Veranda Learning Solutions: A Strategic Leap Towards Focused Growth and Global Ambition

Veranda Learning Solutions Limited has unveiled its Q2 and H1 FY26 financial results, showcasing a period of significant strategic realignment and robust performance. The company reported a strong 20% year-on-year revenue growth, reaching INR 126.7 crore for Q2 FY26. This impressive top-line expansion was complemented by an exceptional 185% year-on-year increase in adjusted Profit After Tax (PAT), which stood at INR 23.3 crore. The reported EBITDA for the quarter was INR 48.3 crore, marking a 63% rise year-on-year, with EBITDA margins expanding by 1017 basis points to 38%. These figures underscore Veranda's sustained momentum and disciplined cost control.

The quarter's performance was largely driven by strong student enrollments, expanded course offerings, and the successful launch of new programs across both online and offline platforms. The company achieved its highest-ever cash collection of INR 173 crore in Q2 FY26, reflecting robust operational efficiency. This financial strength provides a solid foundation for the company's ambitious 'Veranda 2.0' strategy, which aims to sharpen focus, accelerate growth, and unlock shareholder value through strategic demergers and divestments.

Strategic Realignment: Veranda 2.0 in Action

Veranda Learning Solutions is undergoing a transformative strategic realignment, dubbed 'Veranda 2.0', designed to optimize its business structure and enhance shareholder value. A key initiative is the demerger of its Commerce Test Prep vertical into a new, independently listed entity, J.K. Shah Commerce Education Limited. This segment, anchored by flagship brands like J.K. Shah Classes, BB Virtual, and Tapasya, has demonstrated strong standalone momentum and profitability. The demerged entity is projected to be debt-free and is expected to achieve nearly INR 350 crore in revenue and about INR 140 crore in EBITDA for FY26. Existing Veranda shareholders will receive one share of JKSC for every Veranda share held, ensuring value continuity.

Simultaneously, Veranda has divested its Vocational and Skilling segment, comprising brands like Edureka and Veranda HigherEd, into a 50:50 share-swap joint venture with SNVA EduTech Limited. This strategic partnership provides Veranda with exposure to a global education ecosystem spanning over 60 countries, without any cash outflow. The new vocational entity is projected to generate over INR 250 crore in revenue and exceed INR 60 crore in EBITDA by FY26, with strong CAGR-led growth and future listing prospects. This move allows Veranda to retain a stake in the global education market while focusing on its core domestic verticals.

Segmental Performance and Future Outlook

All business segments contributed positively to the company's performance. The Academics segment, despite a slight degrowth in Q2 FY26 revenue to INR 7.3 crore from INR 7.9 crore in Q2 FY25, is poised for significant growth. The company plans to expand its K-12 offerings by adding more CBSE schools in an asset-light fashion and aims for a revenue CAGR of 59% by FY28, with an EBITDA CAGR of approximately 20% from FY25 to FY28. The Government Test Prep segment reported INR 33.3 crore in Q2 FY26 revenue and is expected to achieve a revenue CAGR of 30% from FY25-28E, driven by geographic expansion and cost optimization.

Looking ahead, Veranda's management has outlined clear guidance for FY26, targeting a combined revenue of INR 650 crore, EBITDA of INR 170 crore, and PAT of INR 70 crore. The company is also focused on enhancing faculty capabilities, accelerating digital-led admissions, deepening university and corporate partnerships, and optimizing marketing efforts. With a strong balance sheet, reduced debt, and a clear strategic roadmap, Veranda Learning Solutions is positioning itself for sustained profitability and long-term value creation in the dynamic Indian education sector.

Conclusion: A Clear Path to Sustainable Growth

Veranda Learning Solutions Limited's Q2 FY26 results and strategic announcements signal a clear and confident pivot towards a more focused and efficient operational model. The demerger of the commerce vertical and the global vocational JV are bold steps designed to unlock distinct growth pathways and enhance shareholder value. By streamlining its core operations and leveraging an asset-light expansion strategy, Veranda is setting a strong foundation for sustainable growth and improved profitability in the years to come. The company's commitment to operational excellence and strategic expansion positions it as a significant player in India's evolving education landscape.