Veranda Learning Posts First Full-Year Net Profit in FY26, Demerges Commerce Arm
Chennai-based education company Veranda Learning Solutions reported its first full-year net profit in FY26, following an aggressive expansion phase driven by high-cost private credit.
Suresh S Kalpathi, executive director and chairman of Veranda Learning Solutions, stated that the company retired a substantial portion of its high-cost debt in July through a qualified institutional placement. Following the completion of its acquisitions, the firm organized its operations into four distinct pillars: K-12 academic education, government test preparation through Veranda Race, commerce, and upskilling.
To address market valuation challenges and bring greater operational focus, Veranda is demerging its commerce vertical into an independent listed company. The move is designed to unlock value for shareholders by creating a dedicated financial model for the vertical.
The commerce business is riding a surge in demand for financial and accounting professionals, spurred by global capability centres setting up offshore operations in India. The vertical caters to certifications including ACCA, CMA, CFA, and CPA, while also benefitting from regulatory changes requiring mandatory company secretaries for firms with paid-up capital over Rs 10 crore.
As part of its expansion, Veranda currently manages foundational accounting instruction across 17 regional arts and science colleges in tier-2 and tier-3 towns using its CA faculty. The company projects the commerce segment will grow to at least Rs 500 crore in revenue over the next few years, with a long-term target of Rs 1,000 crore by FY30.
In government test preparation, Veranda Race remains the market leader in Tamil Nadu. The company is currently expanding the vertical into Kerala and Karnataka through local associations, projecting it will cross Rs 100 crore in profit within four years as a zero-debt unit. Veranda's ultimate goal is for each of its four core pillars to generate a minimum of Rs 100 crore in independent profit.
The company has also overhauled its internal economics through technology. By utilizing artificial intelligence trained on a proprietary database of 100,000 validated questions with human supervision, Veranda reduced its content development costs by 90 percent. It also plans to deploy AI sales agents to further expand its operations.
