Zee Learn Q1 Results: Standalone Net Profit Up 26% YoY to ₹1,643 lakhs
Zee Learn Limited reported standalone net profit of ₹1,643.35 lakhs for Q1 FY27 (quarter ended 30 June 2026), up from ₹1,305.87 lakhs in Q1 FY26, with standalone revenue from operations rising to ₹8,788.86 lakhs. On a consolidated basis, net profit from continuing operations improved sharply to ₹1,063.29 lakhs from ₹166.81 lakhs in the year-ago quarter, while overall consolidated net profit stood at ₹842.16 lakhs after accounting for a loss of ₹221.13 lakhs from discontinued operations (Liberium Global Resources). The Board approved the divestment of Liberium's 100% stake to Creantum Security Solutions Private Limited, subject to shareholder approval. Statutory auditors issued a qualified conclusion on both standalone and consolidated results, citing material uncertainties including unassessed impairment on receivables of Rs. 79,993.47 lakhs and corporate guarantee obligations, while the financial statements were prepared on a going concern basis.
*this image is generated using AI for illustrative purposes only.
Zee Learn Limited reported its unaudited standalone and consolidated financial results for the quarter ended 30 June 2026, with the Board of Directors approving the results at its meeting held on 29 July 2026. The company delivered a notable improvement in profitability on both a standalone and consolidated basis compared to the corresponding quarter of the previous year, even as it navigated complex legal and financial contingencies involving its subsidiary Digital Ventures Private Limited (DVPL) and associated corporate guarantee obligations.
Standalone Financial Performance
On a standalone basis, Zee Learn posted strong year-on-year growth across key financial metrics for the quarter ended 30 June 2026. Revenue from operations rose to ₹8,788.86 lakhs from ₹7,371.49 lakhs in the quarter ended 30 June 2025. Total income increased to ₹8,979.48 lakhs from ₹7,541.25 lakhs. Total expenses for the quarter stood at ₹6,709.27 lakhs compared to ₹5,745.54 lakhs in the year-ago period.
The following table summarises the standalone financial performance:
| Metric: | Q1 FY27 (30 Jun 2026) | Q1 FY26 (30 Jun 2025) | Q4 FY26 (31 Mar 2026) |
|---|---|---|---|
| Revenue from Operations (₹ lakhs): | 8,788.86 | 7,371.49 | 15,390.86 |
| Other Income (₹ lakhs): | 190.62 | 169.76 | 441.17 |
| Total Income (₹ lakhs): | 8,979.48 | 7,541.25 | 15,832.03 |
| Total Expenses (₹ lakhs): | 6,709.27 | 5,745.54 | 10,576.03 |
| Profit Before Tax (₹ lakhs): | 2,270.21 | 1,795.71 | 5,256.00 |
| Net Profit After Tax (₹ lakhs): | 1,643.35 | 1,305.87 | 7,283.37 |
| Total Comprehensive Income (₹ lakhs): | 1,622.51 | 1,283.56 | 7,288.63 |
| Basic EPS (₹): | 0.50 | 0.40 | 2.23 |
| Diluted EPS (₹): | 0.50 | 0.40 | 2.22 |
Standalone profit before tax for the quarter stood at ₹2,270.21 lakhs, up from ₹1,795.71 lakhs in Q1 FY26. Net profit after tax rose to ₹1,643.35 lakhs from ₹1,305.87 lakhs in the year-ago quarter. Basic and diluted earnings per share (not annualised) were ₹0.50 and ₹0.50 respectively, compared to ₹0.40 each in Q1 FY26. Paid-up equity share capital stood at ₹3,277.31 lakhs as at 30 June 2026, reflecting the allotment of 6,69,286 equity shares of ₹1/- each pursuant to the exercise of stock options under the ZLL ESOP 2010-Amended 2015 scheme during the quarter.
Consolidated Financial Performance
On a consolidated basis, Zee Learn's revenue from operations from continuing operations grew to ₹9,331.64 lakhs in Q1 FY27 from ₹7,914.27 lakhs in Q1 FY26. Total income from continuing operations increased to ₹9,725.24 lakhs from ₹8,277.21 lakhs. Net profit from continuing operations rose significantly to ₹1,063.29 lakhs from ₹166.81 lakhs in the year-ago quarter.
| Metric: | Q1 FY27 (30 Jun 2026) | Q1 FY26 (30 Jun 2025) | Q4 FY26 (31 Mar 2026) |
|---|---|---|---|
| Revenue from Operations – Continuing (₹ lakhs): | 9,331.64 | 7,914.27 | 15,919.39 |
| Total Income – Continuing (₹ lakhs): | 9,725.24 | 8,277.21 | 16,373.96 |
| Total Expenses – Continuing (₹ lakhs): | 8,035.09 | 7,267.42 | 12,964.70 |
| Profit Before Tax – Continuing (₹ lakhs): | 1,690.15 | 1,009.79 | 3,409.26 |
| Net Profit – Continuing Operations (₹ lakhs): | 1,063.29 | 166.81 | 5,434.48 |
| Loss from Discontinued Operations after tax (₹ lakhs): | (221.13) | 22.75 | (892.73) |
| Net Profit for the Period (₹ lakhs): | 842.16 | 189.56 | 4,541.75 |
| Total Comprehensive Income (₹ lakhs): | 821.32 | 167.25 | 4,547.02 |
| Basic EPS – Continuing (₹): | 0.33 | 0.05 | 1.66 |
| Basic EPS – Continuing & Discontinued (₹): | 0.26 | 0.06 | 1.39 |
The loss from discontinued operations (representing Liberium Global Resources Private Limited) after tax was ₹221.13 lakhs for the quarter ended 30 June 2026, compared to a profit of ₹22.75 lakhs in Q1 FY26. Total net profit for the consolidated entity stood at ₹842.16 lakhs against ₹189.56 lakhs in the year-ago quarter.
