Veranda Learning Q1 FY27 profit surges 5.7X to Rs 34 Cr

Chennai-based education firm Veranda Learning Solutions has reported a strong start to the 2027 fiscal year, with both top-line and bottom-line surging in the first quarter, driven by overall momentum across its portfolio and disciplined cost management.

Revenue from operations reached Rs 150 crore, a 42% increase from the year-ago period. This growth was fuelled by a 35% rise in total enrolments, which reached 1.03 lakh students, and a 27% increase in collections at Rs 165 crore.

Veranda is a key player in end-to-end education services. The firm saw momentum across its businesses, particularly commerce and government test preparation.

The company achieved its sixth consecutive quarter of profits, with profit after tax (PAT) surging 5.7x to Rs 34 crore. This was supported by a 69% reduction in finance costs, which fell to Rs 8.1 crore, and a 47% reduction in corporate costs. Operating leverage, wherein a business increases its profit by keeping costs low while revenue grows, played a key role in this—via disciplined cost management.

“We began FY27 on a strong note… led by exceptional performance in the commerce and government test preparation businesses, while our K12 segment continued to strengthen its foundation through investments in systems, partnerships and brand-building,” said Suresh S. Kalpathi, Executive Director and Chairman of Veranda Learning Solutions.

Revenue in the commerce test-prep segment rose 53% to Rs 108.6 crore, while government test-prep recorded its best-ever quarter with 15,724 admissions and a 41% rise in revenue at Rs 32.5 crore.

In a strategic move, Veranda Learning Solutions is planning to demerge its commerce business into a separate entity to unlock shareholder value.

Kalpathi noted, "Post demerger, both businesses will have sharper strategic focus, greater operational agility and dedicated capital allocation, enabling them to pursue their respective growth opportunities more effectively."

Amidst all the growth, the company’s gross profit margins saw a slight decrease from 66% to 63%, while other income dropped significantly by 89%.

However, the overall outlook is positive, with plans to expand to 15 new offline locations and grow its network of centres. The company continues to focus on digital-led admissions and expanding partnerships to drive sustainable growth and long-term value for stakeholders.