Veranda Learning Solutions Ltd (NSE: VERANDA) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Kalpathi S. Suresh — Executive Director
Saurani Pathan Mohasin Khan — Chief Financial Officer
Aditya Malik — Chief Operating Officer
Analysts:
Unidentified Participant
Soumya Jajad — Analyst
Harshal Mehta — Analyst
Dipesh Sancheti — Analyst
Presentation:
operator
Ra. It. Sa. Sa. Sa. Ladies and gentlemen, you are connected to Veranda Learning Solutions Limited. The conference will begin shortly, requesting the participants to please stay connected. Thank you. Foreign ladies and gentlemen, good day and welcome to veranda Learning Solutions Limited for Q3 and 9 months FY26 earnings call. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Ms. Soumya Jajad. Thank you. And over to you ma’. Am.
Soumya Jajad — Analyst
Good day everyone and welcome to Q3 and nine month FY26 conference con call of Veranda Learning Solutions Limited. We have on call with us Mr. Suresh Kalbat, the Chairman and Executive Director, Mr. Asta Malik, the Chief Operating Officer and Mr. Mohsen Khan, the Chief Financial Officer. We must remind you that the discussion on today’s 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 updates and post that we will open the floor for Q and A.
Thank you. And over to you sir.
Kalpathi S. Suresh — Executive Director
Thank you Soumya. Good afternoon everyone and thank you for joining us today. On behalf of the entire leadership team. We sincerely appreciate your continued engagement and confidence in Veranda Learning Solutions. Before we discuss our quarterly performance, I would like to briefly reflect on the. Broader policy environment shaping India’s education sector. The Union Budget 2026 is a few days ago clearly reinforces the idea that education must serve as a direct pathway to employment, entrepreneurship and global competitiveness. Initiatives such as stronger education to employment linkages, focus on emerging technologies, creating digital skills, improved access for women and the creation of integrated university industry ecosystems are closely aligned with how we’ve been building Veranda over the years. At Veranda Learning Solutions, our strategy is consistently focused on outcomes whether through job oriented academic programs, government test preparation, vocational skilling or digital first delivery models.
The emphasis on employability, industry relevance and scalable digital infrastructure strongly validates our approach and the direction of Veranda 2.0. Against this backdrop, we’re pleased to report a strong performance for Q3 and for the nine months ended December 2025 driven by robust enrollment growth, improved operating leverage and disciplined execution across our core verticals. Our results this quarter reflect both the strength of our operating model and the readiness to capitalize on the structural opportunities emerging In India’s education ecosystem, we focused on scaling student enrollments, expanding course offerings, launching new programs across online and offline formats and building strategic partnerships.
Our Q3 and 9 month FY26 performance has been exceptional with top line growth of 52% year on year in Q3 and 29% year on year growth in the nine months at December 25th. Underscoring the success of our focus on operational excellence and discipline expansion over the past few years Veranda has evolved into one of India’s most diversified education ecosystems. Our presence now spans government test preparation, higher education and academic programs, vocational and professional training and the rapidly expanding commerce test preparation vertical. Enrollments increased to 111,363 up 55% year on year, driving collections growth of 46% to over 144 crores for the quarter.
While each vertical has contributed meaningfully to growth, the portfolio has now reached a level of maturity that allows us to move toward a simpler higher margin structure. As part of the Veranda 2.0 strategy. As we had outlined consistently in many calls before, we have advanced the demerger of our commerce vertical as planned. Following recept of NOC from the stock Exchanges and with no observations clearance from sebi, the scheme has now been filed with nclt. This step is intended to unlock long term shareholder value through the creation of JK Commerce Education Ltd. A focused and scalable commerce education platform. We have also successfully created SNVA Veranda through the strategic disinvestment of our vocational education assets. This transaction combines Veranda’s strong domestic skilling brands with SNVA’s international university network across the US, UK, Europe and Singapore.
