Taaleem Holdings PJSC, a leading K-12 premium education provider in the UAE, has reported impressive financial and operational results for the first quarter of the 2025/26 fiscal year. The company has achieved a remarkable 20.9% year-on-year increase in operational revenue, reaching AED 369.9 million, a testament to its strategic growth initiatives and strong demand within the premium education segment.

The growth in revenue is largely attributed to a 12.8% year-on-year increase in premium school enrolments, bolstered by the launch of DBS Mira and the expansion of DBS EH (DBS Islands). These developments have driven a 10.5% increase in premium school capacity, highlighting Taaleem's commitment to providing high-quality education and meeting the rising demand in the region.

Despite the expansion costs associated with new and recently expanded schools, Taaleem's EBITDA rose by 4.8% year-on-year to AED 123.9 million, with a margin of 33.5%. This performance illustrates the company's ability to manage start-up and ramp-up costs effectively. As enrolment scales, Taaleem expects these margins to normalize, further enhancing profitability.

However, the net profit, including contributions from Kids First Group (KFG), saw a decline of 13.9% year-on-year, totaling AED 71.3 million. This decline is primarily due to higher finance costs related to recent growth and expansion initiatives, as well as the absence of a favorable one-off transaction that positively impacted the previous year's first quarter results.

Another significant development is the ongoing construction of Harrow Dubai, which is progressing as scheduled and is set to open in September 2026. This project underscores Taaleem's strategic expansion plans and its focus on strengthening its premium education portfolio.

Given the company's robust revenue growth, strategic expansion initiatives, and the increasing demand for premium education in the UAE, the outlook for Taaleem Holdings is optimistic. Investors may consider a buy position, as the company's growth trajectory and strategic investments are poised to deliver long-term value.