Segment Performance
The consolidated segment information for the quarter ended 30 June 2026 reflects two primary business segments under continuing operations: Educational Services and related activities, and Construction and Leasing (for education).
| Segment: | Revenue Q1 FY27 (₹ lakhs) | Revenue Q1 FY26 (₹ lakhs) | Segment Result Q1 FY27 (₹ lakhs) | Segment Result Q1 FY26 (₹ lakhs) |
|---|---|---|---|---|
| Educational Services and related activities: | 8,788.86 | 7,371.49 | 2,369.95 | 2,241.16 |
| Construction and Leasing (for education): | 542.78 | 542.78 | (268.40) | (341.48) |
| Total: | 9,331.64 | 7,914.27 | 2,101.55 | 1,899.68 |
Total segment assets as at 30 June 2026 stood at ₹1,57,851.01 lakhs, while total segment liabilities were ₹1,33,519.44 lakhs, resulting in net capital employed of ₹24,331.57 lakhs.
Divestment of Liberium Global Resources
In a significant corporate action, the Board of Directors approved the divestment of the company's entire shareholding in Liberium Global Resources Private Limited, comprising 1,000 equity shares of ₹10/- each, constituting 100% of Liberium's paid-up share capital, to Creantum Security Solutions Private Limited, an unrelated third party. The transaction is subject to shareholder approval, and the sale agreement is to be entered into following such approval, with completion expected within three months thereafter.
Key details of the proposed divestment are as follows:
| Parameter: | Details |
|---|---|
| Entity Being Divested: | Liberium Global Resources Private Limited |
| Buyer: | Creantum Security Solutions Private Limited |
| Shares Being Transferred: | 1,000 equity shares of ₹10/- each (100% stake) |
| Consideration: | To be received on transfer of shares after shareholder approval |
| Related Party Transaction: | No |
| FY 2025-26 Turnover (Liberium): | ₹10,490 Lakhs (24% of consolidated turnover) |
| FY 2025-26 PAT (Liberium): | (₹809 lakhs) ((21%) of consolidated PAT) |
| FY 2025-26 Net Worth (Liberium): | ₹112 Lakhs (0.5% of consolidated Net Worth) |
Consequent to this approval, Liberium's operations have been classified as discontinued operations in the consolidated financial results for the quarter ended 30 June 2026, in accordance with Ind AS 105.
Auditor's Qualified Conclusion and Going Concern
The statutory auditors, Ford Rhodes Parks & Co. LLP, issued a qualified conclusion on both the standalone and consolidated unaudited financial results. Key qualifications relate to the non-assessment of impairment on the amount of Rs. 79,993.47 lakhs receivable from four trusts/entity as at 30 June 2026, the non-provision of liability against corporate guarantee obligations invoked by lenders (including Axis Bank Limited and Tamilnad Mercantile Bank), and—on the consolidated basis—the absence of a comprehensive impairment assessment of investment properties and development rights with carrying values of Rs. 45,321.14 lakhs and Rs. 7,662.27 lakhs respectively as at 30 June 2026.
The auditors also highlighted a material uncertainty relating to going concern, noting that the outstanding amount payable to Assets Care & Reconstruction Enterprise Limited (ACRE) under the Supplemental Facilities Agreement stood at Rs. 66,745.92 lakhs (including interest) as at 30 June 2026, and that Axis Bank Limited had assigned a total credit facility of Rs. 13,008 lakhs (including interest) outstanding as on 20 March 2025 (Rs. 14,577.71 lakhs as at 30 June 2026) to ACRE. The company's management has stated that these obligations will be settled through monetisation of assets of DVPL and four trusts/entity, and the financial results have accordingly been prepared on a going concern basis. The auditors' conclusion on the Statement is not modified in respect of the going concern matter.
Historical Stock Returns for Zee Learn
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -0.24% | -0.12% | +29.47% | -4.72% | -44.94% |
How might the successful divestment of Liberium Global Resources impact Zee Learn's consolidated debt-to-equity ratio and future cash flow stability?
What specific timeline or milestones has management outlined for monetizing DVPL assets to settle the ₹66,745.92 lakhs liability to ACRE and other lenders?
Could the auditors' qualified opinion regarding unassessed impairment on receivables and investment properties lead to significant write-downs in upcoming financial quarters?
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