Veranda Learning Solutions Limited (ISIN: INE0IQ001011) has reported robust financial results for Q2, alongside significant strategic developments that are set to reshape the company's future.

Financial Highlights

The company reported impressive year-on-year growth in Q2:

• Revenue: Rs. 127.00 crores (19% YoY growth)
• EBITDA: Rs. 48.00 crores
• Adjusted PAT: Rs. 23.30 crores (185% YoY growth)

Record Cash Collections and Enrollments

Veranda Learning achieved record cash collections of Rs. 173.00 crores in Q2, compared to Rs. 137.00 crores in the previous quarter. Student enrollments saw a substantial increase from 61,000 to nearly 1 lakh students.

Strategic Restructuring

The company announced three major strategic initiatives:

1. Commerce Division Demerger: The Board has approved the demerger of the Commerce Test Prep vertical into J.K. Shah Commerce Education Limited. This new entity is expected to be debt-free and generate Rs. 350.00 crores in revenue and Rs. 140.00 crores in EBITDA by FY26. Existing shareholders will receive one share of the new entity for every Veranda share held.

2. Vocational Segment Divestment: Veranda has divested its vocational segment to SNVA EduTech Limited in a share-based arrangement, giving Veranda a 50% stake in the global education enterprise.

3. Veranda 2.0 Strategy: The company will now focus on government test prep and academic segments.

Future Outlook

Management has provided guidance for FY26 for the combined entity:

• Revenue: Rs. 650.00 crores
• EBITDA: Rs. 170.00 crores
• PAT: Rs. 70.00 crores

Segment Performance

The company's performance across different segments shows mixed results:

Debt Reduction and Refinancing

Veranda has significantly reduced its debt burden following a recent QIP (Qualified Institutional Placement). The company is in advanced talks with public sector banks to refinance its remaining high-cost debt, which is expected to further improve profitability.

Expansion Plans

The company plans to expand its presence in the education sector through:

• Adding new junior colleges and degree colleges under the Tapasya and J.K. Shah brands
• Expanding BB Virtual, the online arm for coaching classes
• Introducing foreign courses like ACCA, CMA, and CFA across existing centers

These expansions are planned to be executed in an asset-light model, primarily through leased premises and minimal capital expenditure.

Veranda Learning Solutions appears to be at a pivotal point in its growth journey, with strategic restructuring and strong financial performance setting the stage for potential value creation for shareholders in the coming years.

Veranda Learning Solutions Limited , a leading education company, has announced its financial results for the quarter ended September 30, 2025, showcasing robust growth and strategic developments.

Financial Highlights

• Revenue from operations for Q2 FY26 stood at INR 126.70 crore, marking a 20% year-on-year growth.
• EBITDA surged by 63% year-on-year to INR 48.30 crore, with margins expanding by 1017 basis points to 38%.
• Profit After Tax (PAT) witnessed a significant jump of 185% year-on-year, reaching INR 23.30 crore.

Segment Performance

The Commerce segment emerged as the star performer with a 68% year-on-year revenue growth, while the Government Test Preparation segment maintained stability.

Strategic Developments

1. Maiden QIP Completion and Utilization

The company successfully raised INR 357.00 crore through a Qualified Institutional Placement (QIP), with approximately 87% utilized to repay high-interest debt. Veranda Learning Solutions has confirmed complete utilization of proceeds raised through its QIP of 1,58,71,173 equity shares conducted on July 22, 2025. The company raised Rs 31,000 lakhs which was fully utilized for redeeming senior, secured, unlisted, redeemable, non-convertible debentures issued by its subsidiary Veranda XL Learning Solutions Private Limited, including interest payments. The company reported no deviation in the use of issue proceeds compared to the original objects. The Audit Committee reviewed the statement and the Board took it on record during their meetings held on October 28, 2025.

2. Commerce Vertical Demerger

Veranda Learning Solutions is demerging its Commerce brands into a new entity, "JK Shah Commerce Education Ltd", which will be debt-free and poised for growth.

3. Vocational Segment Divestment

On October 27, 2025, Veranda Learning Solutions completed the strategic divestment of its vocational segment through equity share allotments by SNVA Edutech Limited. As part of this transaction:

• SNVA Edutech allotted 15,432 equity shares to Veranda Learning as consideration for the sale of its entire equity shareholding in Brain4dce Education Solutions Private Limited and Veranda Management Learning Solutions Private Limited.
• An additional 2,902 equity shares were allotted to Veranda Administrative Learning Solutions Private Limited for the sale of Six Phrase Edutech Private Limited.
• Following these transactions, Veranda Learning and its subsidiary collectively hold 50% of SNVA Edutech's equity share capital, making SNVA Edutech an associate company.

4. Operational Efficiency

The company reported a 26% rise in collections, indicating successful new course launches and high-ticket programs, with an addition of approximately 45,000 students.

Management Commentary

Mr. Suresh S. Kalpathi, Executive Director and Chairman of Veranda Learning Solutions, stated, "We have completed the first half of the year with strong momentum, driven by consistent growth in student enrolments, expansion of course offerings, and the successful launch of new programs across both online and offline platforms."

He further added, "Looking ahead to Q3, our priorities include enhancing faculty capabilities, accelerating digital-led admissions, deepening partnerships with universities and corporates, introducing high-value courses, and optimizing marketing efforts."

Future Outlook

The company plans to focus on strengthening and scaling its core verticals - Academics and Government Test Preparation. Key initiatives include:

• Expanding JEE/NEET programs and digital-driven admissions in the Academic segment.
• Launching new franchises, courses, and partnerships in the Government Test Prep segment.
• Introducing high-value courses and optimizing marketing efforts across all verticals.

Veranda Learning Solutions appears well-positioned to capitalize on the growing demand for quality education and test preparation services in India, with its strategic initiatives aimed at sustaining robust growth and improving operational efficiency.

Additional Information

In a separate development, JM Financial Services Limited has released encumbrance on Veranda Learning Solutions shares, reducing its pledged holdings from 5.80% to 1.26% of the company's equity capital. This was achieved through the release of pledge on shares used as collateral for margin trading facilities.