The platform enables seamless global learner pathways, enhances employability focused education in emerging domains and accelerates scale towards 200,000 plus learners annually. The entity is projected to generate over 250 crores in revenue by FY27, growing at a 25% CAGR with EBITDA exceeding 60 crores and it will pursue a separate public listing over time. This represents both the divestment and a step up transforming our vocational portfolio into a globally scaled equity partnership. We continue to strengthen our core verticals. Including government as preparation and academic programs which offer strong demand visibility, scalable cost structures and steady cash flow generation. Looking ahead to Q4, our efforts remain focused on enhancing faculty capabilities, driving digital LED admissions, strengthening university and corporate partnerships, introducing high value courses and optimizing marketing efficiency across all our functions. These initiatives are expected to support robust growth, improved operational efficiency and sustained value creation across all our verticals. I will now request Mohsin to take us through the financials for the quarter and the nine months ended December 2025.
Saurani Pathan Mohasin Khan — Chief Financial Officer
Thank you. Let me walk you through the financial stream. Good afternoon everyone. Revenue from operations in Q3FY26 rose 52% year on year to 117 crores. In current quarter. Gross profit is up 47% year on year to 76 crores driving gross margin of 65%. In earlier quarters of 62%. Operating expenses were streamlined and reduced. For the past year. Its cost effective line has translated into a 328 percentage of surge in EBITDA compared to year on year to 53 crores with EBITDA margins expanding to 45% underscoring our strong operating leverage. As Suresh was saying, the continued execution of Veranda Tip 2.0 restructuring strategy, the benefits of which were visible from previous quarter material lowered finance cost and depreciation during the year resulting in a year on year PAT increase to 17 crores in Q3FY26.
And also to say that this is a consecutive fourth consecutive PAT, positive quarter for the Veranda and consistent strong quarterly execution since the start of FY26 has translated a robust nine month performance with revenue reaching 350 crores up 29% year on year. Expenses remain broadly stable enabling operating leverage. And EBITDA has been reaching 150 crores for nine months number with a substantial. 490% year on year increase. This equation led performance over the nine months period resulted in a PAT of 114 crores for the nine months underscoring the company’s discipline and execution focused approach. Our balance sheet remains strong with existing debt of 222 crores at average interest rate of 17% as on date. And there have been steps in refinancing being taken which will be seen in the ongoing quarters. This is for the overall Updates for the Q3. We can go ahead with the next. Q and A session.
Questions and Answers:
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Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Harshal Mehta from Zen Nevish. Please go ahead.
Harshal Mehta
Hello. Am I audible?
operator
Yes sir.
Harshal Mehta
Yeah. So congratulations sir and the entire team for strong operational and Financial performance. So my first question is that regarding our ongoing demerger earlier company had shared a broader timeline for the completion process and I completely understand that the final outcome depends on the regulatory and procedural approvals. But broadly are we on track with the earlier indicated timelines as in any material bottleneck that you know we should be monitoring at this stage.
Kalpathi S. Suresh
Thank you Ashad. The currently where we are as far as the demerger process is concerned we have gotten the NOC from our mother exchange. We also got a no observation letter from Sebi subsequently last week Tuesday we had filed with NCLT going forward the process and we are really trying to see how to accelerate the process beyond what we had indicated earlier. So we are in the process of submitting no objection certificates from both our secured and unsecured lenders which we hope to get during the month. Subsequently we plan to be able to get get it to NCLT so that we can proceed possibly directly to a meeting of the shareholders in a code convenience here as we speak.
Based on how I’m seeing the progress from my provision, the attempt would be to get the approval from NCLT if we can before end of April and possibly start work on the listing and trading permissions. And the hope will be to get this listed and traded sometime in June of this year. So that’s sort of where our timelines are. We are trying to see if we can accelerate it even further but as we speak we are fairly confident that this will be listed and traded before end of June with approvals from NCLT by April.
Harshal Mehta
Great sir, this is very helpful. Sir, my next question is regarding the profitability. So earlier in past concord and presentation we have guided some somewhere around 75 crores of profitability and we have already achieved 40 crores in in the last two quarters. So based on the visibility and strong momentum that we are having especially from the commerce segment, are we confident of achieving this guidance or would you like to, you know even revise this guidance on the upside if possible?
Saurani Pathan Mohasin Khan
I’ll take up this. Yeah.
Kalpathi S. Suresh
Yes.
