MTEDUCARE - MT Educare
📢 Recent Corporate Announcements
MT Educare Limited reported a net loss of ₹187.15 lakhs for the quarter ended December 31, 2025, which narrowed from a loss of ₹363.94 lakhs in the same quarter last year. Revenue from operations saw a significant jump to ₹244.97 lakhs compared to ₹98.23 lakhs year-on-year. The company remains under the Corporate Insolvency Resolution Process (CIRP) since December 2022, and the statutory auditors have issued a 'Disclaimer of Conclusion' on these results. This disclaimer indicates that the auditors were unable to obtain sufficient evidence to verify the carrying amounts of assets, liabilities, and the overall impact of the insolvency proceedings.
- Revenue from operations increased to ₹244.97 lakhs in Q3 FY26 from ₹98.23 lakhs in Q3 FY25.
- Net loss for the quarter stood at ₹187.15 lakhs, showing improvement over the ₹363.94 lakhs loss in the previous year's corresponding period.
- Statutory auditors issued a Disclaimer of Conclusion due to non-availability of balance confirmations and non-determination of fair value for financial assets.
- The company did not recognize interest expenses of ₹87.55 lakhs for the quarter on defaulted bank borrowings.
- Management did not account for interest income of ₹573.09 lakhs for the quarter on long-outstanding overdue loans.
MT Educare Limited has responded to clarifications sought by the BSE and NSE regarding its financial results for the quarter ended September 30, 2025. The company explained that an inadvertent error occurred during the XBRL submission where results were incorrectly categorized as "Half-Yearly" instead of "Quarterly." The company has since rectified the error and resubmitted the corrected filings to the exchanges. Notably, the company remains under the Corporate Insolvency Resolution Process (CIRP) following an NCLT order from December 2022.
- Clarification provided for the XBRL filing of the Board Meeting held on November 14, 2025
- Company erroneously filed Q2 results as Half-Yearly instead of Quarterly due to a clerical error
- The error has been rectified and updated filings have been submitted to the stock exchanges
- MT Educare continues to operate under the Corporate Insolvency Resolution Process (CIRP) since December 16, 2022
- Mr. Arihant Nenawati is currently serving as the Resolution Professional (RP) for the company
MT Educare Limited has filed its Structured Digital Database (SDD) compliance certificate for the quarter ended December 31, 2025, as required by SEBI Insider Trading regulations. The company confirmed that it maintained a non-tamperable database with audit trails, capturing 1 UPSI event during the period. However, the practicing company secretary noted some delays in recording certain events. The company continues to operate under the Corporate Insolvency Resolution Process (CIRP) which commenced in December 2022.
- Compliance certificate filed for the quarter ended December 31, 2025, under SEBI (PIT) Regulations.
- Company recorded 1 UPSI event during the quarter, meeting the total requirement of 1 event.
- Auditor noted a delay in recording some events despite the database being in place.
- MT Educare remains under Corporate Insolvency Resolution Process (CIRP) since December 16, 2022.
- The filing was signed by Resolution Professional Arihant Nenawati, who was appointed in January 2024.
MT Educare Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025. The Registrar and Share Transfer Agent, MUFG Intime India Private Limited, confirmed that all dematerialization requests were processed and listed on stock exchanges within the prescribed timelines. The company remains under the Corporate Insolvency Resolution Process (CIRP) as per the NCLT order dated December 16, 2022. Mr. Arihant Nenawati continues to serve as the Resolution Professional managing the company's affairs during this period.
- Compliance certificate issued for the quarter ended December 31, 2025.
- RTA MUFG Intime India Private Limited confirmed timely processing of dematerialization requests.
- Company continues to operate under Corporate Insolvency Resolution Process (CIRP) initiated in December 2022.
- Arihant Nenawati remains the appointed Resolution Professional as of the January 2024 NCLT order.
MT Educare Limited has disclosed a total financial indebtedness of ₹32.33 Crores as of December 31, 2025. The company continues to operate under the Corporate Insolvency Resolution Process (CIRP) initiated in December 2022 due to defaults triggered by pandemic-related disruptions. Beyond direct debt, the company faces invoked corporate guarantees totaling approximately ₹23.99 Crores from Axis Bank and Asset Care & Reconstruction Enterprise. A significant legal dispute involving a ₹49.72 Crore claim by SVC Bank is currently pending before the NCLAT.
