VERANDA - Veranda Learning

📊 NSE: VERANDA 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 15:03

💰 Financial Performance

Revenue Growth by Segment

The company projects a total revenue of INR 666 Cr for FY26. This is driven by the Commerce segment contributing INR 343 Cr (51.5% of total) and other segments contributing INR 323 Cr (48.5%). The vocational arm, through the SNVA alliance, is targeting a 25% CAGR to reach over INR 250 Cr by FY26.

Geographic Revenue Split

While specific regional percentage splits are not disclosed, the SNVA alliance expands the company's reach to 60+ countries, targeting 1.5Mn+ learners globally, indicating a significant shift toward international revenue streams.

Profitability Margins

The company is currently trading at an EBITDA margin of 35%. It aims to reach a 47% margin over the next 4-5 years through cost rationalization and scaling. For FY26, the Commerce segment is expected to deliver a PAT of INR 103 Cr, while other segments are projected to have a PAT loss of INR 29 Cr.

EBITDA Margin

Consolidated EBITDA for FY26 is projected at INR 232 Cr, representing a 34.8% margin. The Commerce vertical specifically is expected to contribute INR 163 Cr in EBITDA, while the SNVA vocational JV targets an EBITDA exceeding INR 60 Cr by FY26.

Capital Expenditure

The company utilized INR 310 Cr from QIP proceeds to clear legacy debt of Veranda XL. Additionally, 100% of the proceeds from the July 22, 2025, QIP (1,58,71,173 shares) have been utilized toward the objects of the issue, primarily for deleveraging and growth capital.

Credit Rating & Borrowing

Veranda is transitioning from high-cost debt to low-cost single-digit percentage debt (under 10%) through ongoing conversations with public sector banks. It previously raised INR 25 Cr via Non-Convertible Debentures from Ascertis Investment Managers at subsidiary levels (Veranda Race, Veranda XL, Veranda IAS).

⚙️ Operational Drivers

Raw Materials

As an ed-tech firm, primary 'raw materials' are faculty expertise, digital content development, and technology infrastructure. Faculty and content costs are being optimized through a shared-service model and segment-specific rationalization.

Import Sources

Not applicable as the company provides educational services; however, technology infrastructure is sourced globally to support its 60-country reach.

Key Suppliers

Key partners include SNVA EduTech for vocational training and Ascertis Investment Managers for debt financing.

Capacity Expansion

Enrollments grew by approximately 64% quarter-on-quarter, rising from 61,000 to nearly 100,000. The company is expanding its physical footprint by rolling out full courses across all existing centers and regions.

Raw Material Costs

Corporate overheads were rationalized by 37.5%, reducing from INR 24 Cr annually to INR 15 Cr. This reduction directly improves the scalability of the 'Veranda 2.0' model.

Manufacturing Efficiency

The company operates an asset-light, technology-driven model. Efficiency is measured by the conversion of cash collections (INR 173 Cr in Q2FY26) into recognized revenue over course durations.

Logistics & Distribution

Distribution is handled via online, offline, and hybrid blended formats, focusing on digital-led admissions to reduce physical marketing costs.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth will be achieved through the 'Veranda 2.0' strategy, focusing on high-growth segments like government test prep and recruitment-linked training. The company targets 5-7x growth in 3-4 years by expanding course offerings across all centers and leveraging the SNVA alliance for global scaling.

Products & Services

Test preparation for CA (Commerce), IAS, and Banking exams; recruitment-linked training; and vocational courses in AI, technology, data science, and cybersecurity.

Brand Portfolio

JK Shah, Veranda Race, Veranda IAS, Brain4ce (Edureka), and SNVA EduTech (JV).

New Products/Services

Introduction of high-value courses in AI and cybersecurity through the SNVA partnership, expected to contribute to the INR 250+ Cr revenue target for the vocational arm.

Market Expansion

Expansion into 60+ countries via the SNVA partnership and a 1:1 share allotment demerger to create a standalone listed entity for the Commerce business.

Market Share & Ranking

The company claims to be one of the leading education players in India, with its Commerce vertical delivering 154 rankers in recent accounting exams.

Strategic Alliances

50:50 share-swap JV with SNVA EduTech for the vocational arm; partnership with J.K. Shah for the commerce vertical.

🌍 External Factors

Industry Trends

The industry is shifting toward hybrid/blended learning models. Veranda is positioning itself as an 'Education Powerhouse' by integrating offline legacy brands with digital delivery to capture this shift.

Competitive Landscape

Competes with both traditional offline coaching centers and large-scale ed-tech platforms in the test-prep and vocational skilling space.

Competitive Moat

The moat is built on 'Trusted Brands' like JK Shah and a technology-driven, asset-light model. These are sustainable because legacy brands have high entry barriers in test prep, and the 1:1 demerger unlocks specific shareholder value for the commerce segment.

Macro Economic Sensitivity

Highly sensitive to Indian government employment trends and the professional certification market (CA/CMA).

Consumer Behavior

Increasing demand for recruitment-linked training and high-value tech certifications (AI/Cybersecurity) among graduates and professionals.

Geopolitical Risks

Trade barriers or regulatory changes in the 60+ countries served by the SNVA alliance could impact the vocational segment's 25% CAGR target.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI Listing Obligations and Disclosure Requirements (LODR) 2015 and ICAI standards for accounting education.

Environmental Compliance

Not applicable for the education sector.

Taxation Policy Impact

The Commerce segment shows a projected tax impact of approximately INR 4 Cr (PBT INR 107 Cr vs PAT INR 103 Cr) for FY26.

Legal Contingencies

The company has filed a demerger scheme for the Commerce business with exchanges; pending approvals from the NCLT and other regulatory bodies are required for the listing of JK Shah Commerce Education Limited.

⚠️ Risk Analysis

Key Uncertainties

The successful execution of the demerger and the ability of the non-commerce vertical to reach profitability (currently projected at a PAT loss of INR 29 Cr for FY26).