Education - May 29, 2025

Veranda Learning Solutions Reports Q4 & FY25 Performance

team maverick May 29, 2025

0 14 min read

Caps FY25 with Strong Turnaround: Achieves Rs. 500 Cr Revenue, EBITDA grows 59% on Strategic Acquisitions and growth push.

Chennai : Veranda Learning Solutions Limited, a public listed Education company (BSE: 543514, NSE: VERANDA) and a pioneer in the industry offering end-to-end Education services and solutions, announced its financial results for the quarter and year ended March 31, 2025.

Key Drivers behind Q4FY25 Performance

Revenue driven by a surge in new admissions, higher bookings, supported by service expansion and remeasured fair value adjustment.
Disciplined cost control maintained despite seasonality and higher operational expenses; underlying business strength reflected in strong EBITDA growth.
Operating cost increase attributed to nationwide advertising campaigns, seasonal exam-centre marketing, and preparation for the upcoming admission cycle, alongside strategic expansion initiatives.
Net Loss narrows driven by the absence of significant non-cash adjustments witnessed in the prior quarter, signaling early signs of recovery.

Consolidated Financial Highlights:

Particulars (Rs. Cr)	Q4 FY25	Q4 FY24	Y-o-Y	Q3 FY25	Q3 FY25 (Pre-Adj.)	Q-o-Q	FY25	FY25(Pre-Adj)	FY24	Y-o-Y
Revenue from Operations	114.1	102.6	11.2%	99.1	110.3	3.4%	470.8	482.1	361.7	33.3%
Other Income	38.9**	1.3	2892.3%	-0.8	1.2	3141.6%	47.4	19.9	8.3	139.8%
Total Revenue	153.0	103.9	47.3%	98.4	111.5	37.2%	518.3	502.0	370.0	35.6%
Gross Profit	71.4	62.9	13.5%	51.5	62.6	14.0%	279.4	290.6	213.0	36.4%
Gross Profit Margin (%)	62.5%	61.3 %	120 bps	0.5%	56.5%	600 bps	59.4%	54.7%	58.0%	-330 bps
Operating Expenses
Adv & Business Promotion	15.1	13.3	13.5%	14.0	14.0	7.9%	61.0	61.0	48.7	25.3%
Corporate Costs	6.8	6.4	6.3%	6.3	6.3	7.9%	25.3	25.3	16.5	53.3%
Other Expenses	28.3	20.0	41.5%	30.0	30.0	-5.6%	118.3	118.3	–	–
One-time expenses	–	–	–	32.2	–	–	32.2	–	–	–
Non-Operating Expenses
ESOP/RSUs	1.4	1.8	-22.2%	1.5	1.5	-6.7%	6.7	6.7	6.7	–
EBITDA	58.7	22.7	158.0%	-33.4	11.9	393.3%	83.3	99.2	62.3	59.1%
Non-Operating Expenses
Finance Cost	35.7	39.5	-9.6%	33.2	NA	NA	132.1	NA	78.2	NA
Depreciation	17.7	22.4	-20.9%	137.8	NA	NA	205.8	NA	66.7	NA
Tax Expenses	-3.0	-0.8	275.0%	-3.7	NA	NA	-2.9	NA	-5.5	NA
PAT	8.4	-38.4	121.9%	-202.9			-251.7		-77.1

Note: All calculations for Q-o-Q and Y-o-Y are performed basis Q3FY25 (pre-adjusted) numbers which includes one- time expenses.

**Other income for Q4FY25 includes remeasurement fair value adjustment of Rs. 29.5 Cr.

Key Consolidated Financial Highlights:

Q4FY25 Revenue from Operations stood at ₹114.1 Cr, up 11% YoY, with Gross Profit rising to ₹71.4 Cr and margin of 62.5%. FY25 Total Revenue (pre-adjustment) surged 35.6% YoY to ₹502.0 Cr, driven by broad-based growth. PAT jumped 121.9%, supported by operational gains and fair value remeasurement-led other income.
The expense for Q4FY25 includes one-time Expected credit loss and Non-cash ESOP expense of Rs. 3.7 Cr. and other income included a gain on remeasurement of financial liability Rs 29.5 Cr. Post the above, the adjusted EBITDA for the quarter ended stood at Rs. 25.6 Cr.
The Company reported an adjusted EBITDA of Rs. 25.6 Cr. in Q4FY25 compared to Rs. 11.9 Cr. in Q3FY25 (pre-adjusted). For FY25, EBITDA (Pre-Adjustment) stood Rs. 99.2 Cr., marking a substantial 59.1% year-on-year increase from Rs. 62.3 Cr. in FY24, highlighting the company’s strong operational momentum and strategic execution.
The Finance cost for the quarter stood at Rs. 35.7 Cr., which includes Rs.19.8 Cr. cash interest (including accrued premium) on the NCDs raised by the company and other borrowings, Rs. 4.28 Cr. towards interest on lease liabilities and Rs. 11.6 Cr. of non-cash expenses the acquisition related liabilities
The Depreciation cost for the quarter stood at Rs. 17.7 Cr. This includes non-cash expense of Rs. 10.3 Cr. arising out of amortization of intangible assets pertaining to the acquisitions completed

Operational Highlights for Q4FY25: Geared up for Scalable Growth with Strategic Moves

Strategic Commerce Acquisitions
Acquired 40.4% in BB Virtuals (prestigious CA online platform) and 65.0% in Navkar Digital (offline commerce leader in Gujarat), boosting presence across online-offline formats and geographies.
Equity Infusion Fuels Momentum
Raised Rs. 35.0 Cr by issuing 11.9L equity shares and Rs. 6.3 Cr by issuing 7.8L share warrants through preferential allotment to promoters and institutional investors, supporting expansion and execution.
Strong Base for FY26
Asset light Model, Improved gross margins, tighter cost control, and integration of high-quality assets position Veranda for scalable, long-term growth.