- Total financial indebtedness including loans and revolving facilities stands at ₹32.33 Crores.
- Invoked corporate guarantees include ₹7.3 Crores for Sri Gayatri Education Society and ₹16.69 Crores for Lakshya Forum.
- The company has been under Corporate Insolvency Resolution Process (CIRP) since December 16, 2022.
- A ₹49.72 Crore claim by Shamrao Vithal Co-op Bank remains under appeal in NCLAT after being rejected by NCLT.
- Current debt is primarily managed by Prudent ARC Limited following a debt assignment in August 2023.
MT Educare Limited has announced the closure of its trading window starting January 1, 2025, for the purpose of declaring unaudited financial results for the quarter ending December 31, 2025. The window will remain closed for all designated persons, including directors and key managerial personnel, until 48 hours after the results are announced. The company continues to be under the Corporate Insolvency Resolution Process (CIRP) as per the NCLT order dated December 16, 2022. Mr. Arihant Nenawati remains the appointed Resolution Professional managing the company's affairs.
- Trading window closure effective from January 1, 2025, for Q3 FY 2025-26 results.
- Window to reopen 48 hours after the official announcement of financial results.
- Company remains under Corporate Insolvency Resolution Process (CIRP) since December 16, 2022.
- Resolution Professional Arihant Nenawati is overseeing the compliance and operations.
MT Educare Limited has disclosed a default in the repayment of principal and interest totaling ₹32.33 crores to lenders including Axis Bank and Prudence ARC. The company has been under the Corporate Insolvency Resolution Process (CIRP) since December 16, 2022, following an order by the NCLT Mumbai Bench. Beyond direct borrowings, the company faces invoked corporate guarantees amounting to ₹23.99 crores for subsidiary and associated entities. The Resolution Professional is currently managing the company and verifying claims from secured financial creditors.
- Total outstanding borrowings from banks and financial institutions amount to ₹32.33 crores.
- Default includes ₹16.44 Cr principal to Prudence ARC and ₹7.65 Cr principal to Axis Bank.
- Invoked corporate guarantees total ₹7.3 Cr for Sri Gayatri Education Society and ₹16.69 Cr for Lakshya Forum.
- The company has been under CIRP since December 2022, with a new Resolution Professional appointed in January 2024.
- A claim of ₹49.72 crore from Shamrao Vithal Co-op Bank remains under legal dispute at the NCLAT.
Financial Performance
Revenue Growth by Segment
Consolidated revenue for FY19 was INR 249.35 Cr, a decline of 3.58% from INR 258.62 Cr in FY18. Historically, revenue grew 5% YoY in FY17 to INR 301.1 Cr. The school segment serviced 159,162 students in FY17, a 3.6% increase YoY. Robomate+ revenue was not separately broken out but was supported by a INR 14 Cr promotional campaign.
Geographic Revenue Split
The group operates 275 centers in over 160 locations across 12 Indian states. A significant portion of operations is concentrated in Karnataka through tie-ups with 22 Pre-University (PU) colleges, and in North India and Maharashtra through the Lakshya brand.
Profitability Margins
PAT margin improved to 4.0% in FY19 (INR 9.4 Cr) from a negative 51.0% in FY18 (INR -131.8 Cr loss). FY17 PAT margin was 6% (INR 17.2 Cr). The FY19 profitability was largely supported by one-time interest income earned on fixed deposits rather than core operations.
EBITDA Margin
EBITDA margin was 16% in FY17 (INR 49.1 Cr), down from 20% in FY16. Normalised EBITDA for FY17, excluding the INR 14 Cr Robomate+ campaign, was INR 63.11 Cr. Operating level interest coverage was weak at 1.44 times in FY19.
Capital Expenditure
The group undertook sizeable capital expenditure for new school and college projects in FY19, which led to a sharp decline in surplus liquidity from INR 106 Cr in September 2018 to INR 24 Cr by March 2019.
Credit Rating & Borrowing
Ratings were downgraded to CRISIL BB+/Stable/A4+ in May 2019 from BBB/A3+ due to stretched liquidity and weak interest coverage. By 2025, the company was classified as a Non-Performing Asset (NPA) after defaulting on principal and interest payments to banks.
