Veranda Learning borrowings fall as H1 cash reaches Rs 62 crore

Veranda Learning Solutions Limited generated Rs 62.02 crore of net operating cash in the half year ended September 30, 2026, while consolidated borrowings fell to Rs 146.62 crore from Rs 301.00 crore at March 31, 2026. Cash and cash equivalents nevertheless declined to Rs 8.89 crore after financing, investing and subsidiary-disposal outflows.

How much did Veranda Learning’s borrowings decline?

Veranda Learning’s consolidated borrowings declined by Rs 154.38 crore between March 31 and September 30, 2026. Non-current borrowings were Rs 139.34 crore at September 30, 2026, down from Rs 286.52 crore at March 31, while current borrowings fell to Rs 7.28 crore from Rs 14.48 crore.

The reduction in reported borrowings coincided with lower total consolidated liabilities. Total liabilities stood at Rs 248.22 crore at September 30, compared with Rs 870.32 crore at March 31; non-current liabilities decreased to Rs 162.77 crore from Rs 667.37 crore and current liabilities decreased to Rs 85.45 crore from Rs 202.95 crore.

Other non-current financial liabilities fell to Rs 9.29 crore at September 30 from Rs 284.91 crore at March 31. Non-current lease liabilities also reduced to Rs 4.00 crore from Rs 59.14 crore, while current lease liabilities declined to Rs 3.14 crore from Rs 22.18 crore.

The balance-sheet comparison spans the August 31, 2026 effective date of a composite scheme involving Veranda Learning, Veranda XL Learning Solutions Private Limited and J.K. Shah Commerce Education Limited. Under the scheme, Veranda Learning’s Commerce Education Business was transferred to J.K. Shah Commerce Education Limited, and the filing says no assets or liabilities relating to that demerged undertaking remained in Veranda Learning’s books at September 30.

Did Veranda Learning generate operating cash in H1 2026?

Veranda Learning generated Rs 62.02 crore of net cash from operating activities in the half year ended September 30, 2026, compared with Rs 42.88 crore used in operating activities in the corresponding 2025 half year. Cash generated from operations before income taxes was Rs 72.70 crore, reversing from Rs 36.49 crore used in the earlier period.

Operating profit before working-capital changes was Rs 104.21 crore in H1 2026, compared with Rs 87.57 crore in H1 2025. The cash-flow reconciliation includes a Rs 1,069.87 crore gain recognised on fair valuation of net assets distributed under the demerger, which was adjusted in arriving at that pre-working-capital figure.

Working-capital movements included a Rs 33.84 crore increase in trade payables and a Rs 19.67 crore increase in other current liabilities. These were offset in part by a Rs 60.76 crore increase in trade receivables, a Rs 32.68 crore increase in other financial assets and a Rs 9.69 crore increase in other assets.

Income taxes paid, net of refunds, were Rs 10.68 crore in H1 2026, compared with Rs 6.39 crore in H1 2025. The operating cash-flow result therefore reflects both the disclosed working-capital movements and adjustments related to the August 2026 restructuring.

Why did Veranda Learning’s cash balance fall despite operating inflows?

Veranda Learning ended September 30, 2026 with Rs 8.89 crore of cash and cash equivalents, down from Rs 29.87 crore at March 31. The cash-flow statement reports a Rs 6.30 crore net decrease during the half year, followed by a Rs 14.68 crore cash outflow on disposal of subsidiaries.

Financing activities used Rs 59.74 crore in H1 2026, compared with Rs 15.75 crore used in H1 2025. The largest stated financing outflow was Rs 41.39 crore for repayment of non-current borrowings; Veranda Learning also paid Rs 11.83 crore toward lease liabilities, including interest, and Rs 10.14 crore of finance costs.

Financing inflows included Rs 4.18 crore of proceeds from non-current borrowings, Rs 3.75 crore from share warrants and Rs 1.25 crore from issue of equity share capital, including premium. The filing also records a Rs 0.86 crore net repayment of current borrowings during H1 2026.

Investing activities used Rs 18.58 crore in H1 2026, against Rs 17.28 crore generated in H1 2025. Capital expenditure on property, plant, equipment and intangible assets was Rs 13.89 crore, while Veranda Learning received Rs 2.69 crore from redemption of, or lower investment in, fixed deposits and Rs 1.14 crore of interest income.

What else changed in Veranda Learning’s consolidated balance sheet?

Veranda Learning reported total assets of Rs 766.46 crore at September 30, 2026, compared with Rs 1,832.20 crore at March 31. Non-current assets decreased to Rs 695.40 crore from Rs 1,692.83 crore, while current assets declined to Rs 71.06 crore from Rs 139.37 crore.

Goodwill was Rs 172.64 crore at September 30, down from Rs 967.41 crore at March 31, and other intangible assets were Rs 35.81 crore, down from Rs 118.21 crore. Trade receivables decreased on the balance sheet to Rs 20.84 crore from Rs 33.63 crore, despite the H1 cash-flow statement recording a Rs 60.76 crore increase in trade receivables within the operating cash-flow reconciliation.

Total equity was Rs 518.24 crore at September 30, compared with Rs 961.87 crore at March 31. Equity share capital increased to Rs 96.51 crore from Rs 96.17 crore, while other equity was Rs 421.74 crore versus Rs 865.70 crore at the March year-end.

On September 4, 2026, Veranda Learning allotted 155,763 equity shares to Gooddey Enterprises LLP on conversion of warrants at Rs 321 per share. The company received the remaining 75% of the issue price, amounting to Rs 3.75 crore, after having received the initial 25% when the warrants were allotted.

Conclusion

Veranda Learning’s H1 2026 filing shows lower reported borrowings and liabilities alongside a shift from operating cash use of Rs 42.88 crore a year earlier to operating cash generation of Rs 62.02 crore. Its cash balance still declined because Rs 59.74 crore of financing outflows, Rs 18.58 crore of investing outflows and Rs 14.68 crore of cash outflow on subsidiary disposal exceeded the operating inflow.

The next disclosures will show the financial profile of Veranda Learning after the August 31, 2026 Commerce Education demerger and the separate presentation of discontinued operations. The filing also says Veranda Learning is awaiting final communication from the Reserve Bank of India on the core investment company registration matter related to the VK-12 amalgamation.