MT Educare Ltd Management Discussions

Economic Review Global Economy

The global economy demonstrated resilience in 2025 despite navigating a complex environment marked by geopolitical tensions, evolving trade policies and elevated uncertainty. However, as the world progresses through 2026, the economic landscape is facing another significant test with the outbreak of military conflict in the Middle East, adding fresh pressures on energy markets, global trade routes and supply chains. The conflict has disrupted maritime and air traffic in the region, increased commodity price volatility and heightened concerns regarding inflation and financial market stability.

Against this backdrop, the IMF projects global growth to moderate from 3.4% in 2025 to 3.1% in 2026 before stabilising at 3.2% in 2027. While supportive policy measures, easing trade restrictions in certain regions and stronger-than-anticipated economic momentum have provided some support, growth remains constrained by geopolitical fragmentation, elevated uncertainty and structural economic challenges.

GDP Growth Trend

(in %)	2025	2026	2027
Global Economy	3.4	3.1	3.2
Advanced Economies	1.9	1.8	1.7
Emerging Markets and Developing Economies	4.4	3.9	4.2

Source: IMF World Economic Outlook April 2026

Global inflation has eased considerably from the highs witnessed in recent years but remains a key area of concern. The IMF projects global consumer inflation at 4.4% in 2026 before moderating to 3.7% in 2027. Supply-side disruptions, elevated energy prices and geopolitical developments continue to influence inflation expectations and monetary policy decisions across major economies. Financial markets have remained sensitive to these developments, with periodic volatility across currencies, commodities and capital markets reflecting changing investor sentiment and uncertainty around future economic conditions. Commodity-importing economies remain particularly vulnerable to fluctuations in energy and food prices.

The resilience displayed by major economies has remained uneven. While economic activity in the United States and China has exceeded earlier expectations, underlying challenges persist. In China, export growth continues to outpace domestic demand, while in the United States strong economic activity has been accompanied by slower labour force growth. Across regions, governments and businesses continue to balance growth priorities with inflation management, fiscal sustainability and geopolitical risk mitigation.

Despite near-term uncertainties, the global economy continues to be supported by several long-term growth drivers. Investments in infrastructure, digital technologies, artificial intelligence,

automation and industrial modernisation are contributing to productivity enhancement and supporting economic activity across regions. At the same time, businesses are accelerating efforts to strengthen operational resilience through supply chain diversification, regional sourcing strategies and enhanced visibility across value chains. These structural shifts are reshaping global commerce and reinforcing the importance of adaptability in an increasingly dynamic operating environment.

Outlook

The global economy is expected to maintain moderate growth over the medium term, supported by technological advancement, industrial investment and continued expansion across emerging markets. However, risks remain skewed to the downside. The trajectory of geopolitical conflicts, volatility in energy and commodity markets, evolving trade policies, rising protectionist measures, elevated sovereign debt levels and potential disruptions to financial markets could influence growth prospects and business confidence across regions.

Against this backdrop, organisations are increasingly prioritising resilience, adaptability and operational efficiency. Supply chain security, strategic partnerships, regional manufacturing ecosystems and agile decision-making are becoming important determinants of long-term competitiveness. Businesses that can successfully navigate geopolitical uncertainties, adapt to shifting trade patterns and maintain disciplined execution will be better positioned to capture emerging opportunities and create sustainable value in an increasingly complex global environment.

Indian Economy

India continued to demonstrate strong economic resilience during FY 2025-26,reinforcing its position as one of the fastest-growing major economies globally despite geopolitical uncertainties, trade disruptions and volatility in global commodity markets. Supported by robust domestic demand, healthy investment activity and strong sectoral performance across manufacturing and services, the economy maintained broad-based growth while further strengthening its macroeconomic fundamentals.

According to the Provisional Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI), Indias real Gross Domestic Product (GDP) grew by 7.7% in FY 202526, compared to 71% in the previous year, while nominal GDP expanded by 8.9%. Real Gross Value Added (GVA) registered growth of 7.9%, reflecting sustained momentum across key sectors of the economy.

