Alef Education Posts 5.7% Profit Growth to Dh385.4m in First Nine Months

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 revenue growth, higher interest income and lower amortisation costs.

The Abu Dhabi-listed education technology company recorded revenue of Dh605.3 million for the January-September period, up 5.7 per cent from a year earlier. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 2.5 per cent to Dh428.3 million, with an EBITDA margin of 70.8 per cent. Its net profit margin remained unchanged at 63.7 per cent.

Revenue from Education Solutions, the company’s main business segment, increased 0.7 per cent year-on-year to Dh505.6 million. Income from support and services rose 40.7 per cent, reflecting higher student numbers and inflation-linked increases in IT device costs passed on to clients.

Alef Education said lower amortisation expenses and a 25.4 per cent rise in interest income also supported its profit growth. Interest income reached Dh15.4 million, compared with the same period last year.

Chief executive Geoffrey Alphonso said the results demonstrated the resilience of the company’s recurring government contracts and debt-free balance sheet despite a changing economic environment.

He attributed revenue growth to the company’s long-standing partnership with the Abu Dhabi Department of Education and Knowledge (Adek), new government contracts and increased activity across other business segments. Cost management also helped maintain the net profit margin, he said.

The company had cash and bank balances of Dh429.6 million as of September 30, following its interim dividend distribution. It maintained a debt-free balance sheet.

Alef Education paid Dh212.8 million in interim cash dividends in September, equivalent to 3.04 fils per share and representing 90 per cent of its net profit for the first half of 2026. Including the Dh224 million final dividend for 2025, paid in April, total shareholder distributions during 2026 reached Dh436.8 million.

The company’s platforms had onboarded 2.3 million students since inception by the end of September, an increase of 35.8 per cent year-on-year. Its solutions were being used in approximately 21,000 schools, serving around 93,000 teachers.

Alef Education is also exploring expansion opportunities across the Gulf Cooperation Council region, Africa and Central Asia.

For 2026, the company expects revenue to grow by approximately 3 per cent and net profit by around 4 per cent. It aims to maintain a net profit margin above 63 per cent, supported by its Adek contract and activity across business-to-business, business-to-government and private school segments.

Alphonso said the company would focus on turning its international business pipeline into commercial opportunities while maintaining its policy of distributing 90 per cent of net profit to shareholders.