Operational Drivers
Raw Materials
As a service-based coaching entity, the primary cost driver is 'Employee Expenses' (teachers/staff), which accounted for INR 42.3 Cr (14% of revenue) in FY17. Advertisement expenses were also significant at INR 27 Cr (9% of revenue).
Import Sources
Not applicable as the company provides educational services; however, technology for the Robomate+ platform is developed internally through subsidiaries like Letspaper Technologies Pvt Ltd.
Key Suppliers
Not disclosed in available documents as the business is service-oriented.
Capacity Expansion
Current capacity includes 275 centers across 160 locations. Expansion is primarily achieved through strategic partnerships, such as the 2015 tie-up with Sri Gayatri Educational Society and the acquisition of CPLC in 2011.
Raw Material Costs
Employee costs grew 14% YoY in FY17 to INR 42.3 Cr. Procurement strategies focus on tie-ups with existing educational institutions (PU colleges) to utilize their premises, reducing fixed infrastructure costs.
Manufacturing Efficiency
Capacity utilization is measured by student enrollment; total students serviced grew 3.6% to 159,162 in FY17.
Logistics & Distribution
Distribution is primarily digital via Robomate+ or physical via its 160-location center network.
Strategic Growth
Expected Growth Rate
12-18%
Growth Strategy
Growth is targeted through the 'Robomate+' learning management system to capture the external student market, and through Pre-University (PU) college tie-ups in Karnataka (currently 22 colleges) which provide a steady student pipeline without heavy capital investment in new buildings.
Products & Services
Educational coaching for school boards, science and commerce college sections, and professional entrance exams including CA, MBA (via CPLC), Engineering, and Medicine (via Lakshya).
Brand Portfolio
Mahesh Tutorials, Robomate+, CPLC, Lakshya, UVA.
New Products/Services
Robomate+ online education app launched in 2015, targeting both internal and external students to diversify revenue streams.
Market Expansion
Expansion into North India and Maharashtra through the Lakshya brand and management entrance tests via CPLC.
Market Share & Ranking
One of the leading players in the Indian educational coaching industry in terms of centers (275) and student volume.
Strategic Alliances
Strategic partnership with Sri Gayatri Educational Society (2015) and acquisition of a 59.12% stake by Zee Learn Ltd (2018).
External Factors
Industry Trends
The industry is shifting toward hybrid models (physical + digital). MT Educare is positioned for this via Robomate+, but faces intense competition from new ed-tech startups and established local coaching centers.
Competitive Landscape
Intense competition from both organized national players and unorganized local coaching institutes in the K-12 and test prep segments.
Competitive Moat
The 'Mahesh Tutorials' brand (established 1988) provides a strong legacy moat. However, sustainability is threatened by high competitive pressure and the company's current financial distress (NPA status).
Macro Economic Sensitivity
Highly sensitive to Indian regulatory changes in the education sector and shifts in the national competitive exam landscape.
Consumer Behavior
Increasing preference for digital/app-based learning, which the company addressed through Robomate+.
Geopolitical Risks
Minimal direct impact as operations are 100% domestic across 12 Indian states.
Regulatory & Governance
Industry Regulations
Subject to state-level regulations for private coaching centers and national standards for professional courses like CA and medical entrance exams.
Taxation Policy Impact
The company has received various notices relating to direct and indirect tax matters as of 2025, the financial impact of which remains unquantified.
Legal Contingencies
The company is in default with banks and financial institutions, leading to NPA classification. Auditors issued a disclaimer of conclusion in 2025 due to inability to verify property, plant, and equipment and the impact of tax notices.
Risk Analysis
Key Uncertainties
The ability to continue as a 'going concern' is a major uncertainty given the 2025 auditor disclaimer and default on bank loans.
Geographic Concentration Risk
Concentrated in 12 states, with significant reliance on the Maharashtra and Karnataka markets.
Third Party Dependencies
High dependency on the financial flexibility of the parent company, Zee Learn Ltd (Essel Group), which has faced its own liquidity constraints.
Technology Obsolescence Risk
Risk that the Robomate+ platform may fall behind newer, better-funded ed-tech competitors.
Credit & Counterparty Risk
Trade receivables reached INR 121.03 Cr in FY17, indicating potential credit risks from government projects and institutional tie-ups.