CL Educate Ltd. (CLEDUCATE) AI Stock Analysis

• Market Cap: ₹4.04B
• Dividend Yield: N/A
• Average Volume (3M): 3.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.83
• Revenue Growth: 43.91%
• EPS Growth: -249.30%
• Country: IN
• Employees: 337
• Sector: Services
• Sector Strength: N/A
• Industry: Education & Training Services
• EPS (TTM): 0.96
• 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: ₹74.00 ▼(-10.84% Downside)

The overall stock score reflects strong revenue growth and operational efficiency but is significantly impacted by profitability and liquidity challenges. Technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation.

Positive Factors

Revenue Growth

Consistent double-digit revenue growth indicates sustained demand for CL Educate’s core coaching and content offerings. Durable top-line expansion supports investment in digital scale and franchise channels, improving revenue visibility and enabling margin leverage over multiple quarters.

Operating Efficiency

A near-19% EBIT margin shows the business captures operating leverage from course delivery and content economics. This structural efficiency can sustain cash generation as scale grows and helps absorb marketing or expansion costs, strengthening long-term profitability potential.

Capital Structure Cushion

An equity ratio above 30% provides a solid solvency buffer against cyclical enrollment swings. This capital foundation supports measured borrowing for expansion and reduces short-term refinance pressure, giving management flexibility to pursue strategic investments over the medium term.

Negative Factors

Net Profitability

A negative net margin means the company is loss-making at the bottom line despite gross profits. Persistent net losses erode retained capital and impede the ability to fund growth internally, requiring sustained margin recovery to restore long-term financial health and investor confidence.

Free Cash Flow Decline

Negative free cash flow signals liquidity stress even with operational cash generation. This reduces the firm's capacity to self-fund capex or cushion cyclical downturns, increasing reliance on external financing and raising the risk profile over the next several quarters.

Rising Leverage

Higher leverage near 1.0 increases interest and refinancing burdens, especially with negative FCF and net losses. Elevated debt constrains strategic options, magnifies downside risk if enrollments soften, and can pressure margins and credit access over the medium term.

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

CL Educate Ltd. shows strong revenue growth and operational efficiency, but faces profitability challenges with a negative net profit margin and declining free cash flow, indicating liquidity and leverage risks.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Neutral
• STOCH: Neutral

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 77.84, above the 50-day MA of 81.68, and below the 200-day MA of 90.50, indicating a bearish trend. The MACD of -2.71 indicates Positive momentum. The RSI at 36.34 is Neutral, neither overbought nor oversold. The STOCH value of 41.04 is Neutral, 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	75 Outperform	₹4.16B	18.96	―	1.06%	―	―
APTECHT	61 Neutral	₹4.64B	21.39	―	4.65%	11.08%	8.22%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ZEELEARN	55 Neutral	₹2.11B	23.76	―	―	28.91%	-94.80%
NIITLTD	54 Neutral	₹10.21B	44.52	―	1.07%	12.25%	-28.69%
CLEDUCATE	52 Neutral	₹4.04B	-22.39	―	―	43.91%	-249.30%
TREEHOUSE	41 Neutral	₹324.10M	-1.87	―	―	-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.