GDP Growth Trend (%)

Fiscal Year	GDP Growth
FY 2021-22	8.7
FY 2022-23	7.0
FY 2023-24	8.2
FY 2024-25	7.1
FY 2025-26E	7.7

E: Estimated Source: MoSPI

Domestic consumption continued to remain a key pillar of economic growth during FY26. Rising household spending, improving employment conditions and strengthening rural demand supported consumption across sectors. Private Final Consumption Expenditure (PFCE) grew by 7.7% during the year, highlighting the resilience of consumer sentiment and the underlying strength of the domestic market.

Investment activity also remained robust, supported by continued public expenditure and private sector participation. Gross Fixed Capital Formation (GFCF) expanded by 8.2% during FY26, reflecting ongoing investments in productive capacity, infrastructure development and long-term asset creation. The sustained momentum in investment activity underscores growing business confidence and supports the countrys longterm economic competitiveness.

Indias manufacturing and services sectors remained the primary drivers of growth. The secondary sector expanded by 8.8%, while the tertiary sector recorded growth of 9.3%, benefiting from strong activity across manufacturing, trade, transportation, financial services, real estate and professional services. These trends reflect the increasing depth and diversification of the Indian economy, supported by formalisation, digital adoption and improving productivity across sectors.

The countrys demographic strength, expanding middle-income population and growing digital ecosystem continue to support economic activity and consumption. Increased formalisation, broader financial inclusion and rapid adoption of technology- enabled services have further strengthened economic efficiency and widened participation across the economy.

Indias external sector also demonstrated resilience despite a challenging global environment. Continued growth in exports, rising economic activity and increasing integration with global value chains reinforced the countrys position as an important contributor to global growth. At the same time, strong domestic demand continued to support imports and investment-led expansion, reflecting the strength of underlying economic fundamentals.

Outlook

Indias growth outlook remains favourable, supported by strong domestic consumption, rising investments, ongoing infrastructure development and continued policy reforms. Increasing formalisation, digital transformation and productivityenhancing investments are expected to strengthen the countrys growth potential over the medium to long term.

While geopolitical tensions, global trade uncertainties and commodity price volatility may create near-term challenges, Indias diversified economic base, favourable demographics and robust domestic market provide a strong foundation for sustained growth. These structural strengths are expected to support broad-based economic development and reinforce Indias position as one of the worlds leading growth economies in the years ahead.

Education Industry Review

Indias education sector continues to evolve as a critical enabler of the countrys long-term economic and social development. Supported by favourable demographics, rising aspirations and sustained policy focus, the sector is undergoing a significant transformation driven by technology integration, evolving workforce requirements and increasing emphasis on quality and learning outcomes.

India remains home to one of the worlds largest education ecosystems. According to the latest All India Survey on Higher Education (AISHE), higher education enrolment stands at approximately 4.33 crore students, while the Gross Enrolment Ratio (GER) for the 18-23 age group has increased to 28.4%, reflecting steady progress in expanding access to education across the country. Continued improvements in gender participation and inclusion further highlight the growing reach of the education system.

The higher education market in India was valued at approximately 6.2 trillion in 2025 and is projected to reach 12.7 trillion by 2034, growing at a CAGR of 7.85% between 2026 and 2034. Growth is being supported by rising enrolment levels, policy reforms, digital adoption and increasing participation by private institutions. Expanding course offerings, greater focus on employability and growing demand for industry-aligned learning continue to drive market expansion.

Technology is emerging as a powerful catalyst for change across the sector. The rapid expansion of digital infrastructure, increasing internet penetration and growing adoption of online and hybrid learning models are enhancing accessibility and learner engagement. Artificial intelligence, adaptive learning systems, analytics-driven assessments and personalised learning platforms are increasingly influencing educational delivery, enabling institutions to improve learning outcomes and enhance student experiences. Government initiatives such as Digital India and the National Digital Education Architecture (NDEAR) are further accelerating the integration of technology across the education ecosystem.

A notable shift across the sector is the growing emphasis on employability and workforce readiness. Educational institutions are increasingly redesigning curricula to align with evolving industry requirements through vocational training, internships, experiential learning and project-based education. Demand for programmes in emerging fields such as artificial intelligence, data science, machine learning, business analytics and digital technologies continues to rise as learners seek to acquire future- oriented skills and improve career prospects.

