India’s edtech sector has spent the last few years battling layoffs, falling valuations, and investor skepticism. But amid the turbulence, upGrad appears to be scripting a very different story, one centered on profitability, global expansion, and strategic consolidation.
Ahead of its proposed merger with Unacademy, UpGrad’s fair valuation has been pegged at $1.7 billion (around Rs 15,980 crore), according to a confidential valuation report reviewed by us. The report offers a rare glimpse into the company’s financial performance and future ambitions, revealing an edtech firm aggressively positioning itself for the next phase of growth.
Credits: The Economic Times
Profitability Finally Arrives for UpGrad
Perhaps the biggest highlight from the report is UpGrad’s sharp turnaround in profitability.
For the first 11 months of FY26, the higher education startup posted a profit after tax (PAT) of Rs 38 crore on revenue of Rs 1,532 crore. That marks a major shift from the heavy losses that once defined the sector.
Even more striking are the company’s full-year projections. UpGrad expects FY26 revenue to touch Rs 1,972 crore, representing a 26% jump from Rs 1,569 crore in FY25. Meanwhile, PAT is projected to cross Rs 60 crore — a dramatic recovery compared to the net loss of Rs 274 crore reported in FY25.
The numbers indicate that the company expects a particularly strong finish to the fiscal year, with over Rs 440 crore in revenue anticipated in March alone. That kind of surge suggests aggressive enrolments, strong enterprise demand, or large seasonal conversions across its education verticals.
In a market where many startups are still prioritising survival over scale, UpGrad’s profitability milestone could become a defining moment.
The Unacademy Merger Could Reshape Edtech
The valuation report surfaces at a critical time for the Indian edtech ecosystem.
UpGrad is currently seeking approval from the Competition Commission of India for its proposed acquisition of Unacademy. The deal is especially significant because Unacademy, once among India’s most highly valued startups, is reportedly being acquired at less than one-tenth of its peak valuation.
The acquisition reflects a broader reality in India’s startup ecosystem: scale alone is no longer enough. Investors are now rewarding companies that demonstrate operational discipline, predictable revenue, and sustainable margins.
For UpGrad, the merger could strengthen its position across test preparation, skilling, study abroad, and professional education. It may also help the company consolidate market share at a time when consolidation is becoming inevitable in the edtech industry.
Growth Plans Go Far Beyond India
While profitability is grabbing headlines, UpGrad’s future strategy appears equally ambitious.
According to the report, the company expects revenue growth of 30% in FY27, 64% in FY28, 59% in FY29, and 46.5% in FY30. Those are aggressive projections, especially for a sector that has slowed considerably after the pandemic-era boom.
A major driver behind this optimism is UpGrad’s expanding study-abroad business. The company is increasingly relying on offline counselling centres, where student conversion rates are reportedly outperforming its digital channels.
This signals an interesting shift in strategy. While edtech was once built entirely around online learning, companies are now rediscovering the importance of physical touchpoints, trust-building, and hybrid engagement models.
UpGrad is also expanding its international workforce programmes into markets such as Vietnam, Thailand, and the UAE. These geographies represent fast-growing demand centres for skilling and professional education, particularly in technology and business-focused courses.
Betting Big on New Businesses
Beyond its core offerings, UpGrad is placing fresh bets on newer verticals.
Its direct-to-consumer initiatives and the “School of Tech” platform are expected to scale significantly over the next 12 to 18 months. These segments could help diversify revenue streams and reduce dependence on traditional degree-based programmes.
The company’s acquisition-led growth strategy also continues to play a key role in its expansion journey. Over the years, UpGrad has acquired multiple companies across study abroad, test preparation, and workforce skilling, helping it build a broader education ecosystem.
Credits: Entrepreneur India
A Defining Test for Indian Edtech
UpGrad’s latest valuation and financial turnaround may represent more than just a company milestone — it could become a broader test case for the future of Indian edtech.
The sector is no longer being judged on user growth or flashy valuations alone. Profitability, execution, and long-term sustainability now matter more than ever.
If UpGrad successfully integrates Unacademy while maintaining growth and profitability, it could emerge as one of the few large Indian edtech firms to survive the industry’s reset stronger than before.
