Q1 2027 Veranda Learning Solutions Ltd Earnings Call Transcript
Key Points
- Revenue from operations grew 42% year-on-year to ₹150 crore in Q1 FY27, driven by strong performance in commerce and government test prep segments.
- PAT surged 472% year-on-year to ₹34 crore, marking the sixth consecutive quarter of positive PAT performance.
- EBITDA margin remained healthy at approximately 36%, with disciplined cost management and continued operational efficiencies.
- The proposed demerger of the commerce business is on track, with NCLT approval expected soon and listing targeted by September 2026, which is expected to unlock shareholder value.
- The company is expanding its offline commerce college network by 15 new locations and entering new geographies (UP, Bihar, Rajasthan, Gujarat) to reduce regional concentration and tap underserved markets.
- Consolidated EBITDA grew only 10% year-on-year despite 42% revenue growth, partly due to one-time other income in the prior year and increased advertising and expansion expenses.
- EBITDA margin has been on a declining trend over recent quarters, from 36.44% in Q2 FY26 to 34.71% in Q1 FY27, raising concerns about margin sustainability.
- The company faces execution risks in scaling its K12 managed schools business, which is still in early stages with only six schools and 5,400 students.
- The demerger process has faced delays, with the NCLT hearing scheduled for August 17, 2026, and the listing expected only by September 2026, creating uncertainty.
- The company's debt levels remain significant, with ₹125 crore in commerce and ₹145 crore in non-commerce, and future deferred consideration payouts are tied to EBITDA achievements, adding financial obligations.
Ladies and Gentlemen, Good day and welcome to the Veranda Learning Solutions Limited Q1 FY27 Earnings Conference Call hosted by Go India Advisors LLP. (Operator Instructions). I now hand the conference over to Ms. Soumya from Go India Advisors LLP.
Thank you and over to you ma'am.
Good day everyone and welcome to Q1 FY27 conference call of Veranda Learning Solutions Ltd. We have on call with us Mr. Suresh Kalpathi, Chairman and Executive Director and Mr. Mohsen Khan, the Chief Financial Officer. We must remind you that discussion on todayâs call may include certain forward looking statements and must be therefore viewed in conjunction with the risk pertaining to the business. I now request the management to take us through the business update and post that. Weâll open the floor for Q and A. Thank you. And over to you sir.
hank you. Thank you Somyam. Good afternoon everyone and
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