Veranda Learning Solutions sees explosive 40% revenue surge, eyes international expansion with Middle East partnership

In a significant display of growth, Veranda Learning Solutions Limited, a prominent education technology company, posted its financial results for Q2 FY25, showcasing a substantial year-on-year (YoY) increase in revenue and profits. The company’s total income reached ₹140.45 crores for the quarter, a 40.07% jump from ₹100.27 crores in Q2 FY24, reflecting its continued momentum in the education sector.

With an impressive rise in operating revenue of 40.91%, the company’s financial performance emphasizes its successful strategy in tapping into diverse educational segments. Veranda Learning’s EBITDA surged to ₹30.40 crores, up by 81.54% from the same quarter last year, driven by operational efficiencies and a steady increase in enrollments across various training programs.

Key Financial Metrics Highlight Growth

For the first half of FY25, Veranda reported a total income of ₹266.87 crores, marking a significant 56.29% growth compared to the same period last year. Gross profit for Q2FY25 also increased to ₹84.17 crores, with a gross profit margin of 60.72%, up from 57.56% in Q2FY24. This growth was attributed to a strong performance across business segments, including competitive exam training, skilling programs, and higher education offerings.

The company’s executive director and chairman, Mr. Suresh Kalpathi, expressed satisfaction over the results, indicating that Veranda Learning’s growth strategy has successfully expanded its educational reach. He highlighted the company’s focus on international growth, pointing to a recent partnership in the Middle East as a vital component of its long-term plans.

Strategic Expansion and Partnerships

Veranda Learning’s recent partnerships, particularly its collaboration with Jumeira University Connect, have positioned the company to tap into the Middle Eastern market. Through J.K. Shah Classes, Veranda now offers a Chartered Accountancy (CA) preparation course in the UAE, aligning with Dubai’s Knowledge and Human Development Authority standards. Mr. Kalpathi noted that this venture is pivotal in enhancing the company’s global footprint and delivering high-quality education to a broader audience.

In addition to its expansion in the Middle East, Veranda Learning has entered into strategic partnerships with several institutions in India. For instance, the company signed a Memorandum of Understanding (MoU) with Madras Christian College to provide on-campus Chartered Accountancy training through JK Shah Classes, furthering the academic reach of both entities. Another noteworthy collaboration with M.O.P. Vaishnav College for Women in Chennai aims to offer a Diploma in Governance and Policy Studies, designed to prepare students for competitive exams.

Domestic Growth and Operational Efficiencies

Domestically, Veranda Learning’s focus on operational efficiencies has yielded significant results. The company’s advertising and business promotion costs for Q2FY25 were ₹15.83 crores, with an overall 9.45% increase YoY, while other expenses saw a 44.94% rise. Veranda’s strong financial footing allows for continued investments in core areas like advertising, content development, and infrastructure to enhance its service delivery.

The company has reported an adjusted EBITDA for Q2 and H1FY25, accounting for ESOP expenses, which stood at ₹32.52 crores and ₹61.35 crores, respectively. Such adjustments underline Veranda’s robust financial management strategies amid rising operational costs. The recent issuance of 20 lakh promoter share warrants at a 70% premium further underscores investor confidence in Veranda’s growth trajectory.

Expert Commentary on the Growth Trajectory

Industry analysts suggest that Veranda Learning’s dual focus on upskilling and competitive exam preparation aligns well with current educational trends. According to experts, the company’s strategy to cater to both B2C and B2B sectors is instrumental in maintaining its growth momentum. By expanding its offerings across competitive exams, professional skilling programs, and international markets, Veranda has established a diversified portfolio that is likely to drive sustained revenue growth.

Educational strategist Anirudh Bansal commented on Veranda’s ability to adapt to evolving market demands, particularly through its hybrid and online learning models. Bansal noted that the company’s partnerships and acquisitions have significantly enhanced its course offerings, making Veranda a competitive player in the education technology sector.

Looking Ahead

With Q2FY25 and H1FY25 results reflecting strong performance metrics, Veranda Learning appears well-positioned to surpass its EBITDA target of ₹120 crores for FY25. Mr. Kalpathi emphasized that the company’s primary focus in the coming quarters will be optimizing operational efficiencies and expanding its educational portfolio to meet market needs. The company’s success in H1FY25, combined with its aggressive expansion strategy, positions it on a promising trajectory to become one of India’s leading educational brands.