Veranda Learning Solutions Ltd. (VERANDA) AI Stock Analysis

• Market Cap: ₹21.05B
• Dividend Yield: N/A
• Average Volume (3M): 23.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 6.02%
• EPS Growth: 2.68%
• Country: IN
• Employees: 2,400
• Sector: Services
• Sector Strength: N/A
• Industry: Education & Training Services
• EPS (TTM): 10.61
• Shares Outstanding: 95,731,680
• 10 Day Avg. Volume: 11,734
• 30 Day Avg. Volume: 23,585
• PEG Ratio: -0.03
• Price to Book (P/B): 6.08
• Price to Sales (P/S): 3.32
• P/FCF Ratio: -33.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: ₹193.00 ▼(-9.79% Downside)

The overall stock score of 38 reflects significant financial challenges, including negative profitability, high leverage, and poor cash flow metrics. Technical analysis indicates bearish momentum with oversold conditions, and valuation metrics are unattractive due to a negative P/E ratio and no dividend yield. These factors collectively suggest a high-risk investment with limited immediate upside potential.

Positive Factors

Revenue Growth

Consistent revenue growth indicates increasing demand for Veranda's educational products and services, enhancing its market position and potential for future profitability.

Diversified Revenue Streams

Diversified revenue sources reduce dependency on a single income stream, providing stability and resilience against market fluctuations.

Market Position in EdTech

Strong positioning in the growing EdTech sector allows Veranda to capitalize on increasing demand for online learning solutions, supporting long-term growth.

Negative Factors

Negative Profitability

Persistent negative profitability indicates challenges in cost management and operational efficiency, which may hinder sustainable growth and investor confidence.

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities or weather economic downturns.

Negative Cash Flow

Negative cash flow from operations suggests difficulties in sustaining day-to-day business activities without external financing, posing a risk to long-term viability.

Veranda Learning Solutions Ltd. Business Overview & Revenue Model

Company Description

Veranda Learning Solutions Limited develops an online education platform in India and internationally. The company offers diversified and integrated learning solutions through online, offline hybrid, and offline blended formats for students, aspirants, graduates, professionals, and corporate employees. It provides long term and short-term preparatory courses for competitive exams; professional courses; exam-oriented courses; and short-term upskilling and reskilling courses. The company was incorporated in 2018 and is based in Chennai, India.

How the Company Makes Money

VERANDA generates revenue through multiple streams, primarily by charging fees for its online courses and tutoring services. The company offers subscription-based models for access to its extensive library of courses, which allows users to learn at their own pace. Additionally, VERANDA partners with educational institutions and corporations to provide tailored training solutions, creating a significant revenue source through bulk sales and institutional contracts. The company may also earn revenue from affiliate marketing partnerships and licensing its proprietary learning technology to other educational organizations, further diversifying its income sources.

Veranda Learning Solutions Ltd. Financial Statement Overview

Summary

Veranda Learning Solutions Ltd. is experiencing significant financial challenges, with negative profitability, high leverage, and poor cash flow metrics. While revenue growth is promising, it has not translated into profitability or improved financial health. The company faces risks related to its high debt levels and negative cash flows, which may impact its ability to sustain operations without strategic interventions or financial restructuring.

Income Statement

The company has struggled with profitability as evidenced by consistent negative net income and fluctuating gross profit margins. Revenue growth has been strong in recent years, but the company's net profit margin remains deeply negative, indicating challenges in cost management and operational efficiency. The EBIT and EBITDA margins are also negative, pointing to significant operational challenges. Despite revenue growth, profitability remains a significant concern.

Balance Sheet

The company's balance sheet shows high leverage with a concerning debt-to-equity ratio, as total debt substantially outweighs equity. Stockholders' equity is positive but has been decreasing, indicating potential solvency risks. The equity ratio is low, reflecting a heavy reliance on debt financing. The return on equity is negative due to persistent net losses, suggesting poor returns to shareholders.

