Transcript of the Earnings Call held on August 05, 2025
VERANDA · price
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Veranda Learning Solutions reported a strong start to FY26 with consolidated revenue of INR139 crores, up 17% year-on-year, driven by growth across all segments. EBITDA nearly doubled to INR55 crores and net profit rose 123% to INR6 crores. The company has reduced debt from INR510 crores to INR195 crores using INR357 crores raised via QIP, and plans to repay the balance through operational accruals with no further dilution or new debt. Management gave FY26 guidance of INR660 crores revenue, INR242 crores EBITDA, and PAT of INR80–85 crores. The commerce vertical (Prof. JK Shah-led) is being demerged and separately listed by March–May 2026, with FY26 targets of INR340 crores revenue and INR170 crores EBITDA. Non-commerce vertical targets EBITDA above INR60 crores in FY26, with plans to add 5–6 schools on an asset-light model. ROCE is projected to rise from 13% currently to 35% by FY30.
The combination of sharp EBITDA growth, debt reduction, and a clear demerger roadmap should boost investor confidence. Shareholders will benefit from a separately listed commerce entity plus the residual Veranda non-commerce business, with no further dilution planned. Short-term stock could react positively to the strong earnings beat and detailed FY26 guidance, though the 17.2% high-cost debt being refinanced only by March 2026 remains a watch item.