MT Educare Limited has filed its quarterly disclosure on loan defaults with stock exchanges, reporting total outstanding borrowings of ₹32.33 crores as of March 31, 2026. The disclosure was made in compliance with SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/P/2019/140 dated November 21, 2019, which mandates quarterly reporting of defaults on loan repayments.

Outstanding Financial Obligations

The company's quarterly filing reveals its complete financial indebtedness structure under the ongoing Corporate Insolvency Resolution Process:

Corporate Guarantee Liabilities

Beyond direct borrowings, MT Educare faces additional obligations through invoked corporate guarantees for subsidiary companies:

CIRP Management and Legal Framework

MT Educare continues under Corporate Insolvency Resolution Process initiated on December 16, 2022, following the National Company Law Tribunal Mumbai order. The company operates under Resolution Professional Arihant Nenawati, who was appointed on January 22, 2024, replacing the earlier Interim Resolution Professional Ashwin Bhavanji Shah. The Committee of Creditors was constituted on August 21, 2023.

Asset Reassignment and Legal Proceedings

The disclosure confirms that loans previously held by Assets Care & Reconstruction Enterprises Limited were reassigned to Prudent ARC Limited through a deed of assignment dated August 11, 2023. The company notes that Shamrao Vithal Co-op Bank Ltd's claim of ₹49.72 crores for corporate guarantee was rejected as the bank had not invoked the guarantee by the Insolvency Commencement Date. While NCLT Mumbai dismissed the bank's appeal on March 27, 2025, an appeal to NCLAT remains pending.

Impact of COVID-19 and Sector Challenges

The company attributes the delay in interest payments and principal repayments to disruptions in the education sector caused by COVID-19 pandemic restrictions, followed by subsequent operational challenges. All reported financial defaults align with claims received from Secured Financial Creditors as part of the ongoing CIRP proceedings.

MT Educare Limited announced its unaudited standalone and consolidated financial results for the third quarter and nine months ended December 31, 2025, while continuing operations under the Corporate Insolvency Resolution Process (CIRP). The company remains under the management of Resolution Professional Mr. Arihant Nenawati following the NCLT order dated December 16, 2022.

Financial Performance Overview

The company's financial performance for Q3 FY26 reflected the challenging operational environment under CIRP proceedings:

Auditor's Disclaimer and Key Concerns

The statutory auditors MGB & Co LLP issued a disclaimer of conclusion on both standalone and consolidated results, citing several material concerns. The auditors highlighted significant uncertainties regarding the company's ability to continue as a going concern, given the ongoing CIRP proceedings and accumulated losses.

Key issues identified include:

• Unreconciled creditor claims totaling Rs. 22,919.13 lakhs received during CIRP, with Rs. 9,498.87 lakhs admitted
• Outstanding loans and receivables of Rs. 7,268.63 lakhs (standalone) and Rs. 11,010.01 lakhs (consolidated) that are overdue or rescheduled
• Unrecognized interest income of Rs. 573.09 lakhs and Rs. 1,662.88 lakhs for quarter and nine months respectively
• Deferred tax assets of Rs. 6,174.47 lakhs whose recoverability remains uncertain

Corporate Insolvency Resolution Process Status

The CIRP proceedings continue under Resolution Professional Mr. Arihant Nenawati, who replaced the previous professional in January 2024. The Committee of Creditors (COC) was constituted on August 21, 2023, and has been actively involved in the resolution process.

During the CIRP period, claims from 683 creditors amounting to Rs. 22,919.13 lakhs were received, of which 659 claims totaling Rs. 9,498.87 lakhs were admitted. The Resolution Professional has filed an application with the Hon'ble NCLT Mumbai seeking final approval for the resolution of the Corporate Debtor.

Operational Challenges and Asset Issues

The company faces significant operational challenges, including defaults on principal and interest payments to banks and financial institutions, resulting in NPA classification. The auditors noted that comprehensive asset reviews and physical verification of property, plant and equipment have not been conducted.

Additionally, the company has not recognized interest expenses of Rs. 87.55 lakhs and Rs. 261.71 lakhs for the quarter and nine months respectively, totaling Rs. 1,808.82 lakhs up to December 31, 2025.

Subsidiary Operations

The consolidated results include seven subsidiaries: Lakshya Forrum for Competitions Private Limited, MT Education Services Private Limited, Chitale's Personalised Learning Private Limited, Sri Gayatri Educational Services Private Limited, Robomate Edutech Private Limited, Letspaper Technologies Private Limited, and Labh Ventures India Private Limited.

The consolidated financial results showed similar trends with a net loss of Rs. 193.01 lakhs for Q3 FY26 compared to Rs. 531.84 lakhs in the corresponding previous quarter.