Saurani Pathan Mohasin Khan
So with the current numbers I think we’ll be at the track to achieve the guidance. Upside is not the downside but upside will be always there. But we stick to our guidance numbers in we’re trying to achieve that numbers.
Kalpathi S. Suresh
At the focus which saves.
Harshal Mehta
Right sir, please go ahead.
Kalpathi S. Suresh
Yeah. So finally sir, last question was regarding the recent budget as you also mentioned in in your opening commentary. So I guess Finance Minister has mentioned that government will be facilitating professional institutions such as ici, ICSI and ICMI for short term modular courses regarding the corporate mitras to support msme. So we are having strong presence in that particular segment. So do you think that there is some kind of opportunity or some kind of, you know, that we can. Align.
Harshal Mehta
With this initiative and participate in this, this market also?
Kalpathi S. Suresh
Yeah, I think this was one of the most beneficial thing that was announced in the budget, that they will have professionals with specific defined certification who can help MSMEs do their compliance, but at a more affordable cost. So given our strong presence in this vertical, across online, offline and the academic segment, we expect to play a significant part. We are waiting for the government to formally announce through the respective associative bodies the levels of certification and programs. I think once they have been announced, we will probably be one of the first to take a significant advantage of this program.
And I think since it focused on Tier 2, Tier 3, this will help us significantly expand our reach and I think leverage, especially our online and our offline centers spread throughout the country. Yes. So this is, this is a significant announcement and we are probably uniquely positioned to take a fairly leveraged advantage of this announcement. Got it sir.
Harshal Mehta
Thank you so much. This was very helpful. And all the rest for the future journey. Thank you so much.
Kalpathi S. Suresh
Thanks Ash.
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Thank you. Participants who wish to ask a question may press star and one on the Touchstone telephone. The next question is from the line of Dipesh J from Manya Finance. Please go ahead. So you are quite soft. Could you please come closer to the mic?
Dipesh Sancheti
Yeah. Am I audible now?
operator
Yes, sir. Better carry on. Sorry.
Dipesh Sancheti
Now, what will be the reinvestment strategy for the surplus cash flows generated post demerger and divestment of the vocation cycle?
Kalpathi S. Suresh
So as far as the cash is concerned, I think currently we want to sort of deploy it quite significantly to as quickly as possible deleverage the organization so that at some point we make it debt free. Having said that, you know there is a plan to expand our academic footprint. So we are currently working on a plan to add possibly about 10 to 15 managed colleges going into the next year. So certain amount of investments will happen in growth. Also we are ensuring that when subsequently the residual stakes are being bought out in some of these businesses, the company expects to do all of the residual purchases through internally accrued and generated cash rather through additional leverage or equity dilution.
So some cash is being set aside for purchase of residual stake. Some cash is going to be used to drive our expansion, especially in the commerce vertical, and some of it will be used to continue to deleverage the balance sheet as quickly as we can. Okay.
Dipesh Sancheti
My second question is regarding once this is demerged and the commerce division actually goes, I was going through your results. There’s no significant growth in the other businesses. So can you give growth strategy on how you plan to, you know, have a decent growth and also a decent ROE for the future.
Kalpathi S. Suresh
So a couple of verticals that we will have in Veranda which is our K12 academic and for the government test pad. As far as the government test pad business is concerned, there is a plan to expand the network of our centers through franchising. You will see that happening especially in the southern markets of Tamil Nadu, Karnataka and Kerala. Next year we also plan to launch our online programs in both Telugu and Hindu and Hindi. This will help us get into Andhra and Telangana and into a significant part of the Hindi heartlands. So we expect these measures to potentially drive up our EBITDA in the commerce vertical by about 60 to 65% in FY27.
Most of this is going to come from asset like model. So we’re not looking at significant investments being made. But we expect our EBITDA to move up at least 60 65% going into FY27 from this year. Now as far as our academic segment is concerned, it’s largely managing CBSE and Cambridge International Schools. Again we are working on an asset light model with couple of REITs which will allow us to open new schools that are managed by us. But except that it will be asset light and funded through some of these REIT vehicles that specifically focus on the schools and education segment.
