Veranda Learning

Veranda Learning Solutions reported a robust financial performance for FY26, with revenue growing 35% year-on-year to INR482 crores. EBITDA saw a significant increase of 135% year-on-year, reaching INR204 crores. A key highlight was achieving the first full year of PAT-positive performance since listing, with a PAT of INR130 crores, a substantial improvement from a loss of over INR250 crores in FY25. This performance reflects disciplined execution and the success of restructuring initiatives under Veranda 2.0.

For Q4 FY26, the company recorded revenue from operations of INR132 crores, representing a strong 52% year-on-year growth. The commerce vertical continued its strong performance, while the non-commerce business, driven by government test prep and academic segments, significantly outperformed expectations. Although the government test prep segment showed a loss of INR3 crores in Q4 due to a one-time^📎 impairment of INR5 crores, it achieved a positive EBITDA of INR2 crores for the full year after adjusting for this.

FY26 was a year of strategic expansion, including the launch of Commerce Virtuals for Class 11 and 12, and new offerings in government test prep. The company expanded its offline footprint, particularly in Tier 2 cities, while strengthening its presence in core southern markets. These efforts led to a 21% increase in student enrollment to 2.5 lakh students and a 40% rise in collections to INR449 crores for the year, indicating sustained demand.

A significant milestone was the progress on the demerger of the commerce vertical, with final NCLT approval anticipated by July 2026 and listing by end of July or mid-August. This will create J.K. Shah Commerce Education Limited as a separate listed entity, enabling sharper strategic focus. The commerce business aims for over INR1,000 crores in revenue by FY30 and targets an EBITDA of INR180-185 crores for FY27, driven by product and geographic expansion.

Veranda completed the strategic divestment of its vocational education business into SNVA Veranda through a joint ownership structure. This partnership combines Veranda's domestic skilling capabilities with SNVA's international university network across the U.S., U.K., Europe, and Singapore, aiming to create a scalable global education platform. Veranda consolidates 50% of SNVA's profits, and the venture's growth strategy is university-led, with online programs serving students from 64 countries globally.

For FY27, Veranda is targeting revenues of approximately INR670 crores, representing about 40% year-on-year growth, and a PAT of over INR144 crores. The company plans to expand its offline college presence by adding 15 new locations for commerce, and grow its government test prep presence into Karnataka, Andhra, and Telangana. Additionally, it aims to deepen its K-12 presence by adding managed school services for pre-KG and K-12 schools.

Management acknowledged certain operating challenges, including lower CA pass percentages and attracting quality faculty. The aggressive expansion, particularly doubling managed commerce colleges in FY27, will involve initial investments in lease deposits, soft capex, and operational expenses. This is expected to cause a 'minor dip' in EBITDA in the first year, but these investments are projected to lead to significant profitability and contribute to the INR1,000 crores plus revenue aspiration by FY30.