Revenue Growth and Operating Performance
Veranda Learning’s net sales have surged impressively from a modest ₹2.54 crores in March 2021 to ₹357.73 crores by March 2025, reflecting robust top-line growth. The total operating income mirrors this trend, rising steadily each year, with a notable leap between March 2022 and March 2023. Despite this growth, the company’s operating profit before depreciation, interest, and tax (PBDIT) excluding other income has fluctuated considerably. While it recorded losses in the early years, there was a positive turnaround in the last two years, with operating profits of ₹43.63 crores in March 2025 and ₹54.00 crores in March 2024.
Other income has also contributed significantly, particularly in March 2025, where it nearly matched the operating profit excluding other income, boosting the overall operating profit to ₹86.71 crores. However, the company’s interest expenses have escalated sharply, reaching ₹130.88 crores in March 2025, which has weighed heavily on profitability.
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Profitability and Margins
Despite the revenue growth, Veranda Learning has struggled with profitability. The consolidated net profit has remained negative throughout the period, with losses widening from ₹8.28 crores in March 2021 to ₹247.32 crores in March 2025. Earnings per share (EPS) have similarly declined, reaching a negative ₹33.24 in the latest fiscal year. The operating profit margin excluding other income improved to 12.2% in March 2025 from deeply negative margins in earlier years, signalling some operational efficiency gains. However, the net profit margin remains deeply negative at -67.46% in March 2025, reflecting the impact of high interest and depreciation costs.
Depreciation expenses have increased substantially, from ₹0.63 crores in March 2021 to ₹191.36 crores in March 2025, indicating significant capital investments. Interest costs have also surged, which, combined with depreciation, have eroded gross profits and contributed to the persistent losses.
Balance Sheet and Financial Position
Veranda Learning’s balance sheet shows considerable growth in assets and liabilities. Total assets expanded from ₹11.51 crores in March 2021 to ₹1,862.58 crores in March 2025, driven largely by increases in gross block and net block assets, which rose to ₹1,832.16 crores and ₹1,440.66 crores respectively. This reflects the company’s aggressive capital expenditure over the years.
Shareholder’s funds have improved from a negative position in March 2021 to ₹256.96 crores in March 2025, supported by equity capital increases and reserves. However, long-term borrowings have also risen sharply, reaching ₹510.04 crores, with total non-current liabilities exceeding ₹1,030 crores, indicating a leveraged capital structure. Current liabilities have similarly increased, resulting in negative net current assets of ₹346.52 crores in March 2025.
Cash Flow Trends
Cash flow from operating activities has shown improvement, turning positive at ₹31 crores in March 2025 compared to negative cash flows in earlier years. Investing activities have consistently been cash outflows, reflecting ongoing investments in fixed assets and development. Financing activities have provided substantial inflows, particularly in earlier years, supporting the company’s expansion and debt servicing needs. The net cash inflow of ₹33 crores in March 2025 marks a recovery from the previous year’s outflow.
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Summary of Historical Performance
In summary, Veranda Learning has demonstrated strong revenue growth and significant capital investment over the past five years. Operational profitability has improved, but the company continues to face challenges from high interest and depreciation expenses, resulting in sustained net losses. The balance sheet reflects a leveraged position with growing borrowings and liabilities, while cash flow trends indicate improving operational cash generation supported by financing activities. Investors should weigh the company’s growth potential against its profitability hurdles and capital structure risks when considering its historical performance.
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