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.

MT Educare Limited , a company currently under Corporate Insolvency Resolution Process (CIRP), has reported its unaudited financial results for the first quarter ended June 30. The education services provider continues to face significant financial challenges as it navigates through the insolvency process.

Financial Performance

MT Educare reported a standalone net loss of Rs 190.35 crore for Q1, compared to a loss of Rs 358.75 crore in the same quarter of the previous year. While the loss has narrowed year-over-year, the company's financial position remains precarious.

Revenue from operations declined to Rs 378.58 crore, down from Rs 616.83 crore in the corresponding quarter of the previous year, indicating a substantial decrease in business activity. The total income for the quarter stood at Rs 438.76 crore, including other income of Rs 60.18 crore.

Expenses and Operational Challenges

The company's total expenses for the quarter amounted to Rs 611.95 crore, with significant components including:

Insolvency Proceedings and Management

MT Educare has been undergoing CIRP since December 16, 2022, following an order by the National Company Law Tribunal (NCLT), Mumbai Bench. Mr. Arihant Nenawati is currently serving as the Resolution Professional (RP), managing the company's affairs and overseeing the insolvency process.

During the CIRP period, claims totaling Rs 22,919.13 crore were received from 683 creditors. Of these, claims amounting to Rs 9,498.57 crore from 659 creditors have been admitted, while claims worth Rs 7,555.53 crore were not admitted for various reasons.

Going Concern and Auditor's Review

The financial results have been prepared on a going concern basis, despite the company's accumulated losses, negative net worth, and current liabilities exceeding current assets. The ability of MT Educare to continue as a going concern is dependent on the outcome of the CIRP, including the approval and implementation of a resolution plan.

The statutory auditors have expressed a disclaimer of conclusion in their review report, citing multiple concerns including:

• Unreconciled creditor claims
• Lack of comprehensive review of asset carrying amounts
• Recognition of deferred tax assets despite ongoing losses
• Non-recognition of interest expenses on certain borrowings
• Uncertainties regarding the company's ability to continue as a going concern

Future Outlook

As MT Educare continues to operate under CIRP, its future remains uncertain. The Resolution Professional has filed an application with the NCLT Mumbai seeking final approval for the resolution of the company. The hearing is scheduled, and stakeholders await the final decision from the adjudicating authority.

The company's ability to overcome its financial difficulties and return to profitability will largely depend on the successful implementation of a resolution plan and the decisions made during the ongoing insolvency process.