Image Source: The Hans India
Veranda Learning Solutions Ltd., the Chennai-based edtech firm, has posted a notable turnaround in its Q1 FY26 results, signaling a potential inflection point for investors and stakeholders. The company reported consolidated revenue from operations of ₹1.39 billion and a profit after tax (PAT) of ₹59.7 million, marking its first profitable quarter after a series of losses.
Key Financial Highlights
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Revenue from operations surged to ₹1.39 billion, reflecting strong traction across verticals.
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PAT stood at ₹59.7 million, reversing previous quarterly losses and entering the green.
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EBITDA margins improved significantly, driven by cost optimization and scale efficiencies.
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The company spent 28.05% of operating revenue on interest expenses and 24.44% on employee costs in FY25, indicating a leaner cost structure.
Strategic Growth Moves
Veranda’s growth is underpinned by a four-pillar strategy focusing on academics, commerce, government test prep, and study abroad. The company has made bold moves to expand its footprint:
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Raised ₹250 crore via preferential issue to fund acquisitions and scale operations.
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Acquired 51% of BB Publications and 65% of Navkar Digital Institute to strengthen its CA/CMA coaching vertical.
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Aims to reach ₹600 crore in revenue by FY25 and double EBITDA from ₹62 crore last fiscal.
Operational Expansion
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Over 113,000 students trained in Q1 FY26, showcasing robust demand.
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School partnerships expanded in eastern India, including Kolkata, in collaboration with Cambridge University Press & Assessment.
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Launched hybrid test prep programs with Pearson for bank PO exams, diversifying offerings.
Market Reaction & Stock Movement
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Post-results, Veranda’s stock rose 2.2% to ₹242.58, reflecting investor optimism.
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PE ratio remains negative at -9.22, indicating that profitability is still nascent.
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PB ratio stands at 8.65, suggesting high valuation relative to book value.
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Market cap is ₹2,264 crore, with a 52-week high/low of ₹360.25/₹185.30.
Governance & Leadership Updates
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Board rejig includes appointments of Prof. Jitendra Kantilal Shah (JK Shah Classes) and Prof. Ashok Misra (former IIT Bombay director).
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Aditya Malik elevated to Group COO to streamline operations and drive execution.
Investment Outlook
Veranda’s entry into profitability, aggressive expansion, and strategic acquisitions make it a compelling high-risk, high-reward play in the edtech space. While valuations remain stretched and margins are still evolving, the company’s forward-looking initiatives and improving fundamentals could appeal to long-term investors with a tolerance for volatility.
Source: Economic Times – August 5, 2025
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