MT Educare Limited , an education services provider, has recently disclosed significant financial defaults totaling Rs 32.33 crores, as the company continues to navigate through its Corporate Insolvency Resolution Process (CIRP).

Default Details

The company has reported defaults on both principal and interest payments across various financial obligations:

Both the Axis Bank loans and the Prudence ARC loan are secured, with a tenure of 2 years each.

Corporate Guarantees and Additional Claims

In addition to its direct borrowings, MT Educare faces potential liabilities from invoked corporate guarantees:

Shamrao Vithal Co-op Bank Ltd (SVC) has submitted a claim of Rs 49.72 crores related to a corporate guarantee for MT Educare's subsidiary, Labh Ventures India Pvt Ltd. However, this claim has been rejected as the guarantee was not invoked before the insolvency commencement date. SVC Bank has appealed this decision, and the matter is pending before the National Company Law Appellate Tribunal (NCLAT).

Insolvency Proceedings

MT Educare has been under the Corporate Insolvency Resolution Process since December 16, 2022, following an order from the National Company Law Tribunal (NCLT). The company's financial struggles appear to have been ongoing, with the disclosure noting defaults dating back to March 2021.

In a recent development, Arihant Nenawati was appointed as the new Resolution Professional in January 2024, replacing the previous Interim Resolution Professional. This change came about through an application filed by Prudent ARC and approved by the NCLT, Mumbai Bench.

Implications and Outlook

The substantial defaults and ongoing insolvency proceedings highlight the severe financial challenges facing MT Educare. As the CIRP continues, stakeholders will be closely watching for any potential resolution plans or restructuring efforts that could help the company navigate its current financial distress.

The outcome of these proceedings will be crucial not only for MT Educare but also for its creditors, employees, and the broader education sector in which it operates. The resolution process may lead to significant changes in the company's structure, operations, or ownership in the coming months.

MT Educare Limited , currently undergoing Corporate Insolvency Resolution Process (CIRP), has released its unaudited financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The results, approved in a board meeting on August 13, 2025, were published in Financial Express and Pratah Kaal newspapers on August 15, 2025.

Financial Performance

The education services provider reported a total revenue of ₹438.76 lakhs for Q1 FY2026, marking a significant decrease from ₹784.60 lakhs in the corresponding quarter of the previous year. This represents a year-on-year decline of approximately 44.1% in revenue.

The company's net loss after tax narrowed to ₹190.35 lakhs, compared to a loss of ₹358.75 lakhs in Q1 FY2025. This improvement in the bottom line comes despite the reduction in revenue, suggesting potential cost-cutting measures or operational efficiencies implemented during the quarter.

Key Financial Metrics

The improvement in EPS, despite remaining negative, aligns with the reduced net loss for the quarter.

Corporate Insolvency Resolution Process

MT Educare Limited continues to operate under the Corporate Insolvency Resolution Process, which was initiated on December 16, 2022, following an order from the National Company Law Tribunal (NCLT) Mumbai. The process is currently being supervised by Resolution Professional Arihant Nenawati.

Publication and Compliance

In compliance with regulatory requirements, MT Educare Limited published its quarterly results in two newspapers: Financial Express (English) and Pratah Kaal (Marathi). This adherence to publication norms demonstrates the company's commitment to transparency and regulatory compliance, even while undergoing the insolvency process.

The company's ability to narrow its losses in a challenging operating environment, coupled with its adherence to regulatory norms, may be seen as positive indicators by stakeholders. However, the significant drop in revenue highlights the ongoing challenges faced by MT Educare Limited as it navigates through the insolvency process and seeks to stabilize its operations.