72M	-2.36	―	―	-35.95%	-416.59%

CL Educate Ltd. Corporate Events

CL Educate Faces Rs 15.46 Crore GST Demand Linked to Merged Subsidiary

CL Educate has disclosed that its former wholly owned subsidiary, CL Media Private Limited, now merged into the parent company, has received an order from the Office of the Assistant Commissioner of Central GST, Delhi South, raising a tax and penalty demand of Rs 15.46 crore for alleged excess availment of input tax credit during FY2018-19 to FY2021-22. The company plans to appeal the order in consultation with its tax advisors, and has indicated that, should the liability continue to subsist, it will be disclosed as a contingent liability in its financial statements, signaling a potential but currently uncertain financial impact for shareholders and other stakeholders.