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.

Veranda Learning Solutions Limited (VERANDA) has reported a robust financial performance for the second quarter, marking a significant turnaround with substantial revenue growth and a return to profitability.

Revenue and Profitability Surge

The company witnessed a notable increase in its top line, with revenue rising to ₹1.30 billion from ₹1.00 billion in the same quarter last year, representing a year-over-year growth of 30%. This growth underscores Veranda Learning's strengthening market position and the effectiveness of its business strategies.

In a remarkable turnaround, Veranda Learning reported a consolidated net profit of ₹960.00 million, compared to a loss of ₹320.00 million in the corresponding period of the previous year. This shift to profitability is a strong indicator of the company's improved operational efficiency and strategic initiatives bearing fruit.

Operational Performance

The company's operational performance showed significant improvement, as evidenced by the following key metrics:

The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) improved to ₹462.00 million from ₹278.00 million, indicating enhanced operational efficiency. The EBITDA margin expanded significantly to 36.44% from 26.30%, reflecting improved profitability and cost management.

Exceptional Gain

It's worth noting that the company recorded an exceptional gain of ₹902.00 million during the quarter, which contributed to the overall profitability. While the nature of this gain is not specified in the provided data, it has positively impacted the company's bottom line.

Management Commentary

While specific management comments are not available in the provided information, the strong financial results suggest that Veranda Learning's strategic initiatives and focus on operational efficiency are yielding positive outcomes. The company's ability to turn around from a loss-making position to profitability within a year is particularly noteworthy.

Looking Ahead

As Veranda Learning Solutions continues to demonstrate strong financial performance, investors and stakeholders will likely be watching closely to see if this positive trend can be sustained in the coming quarters. The company's ability to maintain revenue growth while improving profitability margins will be key factors to monitor.

The education technology sector, in which Veranda Learning operates, continues to evolve rapidly. The company's performance suggests it is well-positioned to capitalize on the growing demand for quality education and training solutions.