Veranda Learning Solutions LimitedEducationVERANDA
Q1 FY27 concall · earnings callVeranda Learning Solutions Limited
Veranda reported strong revenue and profit growth driven by commerce and government test prep segments while nearing completion of a strategic commerce business demerger expected to unlock shareholder value.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue from Operations | ₹150 Cr | 42% | |
| PAT | ₹34 Cr | 472% | |
| EBITDA | ₹54 Cr | 10% | |
| EBITDA Margin | 36% | — | |
| Enrollments | 1.03 lakh | 35% | |
| Commerce Segment Revenue | ₹108.6 Cr | 53% | |
| Government Test Prep Revenue | ₹32.5 Cr | 41% | |
| Academic Segment Revenue | ₹12.2 Cr | 22% |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹99.15 Cr+8% YoY-28.5% QoQ | ₹-202.94 CrLoss widened YoYLoss widened QoQ | ₹-27.15Loss/share widened YoYLoss/share widened QoQ |
| Q2 FY25 | ₹138.62 Cr+40.9% YoY+16.5% QoQ | ₹-30.36 CrLoss widened YoYLoss widened QoQ | ₹-4.22Loss/share widened YoYLoss/share widened QoQ |
| Q1 FY25 | ₹118.99 Cr+72.7% YoY+16% QoQ | ₹-25.16 CrLoss widened YoYLoss narrowed QoQ | ₹-3.78Loss/share widened YoYLoss/share narrowed QoQ |
| Q4 FY24 | ₹102.61 Cr+112% YoY+11.7% QoQ | ₹-38.54 CrLoss narrowed YoYLoss widened QoQ | ₹-5.93Loss/share narrowed YoYLoss/share widened QoQ |
| Q3 FY24 | ₹91.84 Cr+91.8% YoY-6.6% QoQ | ₹-16.71 CrTurned loss-making YoYLoss widened QoQ | ₹-2.49Turned negative YoYLoss/share widened QoQ |
TL;DR
- Revenue grew 42% YoY to INR150 crores, PAT increased 472% to INR34 crores.
- Enrollments grew 35% to 1.03 lakh; collections grew 27%.
- Commerce demerger process is final, with an NCLT hearing scheduled for August 17th and listing expected by September 2026.
- FY27 guidance projects ~INR670 crores revenue, ~INR260 crores EBITDA, and ~INR144 crores PAT.
- Management is focused on expanding government test prep into Karnataka, entering preschool operations, adding 15 new commerce colleges, and establishing a presence in North and West India.
Said on the call
“I think that should first would be a significant reward because it would be a market leader in its space in terms of pedigree profitability, in terms of the alumni network, in terms of number of centers, number of students, ranks.”
From the Q&A
| Topic | What management said |
|---|---|
| Market Recognition & Milestones | Management expects value unlocking from the commerce demerger listing next month, consistent PAT-positive performance, and scaling of other verticals (government test prep, K-12). |
| Commerce Business Split & Margins | FY27 guidance expects commerce revenue split of ~INR330 crores offline and ~INR120 crores online, with offline EBITDA margins at 35% and online at 45-48%. |
| Revenue vs. Collection Divergence | Enrollment growth (35%) outpaced collection growth (27%) due to subject-wise course offerings and INR15 crores of collections deferred to future quarters under Ind AS 11. |
| Debt Position | Debt on commerce business is INR125 crores; debt on non-commerce business is INR145 crores. |
| Low EBITDA Growth Explanation | EBITDA grew only 10% YoY due to a one-time other income of INR17 crores in Q1 FY26; adjusting for that, underlying EBITDA growth was ~30%, with additional spend on advertising for the commerce brand and setting up new managed colleges. |
| Tax Expense Negative | Negative tax of INR3 crores in Q1 due to a reversal of INR7.35 crores related to prior years, following a merger of subsidiaries allowing use of accumulated losses. |
| Achieving FY27 EBITDA Guidance | Management expects margins to improve in subsequent quarters as upfront spending (advertising, college expansion) in Q1 tapers, driving towards the guided 38.8% EBITDA margin. |
| Post-Demerger Multiples | Management expects the demerged commerce entity (JK Shah Commerce) to command a higher multiple as a market leader; government test prep should also get a good multiple, while K-12 may not initially. |
Guidance
- FY27 revenue of approximately INR670 crores.
- FY27 EBITDA of approximately INR260 crores.
- FY27 PAT of approximately INR144 crores.
- Within this, commerce business to contribute ~INR450 crores revenue, ~INR215 crores EBITDA, ~INR110 crores PAT.
- Non-commerce businesses to contribute ~INR220 crores revenue, ~INR46 crores EBITDA, ~INR34 crores PAT.
Source
Summary written from the transcript filed by Veranda Learning Solutions Limited for the call held on 13 Aug 2026; published 19 Aug 2026, 10:01 IST.
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