Veranda Government Test Prep revenue rose 31% in Q2FY27

Veranda’s Government Test Prep segment lifted Q2FY27 revenue 31% year on year to Rs 43.4 crore and EBITDA 79% to Rs 10.7 crore, making it the stated driver of the group’s 17% revenue growth. Two new Tamil Nadu centres and the DRACS partnership support its planned entry into Karnataka.

How fast did Veranda Government Test Prep grow in Q2FY27?

Veranda Government Test Prep generated Rs 43.4 crore of revenue in Q2FY27, compared with Rs 33 crore in Q2FY26, an increase of Rs 10.4 crore or 31%. Segment EBITDA rose by Rs 4.7 crore to Rs 10.7 crore from Rs 6 crore, which management described as 79% growth. The reported revenue increase exceeded the group’s 17% year-on-year growth in revenue from operations to Rs 50.6 crore.

The segment’s Q2FY27 EBITDA of Rs 10.7 crore was close to the group’s consolidated EBITDA of Rs 12.7 crore, while the presentation identifies Government Test Prep as the business leading overall performance. At the group level, EBITDA increased 28% from Rs 9.9 crore in Q2FY26, and EBITDA margin moved to 25% from 23%. The group’s first-half revenue was Rs 104.1 crore, up 34%, and EBITDA was Rs 24.4 crore, up 39%.

How did Government Test Prep compare with Veranda Academic?

Veranda Government Test Prep expanded revenue while Academic revenue declined slightly in Q2FY27. Government Test Prep added Rs 10.4 crore of revenue, rising to Rs 43.4 crore, whereas Academic revenue reduced by Rs 0.2 crore to Rs 6.8 crore from Rs 7 crore in Q2FY26. The two segments therefore moved in different directions on top-line growth during the quarter.

Both segments reported higher EBITDA, but the absolute increase was larger in Government Test Prep. Its EBITDA rose from Rs 6 crore to Rs 10.7 crore, while Academic EBITDA increased from Rs 5 crore to Rs 6.3 crore. This comparison matters because Veranda’s Q2FY27 consolidated revenue was Rs 50.6 crore, and management specifically attributed the group’s 17% year-on-year revenue increase to Government Test Prep’s 31% growth.

The broader operating result also changed between periods. Gross profit rose 12% to Rs 28.2 crore in Q2FY27 from Rs 25.1 crore a year earlier, but gross-profit margin was 56%, compared with 58% in Q2FY26. Advertising and business-promotion expense increased 39% to Rs 4 crore, while corporate costs declined 14% to Rs 3.1 crore, alongside the increase in consolidated EBITDA to Rs 12.7 crore.

Where is Veranda Government Test Prep expanding?

Veranda Government Test Prep opened two new centres at Tenkasi and Dharmapuri in Tamil Nadu during the Q2FY27 update. These additions extend the segment’s physical delivery network in a state where the business already operates, rather than representing a disclosed acquisition or financial contribution from the individual locations.

Veranda also partnered with Dr.Rajkumar Academy of Civil Services, or DRACS, to enter Karnataka, with centres planned in Mysuru and Kalaburagi. The presentation does not provide opening dates, enrolment targets or capital expenditure for those centres. Management’s stated FY27 priority is to extend Government Test Prep in Karnataka by serving Karnataka Public Service Commission, or KPSC, and other state-level exam aspirants with localised content and offline coaching centres.

The Karnataka plan is part of a broader footprint strategy rather than a completed revenue event in Q2FY27. Veranda lists Karnataka expansion among its key growth drivers, alongside new Group I courses, a Junior IAS launch and subscription magazines. The business will need to convert the planned Mysuru and Kalaburagi locations into operating centres before their results can be measured against the Rs 43.4 crore of Q2FY27 segment revenue.

What supports Veranda Government Test Prep’s expansion plan?

Veranda’s RACE platform has more than 40 centres across South India and offers preparation for Union Public Service Commission, or UPSC, Staff Selection Commission, or SSC, banking, Tamil Nadu Public Service Commission, or TNPSC, KPSC, State Public Service Commission, or State PSC, and other examinations. This existing multi-exam portfolio is the operational base identified for taking the Government Test Prep model into Karnataka.

The presentation frames new Group I courses, Junior IAS and subscription magazines as growth drivers alongside the Karnataka rollout. Those products could broaden the segment’s course offering, but Veranda did not disclose Q2FY27 revenue separately for any exam category, course or publication. The disclosed evidence is therefore the segment-level increase from Rs 33 crore to Rs 43.4 crore, rather than a quantified contribution from each product initiative.

Veranda also identifies digital-led admissions, corporate partnerships and hiring partnerships as organisation-wide operating priorities. In Q2FY27, the group’s advertising and business-promotion expenditure was Rs 4 crore, up from Rs 2.9 crore in Q2FY26. The presentation does not allocate that spending between Government Test Prep, Academic or other operations, so it does not establish how much promotional investment supported the Rs 10.4 crore segment revenue increase.

What is management targeting for Veranda Government Test Prep?

Management’s FY27E target for Veranda Government Test Prep is revenue of Rs 141 crore, up from Rs 114 crore in FY26. The presentation also lists a 60% EBITDA-margin target for H1FY27 in the Government Test Prep growth framework. FY27E denotes management’s estimate for the fiscal year rather than a reported result.

For the wider continuing business, management guided FY27 revenue of Rs 176 crore, EBITDA of Rs 46 crore and profit after tax, or PAT, of Rs 32 crore, compared with FY26 figures of Rs 159 crore, Rs 35 crore and a Rs 42 crore loss, respectively. Q1 and Q2 actual revenue in this guidance table was Rs 53.49 crore and Rs 50.6 crore; its remaining Q3 and Q4 allocations are Rs 39.96 crore and Rs 31.96 crore, based on past trends.

Managed Schools is the other platform identified for future scaling, with FY27E revenue of Rs 35 crore versus Rs 30 crore in FY26. It had six schools and more than 5,400 students, while Veranda’s stated longer-term target is more than 30 schools by FY30. These plans show that Government Test Prep is being expanded alongside, rather than instead of, the managed-schools strategy.

Conclusion

Veranda’s Q2FY27 segment figures show that Government Test Prep supplied the clearest reported growth momentum: revenue rose Rs 10.4 crore to Rs 43.4 crore and EBITDA increased Rs 4.7 crore to Rs 10.7 crore. Academic revenue was Rs 6.8 crore, down from Rs 7 crore, reinforcing management’s statement that Government Test Prep led the group’s quarterly revenue growth.

The next items to watch are the opening and performance of the planned Mysuru and Kalaburagi centres, and progress toward management’s FY27E Government Test Prep revenue target of Rs 141 crore. Management’s FY27 guidance also assigns Rs 39.96 crore of revenue to Q3 and Rs 31.96 crore to Q4, with that quarterly allocation based on past trends.