So there again our current strength of students is about 5,500. Next year the existing strength is expected to move up in the schools that we currently manage and hopefully we will double the number of schools that we manage during the next year. So that again we expect our EBITDA from the schools K12 managed schools business to significantly move up probably by another 60 65% in that segment too. And given that most of this will be an end asset light OPEX model, the managed school segment is again expected to deliver a strong growth. Now apart from that, what we are also looking at doing post the demerger is that currently we have a significant corporate cost deeper which runs into probably about 4 crores and above per quarter.
Now quite a bit of what we are carrying is because of the size and complexity of the organization we today have post the demerger, we expect the corporate costs also to be significantly whittled down. I think all of these factors will ensure that the non Commerce business that will emerge post the demerger of commerce Education will also be a fairly robust, fast growing business with a significant return on equity that it will have. So there are plans and I think during the next quarter when we close out FY26, we’ll probably have a more detailed commentary because we’ll be closer to the demerger too.
Harshal Mehta
Okay, so fine, so the demerger questions, I’ll keep it for the next quarter. Now coming to the question actually in a broader perspective about AI, does a company see AI as an opportunity or as a challenge? And if as an opportunity, then what is it that we are going to incorporate or are planning to incorporate so that we can, you know, maximize on this AI opportunity?
Kalpathi S. Suresh
Aditya, would you like to talk of some of the programs that we are doing on AI and agent AI?
Aditya Malik
Sure, sure. Thanks Rach. So yeah, so we are approaching this in two aspects. One is an opportunity for us to launch courses for our students. So currently as we speak we are running couple of courses from our company Edureka which is focusing on the tech training for tech professionals on Genai as well as Hntki. They are both shipping short term courses as well as certification courses in partnership with institutes like Illinois Tech. Also leading to a master’s program in Ms. From one of our own SNBA Veranda University. So that’s on one side of it where we are offering this to our retail customers through B2C channels as well as offering this to our large corporate customers, some significantly large, big names for the training side of it.
So that’s one side of how we are doing AI as a business opportunity. On the other side, to get the efficiencies in our operations, we are looking at AI like any other organization. We have piloted the telecalling opportunity, the inside sales opportunity, what we call it counseling to our prospective customers using AI bots. We are also piloting AI for generating content across multiple our organizations and then modifying it. We are also piloting AI around the video ads, etc. So summarize from an internal efficiencies perspective also we are looking at that as a tool to generate operational efficiencies.
Now to answer your specific question around to see it as an opportunity or as a threat, we definitely see it as an opportunity opportunity in terms of doing more business opportunities in terms of, you know, getting more operational efficiencies to do ebitda. The way education has evolved over the years, you still will need a significant amount of human interventions as they say, from a, you know, from An Indian culture perspective as well. So that will still remain. And while the delivery model will keep evolving, so as any other organization, we keep evolving with it. I hope I answered your your question.
Dipesh Sancheti
I’m also talking about the operational cost. How much of your operation can reduce potentially with introduction of AI both in JK Shah as well as in Miranda. And secondly that you know, if you can quantify how much of your sales, I mean, I’m sorry, how much of your revenues is coming from AI courses.
Aditya Malik
Also currently so from our operational efficiencies in terms of quantifying the cost, it’s early days, you know, we are still at a pilot stage like many other organizations in terms of trying a few things out and seeing what will give us the impact. So I would not be able to quantify the exact savings which we get because of using of AI. What we are definitely seeing is better efficiencies in terms of customer service in terms of ensuring that we are able to revert fast to the customers in terms of generating the better quality of content.
We are definitely seeing that. But in terms of quantification in terms of a rupee value, we are still some time away in terms of our AI course revenue. So specifically from our company, which is Edureka, which is Brainforce under the legal name of Brainforce, almost about 35 to 40% of our revenue comes through AI courses as of now which is increasing by every month. Just to add to it in terms. Of areas of efficiency that we are.
Kalpathi S. Suresh
Currently piloting, the first is in terms of tele calling. We already have agentic AI being used. So we have agents who are today picking up calls from our inbound potential customers which are non human and agentic AI. We already have them interspersed among our existing pool of telecallers. There are also agentic AI bots which are now picking up calls. As Aditya mentioned, it’s early stage but we are seeing significant improvements in performance compared to the costs that we have to buy these agentic AI numbers. The second one where we are using it is in terms of assessments.
