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upGrad posts profit ahead of Unacademy merger

What they do

UpGrad is India's top online upskilling platform offering courses in AI, data science, and management

The company turned profitable with ₹38 Cr PAT in FY26 first 11 months while proposing a merger with Unacademy

This turnaround follows significant cost cuts and workforce reductions after reporting heavy losses in the previous fiscal year

upGrad reported a profit before tax (pre-tax earnings) of ₹38 Cr for the first 11 months of FY26.
This marks a shift from a net loss of ₹274 Cr in FY25 to profitability ahead of schedule.
The company generated ₹1,532 Cr in revenue during this period, showing strong operational performance.
upGrad is pursuing an all-stock amalgamation (merger where shares are exchanged instead of cash) with rival Unacademy.
The proposed deal values Unacademy at approximately ₹2,055 Cr, representing a significant drop from its peak valuation.
Regulatory approval from the Competition Commission of India (antitrust regulator) is still pending for the merger.
Full-year revenue is projected to reach ~₹1,972 Cr with profits exceeding ₹60 Cr by March 2026.
Valuation has slipped to $1.7 Bn, down 24% from its 2022 peak of $2.25 Bn.

The turnaround highlights the industry's shift from growth-at-all-costs to sustainable unit economics.
Cost controls were essential after years of burning cash to acquire customers and expand operations.
Revenue growth projections: 30% in FY27, 64% in FY28, 59% in FY29, and 46.5% in FY30.

upGrad offers online courses in AI, ML, Data Science, MBA, and Cybersecurity.
It partners with premier institutes like IIT Kharagpur, IIM Delhi, and ISB for certification programs.
The platform provides study abroad programmes with visa support for students targeting US and UK universities.
Atlas University serves as a recurring revenue base with approximately 7,500 active students.
Free courses cover topics like ChatGPT, soft skills, and career planning to attract users.
D2C initiatives and the School of Tech are expected to scale significantly over the next 18 months.
International expansion is a key driver alongside domestic upskilling and study-abroad services.
Microsoft Generative AI certifications are offered across data analysis and managerial excellence tracks.

Revenue growth projections: 30% in FY27, 64% in FY28, 59% in FY29, and 46.5% in FY30.
International expansion and new D2C initiatives are identified as key growth drivers.
Profitability is projected to surge to ₹5,334 Cr by FY31 through continued cost optimization.
EBITDA is estimated to cross ₹7,000 Cr by FY31 as margins improve.
Employee expenses are targeted to shrink to 19.6% of revenue from historical averages of 51.7%.