Veranda Learning Solutions has successfully executed key financing agreements with City Union Bank Limited for a substantial term loan facility. The education services company formalized the loan arrangement on February 24, 2026, following regulatory approvals obtained in early February.

Agreement Execution Details

The company executed two critical agreements on February 24, 2026, at 11:30 PM IST to facilitate the Rs 140 crores term loan facility. The executed agreements include the Term Loan Agreement and Deed of Hypothecation, both designed to secure the borrowing arrangement with City Union Bank Limited.

Comprehensive Security Structure

The term loan facility is backed by extensive collateral and guarantee arrangements. The security package includes substantial real estate assets owned by subsidiary companies, providing robust backing for the lending arrangement.

Collateral Security Details

The loan is secured by prime real estate properties owned by Veranda K-12 Learning Solutions Private Limited:

Guarantee and Hypothecation Framework

The security arrangement includes personal guarantees from the company's promoters - Kalpathi S Aghoram, Kalpathi S Ganesh, and Kalpathi S Suresh. Corporate guarantees have been provided by Veranda K-12 Learning Solutions Private Limited and Veranda Race Learning Solutions Private Limited.

The hypothecation covers receivables and current assets of nine group companies, including the parent company and various wholly-owned and step-down subsidiaries. Additionally, the promoters propose to create a pledge over equity shares worth Rs 50 crores, with the pledge agreement to be executed separately.

Strategic Financial Restructuring

This comprehensive financing arrangement enables Veranda Learning Solutions to redeem outstanding Non-Convertible Debentures issued by the company and its wholly-owned subsidiary, Veranda Race Learning Solutions Private Limited. The transaction represents a strategic debt restructuring initiative, optimizing the company's capital structure while maintaining compliance with regulatory requirements under SEBI Listing Regulations.

Veranda Learning Solutions Limited has filed the transcript of its earnings conference call for Q3 FY26, held on February 06, 2026, with stock exchanges under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The comprehensive transcript provides detailed insights into the company's strong quarterly performance and strategic initiatives under its Veranda 2.0 transformation.

Q3 FY26 Financial Performance

The earnings call revealed exceptional financial results for the quarter ended December 31, 2025. Key performance metrics demonstrate robust operational leverage and disciplined execution across core verticals:

The company achieved its fourth consecutive profitable quarter, with student enrollments reaching 111,363, representing a 55% year-on-year increase. Collections grew by 46% to over ₹144.00 crores during the quarter.

Nine Months FY26 Consolidated Results

The strong quarterly execution translated into robust nine-month performance, reinforcing the company's strategic direction:

Demerger Process Update

Chairman Suresh Kalpathi provided significant updates on the commerce vertical demerger during the call. The process has advanced considerably with key regulatory approvals secured:

The demerger will create J.K. Shah Commerce Education Limited as a focused commerce education platform, with projected EBITDA of ₹200.00 crores for FY27.

Strategic Initiatives and AI Integration

The management outlined comprehensive AI adoption across multiple functions, including telecalling, assessments, customer support, and multilingual content delivery. Chief Operating Officer Aditya Malik reported that AI courses constitute 35% to 40% of Edureka's revenue, demonstrating successful monetization of emerging technology trends.

SNVA Veranda Partnership

The strategic partnership with SNVA has been formalized as SNVA Veranda Limited, targeting ₹250.00 crores revenue and over ₹60.00 crores EBITDA for FY27. The entity combines Veranda's domestic presence with SNVA's international university network across the US, UK, Europe, and Singapore.

Debt Refinancing and Capital Structure

CFO Mohasin Khan confirmed ongoing refinancing initiatives to replace existing debt of ₹222.00 crores at 17% interest rate with lower-cost alternatives at approximately 9.90%. The company secured ₹140.00 crores for refinancing purposes, significantly reducing future interest costs.

Forward Guidance

Management provided optimistic projections for FY27, expecting 60% to 65% EBITDA growth in core verticals through asset-light expansion models. The government test preparation segment will expand through franchising, while the academic segment plans to double managed schools through REIT partnerships.

The transcript is available on the company's website at verandalearning.com under stock exchange intimations, ensuring transparency and accessibility for all stakeholders.

Source: Veranda Learning Solutions Limited earnings call transcript filed under Regulation 30