Veranda Learning Solutions Limited is a diversified and integrated education company providing learning solutions across India. The company operates through a hybrid model, offering online, offline, and blended learning formats tailored to a wide audience that includes students, competitive exam aspirants, graduates, working professionals, and corporate clients. Veranda's business model is technology-driven, asset-light, and designed for scalability, with a physical presence of over 200 centers. The company's growth strategy has been significantly influenced by the successful acquisition and integration of established, market-leading legacy brands, which now form its core operational segments. The leadership team is spearheaded by Chairman & Executive Director, Mr. Kalpathi S Suresh, an alumnus of IIT Madras and Clemson University with extensive experience in software, education, and business integration. This strategic approach allows Veranda to offer a comprehensive suite of courses under trusted brand names, focusing on affordability, high-quality content, and an outcome-oriented methodology, as evidenced by its track record of students securing top ranks in competitive exams.

Official Website: http://www.verandalearning.com/

• Q3 FY26 Performance: The company demonstrated robust financial performance in the third quarter of fiscal year 2026.

• Revenue: Revenue from operations grew 52% year-on-year (YoY) to INR 117 Cr.

• Gross Profit: Gross profit increased by 47% YoY to INR 76 Cr, resulting in a gross margin of 65%.

• EBITDA: Reported EBITDA surged 328% YoY to INR 53 Cr, with the EBITDA margin expanding significantly to 45%, indicating strong operating leverage.

• Profit After Tax (PAT): PAT increased by 110% YoY to INR 17 Cr, marking the fourth consecutive quarter of profitability.

• Segment Performance (Q3 FY26 vs Q3 FY25): All business segments delivered healthy growth.

• Academics: Revenue grew from INR 7.9 Cr to INR 31.0 Cr. EBITDA increased 73% from INR 3.3 Cr to INR 5.7 Cr.

• Commerce Test Prep: Revenue grew from INR 38.1 Cr to INR 80.2 Cr. EBITDA increased from INR 14.2 Cr to INR 35.0 Cr.

• Government Test Prep: Revenue grew from INR 7.4 Cr to INR 29.1 Cr. EBITDA turned positive from a loss of INR 2.6 Cr to a profit of INR 4.7 Cr, a 281% improvement.

• Historical Revenue Growth (INR Cr): The company has shown an aggressive top-line growth trajectory over the past several years.

• FY21: 3

• FY22: 76

• FY23: 200

• FY24: 370

• FY25: 530

• Balance Sheet Deleveraging: The company raised INR 357 Cr through a Qualified Institutional Placement (QIP) and utilized INR 310 Cr to clear legacy debt, strengthening its financial position.

The company's financials reflect strong top-line and bottom-line growth, driven by operational efficiencies and robust performance across all key business segments.

• Integrated Hybrid Model: Veranda operates a diversified model that combines online, offline, and blended learning formats, allowing it to cater to a broad spectrum of learners with varying needs and preferences.

• Strategic M&A and Brand Aggregation: The company's strategy of acquiring and integrating well-established, market-leading brands like J. K. Shah Classes and Veranda Race allows it to leverage existing brand equity, content, and networks for rapid scaling.

• Asset-Light Scalability: Veranda employs an asset-light operational model, including a Franchise Owned and Company Operated (FOCO) model. This approach facilitates geographic expansion and scalability while maintaining control over quality and minimizing capital expenditure.

• End-to-End Delivery Platform: By aggregating assets and capabilities through acquisitions and partnerships, Veranda has built an end-to-end platform that covers a wide range of educational needs, from K-12 and test preparation to vocational and higher education.

Veranda's unique position is built on its hybrid, asset-light model and a successful strategy of consolidating powerful educational brands to create a scalable, end-to-end learning platform.

• Learner and Collections Growth: The company is experiencing rapid expansion in its user base and financial inflows.

• Enrollments: Additional learners in Q3 FY26 grew by 55% YoY, from 71,897 to 1,11,363. The cumulative total enrollment reached 3,28,600 in the first nine months of FY26.

• Collections: Financial collections for the quarter increased by 46% YoY, from INR 98 Cr to INR 144 Cr.

• Organic Growth Initiatives: Each business segment is actively driving growth through specific initiatives.

• Academics: Launched JEE/NEET and day-care programs across its schools.

• Commerce Test Prep: Added 6 new franchisees and established experience centers for its virtual offerings.

• Government Test Prep: Achieved a record 10,000+ admissions in Q3 and surpassed 500,000 YouTube subscribers.

• Future Growth Guidance: The company has provided strong forward-looking growth targets for its core and restructured businesses.

• JK Shah Commerce (Demerged): Aims to grow revenue from INR 281 Cr in FY25 to over INR 1,000 Cr by FY30.

• SNVA Veranda JV (Vocational): Targets revenue of INR 250+ Cr by FY27, with a projected revenue CAGR of 25% from FY26–FY30.

