upGrad EBITDA Jumps 8X to ₹123 Cr on AI Cost Cuts

AI has become a structural lever. It is embedded in more than 80% of upGrad's programs, across every price point, and demand has been strong across the range. On the operating side, the company's own AI adoption drove down both marketing and technology costs year-on-year, even as revenue grew. CFO Mukesh Mundra said the results reflect "disciplined execution and right cost management" over the last three years, adding that the company will carry that discipline forward as it scales.

Ronnie Screwvala, Co-founder and Chairperson, said the company has reached "a strong basecamp – in financial position and in business scale." He added that the focus over the next few years is growth, both organic and through acquisitions, including Internshala and Unacademy, which upGrad is now closing. "With these, we complete upGrad's integrated story: serving learners across their entire lifecycle. From this base we intend to compound across India and global markets."

The company did not provide specific revenue or margin guidance for FY27. The EBITDA margin improvement from near-zero to roughly 6% of gross revenue in a single year suggests the cost structure is now approaching a level where further scale could produce meaningful net profitability. The ₹530 crore of deferred revenue, equivalent to more than 25% of the current year's gross revenue, provides a cushion against demand swings. The pending acquisitions of Internshala and Unacademy, both loss-making at the time of the announcements, will test whether the profitability discipline Screwvala cited can survive a multi-brand integration phase.