Top 5 EdTech stocks in India: What investors should know in 2025

India’s EdTech Sector Is Maturing — But Which Stocks Still Offer Value?

The Indian EdTech market in 2025 is no longer defined by hypergrowth or unicorn headlines. Instead, the conversation has shifted to sustainability, margin expansion, and real-world delivery models. This new era, shaped by a sharp post-pandemic correction, has weeded out unprofitable players and elevated those capable of adapting to hybrid formats, offline expansion, and disciplined capital allocation.

For Indian retail investors, NRIs, and institutional trackers, the question now is straightforward: which education-focused companies are still worth tracking, and can they deliver shareholder value in the post-hype era? Five companies stand out — Veranda Learning, NIIT Ltd, CL Educate, upGrad, and Byju’s — each representing a distinct narrative in India’s evolving EdTech landscape.

Veranda Learning: A Small-Cap Comeback Story With a Hybrid Edge

Veranda Learning Solutions Limited has emerged as a notable turnaround case. The company reported consolidated revenue of ₹502 crore in FY25, marking a 35.6% increase year-on-year. EBITDA also saw a healthy jump to ₹99.2 crore, up 59.1% from the previous year. These results mark a clear shift from its earlier losses, particularly the net profit of ₹8.4 crore in Q4 FY25, a sharp reversal from a ₹38.4 crore loss in Q4 FY24.

The company’s pivot to hybrid learning — supported by over 1,250 physical centers across India — has enabled it to reach underpenetrated markets. This offline expansion model, paired with digital course delivery, appeals to students in Tier-2 and rural India where digital-only options remain less practical.

Its acquisitions of Edureka and Veranda Race have been consolidated into a multi-vertical strategy spanning test prep, professional upskilling, and foundational K-12 programs. As gross margins crossed 50% in H2 FY25, investor sentiment has begun to turn. The stock, which once languished far below its IPO price of ₹137, now trades in the ₹102–₹105 range. While it hasn’t fully recovered, retail and forum-based sentiment indicates that Veranda is now being viewed as a re-rating candidate, particularly among value-seeking small-cap trackers.

NIIT Ltd: The Veteran Reshaping Itself for a Corporate Tech Era

NIIT Ltd, a veteran of the Indian EdTech space, has quietly repositioned itself since divesting its corporate learning group in 2023. Now focused on enterprise skilling, digital transformation programs, and platform-based training delivery, NIIT operates in a more mature, B2B-focused segment than other EdTech players.

In FY25, the company is expected to report revenue of around ₹1,050 crore, with stable margins and minimal debt. It remains popular with conservative investors owing to its steady dividends, active buybacks, and low-beta behavior in market cycles. NIIT’s current offerings cater largely to corporate upskilling, compliance training, and global IT learning mandates, making it more recession-resilient compared to consumer-facing EdTech firms.

While growth may not be aggressive, NIIT is viewed as a consistent cash-flow generator. Among investors who prioritize steady earnings and long-term retention of clients, the company retains strong appeal. Portfolio managers often recommend it in core education baskets, particularly in PMS and AIF allocations where volatility management is key.

CL Educate: Undervalued or Underwhelming?

CL Educate, the parent company behind Career Launcher and several K-12 education initiatives, occupies a niche segment in India’s fragmented education market. With an estimated FY25 revenue of ₹325 crore, CL Educate continues to have presence in legal, MBA, and government test prep spaces. However, its growth trajectory remains limited compared to more aggressive peers.

Unlike Veranda, which expanded aggressively through acquisitions, CL Educate has retained a relatively conservative stance. Its digital initiatives have lagged, and the company’s focus on publishing and offline test prep makes it susceptible to cyclical fluctuations in exam-driven demand.

Investor sentiment is mixed. On retail investor forums, it is often described as “cheap but stagnant.” Some value investors still include it in watchlists for turnaround potential, but concerns around execution consistency and lack of tech-led scalability weigh on wider institutional adoption.

upGrad: The Institutional Bet on Upskilling

upGrad remains privately held but is a prominent name in India’s EdTech narrative. It reported approximately ₹1,300 crore in revenue in FY25 and continues to expand through enterprise contracts, working professional courses, and university partnerships. With Temasek among its key investors, upGrad stands out for its capital-efficient growth and focus on high-margin offerings.

The company’s strength lies in its B2C2B approach, where individuals and companies co-sponsor upskilling. Popular verticals include AI, data science, business administration, and technology management. upGrad’s partnerships with global universities like Deakin, Liverpool, and Wharton add international credibility.

However, it remains inaccessible to retail investors directly. Exposure to upGrad’s performance is possible only through secondary stakes via Info Edge, Temasek-backed funds, or private market investments. Among institutional watchers, it’s considered one of the more stable players in the otherwise volatile EdTech category.

Byju’s: From Unicorn to Unknown

Once India’s most valuable startup at $22 billion, Byju’s has seen its valuation collapse to an estimated $1.5–2 billion in the secondary market by mid-2025. Its challenges include missed audits, regulatory scrutiny, employee exits, delayed salaries, and legal actions from both investors and creditors.

In an attempt to stabilize, Byju’s has spun off assets like Aakash Educational Services and Epic. IPO plans remain indefinitely postponed, and market observers believe the company will undergo major restructuring before any future fundraising is possible.

Retail sentiment is overwhelmingly negative. On ValuePickr, Reddit, and YouTube commentary threads, Byju’s is cited as the textbook example of startup excess gone wrong. For now, investors consider it uninvestable — both due to structural opacity and reputational risk.

What Indian EdTech Investors Are Focusing on in 2025

Across investor forums and long-term equity groups, there has been a notable shift in how the education sector is being evaluated. The narrative has moved away from scale-at-all-costs toward a more pragmatic checklist of viability and margin delivery.

Investors now prioritize companies that demonstrate profitability over vanity metrics like GMV. Hybrid learning models that include a physical footprint are gaining more traction than pure online plays. Segments like test prep and professional skilling continue to be favored due to their clear return-on-learning outcomes. Furthermore, balance sheet quality matters — companies with low debt and improving operating margins are more likely to retain investor confidence in a funding-constrained environment.

This transition in mindset reflects a broader recognition that EdTech in India must now operate under business fundamentals, not just innovation or virality.

EdTech’s Second Act Is All About Fundamentals

The Indian EdTech market has undergone a hard reset. In 2025, the companies emerging stronger are not the ones that raised the most money or grew the fastest — but those that adapted intelligently to ground realities.

Veranda Learning, with its focus on hybrid reach and profitability, is now positioned as a small-cap growth contender. NIIT, with its legacy and corporate trust, offers consistency and cash flows. CL Educate remains a potential re-rating candidate, albeit with caveats. upGrad continues to execute in the institutional space, while Byju’s has become a cautionary tale of unchecked expansion.

For investors seeking clarity, the rulebook has changed. The new path to value in EdTech lies in moderation, execution, and margins — not moonshot projections.