So it’s again being piloted in multiple verticals to take care of the assessments that we have which is today starting to be done through AI tools rather than through human assessors. The third area where we are looking at creating significant impact is in terms of customer support. So in many of our verticals we are in the process of launching 24,7 customer support where when our human pool of people are on a break or on a shift break, the AI agent AI bonds automatically Take over. So customer support is again where it will go very deep compared to what we were doing before where we can provide 24 Bar 7 support.
We’re also introducing this to make our programs available in multiple languages. So some of our top programs are going to be available in all languages, again fully supported through AI tools. Whether it’s in terms of dubbing it into other Indian languages or using our existing faculty but being able to allow them to deliver it in all languages in India. The fifth area that we are currently using IT and piloting is in terms of providing mentorship to our student base in many of our verticals. Today the mentorship is provided through a human intervention. We continue to believe that that mentorship will require significant human intervention.
But today we are introducing multiple support tools to those mentors using AI tools to ensure that we can now mentor more efficiently and probably reach a much deeper audience. So across functions, across verticals is currently being tested and as Aditya mentioned earlier, for us to put a number on efficiency. But across all functions it is being used and we have significant incentive programs for all our employees based on the percentage of AI adoption that they are able to showcase. So early days to put a number but be assured that it’s being piloted across almost all functions in the organization.
Dipesh Sancheti
Great to hear that. At least I’m. At least you’re aware of, you know, what are the fields where you can apply AI and you know you’re getting AI ready. That’s a very good sign. Thank you so much. And I’ll ask my demerger questions in the next quarter. Thank you.
operator
Thank you. Participants who wish to ask a question may press star and 1. The next question is from the line of Sudarsana Nirashi man and individual investor. Please go ahead.
Unidentified Participant
Hello sir. Thanks for the opportunity. So with all these growth plans, what is the gradients we can expect it for the FY27.
Kalpathi S. Suresh
You want to take it? Yeah, yeah.
Saurani Pathan Mohasin Khan
So currently here I think with the divestment happening, as we have already said.
Kalpathi S. Suresh
That we’ll be reaching 180 crores in.
Saurani Pathan Mohasin Khan
Maybe bottom line and 50 crores in the top line under the current same. With vocational also being part of our revenue structure, we are expecting the numbers to reach 850 to 900 and at the top almost 280 to 303. 300 crores bottom line. So we are almost in the progress in line and we are preparing the budgets along the same lines. So this is all the guidance which.
Kalpathi S. Suresh
We are expecting for next year also.
Unidentified Participant
And how about the SMG Tech Veranda. The growth path and listing because you mentioned it will be listed sometime later but any plans immediately related to.
Kalpathi S. Suresh
Aditya. You want to give a brief on what we are planning with SNBA Veranda Organic and I’ll probably add a few lines on the plans on top of that.
Aditya Malik
Suresh. So as we had announced September last week and october first week the merger with SNBA and you know the name of the company also has been changed now to SNBA Veranda limited as you are aware. Just to recap, the intent behind doing that apart from the financial reason of divestment was to making sure that we take the business global. With SNVA business spread mostly outside India by owning couple of universities in US and Europe and learners coming out of 66 countries and Veranda’s business structure specifically focused on Indian market, we had a great opportunity which we leveraged on to take the higher education and vocational business global.
Happy to report that the integration and coming together in the first quarter post the merger has gone off fairly well. We have started working as one team without any disruption in terms of day to day working. Operationally things go on but the advantage of having our own universities and marketing their programs, offering those additional courses to our customers have started showing, started showing the results early days for that because the impact will come as the year progresses. But we are fairly on track to to meet the numbers what we had set out for the financial year and as we plan for the next year which is FY27 we have aggressive targets which we have in plans to even grow at a faster pace outside India as well as in India as well by opening couple of campuses in Europe as well as couple of campuses in Middle east as well.
Suresh, you want to add on something which I missed.