Industry-academia collaboration is also gaining momentum, enabling the development of programmes that combine academic knowledge with practical application. This growing alignment between education and industry requirements is helping bridge skill gaps and enhance graduate employability. Simultaneously, increasing investments in research, innovation and entrepreneurship are creating new opportunities for institutions to strengthen their academic offerings and expand their relevance in a rapidly evolving economy.

The sector is witnessing increased participation from private institutions and global academic organisations. Private universities are expanding educational capacity through specialised programmes, industry-oriented curricula and international collaborations. At the same time, policy reforms have enabled leading foreign universities to establish campuses in India, fostering greater academic exchange, improving quality benchmarks and enhancing the global integration of Indias higher education ecosystem.

Union Budget 2026-27 Highlights

• Highest-ever allocation for the Department of School Education and Literacy at 83,562 crore.

• Increased allocations across higher education institutions, including IITs, NITs, central universities and research programmes.

• Dedicated allocation for Centres of Excellence in Artificial Intelligence and AI-enabled education initiatives.

• Continued support for PM-One Nation One Subscription (PM-ONOS), research fellowships and digital learning infrastructure.

• Expansion of National Apprenticeship Training Scheme (NATS) and skill development programmes.

• Establishment of National Centres of Excellence for Skilling through global partnerships.

Emerging Trends in the Education Sector

Artificial Intelligence is Reshaping Learning Delivery

Artificial Intelligence (AI) is rapidly emerging as one of the most transformative forces in education. The integration of AI- powered learning platforms, adaptive assessments, intelligent tutoring systems and personalised learning pathways is enabling institutions to deliver more customised and outcome- oriented educational experiences. The National Education Policy (NEP) 2020 recognises AI as a critical enabler of educational transformation, while initiatives under the IndiaAI Mission are accelerating its adoption across educational institutions. AI is increasingly being used to enhance student engagement, support educators, improve learning analytics and facilitate data- driven decision-making. As educational institutions continue to embrace AI-enabled tools, personalised learning is expected to become a defining characteristic of the next generation of education delivery.

Shift Towards Employability and Workforce Readiness

Educational institutions are increasingly aligning academic

programmes with evolving workforce requirements. The focus is gradually shifting from knowledge acquisition alone towards employability, practical skills and career readiness. Industry-aligned curricula, experiential learning, internships, apprenticeships and project-based learning are becoming integral components of educational delivery. Employers are placing greater emphasis on problem-solving, communication, digital literacy and analytical capabilities, prompting institutions to redesign programmes that bridge the gap between academic learning and workplace expectations. This transition reflects the growing importance of outcome-based education in a rapidly evolving employment landscape.

Expansion of Skill-Based and Multidisciplinary Education

The implementation of NEP 2020 continues to drive the transition towards multidisciplinary and skill-oriented education. Institutions are increasingly integrating vocational learning, entrepreneurship, innovation and interdisciplinary programmes into their academic frameworks. This shift aims to equip learners with broader competencies and greater flexibility to navigate changing career pathways. Multidisciplinary institutions are gaining prominence as students increasingly seek educational experiences that combine academic depth with practical application and future-oriented skills.

Growth of Hybrid Learning Models

Hybrid learning has evolved from an alternative delivery mechanism into an established component of mainstream education. Institutions are increasingly combining classroom- based instruction with digital platforms to improve accessibility, flexibility and learner engagement. The widespread availability of digital infrastructure and learning management systems is enabling educational providers to deliver content across multiple formats, allowing learners to access educational resources anytime and anywhere. This blended approach is expected to remain a key feature of the sector as institutions seek to enhance learning outcomes while expanding their reach.

Rising Demand for Future-Oriented Skills

The rapid pace of technological advancement is driving demand for skills in areas such as artificial intelligence, data science, machine learning, cybersecurity, business analytics and digital technologies. Educational institutions are increasingly introducing specialised programmes and certifications to address emerging workforce requirements. Indias growing recognition as an AI-ready economy further underscores the importance of equipping learners with future-focused capabilities that support innovation, productivity and long-term employability.

Increased Focus on Research, Innovation and Knowledge Creation

Research and innovation are becoming increasingly important pillars of Indias education ecosystem. Policy initiatives aimed at strengthening research capabilities, promoting collaboration and enhancing institutional quality are encouraging greater investment in knowledge creation. Programmes such as the Partnerships for Accelerated Innovation and Research (PAIR) initiative and the expansion of Centres of Excellence reflect

the growing emphasis on research-led development and global academic competitiveness. Educational institutions are increasingly positioning innovation and entrepreneurship as core elements of their academic and institutional strategies.

