Veranda Learning Solutions Limited (VERANDA) Financial Results — Revenue ₹482 Cr

Investor Takeaways

PAT turned positive at ₹130 crores from a ₹252 crore loss in FY25, reflecting a significant improvement in profitability.

Revenue grew 35% YoY to ₹482 crores, indicating strong top-line expansion.

Demerger of commerce education arm (J.K. Shah Commerce Education Limited) is scheduled for mid-August 2026 following NCLT approval in June 2026.

Overall Tone: Positive

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹482 Cr	+35%
Net Profit	₹130 Cr	Turned positive from ₹-252 Cr
EBITDA	₹204 Cr	+135%
EPS	₹1.73	Improved from negative prior year
OPM	42.3%	Improved from prior quarters

What Changed

The company reported a transformative shift in financial performance for FY26, moving from a ₹252 crore loss in FY25 to a ₹130 crore profit, driven by robust revenue growth of 35% to ₹482 crores. EBITDA surged 135% to ₹204 crores, signaling improved operational efficiency. The demerger of the commerce education business, approved by NCLT in June 2026 and targeted for completion by mid-August 2026, will separate the underperforming segment and allow focused growth in the core learning solutions business. Expansion initiatives include launching 15 new commerce colleges, entering K-12 education, and scaling international operations under SNVA Veranda. Enrollment rose 15% to 19,000 students, supporting scalability. However, initial investments in expansion may pressure EBITDA margins in the near term before profitability stabilizes. The forward guidance of ₹670 crores revenue and ₹144 crores PAT for FY27 reflects confidence in sustained growth, though near-term margin compression is anticipated due to capital outlays.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
Veranda Learning Solutions Limited	-7.8	N/A	N/A	2,315.57
Avenue Supermarts Limited (DMART)	104.25	N/A	N/A	2,84,258.63
ETERNAL LIMITED (ETERNAL)	317.34	N/A	N/A	2,32,747.16
Trent Limited (TRENT)	75.43	N/A	N/A	1,45,796.38

Veranda’s negative P/E ratio reflects its recent profitability turnaround, while peers trade at higher multiples, suggesting market expectations of stronger long-term growth for Veranda post-demerger and expansion.

Risks & Concerns

No specific risks were disclosed in the filing; however, near-term EBITDA margin pressure is anticipated due to investments in new colleges and international expansion.

The company transitioned from losses to profitability, but sustainability of margins remains dependent on execution of expansion plans.

Quarterly Trend

Quarter	Revenue (₹ Cr)	Net Profit (₹ Cr)	OPM%
Q3FY25	99.15	-202.94	-32.91
Q2FY25	138.62	-30.36	20.62
Q1FY25	118.99	-25.16	16.95
Q4FY24	102.61	-38.54	20.87

The company achieved profitability in FY26 after consistent losses in prior quarters, with OPM improving to 42.3% in FY26 from negative levels in Q3FY25. Revenue growth accelerated in Q3FY25 before stabilizing, while profitability improved significantly in the final quarters, culminating in full-year PAT of ₹130 crores.

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