• Academics (Core): Revenue is expected to grow at a CAGR of 59% by FY28.

• Government Test Prep (Core): Revenue is projected to grow at a CAGR of 30% between FY25 and FY28.

The company's growth is robust and multi-dimensional, fueled by strong increases in student enrollments, strategic organic initiatives, and ambitious, clearly defined targets for its restructured business verticals.

• Geographic Expansion: A significant opportunity lies in scaling operations into Tier 2/3 towns and underpenetrated, high-potential markets such as Uttar Pradesh, Bihar, Telangana, and Andhra Pradesh.

• Global Market Access: The joint venture with SNVA provides a strategic entry into the global education market, spanning over 60 countries and reaching more than 1.5 million learners in high-demand fields like AI, technology, and management.

• Digital and Cross-Selling: There is substantial potential to maximize cross-selling opportunities across its vast student base and scale its digital arm, BB Virtual, to deliver courses in multiple languages and formats.

• Institutional Partnerships: Deepening collaborations with universities, schools, and corporate clients presents a major opportunity to drive large-scale enrollments and launch higher-value programs.

Key opportunities for value creation are centered on domestic and international geographic expansion, scaling digital offerings, and leveraging institutional partnerships for B2B growth.

• Veranda 2.0 Strategic Restructuring: The company is executing a major corporate restructuring to unlock shareholder value and sharpen its strategic focus.

• Commerce Demerger: The Commerce vertical is being demerged and will be listed as a separate entity, "JK Shah Commerce Education Limited." Veranda shareholders are set to receive shares in the new company on a 1:1 basis.

• Vocational Divestment: The Vocational segment has been divested into a 50:50 joint venture with SNVA EduTech Ltd., named "SNVA Veranda Ltd.," with plans for a future listing.

• Refocus on Core Verticals: Post-restructuring, the primary focus will be on accelerating the growth of its two core businesses: Academics and Government Test Preparation.

• Academics Vertical Strategy: Plans include expanding JEE/NEET offerings, strengthening the franchise (FOCO) model, and driving revenue through institutional partnerships with schools and colleges, particularly in southern regions.

• Government Test Prep Strategy: The strategy involves geographic expansion beyond its stronghold in the south, implementing the FOCO model for quality-controlled scalability, and expanding its course portfolio to include programs like Junior IAS and IELTS.

The company's future is centered on a strategic pivot to focus resources on scaling its core Academics and Government Test Prep businesses following a value-unlocking demerger and divestment.

• Q3 FY26 Margin Profile: The company achieved a strong margin profile in the quarter.

• Gross Margin: Stood at 65%.

• EBITDA Margin: Expanded significantly to 45%, driven by cost discipline and strong operating leverage.

• Segmental Profitability: The "Veranda 2.0" restructuring and cost optimization measures have materially improved segment profitability, with EBITDA expanding 73% in Academics and 281% in Government Test Prep.

• Future Margin Outlook: Management has provided guidance for margin expansion in its new entities.

• JK Shah Commerce Education: The EBITDA margin is expected to improve from 36% in FY25 to over 50% by FY30 as the business scales.

• SNVA Veranda JV: The entity targets an EBITDA of INR 60 Cr on revenues of INR 250+ Cr by FY27, implying a target EBITDA margin of approximately 24%.

The company is demonstrating impressive margin expansion through operational efficiency, with clear targets for further margin improvement in its restructured business units.

• Execution Risk: The success of the ambitious "Veranda 2.0" strategy hinges on the management's ability to seamlessly execute complex corporate actions, including the demerger and the operational scaling of the joint venture and core verticals.

• Forward-Looking Statement Uncertainty: The presentation contains numerous financial projections and growth targets. These are based on current assumptions and are subject to market risks and uncertainties that could cause actual results to differ materially.

• Integration Risk: As a consolidator of brands, the company faces ongoing risks associated with integrating the operations, technology, and cultures of acquired entities to realize planned synergies.

The primary risks for investors to monitor are related to the execution of the company's complex restructuring plan and the inherent uncertainty of achieving its forward-looking financial targets.

• Strategic Acquisitions and Partnerships: The company has remained active in pursuing strategic transactions to bolster its portfolio. Recent milestones include the acquisition of Tapasya, the announced acquisition of BB Publications & Navkar, and an MoU with IIT Madras.

• Capital Raise and Deleveraging: In July 2025, Veranda successfully completed its first QIP, raising INR 357 Cr. A significant portion of these proceeds (INR 310 Cr) was used to repay legacy debt, thereby strengthening the balance sheet.

• Leadership Continuity: The founders of the acquired brands, who possess deep domain expertise and a proven track record, continue to lead their respective business units, ensuring operational continuity and sustained execution.

Recent key developments include strategic acquisitions, a successful capital raise used for balance sheet deleveraging, and the retention of experienced leadership from acquired entities.