Internationalisation of Higher Education

Indias education sector is witnessing greater international engagement through academic partnerships, global collaborations and the entry of foreign universities. Recent policy reforms have enabled leading international institutions to establish a presence in India, providing students with greater access to globally benchmarked education. These developments are expected to strengthen academic quality, enhance knowledge exchange and improve Indias positioning within the global education landscape.

Digital Inclusion and Lifelong Learning

The concept of learning is increasingly extending beyond traditional educational boundaries. Continuous upskilling, reskilling and lifelong learning are becoming essential in response to rapidly evolving technologies and changing workforce requirements. Digital platforms are playing a critical role in supporting continuous learning by providing flexible access to educational content and professional development opportunities. The growing relevance of lifelong learning is expected to create sustained demand for accessible, technology- enabled and learner-centric educational solutions.

Greater Emphasis on Learning Outcomes

The sector is witnessing a gradual shift from measuring educational success through enrolment and completion rates towards evaluating learning outcomes, employability and competency development. Institutions are increasingly adopting data-driven approaches, continuous assessment frameworks and learner-performance analytics to improve educational effectiveness. This transition reflects a broader industry focus on delivering measurable value and ensuring that educational outcomes remain aligned with the needs of learners and employers alike.

Outlook

Indias education sector is entering a transformative phase, supported by favourable demographics, policy-led reforms, rapid technological advancement and growing emphasis on workforce readiness. As the country progresses towards becoming a knowledge-driven economy, the role of education is expected to expand beyond academic instruction to encompass skill development, innovation, employability and lifelong learning.

The continued implementation of the National Education Policy (NEP) 2020 is expected to accelerate the shift towards multidisciplinary learning, academic flexibility and outcome- oriented education. Simultaneously, increased investments in digital infrastructure, artificial intelligence, research capabilities and skill development are creating a stronger foundation for a more accessible, inclusive and future-ready education ecosystem.

The growing integration of technology into educational delivery is expected to redefine learning experiences over the coming decade. Artificial intelligence, adaptive learning platforms, immersive technologies and data-driven assessment tools are likely to enhance personalisation, improve learner engagement and support more effective educational outcomes. As digital adoption deepens, hybrid learning models are expected to become increasingly embedded within mainstream education delivery.

The sector is also expected to benefit from rising demand for industry-aligned education and future-oriented skills. Growing collaboration between academia and industry, increasing emphasis on experiential learning and stronger focus on employability are likely to reshape curriculum design and educational delivery models. These developments are expected to strengthen workforce preparedness and support Indias aspirations of becoming a global talent hub.

At the same time, the increasing participation of private institutions, expansion of international academic collaborations and growing investments in research and innovation are expected to enhance educational quality and global competitiveness. The entry of foreign universities and the strengthening of research ecosystems are likely to create new opportunities for knowledge exchange, innovation and institutional development.

While challenges relating to affordability, quality, faculty development and equitable access remain, the sectors long-term fundamentals remain compelling. Indias large youth population, expanding middle-income segment, growing digital ecosystem and sustained policy support provide a strong foundation for future growth.

As the focus increasingly shifts from access to outcomes, from qualification to capability and from traditional learning to continuous skill development, Indias education sector is well positioned to play a pivotal role in shaping the countrys economic competitiveness, innovation capacity and human capital development in the years ahead.

( Sources : Ministry of Education; IMARC Group)

National Education Policy (NEP) 2020: Driving the Next Phase of Educational Transformation

The National Education Policy (NEP) 2020 continues to serve as the cornerstone of Indias educational transformation, guiding reforms aimed at creating a more flexible, inclusive, multidisciplinary and future-ready learning ecosystem. As the policy enters a deeper phase of implementation, its impact is becoming increasingly visible across school education, higher education, skill development and technology-enabled learning.

One of the defining objectives of the NEP is to move beyond traditional content-based learning towards competency-driven education that emphasises critical thinking, problem-solving, creativity and experiential learning. The policy encourages greater academic flexibility through multidisciplinary pathways, multiple entry and exit options, credit transfers and learner-centric

curriculum structures, enabling students to pursue more personalised educational journeys.

