Veranda Learning Solutions Limited Earnings Summary — Q1 FY2027
Veranda Learning Solutions Swings to Profit in Q1 FY2027 Supported by Robust Revenue Growth in Commerce Segment
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹150 Cr is 41.5% higher year-on-year.
- Revenue has compounded at 18.2% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹29 Cr is 4260.0% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 506.7% annualised across the period.
- Operating margin stands at 34.7% in Q1 FY2027.
- Operating margin expanded by 487 bps year-on-year.
- Over the last two years operating margin has expanded by 1775 bps.
- PBT margin is 20.3%.
- Expense growth of 31.7% remained below revenue growth of 41.5%.
- Operating profit of ₹52 Cr is 64.6% higher year-on-year.
- Operating leverage continues to improve.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 81/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 150 | 132 | 117 | 127 | 106 | 87 | 99 | 106 | 119 | 103 |
| Expenses | Improving | 98 | 85 | 79 | 81 | 74 | 69 | 132 | 78 | 99 | 81 |
| Operating Profit | Volatile | 52 | 47 | 38 | 46 | 32 | 18 | -33 | 28 | 20 | 21 |
| Operating Margin | Volatile | 34.7% | 35.5% | 32.3% | 36.4% | 29.8% | 21.2% | -32.9% | 26.3% | 17.0% | 20.9% |
| Other Income | Volatile | 4 | 6 | 10 | 90 | 20 | 38 | -1 | -3 | 7 | 1 |
| Interest | Declining | 11 | 15 | 13 | 19 | 31 | 36 | 33 | 33 | 30 | 40 |
| Depreciation | Volatile | 14 | 15 | 15 | 14 | 14 | 15 | 140 | 20 | 22 | 23 |
| Profit Before Tax | Volatile | 30 | 24 | 20 | 103 | 7 | 6 | -206 | -28 | -25 | -39 |
| Tax | Volatile | -3 | 8 | 7 | 7 | 2 | -3 | -3 | 4 | 1 | -1 |
| Net Profit | Volatile | 29 | 9 | 10 | 96 | -1 | 5 | -194 | -32 | -27 | -41 |
| Net Margin | Volatile | 19.5% | 6.7% | 8.9% | 75.6% | -0.7% | 5.5% | -195.5% | -30.1% | -22.4% | -40.0% |
Key Takeaways
- Veranda reported a robust 41.52% YoY revenue growth, driven primarily by the Commerce segment which contributed ₹10,858.13 lakhs.
- Net profit saw a significant surge to ₹3,387.35 lakhs, benefiting from a tax reversal of ₹766.67 lakhs following a merger-related reassessment of losses.
- The Group completed the merger of Veranda K-12 with VALS, resulting in tax efficiencies and the dissolution of the transferor company.
- Operating EBITDA remained stable at ₹5,384.96 lakhs compared to ₹5,448.66 lakhs in the prior quarter, despite increased employee benefit costs.
- Finance costs significantly decreased YoY from ₹3,051.79 lakhs to ₹1,090.44 lakhs, reflecting a cleaner debt profile.
- Management is actively restructuring the group to move outside the regulatory thresholds of a Core Investment Company (CIC).
Management Guidance
Management is focused on business rationalization and operational agility through the 'Veranda 2.0' strategy. They are awaiting formal communication from the RBI regarding a waiver for CIC registration following a concrete action plan submitted in November 2024.
Sentiment Shift
Improving
The company has transitioned from heavy historical losses to sustained quarterly profitability, supported by effective tax planning and operational scaling in the commerce segment.
Outlook
The outlook remains positive as the company integrates recent acquisitions and executes the demerger of its Commerce Business into JKSC to unlock shareholder value. However, high interest costs and promoter pledging remain areas for monitoring.
From the Annual Report (Key Quotes)
“The Board Meeting commenced at 10.30 A.M. and concluded at 12.00 P.M. with an unmodified opinion from the Statutory Auditors.”
“Consequent to the Scheme becoming effective, the tax provision of Rs. 766.67 lakhs recognised during the previous year has been reversed.”
“The Group continues to evaluate performance and allocate resources based on analysis of business segments, namely Managed school services, Commerce, and Government test preparation.”
Official Quarterly Documents
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This summary is AI-generated from Veranda Learning Solutions Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.