Veranda's Q1 profit gets a tax lift as enrolments rise 35%
Consolidated operating margin was 34.71%; the company presentation also cites 27% collection growth and a FY27 partnership revenue target of Rs 250+ cr.
Filed 13 Aug 2026, 12:12 IST · VERANDA (VERANDA)
Key takeaways
- Operations generated Rs 51.91 cr of operating profit at a 34.71% margin, before interest and depreciation reduced profit before tax to Rs 30.42 cr.
- Net profit of Rs 33.87 cr exceeded profit before tax because tax was a Rs 3.45 cr credit, implying a -11.35% tax rate.
- Enrolments rose 35% YoY to 1.03 lakh, while collections grew 27% YoY during the quarter.
Tax credit lifted reported profit in Q1FY27
Veranda's consolidated operating profit of Rs 51.91 cr was reduced by Rs 10.90 cr of interest and Rs 14.40 cr of depreciation before reaching profit before tax of Rs 30.42 cr. Net profit was higher than profit before tax because the company recorded a Rs 3.45 cr tax credit, resulting in a -11.35% tax rate. Other income of Rs 3.81 cr also contributed to reported earnings.
Learner growth outpaced collections growth
The company said overall enrolments increased 35% YoY to 1.03 lakh, while collections grew 27% YoY, pointing to higher learner additions alongside cash generation from the business. Management said it launched Commerce Virtuals in live and recorded formats for Class 11 and 12 students, and expanded offline locations into Tier 2 and Tier 3 towns. These initiatives extend reach without relying only on existing physical infrastructure.
Management laid out a broader partnership and school strategy
Management said its joint partnership is targeting FY27 revenue of Rs 250+ cr, EBITDA of Rs 50+ cr, more than 2 lakh learners annually and presence in over 60 countries. The presentation also sets out a stated FY26-FY30 revenue CAGR of 25% and EBITDA CAGR of 35% for the partnership. Separately, management said it plans to add managed pre-school services and expand its managed K-12 school portfolio.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹150 cr |
| Other income | ₹4 cr |
| Expenses | ₹98 cr |
| Operating profit | ₹52 cr |
| Operating margin (%) | 34.71% |
| Interest | ₹11 cr |
| Depreciation | ₹14 cr |
| Profit before tax | ₹30 cr |
| Tax | ₹-3 cr |
| Net profit | ₹34 cr |
| EPS (₹) | ₹3.03 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Overall enrolments increased 35% year on year to 1.03 lakh students during the quarter.
- Collections grew 27% year on year during the quarter.
Guidance & outlook
- The joint partnership targets FY27 revenue of INR 250 crore, EBITDA of INR 50 crore, 2 lakh-plus learners annually and presence in 60-plus countries.
- The joint partnership projects 25% revenue CAGR and 35% EBITDA CAGR from FY26 to FY30.
New initiatives
- The company launched Commerce Virtuals to deliver commerce courses digitally in live and recorded formats for Class 11 and 12 students.
- The company expanded its physical presence through strategic offline locations in Tier 2 and Tier 3 towns.
- The company plans to add managed school services for pre-school and expand its managed K-12 school portfolio.
Competition
- The company describes itself as the number-one provider in CA, CS, CMA and ACCA.
What to watch
- Whether operating margin remains around 34.71% as the business expands.
- Whether enrolments build on 1.03 lakh and 35% YoY growth while collections sustain 27% YoY growth.
- Progress against management's stated FY27 partnership targets of Rs 250+ cr revenue and Rs 50+ cr EBITDA.