Kalpathi S. Suresh
So for FY27 we expect to be able to reach a top line business of about 250 crores in SNB Avranta and we are targeting an EBITDA in excess of 60 crores for FY27. What this also indicates is the ability and the acceleration that we can achieve. Now that as Aditya mentioned the integration is completed, we expect to be able to significantly accelerate and grow further and you will see that happening starting from the current quarter which is Q4 of FY26. On top of that I think there are some interesting potential that are being evaluated by SNVA Veranda.
It’s too early for us to comment on it but if some of these strategies we are able to get them through, you might See SNVA Veranda being listed in the boces as an independent company and internally our target is to take it for a listing only when it crosses about at least 100 crores of EBITDA as a debt free business. So we think those days are not too far away. Just with where we are today we are targeting to exceed 60 crores of EBITDA with a 250 crore top line in FY27. It sort of positions it well for an FY2800 crore plus EBITDA organization which could probably set the stage for a potential listing.
Outside of that, couple of other interesting strategies as I mentioned are being evaluated. If some of them happen, you might see a listing happen in a much bigger scale and much earlier. Thank you.
Dipesh Sancheti
And on the last question is in terms of refinancing your debt. So there was something in your presentation, you know, taking loan for one particular. Please correct me if I’m wrong. So is it to refinance whatever the high debt, you know high debt debt here.
Kalpathi S. Suresh
You will take it? Yes, yes.
Saurani Pathan Mohasin Khan
Now we are mentioning the closure. It’s only to refinance the existing debt with the asset is credit child cost at a rate of 17.23 percentage the entire process of being used to refinance. As we are seeing in earlier calls we are sub two digit we got at 9.9 percentage. So it’s completely towards the refinancing. This is significantly reduce our interest going forward.
Unidentified Participant
Exactly. Thank you.
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Thank you. Participants who wish to ask a question may press star and zero on their touchstone telephone. The next question is on the line of Athar Said from Smart Sync Services. Please go ahead.
Unidentified Participant
Thank you for the opportunity.
operator
Sorry to interrupt, there is a lot of disturbance from your end.
Unidentified Participant
Hello.
operator
So there is a lot of disturbance from your mic, sir. Are you traveling? Can you come to a quieter place?
Unidentified Participant
Hello?
operator
Yes sir. Yeah, it’s better. Please carry on.
Unidentified Participant
Yeah, so sir, I have some couple of questions. So my first question on this like after the demerger the demo entity of Commerce Vertical it was. It will be led by Professor J. Sha. So what will be the plan after professor who will lead the company of entity? Basically because I think Professor Jakesha is right now 60 or 70 plus. So can you please throw some light on this?
Kalpathi S. Suresh
Yeah so first is to confirm. Yes. That he will be the chairman of the new organization that will be formed post the merger. J.K. shaw, Commerce Education Ltd.
He is not 70 plus but he is 60 plus. He is about 64. Already there are multiple people in the organization, which is when I say organization, the commerce vertical, who are being groomed as successors. The professors son and daughter themselves have been with the organization for the last seven, eight years and they are being mentored to take on a significant role over the next three, four years. Apart from that, we have multiple other people who are being groomed within the academic part of the commerce vertical, within the online part of the commerce vertical, which is headed by Bauer, Borana.
And of course in some of the regional like Navcar and Logic, we have the next generation who are already being groomed. So we expect the professor to be the mentor, would be the strategist and given his 40 plus years of experience and the credentials that he carries, to be able to drive the strategy and to some extent oversee the execution of the entire strategy in the commerce vehicle. As you will know, the professor stopped taking classes almost 15 years ago. But still the entire organization, including the entire veranda commerce vertical is being driven based on his strategy and direction.
So yes, he is 60 years plus. Multiple levels of succession planning is already in place and some of it has been in execution for the last two to three years.
Unidentified Participant
Okay, sir. And can management also share KPI for. Veranda 2.0 like some, for example student. Acquisition cost or lifetime value per student.
Kalpathi S. Suresh
So in the government test prep, the typical programs are about six, six months duration. So if you should call a value, you know it’s less than one year. But in our academic, which is our managed K12 and Cambridge schools, the typical lifetime value is 14 years. Kids typically join when they are an LKG or a pre KG and stay with us till 12 standard. So there the lifetime value is close to 14 years. But in the government desperate space, as it is very symptomatic of that entire sector, programs are typically three months to six months and the batches do start four, five times a year.