Significant progress has also been made in integrating technology into educational delivery. Initiatives such as the National Digital Education Architecture (NDEAR), DIKSHA, Academic Bank of Credits (ABC) and various digital learning platforms are supporting greater accessibility, portability and flexibility within the education system. These initiatives are helping create a digitally connected learning ecosystem that extends educational opportunities across geographic and socio-economic boundaries.

A major focus area under the NEP has been the strengthening of employability and workforce readiness. The policy promotes vocational education, skill integration and industry engagement at multiple levels of learning. Increased emphasis on internships, experiential learning, entrepreneurship and industry-relevant competencies is helping bridge the gap between academic instruction and evolving workforce requirements.

Research, innovation and knowledge creation continue to be important pillars of the reform agenda. Through initiatives such as the Anusandhan National Research Foundation (ANRF), Partnerships for Accelerated Innovation and Research (PAIR) programme and Centres of Excellence across strategic disciplines, the Government is seeking to strengthen Indias research ecosystem and enhance the global competitiveness of its educational institutions.

The rapid emergence of artificial intelligence, automation and digital technologies has further reinforced the relevance of the NEP framework. Recent policy initiatives supporting AI integration, digital literacy and future-oriented skills are aligned with the broader objectives of preparing learners for a technology-driven economy. The growing focus on data science, artificial intelligence, machine learning, computational thinking and emerging technologies reflects the sectors response to changing industry requirements.

The policy also places strong emphasis on equity, inclusion and accessibility. Efforts to expand digital infrastructure, promote regional language learning, improve educational access and strengthen institutional capacity are contributing towards creating a more inclusive and learner-centric education system. Increased participation across geographies and socio-economic groups continues to support the broader objective of democratising access to quality education.

As implementation progresses, the NEP is expected to continue shaping curriculum design, teaching methodologies, assessment frameworks and institutional structures across the education ecosystem. By fostering flexibility, innovation, skill development and technology adoption, the policy is laying the foundation for a more responsive and globally competitive education system capable of supporting Indias long-term human capital and economic development aspirations.

Key Areas of Progress under NEP 2020

• Expansion of multidisciplinary and flexible learning pathways.

• Implementation of Academic Bank of Credits (ABC).

• Greater integration of vocational education and skill development.

• Increased adoption of digital learning platforms and educational technology.

• Strengthening of research, innovation and entrepreneurship ecosystems.

• Enhanced focus on employability, experiential learning and industry engagement.

• Growing emphasis on artificial intelligence, digital literacy and future-ready skills.

• Continued efforts towards accessibility, inclusion and educational equity.

Opportunities and Risks

Indias education sector is entering a period of profound transformation, shaped by favourable demographics, evolving learner expectations and rapid technological advancement. With one of the worlds largest youth populations and increasing participation in higher education, professional courses and competitive examinations, demand for quality educational support continues to remain strong. Rising aspirations among students and parents, coupled with growing emphasis on career progression and employability, are creating sustained opportunities across the education ecosystem.

The implementation of the National Education Policy (NEP) 2020 is accelerating structural changes across the sector by promoting multidisciplinary learning, academic flexibility, skill integration and technology-enabled education. At the same time, increasing government investments in education, digital

infrastructure and workforce development are expanding access to learning opportunities and strengthening the overall ecosystem. These developments are creating a supportive environment for educational institutions that can deliver quality content, strong academic outcomes and differentiated learner experiences.

A significant opportunity lies in the growing demand for outcome-oriented learning. Students and parents are increasingly evaluating educational investments based on measurable academic performance, examination success and career advancement opportunities. This shift is encouraging institutions to move beyond conventional teaching models and focus on personalised learning, performance analytics, mentoring and student engagement. Educational providers that can consistently demonstrate strong outcomes are likely to be better positioned to build trust and sustain long-term growth.

The rapid integration of technology is creating new possibilities for educational delivery and scalability. Artificial intelligence, adaptive learning systems, analytics-driven assessments and digital content platforms are enabling more personalised and data-driven learning experiences. Hybrid learning models, combining classroom instruction with digital engagement, are increasingly becoming the preferred mode of delivery as they offer greater flexibility, accessibility and continuity. The growing adoption of technology is expected to expand the reach of quality education beyond traditional urban centres and create new avenues for growth.

