Education firm Veranda Learning has seen a steady rise in operating revenue in FY25, approaching the Rs 500 crore mark, driven by increased admissions, higher bookings, service expansion, and fair value adjustments.
However, the Chennai-based company’s losses in the fiscal ballooned, largely due to higher non-operating expenses such as finance costs and depreciation.
The firm reported a consolidated loss of Rs 247.5 crore in FY25, expanding from Rs 76.7 crore recorded in the previous fiscal year. Meanwhile, its operating revenue rose 30.2% year-on-year (YoY) to Rs 470.8 crore in FY25, according to its recent consolidated financial statements.
The company’s total income, including interest income, reached Rs 518.3 crore in the financial year that ended this March—up 40.1% YoY.
“Crossing the Rs 500 crore revenue mark is a pivotal milestone—signalling enhanced operational efficiency, financial discipline, and the strength of our scalable model,” Suresh S Kalpathi, Executive Director and Chairman of Veranda Learning, said, adding that the completion of a preferential equity raise has reinforced the firm’s balance sheet.
In December, the company received approvals to raise up to Rs 250 crore through a preferential issue as part of a broader fundraising plan.
The firm’s EBITDA (earnings before interest, taxes, depreciation, and amortisation), a key indicator of core operational efficiency, rose to Rs 83.3 crore in FY25 from Rs 62.3 crore in FY24.
A closer look at Veranda Learning’s FY25 losses reveals that finance costs surged 69% year-on-year to Rs 132.1 crore, while depreciation and amortisation expenses soared 208.7% YoY to Rs 205.8 crore.
The company reviewed the expected life of some software and, deciding it would be used for a shorter period than originally planned, wrote off a larger portion of its cost this year. This led to an amortisation amounting to Rs 1,010.8 crore.
More on the expense side, employee benefits rose 40.6% year-on-year to Rs 115.1 crore in FY25, remaining the second-largest cost after other operating expenses, which increased 54.7% YoY to Rs 189.8 crore.
Veranda Learning also recorded a consolidated impairment expense of Rs 22.46 crore related to its investment in BAssure Solutions, following a performance review. Additionally, it recognised an expected credit loss of Rs 25.67 crore on certain financial assets for the year ended March 31, 2025. Both amounts were included under other operating expenses.
Veranda Learning, with nine subsidiaries and ten step-down subsidiaries, has pursued a growth strategy heavily focused on acquisitions, spending over Rs 1,000 crore to acquire these companies.
The company plans to use the funds from its preferential equity raise for acquisitions, deferred consideration payouts, and the expansion of its existing business.
In the March-ended quarter, it acquired a 40.4% stake in BB Virtuals and a 65% stake in Navkar Digital, strengthening its presence across both online and offline formats, as well as expanding its geographic reach.
“In Q3, we successfully concluded the first phase of our strategy by building a strong portfolio of student-focused brands. This marked the end of our acquisition-led expansion, with a pivot toward organic growth and operational synergies,” Kalpathi noted.
“Looking ahead, we remain focused on scaling across verticals, with an emphasis on digital offerings, global certifications, and regional expansion—positioning us well for sustained growth and long-term value creation,” he added.
Founded in 2018 by the Kalpathi AGS Group, Veranda Learning is a publicly-listed education company, which offers a bouquet of training programmes for competitive exam preparation and a slew of professional skilling and upskilling programmes.
Edited by Kanishk Singh
