Veranda Learning Solutions Limited Releases Q3 & 9 Months FY26 Earnings Call Transcript
Veranda Learning Solutions reported strong Q3 FY26 results with revenue up 52% to ₹117 crore and EBITDA at ₹53 crore. The company is advancing its demerger of the commerce vertical, aiming for a June 2026 listing. SNVA Veranda is projected to reach ₹250 crore revenue by FY27. Management is focused on deleveraging, expanding academic footprint, and leveraging AI for growth and efficiency.
The announcement includes significant financial performance updates, progress on major corporate actions like demerger and divestment, strategic outlook, and future growth projections, all of which have a substantial impact on investor perception and the company's valuation.
The company reported strong year-on-year growth in revenue and EBITDA, alongside positive PAT for the fourth consecutive quarter. The progress on demerger and strategic initiatives like SNVA Veranda and AI integration indicate positive future outlook.
Veranda Learning Solutions Limited has released the transcript of its Earnings Call held on February 06, 2026, following the announcement of financial results for the quarter ended December 31, 2025.
The call featured management including Mr. Suresh Kalpathi (Chairman and Executive Director), Mr. Aditya Malik (Chief Operating Officer), and Mr. Mohasin Khan (Chief Financial Officer). The discussion highlighted a strong performance for Q3 and the first nine months of FY26, driven by robust enrollment growth, improved operating leverage, and disciplined execution. Top-line growth was reported at 52% year-on-year for Q3 and 29% year-on-year for the nine months ended December 2025.
Enrollments increased to 111,363, a 55% year-on-year rise, contributing to collection growth of 46% to over ₹144 crore for the quarter. The company is advancing the demerger of its commerce vertical, with the scheme filed with NCLT, aiming to create J.K. Shah Commerce Education Limited. Additionally, SNVA Veranda was formed through the strategic disinvestment of vocational education assets, combining Veranda's brands with SNVA's international network. This entity is projected to generate over ₹250 crore in revenue by FY27 with EBITDA exceeding ₹60 crore and may pursue a separate public listing.
Financially, revenue from operations in Q3 FY26 rose 52% year-on-year to ₹117 crore. Gross profit increased by 47% year-on-year to ₹76 crore, with gross margins improving to 65%. EBITDA surged by 328% year-on-year to ₹53 crore, with EBITDA margins expanding to 45%. Profit After Tax (PAT) increased to ₹17 crore in Q3 FY26, marking the fourth consecutive PAT-positive quarter. For the nine months ended December 2025, revenue reached ₹350 crore, EBITDA was ₹150 crore, and PAT was ₹114 crore.
Regarding the demerger timeline, management aims for NCLT approval by April and expects the demerged entity to be listed and traded by the end of June 2026. The company is confident in achieving its previously guided profitability targets. The management also discussed the potential opportunities presented by the Union Budget 2026, particularly concerning support for MSMEs through professional institutions.
The company is also exploring reinvestment strategies for surplus cash, focusing on deleveraging the balance sheet, expanding its academic footprint by adding 10-15 managed colleges, and purchasing residual stakes in businesses. Growth strategies for core verticals include expanding the franchise network for government test preparation and launching online programs in new languages. The K-12 academic segment plans to double the number of managed schools in FY27 through an asset-light model.
AI is being viewed as a significant opportunity, with courses being developed and offered in Gen AI and agentic AI. Internally, AI is being piloted for operational efficiencies in telecalling, content generation, customer support, and assessments. Revenue from AI courses at Edureka currently constitutes 35-40% of its revenue.
For FY27, Veranda anticipates revenues between ₹850 crore to ₹900 crore and EBITDA of ₹280 crore to ₹300 crore, including the vocational segment. SNVA Veranda is projected to reach ₹250 crore in revenue with over ₹60 crore in EBITDA for FY27, with potential for a future listing once EBITDA exceeds ₹100 crore as a debt-free business.
The company is refinancing existing debt of ₹140 crore at a lower interest rate to reduce finance costs. Succession planning is in place for the demerged commerce entity, J.K. Shah Commerce Education Limited, with Professor J.K. Shah continuing as Chairman and strategist.
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