The sector is also witnessing increasing demand for specialised academic support across competitive examinations, professional courses and career-oriented programmes. As competition for higher education admissions and employment opportunities intensifies, students are seeking structured learning pathways, expert guidance and performance-focused preparation. This trend continues to support demand for organised educational providers with established academic credentials and strong student outcomes.

Despite these opportunities, the operating environment remains highly competitive and dynamic. The proliferation of digital- first learning platforms, low-cost online content and alternative learning models has significantly increased competition across segments. Students today have access to a wide range of educational resources, making differentiation through academic quality, outcomes and student experience increasingly important.

Technological disruption also presents a continuing challenge. The pace of innovation requires institutions to continuously upgrade content, teaching methodologies and delivery platforms to remain relevant. Failure to adapt to changing learner preferences or emerging technologies may affect competitiveness and market positioning. Similarly, maintaining curriculum relevance in a rapidly evolving knowledge economy requires continuous monitoring of industry trends and changing skill requirements.

Another key challenge is balancing accessibility with quality. While digital technologies have expanded educational reach, ensuring meaningful learner engagement, academic rigour and consistent outcomes across delivery formats remains critical. Educational institutions must continue to invest in faculty development, content enhancement, learner support systems and technology infrastructure to maintain quality standards and deliver superior educational experiences.

The regulatory landscape continues to evolve as policymakers seek to improve educational quality, accountability and learner outcomes. While reforms under NEP 2020 present significant opportunities for innovation and expansion, institutions must remain agile and responsive to changing regulatory requirements and compliance expectations.

Recognising these dynamics, the Company has established a comprehensive enterprise-wide risk management framework designed to proactively identify, assess and mitigate risks across its operations. The framework integrates process-level monitoring through a Risk Control Matrix (RCM), business-

level evaluation through a Business Risk Management (BRM) framework and organisation-wide oversight through Entity Level Controls (ELC). This structured approach supports informed decision-making and strengthens organisational resilience.

The Company continuously reviews emerging risks and opportunities arising from technological advancements, changing market conditions and regulatory developments. Risk management considerations are integrated into strategic planning and operational decision-making processes to ensure that growth initiatives are pursued within an appropriate risk framework.

Robust internal controls over financial reporting, operational processes and compliance are maintained across the organisation. Risks are systematically identified, prioritised and monitored through close collaboration between management teams and internal control functions. The Internal Audit and Assurance function plays an important role in evaluating the effectiveness of controls and ensuring adherence to established policies and procedures.

As the education landscape continues to evolve, the Company remains focused on balancing growth opportunities with prudent risk management. By leveraging its academic expertise, strengthening operational capabilities and adapting to changing learner requirements, the Company aims to enhance stakeholder value while maintaining a disciplined and sustainable approach to growth.

Financial Performance And Key Financial Ratios

Consolidated Results Income

The total consolidated revenue for FY26 stood at 4,046 lakhs , as compared to 5,563 lakhs in FY25, reflecting a decrease of 27.27% . The movement in revenue was primarily attributable to reduction in student rollover enrolment .

Expenditure

The total expenditure for the year under review stood at 4,270 lakhs , as compared to 7,389 lakhs in FY25. The reasons for decrease in expenditure reflects enhanced operational efficiency and better cost management initiatives undertaken during the year.

Operational Expenses

Direct expenses primarily comprise fees paid to visiting faculty, rent, and printing costs for study materials provided to students as part of the course curriculum. For FY26, direct expenses stood at 1,920 lakhs , as compared to 3,334 lakhs in FY25. This improvement reflects enhanced operational efficiency and better cost management initiatives undertaken during the year. Employee Benefit Expenses

Employee benefits expense for FY26 stood at 614 lakhs , as compared to 927 lakhs in FY25. The change was primarily due to decrease in manpower costs, salary revisions, or other factors .

Other Expenditure

Other expenses for FY26 stood at 623 lakhs , as compared to 901 lakhs in FY25. The variation was mainly on account of enhanced operational efficiency and better cost management initiatives undertaken during the year.

