Arab Finance: Hani Genena, financial analyst at Al Ahly Pharos, expects CIRA Education to deliver further financial improvement during the 2026/2027 academic year, supported by higher occupancy rates across its schools and universities, increased tuition fees, and expectations of continued monetary easing and interest rate cuts.

In a research analysis, Genena said CIRA's strong financial results for the first half (H1) of the fiscal year (FY) 2025/2026  reflected the company's ability to benefit from both operational and financial leverage, driving profit growth at a faster pace than revenue growth.

According to the analysis, CIRA's revenue rose 36.5% year-on-year (YoY) to EGP 2.97 billion in the six months ended February 28th, 2026, while net profit climbed 69.1% to EGP 690.4 million. Genena attributed the stronger profitability in part to lower interest rates during the period, which supported the group's financial performance.

He added that CIRA sustained its growth momentum over the previous academic year, with revenue increasing 35%, net profit before taxes rising 118%, and net profit after taxes surging 424% YoY, highlighting the combined impact of operational and financial leverage.

Genena said the company's improved performance was reflected in its market valuation, with its price-to-earnings (P/E) ratio declining to around 12.7 times based on earnings over the past 12 months, compared with nearly 30 times during the 2024/2025 academic year.

The analysis also cited estimates from other analysts indicating that if CIRA's shares were to trade again at a P/E ratio of 30 times while net profit reached EGP 1 billion, the company's market capitalization could increase to around EGP 30 billion. Based on projected earnings multiples, the stock's fair value could exceed EGP 51.