Alef Education Nine-Month Net Profit Rises 5.7% to AED385.4 Million

Revenue also rose 5.7 per cent, to AED605.3 million. The net profit margin held at 63.7 per cent. According to the report, lower amortisation charges and higher interest income on fixed deposits helped profit. Interest income rose to AED15.4 million.

Earnings before interest, tax, depreciation and amortisation grew 2.5 per cent to AED428.3 million, a margin of 70.8 per cent. Operating expenses rose, mainly because of higher costs for IT devices. Lower staff and marketing costs partly offset the increase, which the company put down to cost-efficiency efforts.

Where The Growth Came From

Most of the growth came from the support and services segment, where revenue rose 40.7 per cent. According to the report, this reflects inflation-related increases in IT device prices that were passed on to customers, as well as more students. Revenue from education solutions, the company's main business, rose 0.7 per cent to AED505.6 million.

Chief executive Geoffrey Alphonso said the results showed steady growth despite changes in the macroeconomic environment. He credited the company's recurring government contracts and its debt-free balance sheet. He said the long-standing partnership with Abu Dhabi's Department of Education and Knowledge and new government contracts had supported revenue. He added that Alef plans to grow with government partners across the GCC, enter new markets in Africa and Central Asia, and develop its Miqyas Al Dhad project.

Cash and Dividends

Cash and bank balances were AED429.6 million at the end of September, after the interim dividend for the first half was paid, and the company had no debt. The average time to collect receivables fell to 80 days from 102 days a year earlier.

In September, Alef paid an interim cash dividend of AED212.8 million for the first half, or 3.04 fils a share, equal to 90 per cent of net profit for that period. Together with the AED224.0 million final dividend for 2025 paid in April, the company has returned about AED436.8 million to shareholders so far in 2026, in line with its policy of paying out 90 per cent of profit.

Against Guidance

In its first-half results, Alef reiterated its 2026 guidance of 7 per cent revenue growth, 4 per cent growth in EBITDA with a margin above 68 per cent, and 4 per cent growth in net profit with a margin above 60 per cent. After nine months, net profit growth and margin are ahead of that guidance. Revenue growth of 5.7 per cent is below the full-year target, and EBITDA growth of 2.5 per cent is also below the 4 per cent target.

The figures show how Alef's model depends on government contracts. Its main education solutions revenue barely grew, so expansion beyond Abu Dhabi will be the test of whether its plans for the Gulf, Africa and Central Asia can lift growth.