Cash Flow

Operating cash flow is negative, indicating challenges in generating cash from core operations. Free cash flow is also negative, showing that the company is spending more on capital expenditures than it is generating in cash. The operating cash flow to net income ratio and free cash flow to net income ratio are unfavorable, highlighting cash flow management issues. However, there has been some improvement in cash flow from financing activities, providing some liquidity support.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.91B	4.71B	3.62B	1.61B	750.49M	25.39M
Gross Profit	3.05B	-608.07M	1.03B	160.06M	722.76M	-31.83M
EBITDA	1.10B	833.12M	523.63M	-332.72M	-390.52M	-76.19M
Net Income	-2.20B	-2.47B	-797.10M	-792.14M	-584.95M	-82.76M
Balance Sheet
Total Assets	0.00	18.80B	16.33B	8.92B	3.81B	2.30B
Cash, Cash Equivalents and Short-Term Investments	647.29M	759.43M	287.63M	869.20M	487.01M	4.27M
Total Debt	0.00	6.78B	5.83B	3.06B	2.03B	69.29M
Total Liabilities	-2.57B	16.23B	12.56B	5.86B	3.04B	2.70B
Stockholders Equity	2.57B	2.57B	3.77B	3.06B	769.80M	-595.00K
Cash Flow
Free Cash Flow	0.00	-460.45M	133.76M	-757.30M	-429.13M	-114.68M
Operating Cash Flow	0.00	-310.89M	266.83M	149.47M	-392.91M	-52.19M
Investing Cash Flow	0.00	-676.54M	-2.32B	-4.24B	-2.26B	-61.50M
Financing Cash Flow	0.00	1.16B	1.39B	3.63B	3.13B	117.87M

Veranda Learning Solutions Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 213.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VERANDA, the sentiment is Positive. The current price of 213.95 is above the 20-day moving average (MA) of 196.01, above the 50-day MA of 206.63, and below the 200-day MA of 216.69, indicating a bullish trend. The MACD of 4.71 indicates Negative momentum. The RSI at 63.36 is Neutral, neither overbought nor oversold. The STOCH value of 90.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:VERANDA.

Veranda Learning Solutions Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLOBAL	75 Outperform	₹3.96B	18.92	―	1.06%	―	―
HATHWAY	60 Neutral	₹21.21B	21.74	―	―	3.88%	-3.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ZEELEARN	55 Neutral	₹2.19B	24.28	―	―	28.91%	-94.80%
CLEDUCATE	52 Neutral	₹4.29B	-23.79	―	―	43.91%	-249.30%
VERANDA	38 Underperform	₹21.05B	-13.50	―	―	6.02%	2.68%

Veranda Learning Solutions Ltd. Corporate Events

Veranda K-12 Unveils Finalists for Avinya National Round

Veranda Learning Solutions Ltd. announced that its Veranda K-12 division has shortlisted 15 finalists for the national round of its Avinya initiative, which aims to foster innovation among students by encouraging them to develop ideas aligned with the United Nations Sustainable Development Goals. The finalists, selected from a pool of nearly 400 submissions, will attend a boot camp at IIIT Bengaluru, culminating in a Grand Finale where they will present their ideas to industry leaders. This initiative highlights Veranda’s commitment to providing equal opportunities for students across various regions, promoting innovation beyond major metropolitan areas.

Veranda Learning Solutions Streamlines Auditing with New Appointment

Veranda Learning Solutions Ltd. announced the resignation of M/s. S C V J & Associates as the statutory auditors of its material subsidiary, BB Virtuals Private Limited. This decision aligns with Veranda’s policy to appoint a common statutory auditor across its subsidiaries, leading to the appointment of M/s. Deloitte Haskins & Sells. This move is part of Veranda’s efforts to streamline its auditing processes following the acquisition of BB Virtuals’ holding company, BB Publication Private Limited.

Veranda Learning Solutions Reports Strong Q2FY26 Financial Performance

Veranda Learning Solutions Limited reported a strong financial performance for the quarter ended September 30, 2025, with a 20% year-over-year increase in revenue, a 63% rise in EBITDA, and a 185% surge in PAT. The company attributes this growth to the launch of new courses, increased student enrollment, and operational efficiencies. The financial results also reflect the impact of extraordinary events, including the redemption of non-convertible debentures and the disinvestment of its vocational segment, which contributed to one-time gains and expenses.

Veranda Learning Solutions Releases Q2FY26 Earnings Presentation

Veranda Learning Solutions Ltd. has released its earnings presentation for the quarter and half-year ending September 30, 2025. The presentation, which will be discussed in an upcoming earnings call, highlights the company’s unaudited financial results, reflecting its ongoing commitment to transparency and engagement with investors and analysts.