Veranda Learning Solutions Limited – Investor Presentation Summary

Key Operational Highlights

  • H1FY27 enrollments grew 12% year-on-year.
  • Collections for H1FY27 were up 17% year-on-year.
  • The company has 40+ centers spread across South India.
  • 100+ students secured top rank in competitive exams each year.
  • Key drivers include expansion of Government Test Prep centers and new hiring partnerships through Phire.

Segment-wise Performance

  • Government Test Prep Business: Revenue grew 31% year-on-year; EBITDA grew 79% year-on-year.
  • K12 Business: Preparing to launch Veranda Sprouts preschool brand with admissions opening in January 2027.

Financial Highlights

Q2 FY27 (Quarter ended September 30, 2026):

  • Revenue from Operations: ₹50.6 Cr, up 17% YoY (Q2 FY26: ₹43.2 Cr)
  • Gross Profit: ₹28.2 Cr, up 12% YoY; Gross Profit Margin: 56% (Q2 FY26: 58%)
  • EBITDA: ₹12.7 Cr, up 28% YoY; EBITDA Margin: 25% (Q2 FY26: 23%)
  • PAT before Exceptional Item: ₹13.4 Cr (Q2 FY26: Loss of ₹12.8 Cr)
  • PAT after Exceptional Item (Reported): ₹13.4 Cr (Q2 FY26: ₹120.5 Cr, which included a one-time exceptional gain of ₹133.4 Cr)
  • The PAT includes a tax credit of ₹13.4 Cr.

H1 FY27 (Half-year ended September 30, 2026):

  • Revenue from Operations: ₹104.1 Cr, up 34% YoY (H1 FY26: ₹77.7 Cr)
  • Gross Profit: ₹56.6 Cr, up 22% YoY; Gross Profit Margin: 54% (H1 FY26: 60%)
  • EBITDA: ₹24.4 Cr, up 39% YoY; EBITDA Margin: 23% (H1 FY26: 23%)
  • PAT before Exceptional Item: ₹25.6 Cr (H1 FY26: Loss of ₹24.5 Cr)

Expense Breakdown (Q2 FY27):

  • Advertisement & Business Promotion: ₹4.0 Cr, up 39% YoY
  • Corporate Costs: ₹3.1 Cr, down 14% YoY
  • Other Expenses: ₹10.1 Cr, up 11% YoY
  • Finance Cost: ₹4.8 Cr, down 58% YoY
  • Depreciation: ₹2.1 Cr, up 21% YoY

Discontinued Operations (Commerce Business Demerger)

  • The NCLT sanctioned the Commerce demerger on August 20, 2026, effective August 31, 2026.
  • The discontinued Commerce business contributed a PAT of ₹31.36 Cr during the two months of Q2FY27 prior to the demerger.
  • For the five months it remained part of Veranda in FY27 (ended Aug 2026), the Commerce business reported a cumulative PAT of ₹53.05 Cr (Q1: ₹21.69 Cr + Q2: ₹31.36 Cr).
  • This performance is against a full-year PAT guidance of ₹110 Cr for the commerce business.
  • The consolidated financials recognized a one-time exceptional item of ₹1,047 Cr from the fair valuation of the Demerged Commerce Business.
  • The record date for the demerger was October 6, 2026.
  • J.K.Shah Commerce Education Limited has received in-principle approvals from NSE, BSE and relaxation from SEBI for its listing, expected in November 2026.
  • Shareholders received a 1:1 share allotment in J.K.Shah Commerce Education.

Geographical Revenue Split

Not Specified

Balance Sheet Snapshot

Not Specified

Capex & Cash Flow Health

Not Specified

Strategic & R&D Initiatives

  • Government Test Prep Expansion: New centers opened in Tenkasi and Dharmapuri; a new PV in Coimbatore, Tamil Nadu. Partnership with Dr.Rajkumar Academy of Civil Services (DRACS) to expand into Karnataka with centers planned in Mysuru and Kalaburagi.
  • K12 Initiatives: Experience centres in Perungudi, Trichy and Bengaluru; academic audit; solar power at Bollineni school; new School Canvas ERP.
  • New Launches: Veranda Sprouts preschool brand to launch with admissions in January 2027.

Industry Trends & Business Environment

Not Specified

Management Commentary & Growth Outlook

Strategic Outlook from Chairman & Managing Director, Mr. Kalpathi S Suresh: The quarter was one of "profitable growth and a much stronger balance sheet." The company will focus on "digital-led admissions, expanding corporate and hiring partnerships, and driving operating leverage."

Post-Demerger Outlook for Commerce Business: Targeting 3-4x revenue growth via product and geographical expansion over 3-4 years; INR 1,000+ Cr revenue expected by FY30.

FY27 Financial Projections (Continuing Operations): Full-year Revenue guidance of ₹176.00 Cr; EBITDA guidance of ₹46.42 Cr; PAT guidance of ₹32.24 Cr. Q1 and Q2 are actuals; Q3–Q4 allocation is based on past trend.

Company Contact

  • Mr. Mohasin Khan, CFO: mohasinkhan.s@verandalearning.com
  • Investor Relations Contact: Ms. Soumya Chhajed, Research Analyst, soumya@goindiaadvisors.com