So lifetime value there is less volumes are much, much more. As far as academic space is concerned, the LTV of the customers is about close to 14 years. In all our segments. In the K12 managed space, as far as commerce is concerned, we have a few segments. The online programs, we have repeater batches, we have acceleration programs before the exams, we have just a test series doubt clarification program. So durations could run anywhere from two weeks to almost six months. As far as the online programs are concerned, in the offline space in our physical centers, like if it is in Bombay, like in Andheri, or in any of our other centers, possibly in Ahmedabad, in Chennai, in Kerala, Karnataka in the offline centers, typically the students take up the full package, which means they do all programs of CA foundation or all programs of Group 1 and Group 2 intern.
So that the duration could be six months to one year in terms of duration of programs in terms of lifetime value, hence it would be six months to one year. As far as the commerce part of the academic programs where we manage junior colleges and BCom colleges, their lifetime value could be about five years, 11th and 12th of commerce program and then subsequently in BCom for second and third year. So there it is about five years which is in the academic part of the commerce. So across sectors it does change typically. So hence running anywhere from two weeks to about 14 years in the K12 space.
Unidentified Participant
Answer one last question on this. Like we saw good growth in student student enrollments. So what will. Hello, Please go ahead. Yeah, so one last question on the reason behind enrollment growth. Like this time we saw good growth in student enrollment. So can you please show some light on this.
Kalpathi S. Suresh
The student enrollment typically is the fastest in our shorter duration programs. In a longer duration programs, you know, for instance in our K12 managed school segment, our students strength is about 5,500, 5,600 students. In the B. Com colleges and junior colleges that we manage, our strength is about 17,000 students.
Whereas if you go look at our government test prep, it runs into 40 to 50,000. And then of course in our online program for commerce we probably have students in excess of 100,000. So shorter duration programs, significant growth in terms of student enrollment. The longer duration programs students ranked is lower. Lifetime value is much much higher. But I think your question in terms of where the growth was coming from. A significant part of our growth has been coming from our commerce vertical. Okay, okay, answer. What is the reason? Like you are very bullish on commerce segment.
Commerce virtual. Basically you are also mentioned in past phone call. Also key we can expect 30, 35%. Growth also in commerce vertical.
Unidentified Participant
So what was the main reason behind this?
Kalpathi S. Suresh
I think two key reasons is the first one is overall from a macro perspective, as you would have noticed even in the current budget that the growth is extremely strong. And the numbers that we are looking at from the overall economy going into now multiple trillions of dollars. I think with every economy that’s gone through growth, going from the top 50 economies to a top five to a potentially top three economy in the world, services becomes a big part of the GDP and within services, financial services becomes a large part of it.
If you go back just by 40 years, how many people were Investing in the stock market from a retail perspective, very little. Today that segment has become very, very large. So the understanding and the returns that one gets from understanding the commerce part of it in the internal economy has significantly gone up. And there is a requirement for trained professionals for education, for knowledge in this sector that is coming from India. Growing economy going into the top five in the world. The second one that we are also seeing, which is another significant reason is offshore work in terms of financial services is now happening in a large part in India.
The number of Global Competency Centers GCCs that we talk about, there are now GCCs that are being set up exclusively for financial services back office work in India. It’s very similar to what happened with software offshoring which got triggered in the year 2000. One is starting to see that happen in India. Some of the GCCs being set up are now expected to have 100,000 people just in a single organization. So significant scale in terms of offshoring of financial services back office work to India is currently happening. So first due to India’s GDP growing, big factor GCC is coming into India.
Adding on to that really these are the twin engines that are driving the demand for trained professionals as far as commerce is concerned. That’s been our reason for having significantly invested and built arguably India’s biggest education company in that space. And I think as we go forward you will also see that translate into numbers both in our top line and the bottom line.
Unidentified Participant
Okay sir, great. Just last one question. How many colleges do we have? As of now we currently have 15. Three are being added as we speak. They will go operational by June.
Kalpathi S. Suresh
We’ll start taking students from this academic year. For the coming academic year there is a plan to add another 10 to 15 more which will literally double our size in FY27.
