Veranda continuing revenue rises 34% in H1 to Rs 104.08 crore

Veranda Learning Solutions Limited reported continuing-operation revenue of Rs 104.08 crore for the half year ended September 30, 2026, up 34% from Rs 77.70 crore a year earlier, while profit before tax before exceptional items was Rs 5.05 crore against a loss of Rs 19.25 crore. Government test preparation supplied the largest revenue contribution and the largest increase in segment earnings.

How did Veranda’s continuing operations perform in the half year?

Veranda’s continuing-operation revenue increased by Rs 26.38 crore to Rs 104.08 crore in the half year ended September 30, 2026, from Rs 77.70 crore in the corresponding 2025 period. Total income, including other income, rose to Rs 107.24 crore from Rs 81.75 crore, although other income declined to Rs 3.16 crore from Rs 4.04 crore. The revenue increase therefore came from operations rather than other income.

Earnings before finance costs, depreciation, amortisation, exceptional items and tax, or EBITDA, rose to Rs 24.48 crore from Rs 17.59 crore. Total expenses increased to Rs 82.77 crore from Rs 64.16 crore, while lecturer fees and other operating expenses rose to Rs 47.98 crore from Rs 36.14 crore. Revenue grew by Rs 26.38 crore, compared with a Rs 18.61 crore increase in total expenses.

Finance costs fell by Rs 16.94 crore to Rs 9.84 crore, while depreciation and amortisation decreased by Rs 2.13 crore to Rs 7.92 crore. These movements accompanied the shift from a Rs 19.25 crore pre-exceptional loss before tax in the half year ended September 30, 2025 to a Rs 5.05 crore profit before tax in the latest half year.

Which segment drove Veranda’s revenue growth?

Veranda’s government test preparation segment drove the increase, reporting half-year revenue of Rs 75.90 crore compared with Rs 56.84 crore a year earlier. Its Rs 19.06 crore revenue increase accounted for most of the Rs 26.38 crore rise in reported continuing-operation revenue. Segment earnings before other income, finance costs, depreciation, amortisation, exceptional items and tax rose to Rs 13.86 crore from Rs 3.84 crore.

Managed school services recorded revenue of Rs 19.23 crore, up from Rs 17.92 crore, and its segment earnings were Rs 13.80 crore versus Rs 13.66 crore. Vocational education revenue was Rs 8.67 crore, compared with Rs 3.56 crore, while its segment earnings declined to Rs 1.81 crore from Rs 2.79 crore. Other segments reported revenue of Rs 7.43 crore, down from Rs 13.82 crore, and a loss of Rs 8.15 crore compared with a loss of Rs 6.74 crore.

The segment revenue total before eliminations was Rs 111.23 crore in the latest half year, compared with Rs 92.15 crore a year earlier. Inter-segment revenue eliminations narrowed to Rs 7.14 crore from Rs 14.44 crore, producing reported continuing-operation revenue of Rs 104.08 crore. Segment earnings before corporate items totalled Rs 21.32 crore, up from Rs 13.54 crore.

Why was Veranda’s reported half-year profit much larger?

Veranda reported total profit of Rs 1,126.36 crore for the half year because discontinued operations included a Rs 1,047.69 crore exceptional gain. Profit after tax from discontinued operations was Rs 1,100.75 crore, compared with a Rs 7.39 crore loss in the corresponding 2025 half year. That outcome is separate from the Rs 5.05 crore pre-exceptional profit before tax from continuing operations.

The exceptional gain arose from the demerger of Veranda’s commerce education business and selected investments into J.K. Shah Commerce Education Limited. The scheme became effective on August 31, 2026. Veranda said the difference between the fair value of the demerged undertaking and the carrying value of its net assets was recognised as a gain on demerger within exceptional items in discontinued operations.

Veranda separately disclosed the demerged undertaking and vocational education, which was divested on September 30, 2025, as discontinued operations under Indian Accounting Standard 105. The discontinued-operation half-year figures for 2026 cover five months ended August 31, 2026, and the September-quarter figures cover two months ended August 31, 2026. The Rs 1,126.36 crore reported total profit consequently includes a demerger-related accounting gain rather than only the retained business’s operating result.

What changed in Veranda’s balance sheet and cash flow?

Veranda’s total assets were Rs 766.46 crore at September 30, 2026, down from Rs 1,832.20 crore at March 31, 2026. Goodwill fell to Rs 172.64 crore from Rs 967.41 crore, while total equity decreased to Rs 518.24 crore from Rs 961.87 crore. The August 31, 2026 commerce-business demerger removed assets and liabilities of the demerged undertaking from Veranda’s books.

Total borrowings were Rs 146.62 crore at September 30, comprising Rs 139.34 crore of non-current borrowings and Rs 7.28 crore of current borrowings. This compared with Rs 301.00 crore at March 31, including Rs 286.52 crore of non-current borrowings. Cash and cash equivalents stood at Rs 8.89 crore at September 30, down from Rs 29.87 crore at the March year-end.

Net cash generated from operating activities was Rs 62.02 crore in the half year, against net cash used in operating activities of Rs 42.88 crore a year earlier. Financing activities used Rs 59.74 crore, including Rs 41.39 crore of non-current borrowing repayments and Rs 10.14 crore of finance costs paid. Cash outflow on disposal of subsidiaries was Rs 14.68 crore, leaving period-end cash of Rs 8.89 crore.

What corporate actions affected Veranda’s half-year results?

Veranda completed the merger of Veranda XL Learning Solutions Private Limited into Veranda and the demerger of the commerce education business into J.K. Shah Commerce Education Limited. The National Company Law Tribunal order was dated August 20, 2026, and the parties filed it with the Registrar of Companies on August 31, 2026, the scheme’s effective date. Veranda said no shares were issued for the merger because Veranda XL Learning Solutions was wholly owned.

A separate scheme merged Veranda IAS Learning Solutions Private Limited and Neyyar Academy Private Limited with Veranda Race Learning Solutions Private Limited. The Regional Director, Southern Region approved that scheme on September 18, 2026, and the entities filed e-Form INC-28 on September 30, 2026. The appointed date was April 1, 2026, and Veranda Race Learning Solutions allotted 10,000 equity shares of Rs 10 each to Veranda without cash consideration.

On September 4, 2026, Veranda allotted 155,763 equity shares to Gooddey Enterprises LLP upon conversion of warrants at Rs 321 per share. Veranda received the remaining 75% of the issue price, or Rs 3.75 crore, on conversion, after receiving the initial 25% at warrant allotment. Paid-up equity share capital increased to Rs 96.51 crore from Rs 96.35 crore.

Conclusion

Veranda’s retained operations produced higher half-year revenue and EBITDA, led by the Rs 75.90 crore government test preparation segment. Lower finance costs of Rs 9.84 crore, compared with Rs 26.78 crore a year earlier, also helped move continuing operations to a Rs 5.05 crore pre-exceptional profit before tax. The Rs 1,126.36 crore total profit, however, was predominantly shaped by the Rs 1,047.69 crore demerger-related gain in discontinued operations.

The disclosed unresolved matter is final Reserve Bank of India communication on the registration requirement for Veranda K-12 Learning Solutions Private Limited as a core investment company. Veranda said the amalgamation scheme involving that entity became effective on August 11, 2026, and that it was awaiting final Reserve Bank of India communication while continuing to meet the relevant criteria as at September 30, 2026.