Veranda Learning Solutions: Q3 FY26 Performance Driven by Strategic Restructuring and Digital Focus

Veranda Learning Solutions Limited, a prominent player in India's education sector, has reported a robust financial performance for the third quarter and nine months ended December 31, 2025. The company's Q3 FY26 revenue from operations surged by an impressive 52% year-on-year to INR 117 crores. This growth was accompanied by a significant 328% increase in reported EBITDA, reaching INR 53 crores, with EBITDA margins expanding to 45%. The company also achieved its fourth consecutive PAT positive quarter, with Profit After Tax (PAT) rising by 110% YoY to INR 17 crores, underscoring a sustained focus on operational excellence and disciplined strategic expansion.

The strong Q3 performance contributed to a solid nine-month showing, with revenue reaching INR 349 crores, up 29% YoY, and EBITDA soaring by 409% to INR 150 crores. This execution-led performance highlights the benefits of the Veranda 2.0 restructuring strategy, which has materially lowered finance costs and depreciation during the year. The company's diversified and integrated learning solutions, spanning online, offline, and hybrid formats, continue to cater to a broad spectrum of students, aspirants, graduates, professionals, and corporate employees.

Financial Highlights: A Snapshot

Strategic Realignment and Segment Performance

The company's strategic realignment, dubbed Veranda 2.0, is visibly progressing. The demerger of the Commerce Vertical, which will form J.K. Shah Commerce Education Limited, is on track for listing by June 2026, with NCLT approval anticipated by April. This move is expected to unlock significant shareholder value, creating a focused and scalable commerce education platform. Concurrently, the divestment of the Vocational segment into a 50:50 share-swap joint venture with SNVA Veranda has established a globally scaled equity partnership, targeting over INR 250 crores in revenue and INR 60 crores in EBITDA by FY27.

This strategic shift allows Veranda to sharpen its focus on core verticals: Academics and Government Test Preparation. The Commerce Test Prep segment remained a significant growth engine, delivering strong topline momentum with revenue of INR 80.2 crores in Q3 FY26, a 111% YoY increase. Academics also showed resilience with INR 7.4 crores in revenue, while Government Test Prep contributed INR 29.1 crores.

Segmental Performance Overview (INR Cr)

Future Outlook and Digital Integration

Looking ahead, Veranda Learning Solutions is prioritizing strengthening faculty capabilities, accelerating digital-led admissions, and deepening partnerships. The company's alignment with the Union Budget 2026's emphasis on education-to-employment linkages and digital skills positions it favorably. Notably, AI adoption is a key strategic pillar, with AI tools being piloted for telecalling, assessments, customer support, and content generation. This is expected to drive significant operational efficiencies and enhance learning outcomes. AI courses already contribute 35-40% of Edureka's revenue, demonstrating early success.

For the Academics segment, the company aims to transition to an asset-light model, taking over operational management of schools to upstream profits and build value chain presence, targeting a 20% EBITDA CAGR from FY25 to FY28. Government Test Prep is set for geographic expansion, with a projected 30% revenue CAGR (FY25-28E). The company also plans to add 10-15 managed colleges in the next year, effectively doubling its size in FY27. With a clear focus on core verticals, disciplined cost management, and strategic digital integration, Veranda Learning Solutions is well-positioned for sustained growth and value creation in the evolving Indian education landscape.