Tree House FY26 Net Loss Narrows to ₹1,006.72 Lakhs
Tree House Education & Accessories Limited reported its audited financial results for FY26, showing a narrowed standalone net loss of ₹1,006.72 lakhs against ₹1,728.37 lakhs in FY25. Revenue from operations decreased to ₹399.10 lakhs, while total expenses rose to ₹1,804.42 lakhs. The company disclosed an expected credit loss of ₹8.76 crores on a security deposit and ongoing legal proceedings, including a forensic audit and a Vadodara legal matter.
*this image is generated using AI for illustrative purposes only.
Tree House Education & Accessories Limited disclosed its audited standalone and consolidated financial results for the quarter and financial year ended March 31, 2026, following a Board of Directors meeting held on May 15, 2026. The results were reviewed by the audit committee and approved by the Board, with statutory auditor M/s Rakesh Soni & Co., Chartered Accountants, issuing an unmodified audit opinion on both the standalone and consolidated financial statements.
Standalone Financial Performance
On a standalone basis, the company reported a significant contraction in revenue and continued to record losses, though the net loss narrowed considerably compared to the prior year. Revenue from operations fell to ₹399.10 lakhs in FY26 from ₹714.50 lakhs in FY25. Total income, including other income of ₹23.86 lakhs, stood at ₹422.96 lakhs for FY26, against ₹797.47 lakhs in FY25. Total expenses rose sharply to ₹1,804.42 lakhs in FY26 from ₹1,111.25 lakhs in FY25, driven primarily by other expenses of ₹1,233.66 lakhs and depreciation & amortisation of ₹177.00 lakhs.
The following table summarises the standalone profit and loss performance:
| Metric: | Q4 FY26 (Audited) | Q3 FY26 (Unaudited) | Q4 FY25 (Audited) | FY26 (Audited) | FY25 (Audited) |
|---|---|---|---|---|---|
| Revenue from Operations (₹ lakhs): | 62.46 | 87.07 | 100.00 | 399.10 | 714.50 |
| Other Income (₹ lakhs): | 82.42 | (58.56) | 82.00 | 23.86 | 82.97 |
| Total Income (₹ lakhs): | 144.89 | 28.51 | 182.00 | 422.96 | 797.47 |
| Total Expenses (₹ lakhs): | 1,418.84 | 132.78 | 571.00 | 1,804.42 | 1,111.25 |
| Loss Before Tax (₹ lakhs): | (1,273.95) | (104.26) | (389.00) | (1,381.46) | (313.78) |
| Net Loss After Tax (₹ lakhs): | (907.40) | (99.52) | (474.16) | (1,006.72) | (1,728.37) |
| Loss After Comprehensive Income (₹ lakhs): | (608.30) | (98.07) | (473.16) | (699.79) | (1,718.86) |
| Basic EPS (₹): | (1.44) | (0.23) | (1.12) | (1.65) | (4.06) |
| Diluted EPS (₹): | (1.44) | (0.23) | (1.12) | (1.65) | (4.06) |
Other comprehensive income for FY26 included an actuarial gain of ₹401.52 lakhs and a related deferred tax charge of ₹(104.40) lakhs, resulting in total other comprehensive income of ₹297.13 lakhs. After accounting for this, the loss after comprehensive income stood at ₹(699.79) lakhs for FY26, compared to ₹(1,718.86) lakhs in FY25.
Consolidated Financial Performance
The consolidated results for FY26 were broadly in line with the standalone figures. Consolidated revenue from operations was ₹399.10 lakhs, with total income of ₹422.96 lakhs. Total consolidated expenses were ₹1,804.42 lakhs, yielding a loss before tax of ₹(1,381.46) lakhs. The consolidated net loss after tax for FY26 was ₹(1,006.72) lakhs, compared to ₹(1,728.37) lakhs in FY25. After including the share of net profit from associates and joint ventures of ₹9.80 lakhs, the consolidated loss for the year was ₹(996.92) lakhs, against ₹(1,718.97) lakhs in FY25.
