Alef Education reported a 5.7 per cent increase in net profit to Dh385.4 million for the first nine months of 2026, supported by higher revenue, increased interest income and lower amortisation costs.
Revenue rose 5.7 per cent year-on-year to Dh605.3 million during the January-September period, driven by higher student numbers, increased IT support and services revenue, and growth in non-Abu Dhabi Department of Education and Knowledge (Adek) contracts.
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The Abu Dhabi-listed education technology company recorded an EBITDA of Dh428.3 million, up 2.5 per cent compared to the same period last year. Its EBITDA margin stood at 70.8 per cent, while the net profit margin remained unchanged at 63.7 per cent.
Education Solutions revenue increased 0.7 per cent year-on-year to Dh505.6 million, while revenue from support and services surged 40.7 per cent, reflecting higher student numbers and inflation-linked increases in IT device costs passed on to clients.
Alef Education said its net profit growth was supported by lower amortisation and a 25.4 per cent increase in interest income to Dh15.4 million from fixed deposits.
The company’s cash and bank balances stood at Dh429.6 million as of September 30, 2026, following the distribution of its Dh212.8 million interim dividend for the first half of the year. It maintained a debt-free balance sheet.
“Against a dynamic macroeconomic backdrop this year, our nine-month results show steady growth in both revenue and profit, underlining the resilience of our recurring government contracts and debt-free balance sheet,” said Geoffrey Alphonso, CEO of Alef Education.
He said revenue growth was driven by the company’s long-standing Adek partnership and new government contracts, while cost management helped maintain its net profit margin.
Dividends
Alef Education distributed Dh212.8 million in interim cash dividends in September, equivalent to 3.04 fils per share and representing 90 per cent of its first-half 2026 net profit.
Together with the Dh224 million final dividend for 2025 paid in April, the company’s total shareholder distributions in 2026 reached Dh436.8 million, in line with its 90 per cent dividend payout policy.
The company’s education platforms had onboarded 2.3 million students since inception as of September 30, marking a 35.8 per cent year-on-year increase. Its solutions are used across approximately 21,000 schools, with around 93,000 teachers.
The company also continued to explore expansion opportunities across the GCC, Africa and Central Asia.
2026 outlook
Looking ahead, Alef Education expects revenue to grow approximately 3 per cent year-on-year in 2026, while net profit is forecast to increase around 4 per cent. The company expects to maintain a net profit margin above 63 per cent.
The guidance is underpinned by the visibility provided by its Adek contract and continued momentum across its business-to-business, business-to-government and private school segments.
The company said distance learning activation during periods of regional disruption helped sustain student engagement.
Alphonso said the company would focus on converting its international business pipeline into commercial opportunities while maintaining its commitment to the 90 per cent dividend payout policy.
Source: Khaleej Times