Strong Turnaround in Profitability
Veranda Learning Solutions Ltd (NSE: VERANDA) delivered a notable financial turnaround in the third quarter of FY2026, underscoring the impact of operational restructuring and disciplined cost management. The education technology company reported a profit after tax (PAT) of ₹17 crore, reversing a loss of ₹169.9 crore recorded in the same period last year.
Revenue Growth and Margin Strength
Revenue from operations climbed 52% year-on-year to ₹116.7 crore, reflecting improved traction across business segments and stronger execution. Gross profit rose 47% to ₹75.8 crore, sustaining healthy margins of about 65%.
Operational Efficiencies Lift EBITDA
The most striking improvement came at the operating level. EBITDA surged 328% to ₹52.6 crore, while margins expanded to roughly 45%, supported by operational efficiencies and cost optimization initiatives. A 67% reduction in finance costs and a 92% decline in depreciation—linked to the company’s “Veranda 2.0” restructuring strategy—further boosted profitability.
Nine-Month Performance Signals Recovery
For the nine months ended FY26, revenue increased 29% to ₹349.1 crore, while PAT grew 119% to ₹43.1 crore, signaling sustained recovery momentum after prior-year losses.
Strategic Joint Venture to Support Growth
Another highlight of the quarter was the formation of the SNVA Veranda joint venture, which targets revenue exceeding ₹250 crore by FY27 and could potentially be separately listed. The initiative reflects management’s focus on scaling specialized education offerings and unlocking shareholder value through strategic partnerships.
Watch Points for Investors and Analysts
However, analysts may seek deeper disclosures on balance sheet strength, net debt, and cash flows to evaluate the durability of this turnaround. The company’s profitability was partly supported by a sharp rise in “Other Income,” which jumped significantly year-on-year.
Outlook
Overall, the quarter marks an inflection point for Veranda Learning as it transitions from restructuring toward growth. If operational gains persist and new ventures scale as planned, the company could strengthen its position within India’s rapidly evolving edtech landscape.