upGrad Reports EBITDA Profitability for FY25

upGrad has enabled significant advancements in its financial performance, achieving EBITDA profitability in the fiscal year ending March 2025. This growth results from increased revenue, reduced costs, and enhanced operational metrics.

Financial Highlights for FY25

The Mumbai-based educational platform reported a gross revenue of Rs 1,943 crore for FY25, according to the latest financial report. After adjustments pursuant to Ind-AS accounting standards, the total income amounted to Rs 1,650 crore. Additionally, the company recorded Rs 556 crore in collections that remain as unrecognised revenue, which will be acknowledged in future periods.

Profitability and Losses

upGrad posted an Ind-AS EBITDA profit of Rs 15 crore for FY25, in stark contrast to an EBITDA loss of Rs 285 crore in FY24. When factoring out one-time costs, EBITDA reached Rs 38 crore, as opposed to a loss of Rs 202 crore in the previous fiscal year.

The firm has also made marked improvements in its bottom line, achieving a year-on-year reduction in losses by 51%, bringing them down to Rs 274 crore. The non-cash expenses were recorded at Rs 169 crore during the last fiscal year.

Skilling Programs and Partnerships

upGrad provides a range of skilling initiatives and university-affiliated degrees through its B2C and enterprise sectors, in collaboration with Indian and international universities. In FY25, the company augmented its investment in AI-driven learning technology, career mobility infrastructure, and hybrid growth via Experience Centres. This strategic move led to a 19% increase in learner enrolments in the consumer segment, primarily fuelled by the demand for technology and AI-centric courses.

Global Expansion and Revenue Channels

The company’s international operations now account for 20-25% of total revenue, with significant growth observed in regions such as Vietnam, Southeast Asia, the Middle East, and the US. upGrad’s Study Abroad division has expanded to include ten destinations, such as the US, UK, Germany, Canada, Australia, France, Finland, UAE, and Ireland, with plans to reach Vietnam, Bangladesh, Nepal, and Sri Lanka next.

The enterprise division has notably expanded in the GCC and Eastern Europe, with repeat clients constituting over 80% of its portfolio across sectors including BFSI, Energy, ITeS, and Automotive. According to the company, demand for AI-related training in the enterprise segment has seen a year-on-year doubling.

Strategic Insights and Future Outlook

Ronnie Screwvala, co-founder and chairperson of upGrad, stated that FY25 has been a comprehensive year for the company, contributing to its strategic growth and insights gained over the last two years. Achieving EBITDA positivity whilst scaling an AI-enhanced learning array across markets demonstrates their commitment to establishing a sustainable, profitable category. The company targets a 30% CAGR in the coming two to three years.

Funding and Stakeholder Overview

To date, upGrad has raised over $320 million. Data from various sources indicates that Temasek is the principal external stakeholder, holding 20.5%, whereas Ronnie Screwvala and his family maintain a 45% ownership of the company.