Financial Performance Highlights

Full Year FY26 (Year Ended March 31, 2026):

  • Revenue from operations: ₹482 crores, representing 35% year-on-year growth.
  • EBITDA: ₹204 crores, representing 135% year-on-year growth.
  • Profit After Tax (PAT): ₹130 crores, marking the first full-year PAT-positive performance since listing. This compares to a loss of ₹252 crores in FY25.
  • This represents the fifth consecutive PAT-positive quarter.

Q4 FY26 Performance:

  • Revenue from operations: ₹132 crores, representing 52% year-on-year growth.

Operational Highlights

  • Total student enrollments increased by 21% year-on-year to 2.5 lakh students.
  • Collections increased by 40% year-on-year to nearly ₹449 crores.
  • The Commerce segment performed in line with expectations.
  • The non-commerce business (government test prep and academic segments) significantly outperformed expectations.

Strategic Initiatives & Business Updates

Demerger of Commerce Vertical:

  • Progress continues on the demerger of the commerce vertical into a separate listed entity, J.K. Shah Commerce Education Limited.
  • The company received in-principle clearance from the exchanges, filed with the NCLT, and successfully completed the shareholder approval process.
  • Creditor approval from the NCLT has been received.
  • The next NCLT hearing is scheduled for June 3, 2026.
  • Final NCLT approval is expected by July 2026, with listing targeted for end-July or mid-August 2026.
  • Post-demerger, the asset split between the entities is expected to be approximately 35% (non-commerce) to 65% (commerce) on the appointment date.
  • The commerce business is targeting revenue in excess of ₹1,000 crores by FY30.
  • For FY27, the commerce business is projected to deliver an EBITDA between ₹180-185 crores.

Divestment & Joint Venture:

  • Completed the strategic divestment of the 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.
  • One North American entity was not hived off and remains with the non-commerce entity, contributing ₹51 crores in segmental revenue. Plans for its eventual sale are subject to RBI approvals.
  • SNVA Veranda's financials are accounted for by recognizing 50% of its consolidated profits in Veranda's books.

New Launches & Expansion:

  • Launched Commerce Virtuals for Class 11 and 12 students for pan-India digital delivery.
  • Expanded offline footprint into new geographies, particularly Tier 2 cities, while strengthening southern markets.
  • In government test prep, introduced new offerings including Group 1 offline programs, junior IAS programs, and subscription-based magazines.

FY27 Guidance & Outlook

  • Revenue Target: Approximately ₹670 crores (~40% year-on-year growth).
  • PAT Target: Over ₹144 crores.
  • Growth is expected to be supported by geographic expansion, scaling of offline centers, new course launches, improved digital-led admissions, and institutional partnerships.

Expansion Plans for FY27

Commerce Vertical (J.K. Shah):

  • Plan to expand the offline college presence by adding 15 new locations.
  • Build an offline footprint across North and West India to diversify regional presence.
  • The Tapasya brand (part of J.K. Shah) contributed approximately ₹70 crores of the total commerce revenue of ~₹330 crores in FY26.
  • Enrollment in the college of commerce segment is expected to grow from 17,000 students in FY26 to over 19,000 in FY27 (~15% growth).

Non-Commerce Vertical:

  • Government Test Prep: Planning expansion into Karnataka to tap state-level competitive exam markets, with a goal to become the #1 player in South India (including Andhra and Telangana).
  • Academic Segment: Evaluating opportunities to add managed school services for pre-KG schools and expand the portfolio of managed K-12 schools.
  • The company will also provide coaching for JEE/NEET (under the JEET brand) and Junior IAS within its K-12 schools.

Capital Structure & Warrants

  • Warrants issued in January of the previous year (acquisition of BB Virtuals and Navkar) are 75% yet to be subscribed, with the subscription due in August 2026.
  • If the demerger is completed before the warrant subscription, the warrants will be proportionately divided between the demerged entities (non-commerce and commerce) based on the same ~35:65 asset ratio.

Impairment & Assets

  • A one-time impairment charge of ₹5 crores was taken in Q4 FY26 in the government test prep segment, resulting in a reported segment loss of ₹3 crores for the quarter. Excluding this, the segment EBITDA was positive ₹2 crores.
  • All other goodwill, intangible assets, and valuations have been tested for recoverability as per accounting standards, and no further impairments were taken for the year.

Management Commentary

Management highlighted a strong focus on outcomes, employability, and scalable education through its Veranda 2.0 strategy. They cited operating leverage, disciplined marketing spend, lower corporate costs, and balance sheet deleveraging (via a QIP and refinancing to lower-cost debt) as key drivers of the improved profitability. The company remains confident in its long-term growth trajectory driven by its market positioning, brand equity, and consistent rank-producing track record.