Veranda Learning caps FY25 with Rs 500cr revenue, EBITDA surges 59% amid strategic reset

What Drove Veranda Learning’s FY25 Turnaround Performance?

On May 28, 2025, Veranda Learning Solutions Limited (NSE: VERANDA, BSE: 543514) announced a robust set of financial results for Q4 and the full fiscal year FY25, marking a major inflection point in its growth trajectory. The Chennai-based edtech company, which had been loss-making for several quarters, reported a total consolidated revenue of ₹518.3 crore for the year, with EBITDA rising 59% year-over-year to ₹99.2 crore, before adjustments. This came amid a strategic pivot from acquisition-heavy expansion to disciplined, organic scaling.

The Q4FY25 results signal a growing maturity in Veranda Learning’s operations, as the company narrowed its net loss substantially and showcased clear signs of earnings recovery. Total revenue for the fourth quarter stood at ₹153.0 crore, up nearly 47% year-over-year, while adjusted EBITDA came in at ₹25.6 crore, more than doubling sequentially.

The company credited the performance to a combination of new student intake, higher course bookings, fair value gains of ₹29.5 crore, and disciplined cost control—even as it incurred seasonal ad expenses tied to the exam and admissions cycle.

How Has Veranda’s Strategic Focus Shifted in FY25?

FY25 was a year of transition for Veranda Learning. Having completed a series of high-profile acquisitions in 2022–2024—such as J.K. Shah Classes, Edureka, Tapasya, and most recently BB Virtuals and Navkar Digital—the company formally concluded what it described as “Phase 1” of its growth model: acquisition-led scale-up. Under the new “Veranda 2.0” banner, the firm is now pivoting toward deeper platform integration, margin optimization, and tier-2/3 regional expansion.

This shift was evident in its capex-light moves such as issuing equity shares worth ₹35 crore and share warrants worth ₹6.3 crore to fuel future execution. Management stated that the company now plans to focus on scalable delivery via a hybrid mix of online and offline formats, supported by robust content and technology capabilities.

How Did Segment Performance Contribute to Q4FY25 Growth?

Commerce Test Preparation remained the strongest performing vertical in Q4FY25, with revenue rising to ₹57.1 crore, a 43.8% YoY jump. EBITDA from this vertical surged 49.7% to ₹25 crore. This was followed by solid performance from the Academic and Government Test Preparation divisions, the latter benefiting from a notable 760% sequential EBITDA spike due to a recent spike in enrollments following the TNPSC notification in Tamil Nadu.

However, the Vocational segment saw some contraction, with revenue down 17.2% YoY and EBITDA sharply lower at ₹1 crore. This is attributed to demand normalization in tech courses and the transition toward high-value postgraduate offerings like DBA, MBA, and AI-focused upskilling modules, which are yet to reach full-scale monetization.

What’s the Current Stock Market Sentiment on Veranda Learning?

Despite the company’s improved financial metrics, Veranda Learning’s stock closed marginally lower at ₹208 on May 28, 2025, down 0.40% from the previous close of ₹208.83. Trading volume remained muted at 0.28 lakh shares with a traded value of ₹0.59 crore. The stock currently holds a market capitalization of ₹1,547 crore, with a 52-week range spanning from ₹135 to ₹360.25.

The company’s adjusted P/E remains undefined due to its trailing earnings profile, as it has been loss-making for the past eight quarters. However, investor attention is gradually returning, particularly as institutional confidence is seen in the recent preferential allotment activity. The stock’s free float market cap is ₹669 crore, signaling moderate liquidity for retail and institutional players.

Analyst sentiment appears cautiously optimistic, especially given the delivery percentage of 52.86%—an indication of growing investor conviction. However, broader sector sentiment for small-cap education plays remains sensitive to policy updates, macro slowdown risk, and competitive pricing dynamics in digital learning.

What Are the Key Risks and Strategic Levers Going Forward?

While Veranda Learning has demonstrated margin improvement and topline growth, its high finance costs and depreciation charges remain a drag. Q4FY25 saw a finance cost of ₹35.7 crore and depreciation of ₹17.7 crore, both impacted by non-cash acquisition-related adjustments and amortization of intangible assets. These costs are expected to normalize once integration stabilizes.

Looking ahead, the company has outlined a multi-pronged expansion approach. This includes deeper penetration into the commerce vertical via CA, CMA, CPA, and international certifications, regional growth across Gujarat, Delhi, and Rajasthan, and wider use of digital tools such as the Race Mobile App to enhance student engagement. The company’s tie-up with IIT Madras under SWAYAM Plus to deliver competitive exam content reflects its aim to build institutional partnerships to scale delivery.

Management expects these moves to drive higher enrollments across FY26, especially in the post-K-12 and vocational skilling categories where demand is growing both in India and abroad.

Can Veranda Sustain the Momentum in FY26?

Veranda Learning enters FY26 with a sharper focus on operational excellence, tech-led scalability, and regional inclusivity. Having crossed the critical ₹500 crore revenue threshold, the company appears positioned to transition from turnaround to growth stock—provided it can contain its cost structure and continue to deliver on earnings visibility.

While the path to profitability remains contingent on tighter financial controls and demand realization across verticals, its strategic portfolio, credible brand presence, and institutional support suggest a positive long-term outlook.