Finance Costs

Finance costs for FY26 stood at 508 lakhs , as compared to 1,343 lakhs in FY25. The movement was primarily due to changes in borrowings, lease liabilities, or interest costs . Depreciation and Amortisation Expenses Depreciation and amortisation expenses for FY26 stood at 604 lakhs , as compared to 883 lakhs in FY25. The decrease was primarily attributable to the completion of the useful life of certain assets and limited capital additions during the year, resulting in a lower depreciation and amortisation charge . Profit After Tax

The profit/(loss) after tax for FY26 stood at loss of 313 lakhs , as compared to a loss of 3,099 lakhs in FY25.

SOURCE OF FUNDS

S hare Capital

The equity share capital remained unchanged at 7,223 lakhs during the year under review, as compared to 7,223 lakhs as on March 31, 2025.

Other Equity

Other equity stood at 7,738 lakhs as on March 31, 2026, as compared to 7,402 lakhs as on March 31, 2025.

Non-Current Liabilities

Non-current liabilities stood at 1,286 lakhs as on March 31, 2026, as compared to 1,833 lakhs as on March 31, 2025. The change was mainly due to reduction in lease liabilities .

Current Liabilities

Current liabilities stood at 24,798 lakhs as on March 31, 2026, as compared to 24,790 lakhs as on March 31, 2025. The variation was primarily due to changes in trade payables, borrowings, or other current obligations .

APPLICATION OF FUNDS

Non-Current Assets

Non-current assets stood at 8,566 lakhs as on March 31, 2026, as compared to 9,197 lakhs as on March 31, 2025. The movement was primarily attributable to reduction in Right to use Assets or other factors.

Current Assets

Current assets stood at 12,525 lakhs as on March 31, 2026, as compared to 12,770 lakhs as on March 31, 2025. The variation was mainly due to changes in receivables, cash balances, or other current assets .

STANDALONE RESULTS

Income

Revenue for FY26 stood at 1,494 lakhs , as compared to 2,546 lakhs in FY25, reflecting a decrease of 41.32% . The movement was primarily attributable to reduction in student rollover enrolment .

Total Expenditure

Total expenditure for FY26 stood at 2,034 lakhs , as compared to 3,395 Lakhs . The reasons for decrease in expenditure

reflects enhanced operational efficiency and better cost management initiatives undertaken during the year.

Operational Expense s

Direct expenses primarily include fees paid to visiting faculty and printing costs for study materials provided to students as part of the course curriculum. For FY26, direct expenses stood at 919 lakhs , as compared to 1,773 lakhs in FY25. This improvement reflects enhanced operational efficiency and better cost management initiatives undertaken during the year. Employee Benefit Expenses

Employee benefits expense for FY26 stood at 419 lakhs , as compared to 607 lakhs in FY25. The change was primarily due to decrease in manpower costs, salary revisions, or other factors .

Other Expenditure

Other expenses for FY26 stood at 332 lakhs , as compared to 478 lakhs in FY25. The variation was mainly on account of enhanced operational efficiency and better cost management initiatives undertaken during the year.

Finance Costs

Finance costs for FY26 stood at 126 lakhs , as compared to

156 lakhs . The movement was primarily due to reduction in interest cost of the company.

Depreciation and Amortisation Expenses Depreciation and amortisation expenses for FY26 stood at 238 lakhs , as compared to 381 lakhs. The decrease was primarily attributable to the completion of the useful life of certain assets and limited capital additions during the year, resulting in a lower depreciation and amortisation charge .

Profit After Tax

The profit/(loss) after tax for FY26 stood at 616 lakhs , as compared to a profit of 821 lakhs in FY25.

SOURCE OF FUNDS

Share Capital

The equity share capital remained unchanged at 7,223 lakhs during the year under review, as compared to 7,223 lakhs as on March 31, 2025.

Other Equity

Other equity stood at (1,984.29) lakhs as on March 31, 2026, as compared to (1,364.69) lakhs as on March 31, 2025. Non-Current Liabilities

Non-current liabilities stood at 147 lakhs as on March 31,2026, as compared to 427 lakhs as on March 31, 2025. The change was mainly due to reduction in lease liabilities.

Current Liabilities

Current liabilities stood at 11,385 lakhs as on March 31,2026, as compared to 11,596 lakhs as on March 31, 2025. The variation was primarily due to changes in trade payables, borrowings, or other current obligations .