| Metric: | FY26 Consolidated (Audited) | FY25 Consolidated (Audited) |
|---|---|---|
| Revenue from Operations (₹ lakhs): | 399.10 | 714.50 |
| Total Income (₹ lakhs): | 422.96 | 797.47 |
| Total Expenses (₹ lakhs): | 1,804.42 | 1,111.25 |
| Loss Before Tax (₹ lakhs): | (1,381.46) | (313.78) |
| Net Loss After Tax (₹ lakhs): | (1,006.72) | (1,728.37) |
| Loss for the Period (₹ lakhs): | (996.92) | (1,718.97) |
| Loss After Comprehensive Income (₹ lakhs): | (699.79) | (1,718.97) |
| Basic EPS (₹): | (1.65) | (4.06) |
| Diluted EPS (₹): | (1.65) | (4.06) |
The consolidated group includes associate M/s JT Infra Private Limited (50% holding), M/s Aaviv Tutorials LLP (51% investment in capital), and M/s Aaviv Tutorials partnership firm (51% investment in capital). The group's share of net profit from M/s Aaviv Tutorials LLP was Rs. 6.16 lakhs and from M/s Aaviv Tutorials partnership firm was Rs. 3.64 lakhs for the year ended March 31, 2026.
Balance Sheet Highlights
As at March 31, 2026, standalone total assets stood at ₹19,141.60 lakhs, compared to ₹19,305.47 lakhs as at March 31, 2025. Equity share capital remained unchanged at ₹4,231.07 lakhs. Other equity declined to ₹13,839.98 lakhs from ₹14,539.77 lakhs. Total liabilities increased to ₹1,070.54 lakhs from ₹534.63 lakhs, largely due to new lease liabilities of ₹600.46 lakhs under non-current liabilities. Cash and cash equivalents improved to ₹1.86 lakhs from ₹0.17 lakhs. Trade receivables declined to ₹1,018.21 lakhs from ₹2,119.12 lakhs.
Key Notes and Legal Matters
The company operates within a single primary business segment of "Educational Services." Several significant matters were disclosed alongside the financial results:
- Security Deposit – Mira Education Trust: The company has provided a refundable security deposit of Rs.136.18 crores to Mira Education Trust under a Facilitation Service Agreement dated March 1, 2012. The total agreed deposit was Rs. 143 Cr, to be refunded within five years. The company has received Rs. 17.90 Crores towards refunds till March 31, 2026. Following a repayment schedule letter dated February 25, 2026 from the Trust, the company has provided for an expected credit loss of Rs.8.76 crores for the year ended March 31, 2026 as per Ind AS 109.
- Security Deposit – Vidya Bharti Samiti: Based on an order from the Hon. Sole Arbitrator, the company has provided for Expected Credit Loss @ 8% on a security deposit of Rs.29 crores to be refunded on a phased basis over 30 years starting from FY2025-26.
- Bad Debts: Provision for bad debts of Rs.1.21 crores created in earlier years has been transferred to bad debts during the financial year as there are no recoveries.
- Forensic Audit: An ongoing forensic audit by the Economic Offence Wing of Mumbai Police covers the period from FY2011-12 to FY2017-18. The company is defending and pursuing legal cases on various forums.
- Vadodara Legal Matter: An FIR was filed on February 26, 2025 against the company, its Managing Director, Directors and KMPs by the Vadodara Detection of Crime Branch. Two independent directors were arrested on March 2, 2025 and subsequently released on bail on March 10, 2025. The Gujarat High Court, by its order dated March 20, 2025, granted interim relief restraining police authorities from taking coercive action and directed that no charge sheet be filed without prior permission of the High Court. The company continues to pursue legal options in this matter.
- Borrowings: The company reported NIL outstanding qualified borrowings at both the start and end of FY26, with no incremental borrowings or debt securities issued during the year.
The paid-up equity share capital of the company stands at ₹4,231.00 lakhs (face value Rs.10 per share), with reserves excluding revaluation reserves at ₹14,480.19 lakhs on a standalone basis as at March 31, 2026.
Historical Stock Returns for Tree House Education
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.33% | -3.74% | -17.41% | -15.53% | -18.61% | -16.89% |
Will Tree House Education be able to recover the remaining ₹125+ crore security deposit from Mira Education Trust, and what impact could a default have on the company's already stressed balance sheet?
How might the ongoing forensic audit by Mumbai Police's Economic Offence Wing and the Vadodara FIR affect the company's ability to attract new institutional investors or secure future business partnerships?
Given the sharp 44% decline in standalone revenue from operations over FY26, what strategic restructuring or new revenue streams is management likely to pursue to achieve operational viability?
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