Unidentified Participant
Okay sir. Great. Great. Okay sir. Thank you. Thank you so much. Thank you.
operator
Thank you. Participants who wish to ask the question and get in the queue may press star and one on the touchstone telephone. The next question is from the line of Sikant, an individual investor. Please go ahead.
Unidentified Participant
Hello. Hi, good afternoon. Hello. Am I audible? Yes, you are. With AI increasingly being used for personalized. Learning content creation in education, how does. Veranda see AI impacting in his four test?
Kalpathi S. Suresh
Preparing in coaching business for next two to three years. Aditya, you want to take it.
Aditya Malik
So the way we, the way we see it, we see AI more as a enabler. As I was sharing earlier in my. In the previous question on AI, we will. We are already Starting to use AI to use to assessments for students. We are already starting to use AI to generate good quality content and examples including videos etc. So from our perspective, whether it is a test prep segment, coaching segment, higher education segment or school segments, any of these segments for us, AI is an enabler which will supplement our teaching efforts which we are doing in the classroom or online.
That’s how we are viewing it from will it reduce your business?
Kalpathi S. Suresh
So in some sense Srikant it is we expect this to be able to accelerate and make a lot of our services very efficient. At end of the day, if you really look at it, we are a learning organization. So people come to us for a disciplined program to acquire knowledge typically based on outcomes. So if you today look at the number of videos available, for instance, you want us to learn about AI. There are some great programs that are available on YouTube which are literally free of cost. But as Aditya mentioned just a few minutes ago, our revenue numbers from AI and agent AI courses that we have launched today is 40% of Edureka total revenue.
So clearly shows that people while a lot of this content is available and today with AI ability of organizations like us to generate very high quality content very very efficiently at very low costs is significantly enabled students. Corporates still look for an organization that can provide a disciplined learning path that generates outcomes. So content is available. Content generation is now going to become simpler, easier, much faster, of much higher quality. But our work as we see it is to provide that learning path, a very curated learning path and two is to ensure that we have people who will mentor and direct these learners to achieve their outcomes in a disciplined fashion.
So in short, if it is the availability of good quality content which is now available free, it was available for free even five years ago. People come to organizations like us because we curate them, we provide a defined learning path and we mentor our students in a path to achieve outcomes. So that will continue to happen. As we had mentioned earlier in the call, our cost across all functions to be able to achieve this is expected to come down which means starting from telecallers who are now already interspersed with agent tick chatbots to assessments where we are increasingly using AI for assessments in terms of customer support.
Again we are using lot of AI chatbots and agents so cost across functions is expected to come down. Our ability to generate returns for our learners based on our curated content and learning path continues to be very strong. As Aditya mentioned, in fact, our revenues from delivering some of these AI gen AI and AgentIQ AI programs has actually gone up very sharply in the last six months. Okay, thank you. Thanks.
operator
Thank you. Participants who wish to ask a question may press star and one on their touchstone telephone. As there are no further questions from the participants. I now hand the conference over to the management for the closing comments.
Kalpathi S. Suresh
Thank you. Thank you to all once again for joining us on this call where we spoke about our quarterly Q3 numbers and nine months ended December 2025. Again, just to summarize, we had one of our strongest quarters both in terms of growth in top line and in terms of our bottom line ebitda. We are also significantly closer to our process of demerger and listing our commerce vertical. And from many of the views that I hear, the listing of the commerce vertical could be very significant. And given its projected EBITDA for FY27 at 200 crores, again, potentially could be a billion dollar listing all by itself.
We are very close to that and the process is on track to potentially have that listing done by June of this year. On all the other segments, we are growing fast. We are moving to a place where we are replacing our high cost debt which is at 17% to a refinance which will potentially come at less than 10% of interest. So there is going to be a significant savings in interest cost again moving forward. As far as the rest of veranda 2.0 execution is concerned, it is on track and we expect to deliver a Q4 and a very strong closing to FY26 and a great commentary of what we expect for FY27.
Thank you once again for joining us on this call today.
operator
Thank you on behalf of Go India Advisors. That concludes this conference. Thank you for joining us. You may now disconnect your lines.