MT Educare Limited Stock Analysis

Resolution plan is currently pending final approval from NCLT Mumbai, which if approved could provide a pathway to debt restructuring and operational revival / The company continues limited operational activities during CIRP with Rs 244.97 lakhs revenue in Q3 FY26, demonstrating some residual business continuity / Committee of Creditors was constituted on August 21, 2023 and a Resolution Professional was appointed, showing structured progress through the insolvency process / Claims reconciliation is complete with 659 creditor claims totaling Rs 9,498.87 lakhs admitted out of Rs 22,919.13 lakhs received, providing clarity on liability quantum

Auditors issued disclaimer of conclusion citing inability to verify asset carrying values, loan recoverability of Rs 7,268.63 lakhs, deferred tax assets of Rs 6,174.47 lakhs, and going concern assumption due to negative net worth / Revenue declined 60% year-over-year in Q3 FY26 to Rs 244.97 lakhs from Rs 611.28 lakhs, reflecting near-complete operational collapse during insolvency proceedings / Unrecognized financial obligations include Rs 1,808.82 lakhs of interest expenses on defaulted loans and Rs 5,412.86 lakhs of uncollected interest income on non-performing loans as of December 31, 2025 / Loss of leased property in Mangalore worth Rs 2,376.63 lakhs after subsidiary Labh Ventures defaulted on SVC Cooperative Bank loan, with e-auction scheduled for February 6, 2026 / Accumulated losses, current liabilities exceeding current assets, and complete erosion of equity with negative Rs 13,646.91 lakhs in other equity create severe solvency concerns / No physical verification of property, plant and equipment conducted since March 2025, raising asset existence risks, and unresolved direct/indirect tax notices with undetermined liabilities

CIRP process has advanced procedurally: 683 claims were received and 659 claims amounting to Rs.9,498.87 lakhs were admitted, improving visibility versus an unconsolidated claims process. / Resolution Professional has filed an application before NCLT seeking final approval of the resolution, creating a defined legal path for potential restructuring outcome. / Standalone pre-tax loss shows sequential improvement to Rs.(171.33) lakhs in Q3 FY26 from Rs.(317.64) lakhs in Q2 FY26, indicating some quarter-on-quarter stabilization. / The business model remains focused on a single operating segment (coaching and educational services), which can simplify execution and post-resolution restructuring.

Auditors issued a Disclaimer of Conclusion (standalone and consolidated), meaning financial statements may need material and pervasive adjustments and cannot be relied upon with normal confidence. / Going-concern risk is explicit: accumulated losses, negative net worth, current liabilities exceeding current assets, declining operations, and ongoing defaults are all cited by auditors. / Large balance-sheet quality risk remains unresolved, including overdue/rescheduled receivables of Rs.7,268.63 lakhs (standalone) and Rs.11,010.01 lakhs (consolidated) with possible under-provisioning under Ind AS 109. / P&L understates financing stress: unrecognized borrowing cost is Rs.87.55 lakhs (Q3) and Rs.261.71 lakhs (9M) standalone, while cumulative non-recognition up to 31 Dec 2025 is Rs.1,808.82 lakhs standalone (Rs.3,397.19 lakhs consolidated).