Segmental Performance

Particulars (Rs. Cr)		VLS group Q4FY25
	Q4FY25	Q4FY24	YoY	Q3FY25 (Pre adj)	QoQ
Operating Revenue
Academic	7.9	3.3	239.4%	7.9	-0.0%
Comm TP	57.1	39.7	43.8%	38.2	49.5%
Vocational	27.4	33.1	-17.2%	31.6	-13.3%
Govt TP	21.6	27.1	-20.3%	32.5	-33.5%
EBITDA
Academic	3.6	2.7	33.3%	3.4	5.9%
Comm TP	25.0	16.7	49.7%	16.4	52.4%
Vocational	1.0	3.7	-73.0%	-0.6	266.7%
Govt TP	8.6	3.6	138.9%	1.0	760.0%

Segment Wise Operational Outlook:

1. Academics: The segment is set to scale rapidly in the K-12 space with an asset-light, integrated model targeting intake at its Chennai and Coimbatore campuses.

2. Commerce Test Preparation:

This segment targets to strongly push into international certifications, digital learning, and regional expansion.
Strong presence in Maharashtra, with efforts underway to boost revenues in Gujarat, Delhi, and Rajasthan, focusing on performance and growth at existing centres.
In the college vertical- aims to expand capacity with partnering with new colleges.

3. Government Test Preparation:

With strong foothold in South and further amplifying reach in Karnataka and Kerala, this segment will witness increase the enrolments following the long-awaited TNPSC notification released on April 25, 2025.
Further launched Race Mobile App, enabling students to learn anytime, anywhere with expert-curated content, mock tests, and performance tracking tools.

4. Vocational Training (online and hybrid models across all age groups):

Focus on industry-relevant postgraduate programs and cutting-edge technology courses across both Indian and international markets.
Expanded to include specialized offerings such as DBA (Doctor of Business Administration), MBA, MSc, and AI-focused programs, designed to meet the growing demand.

Veranda Learning Solutions – Management Statement on Q4FY25 Performance

Mr. Suresh S. Kalpathi, Executive Director and Chairman of Veranda Learning Solutions, added, “We have made significant strides in our journey to become a leading player in the education sector. With the successful execution of the first phase of our growth strategy, we have built a robust portfolio of trusted brands and offerings that span the full academic lifecycle of a student. This marks the conclusion of our acquisition-led growth journey, as we now transition into the next phase—focusing on organic expansion by scaling our existing platforms and deepening our market presence.

In Q3, we successfully concluded the first phase of our strategy by building a strong portfolio of student-focused brands. This marked the end of our acquisition-led expansion, with a pivot toward organic growth and operational synergies. We undertook a strategic review of intangibles, leading to one-time non-cash adjustments for improved transparency. Despite seasonality and exam shifts impacting performance, we laid the groundwork for a stronger FY26 and beyond.

As committed, we’ve delivered a standout Q4 performance driven by sharp execution of our strategic priorities. Crossing the ₹500 Cr revenue mark is a pivotal milestone—signaling enhanced operational efficiency, financial discipline, and the strength of our scalable model. We also successfully closed two key acquisitions—BB Virtuals and Navkar Digital—further strengthening our leadership in the commerce education space. In addition, the completion of a preferential equity raise has reinforced our balance sheet. Looking ahead, we remain focused on scaling across verticals, with an emphasis on digital offerings, global certifications, and regional expansion—positioning us well for sustained growth and long-term value creation.”

About Veranda Learning Solutions:

Veranda Learning Solutions is a leading provider of educational services in India, offering K-12 education, test preparation, vocational training, and professional certifications. The company combines online and offline models for scalable, efficient growth and is committed to empowering individuals for global career opportunities.

Company Contact:	Investor Relations:
Mr. Mohasin Khan, CFO	Ms. Soumya Chhajed
Veranda Learning Solutions Limited	Go India Advisors
mohasinkhan.s@verandalearning.com	soumya@goindiaadvisors.com

Visit us at www.verandalearning.com | CIN L74999TN2018PLC125880

DISCLAIMER: Any forward-looking statements about expected future events, financial and operating results of the Company are based on certain assumptions which the Company does not guarantee the fulfilment of. These statements are subject to risks and uncertainties. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Company’s operations include a downtrend in the industry, global or domestic or both, significant changes in political and economic environment in India or key markets abroad, tax laws, litigation, labor relations, exchange rate fluctuations, technological changes, investment and business income, cash flow projections, interest, and other costs. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof