Any current/future new fundraising through debt or equity?

The company is currently in conversations with public sector banks to switch existing high-cost debt in the non-commerce vertical to a low-cost single-digit percentage debt. They expect refinancing to happen in Q3 (around December), with significant reduction in finance cost expected from Q4 onwards. Post-demerger, the commerce vertical is intended to be a debt-free entity. Expansion plans are focused on an asset-light model, primarily through lease deposits and working capital, with no major acquisitions planned. The company plans to build a cash pool from internally generated funds to buy ou

Any current/future capex/capital investment/strategic investment?

Expansion of colleges (both junior and degree colleges) under the Tapasya brand in Hyderabad and Bangalore, with new campuses planned to start admissions next academic year. Expansion of BB Virtual (online coaching arm) to offer more foreign and domestic courses like ACCA, CFA, CMA, CA, leveraging existing faculty and content. Pan-India expansion of foreign courses through J.K. Shah, Navkar, and Logic offline centers covering over 100 centers. All expansions will be asset-light, primarily using leased premises with investments limited to lease deposits and initial working capital. Incr

Future growth expectations in earnings/operating earnings/profits/EPS?

**Quarter-on-quarter profit growth** expected due to large addressable market and operational efficiencies (Page 20). FY '27 guidance: - Revenue approx. Rs. 250 crores for the whole company including all segments (Page 16). - Combined FY '26 guidance: Revenue Rs. 650 crores, EBITDA Rs. 170 crores, PAT Rs. 70 crores (Page 5, 10). - Commerce segment EBITDA target of Rs. 200 crores by FY '27, debt-free with asset-light expansion (Page 9, 10). - Non-commerce segment EBITDA expected Rs. 50-60 crores with reduced finance cost and residual debt (Page 10, 16). ROE target to improve

Veranda Learning Solutions LtdQ3 FY26

Veranda Learning Solutions Ltd Q3 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹246P/E: 106.5Market Cap: ₹2.5K Cr

Management growth scorecard

Revenue

Category 3

Margin

Category 1

Fundraise

Yes

Order

N/A

Capex

Yes

3 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

Future growth expectations for Veranda Learning Solutions Limited are as follows: - Revenue guidance of Rs. 650 crores for FY '26, with EBITDA Rs. 170 crores and PAT Rs. 70 crores. - Quarterly revenue to grow steadily with Rs. 180-190 crores expected in Q3 and Q4 each. - Enrollment increased from 61,000 to nearly 1 lakh this quarter, indicating strong volume growth. - Academic segment to grow by 7-8% in student intake and 7-8% annual fee hikes. - Expansion plans include adding more CBSE schools, primarily via an asset-light REIT funding model. - Growth in commerce segment through expansion of junior and degree colleges, new courses, and online offerings. - Government test prep segment set for geographic expansion and new program launches. - Overall, expecting steady quarter-on-quarter growth due to strong market demand and strategic initiatives.

Margin guidance

Category 1

→**Quarter-on-quarter profit growth** expected due to large addressable market and operational efficiencies (Page 20).
→FY '27 guidance:
→ - Revenue approx. Rs. 250 crores for the whole company including all segments (Page 16).
→ - Combined FY '26 guidance: Revenue Rs. 650 crores, EBITDA Rs. 170 crores, PAT Rs. 70 crores (Page 5, 10).
→ - Commerce segment EBITDA target of Rs. 200 crores by FY '27, debt-free with asset-light expansion (Page 9, 10).
→ - Non-commerce segment EBITDA expected Rs. 50-60 crores with reduced finance cost and residual debt (Page 10, 16).
→ROE target to improve from current 12% to 24-25% in 3 years and 30% in 5 years (Page 14).
→Expansion focus on CBSE schools, new colleges, online/offline centers expected to fuel growth (Page 8, 14, 15).
→Referral programs and fee increments (7-8% annually) will support steady revenue and EBITDA growth (Page 13-14).

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Fundraise plans

Yes

→The company is currently in conversations with public sector banks to switch existing high-cost debt in the non-commerce vertical to a low-cost single-digit percentage debt.
→They expect refinancing to happen in Q3 (around December), with significant reduction in finance cost expected from Q4 onwards.
→Post-demerger, the commerce vertical is intended to be a debt-free entity.
→Expansion plans are focused on an asset-light model, primarily through lease deposits and working capital, with no major acquisitions planned.
→The company plans to build a cash pool from internally generated funds to buy out residual stakes in businesses over the next 5-6 years.
→No explicit new equity fundraising mentioned, but discussions around listing the J.K. Shah Commerce Education Limited by end of Q1 FY '27 are ongoing.
→They are evaluating models like REIT for expanding school assets, potentially involving private equity investors indirectly.

Order book

The transcript does not explicitly mention details about the current or expected order book or pending orders for Veranda Learning Solutions Limited. However, some related points include: - Enrollments have grown significantly, from 61,000 to nearly 1 lakh students this quarter compared to last quarter, indicating strong demand. - Collections reached around Rs. 173 crores this quarter, up from Rs. 137 crores last quarter, reflecting healthy revenue inflows. - The company is focusing on expansion in junior colleges, online courses (BB Virtual), and offline centers across multiple cities. - Expansion plans are asset-light and aimed at increasing the pipeline of students and courses. - Discussions are ongoing related to receivable cycles from schools in private equity models, impacting cash collection timing. - The overall strong growth and expansion strategy suggest a robust pipeline of future enrollments serving as an implicit order book. No explicit values or figures on order book or pending orders were provided.

Capex plans

Yes

→Expansion of colleges (both junior and degree colleges) under the Tapasya brand in Hyderabad and Bangalore, with new campuses planned to start admissions next academic year.
→Expansion of BB Virtual (online coaching arm) to offer more foreign and domestic courses like ACCA, CFA, CMA, CA, leveraging existing faculty and content.
→Pan-India expansion of foreign courses through J.K. Shah, Navkar, and Logic offline centers covering over 100 centers.
→All expansions will be asset-light, primarily using leased premises with investments limited to lease deposits and initial working capital.
→Incremental investments in faculty for new online courses will be recorded as revenue expenses rather than capital expenditure.
→No major acquisitions planned; focus is on internal expansion, CAPEX limited to lease deposits and working capital.
→Strategic consideration of REIT model for school expansions to remain asset-light while scaling K-12 segment.

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