Veranda Learning Q3 profit soars 110% as 'Veranda 2.0' strategy gains traction

Education services provider Veranda Learning Solutions reported a surge in third-quarter profit on Friday, as a sharp rise in student enrollments and a strategic focus on cost optimisation under its "Veranda 2.0" restructuring plan bolstered the bottom line.

This strategic pivot marks a transition from the company's "Veranda 1.0" phase, which was characterised by rapid acquisitions and expansion to build a unified technology stack across diverse learning formats.

The Chennai-based company , which offers services ranging from K-12 education to professional certifications, saw its net profit jump 110% to Rs 17 crore for the quarter ended Dec. 31, 2025, up from the same period a year earlier.

This performance was underpinned by a 52% increase in revenue from operations, which reached Rs 117 crore, driven primarily by robust demand in the government test preparation and commerce verticals.

The company's operational efficiency initiatives, including process standardisation and resource optimisation, led to a 328% surge in EBITDA to Rs 53 crore, while gross profit margins remained strong at 65%.

"All business segments delivered healthy growth during the period. With the approval of the commerce demerger and completion of the vocational divestment, we are now better positioned to sharpen focus and scale our core verticals- Academics and Government Test Preparation. Going forward, our priorities include strengthening faculty capabilities, accelerating digital-led admissions, deepening partnerships with universities and corporates, launching higher-value programs, and optimising marketing effectiveness," shared Veranda Executive Director and Chairman Suresh S. Kalpathi in a press note.

Within the specific business segments during the third quarter, the Commerce Test Prep vertical remained a primary growth engine with revenue more than doubling to Rs 80.2 crore, while the Government Test Prep division delivered record admissions exceeding 10,000 students.

Veranda is currently advancing a demerger of its commerce vertical to create J.K. Shah Commerce Education Ltd, a move intended to sharpen focus on core segments and unlock long-term shareholder value. This unbundling strategy aims to spin off high-performing units into independent, debt-free listed entities, mirroring trends seen in the FMCG and technology sectors.