VERANDA Q1 FY26 earnings call.
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Revenue
₹106 Cr
verified against source
Revenue YoY
17%
reported change
EBITDA
₹55 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Veranda Learning Solutions delivered a solid Q1 FY26 with consolidated revenue of ₹139 crores (+17% YoY) and EBITDA of ₹55 crores (near doubling YoY), marking the second consecutive quarter of profitability. The company has successfully executed its Veranda 2.0 strategy through the ₹357 crore QIP and demerger of its commerce vertical, reducing debt from ₹510 crores to ₹195 crores. The commerce vertical remains the dominant profit contributor with EBITDA guidance expanding from ₹140 crores to a projected ₹500 crores by FY30. Management targets FY26 revenue of ₹660 crores with EBITDA of ₹242 crores and PAT of ₹80-85 crores. The non-commerce segment (academics, government test prep, vocational) is expected to deliver EBITDA of over ₹60 crores while deleveraging to below 2x Debt/EBITDA by FY27. Key risks include the high-cost 17.2% acquisition debt requiring refinancing by March 2026, vocational segment restructuring outcomes, and the challenging economics of scaling K12 schools in new geographies.
Colored figures show movement against the previous available record.
Guidance to track
- Consolidated revenue guidance of ₹660 crores across commerce and non-commerce verticals, with commerce contributing ₹340 crores to the top line.
- Targeting EBITDA of approximately ₹242 crores for FY26, supported by strong Q1 performance of ₹55 crores.
- Profit after tax guidance of ₹80-85 crores for FY26, reflecting improved operational leverage and significantly lower interest costs.
- Non-commerce vertical (academics, government, vocational) expected to deliver EBITDA of over ₹60 crores in FY26, deleveraging to below 2x Debt/EBITDA by FY27.
Risks flagged
- ₹120 crores of debt currently at 17.2% coupon requires refinancing by March 2026 when the moratorium period ends. Management expects to reduce this to single/low double-digit rates using owned land and building assets worth ₹100 crores as collateral. Failure to refinance at favorable terms could impact profitability.
- The vocational business is undergoing product portfolio restructuring—dropping AI-impacted low-R2 courses and shifting to higher-value AI, DevOps, and certification programs. Higher ed business has negative EBITDA due to upfront customer acquisition costs against revenue recognized over 1-2 years. Q1 shows green shoots but full turnaround visibility is still developing.
- Six new schools planned for non-commerce vertical at ₹2-3 crores each in lease deposits and initial marketing. Combined with 5-6 new commerce colleges at ₹3-4 crores each, total capex of ₹29-30 crores creates near-term cash deployment. Asset-light model talks reportedly ongoing but no signed deals yet, with results expected in FY27 academic year.
- Scheme of arrangement for JK Commerce Education Limited demerger filed by September 1st with expected completion in 8 months (March-April 2026). Any regulatory delays or shareholder approval issues could impact the planned value unlock and capital structure benefits.
Key quotes
- We are pleased to report a solid start to FY26 marked by strong revenue growth and a sharp improvement in profitability. Consolidated revenue grew 17% year on year to 139 crores driven by broadbased growth across segments, EBITDA nearly doubled year on year to 55 crores, and we continue our profitable trajectory with a net profit of 6 crores up 123% year on year.
- The central idea behind Veranda 2.0 is simply unbundling, creating focused verticals, giving them independent strategies and capital access, and unlocking significant synergies across the platform without any operational overlap.
- We expect each of our unbundling in very real time to not just generate some value but generate significant value by taking up full production in each of the respective markets. As potentially the biggest leader of the commerce segment, we expect the change in composition of GDP to drive significant opportunity.
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