APPLICATION OF FUNDS

Non-Current Assets

Non-current assets stood at 8,648 lakhs as on March 31, 2026, as compared to 9,068 lakhs as on March 31, 2025. The movement was primarily attributable to reduction in Right to use Assets or other factors .

Current Assets

Current assets stood at 8,122 lakhs as on March 31, 2026, as compared to 8,814 lakhs as on March 31, 2025. The variation was mainly due to changes in receivables, cash balances, or other current assets .

Additional information relating to various financial ratios, along with the corresponding explanations, has been provided as part of the financial statements of the Company and forms an integral part of the financial report.

OUTLOOK

Indias education sector is entering a new phase of growth characterised by increasing digital adoption, evolving learner expectations and a stronger emphasis on academic outcomes and employability. Rising participation in competitive examinations, growing awareness of career-oriented education and continued policy support are expected to create favourable conditions for organised education providers. The implementation of the

National Education Policy (NEP) 2020, coupled with continued investments in digital infrastructure and skill development, is expected to further strengthen the long-term outlook of the sector.

Against this backdrop, MT Educare remains focused on strengthening its position as a trusted provider of academic and competitive examination support. The Company intends to leverage its established brand equity, academic expertise and student-centric approach to enhance learner engagement and improve educational outcomes. By combining classroom excellence with technology-enabled learning solutions, the Company seeks to deliver a more personalised, accessible and effective learning experience.

The Company continues to focus on expanding its reach through a balanced mix of physical and digital delivery models. The growing acceptance of hybrid learning presents opportunities to improve accessibility, optimise resource utilisation and engage students across a wider geographic footprint. At the same time, the Company is strengthening its digital capabilities to enhance content delivery, performance tracking and student support mechanisms.

MT Educare also intends to deepen its focus on outcome- oriented education by continuously refining its academic offerings, teaching methodologies and assessment frameworks. Increasing demand for structured preparation across competitive examinations and career-focused programmes is expected to create opportunities for growth, particularly for institutions with a strong track record of academic performance and student success.

The Company remains committed to operational discipline, prudent resource allocation and continuous improvement in academic quality. Investments in faculty development, curriculum enhancement and technology integration will continue to remain important priorities as the Company adapts to changing learner requirements and industry dynamics.

While competitive intensity, technological disruption and evolving student preferences continue to shape the operating environment, the Company believes that its academic legacy, learner-centric philosophy and focus on educational outcomes provide a strong foundation for sustainable growth. By remaining agile, strengthening stakeholder relationships and capitalising on emerging opportunities within the education ecosystem, MT Educare aims to create long-term value for students, shareholders and all other stakeholders.

RISK AND CONCERNS

Operating in a dynamic and evolving education landscape requires the Company to continuously assess and respond to a range of strategic, operational, financial, regulatory, and technological risks. To strengthen organizational resilience and support sustainable growth, MT Educare has established a structured risk management framework that facilitates the timely identification, evaluation, monitoring, and mitigation of potential risks.

The Companys Enterprise Risk Management (ERM) framework promotes a coordinated approach to risk oversight across

functions and business units. Through regular risk assessments, monitoring mechanisms, and management reviews, the framework enables informed decision-making and supports the achievement of business objectives while safeguarding stakeholder interests.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

MT Educare maintains a robust internal control environment designed to ensure operational effectiveness, financial integrity, regulatory compliance, and protection of assets. The Companys control framework is supported by established policies, defined processes, and technology-enabled monitoring systems that strengthen governance across business operations.

The implementation of an integrated Enterprise Resource Planning (ERP) platform has enhanced visibility and control over critical functions, including finance, human resources, sales, and administration. This integration supports efficient information flow, improved process discipline, and timely decision-making across the organization.

The internal control framework is designed to ensure that transactions are appropriately authorised, accurately recorded, verified, and reported in accordance with applicable accounting standards and regulatory requirements. Adequate checks and balances have been embedded within key business processes to minimise operational and financial risks.

The Company has appointed an internal auditor to conduct periodic reviews based on a risk-oriented audit plan approved by the management. Audit findings, observations, and recommendations are regularly reviewed to ensure timely implementation of corrective actions and continuous improvement of internal processes.

The Statutory Auditors also evaluate the adequacy and effectiveness of internal financial controls as part of their audit procedures and assess compliance with applicable legal and regulatory requirements.

Oversight of the internal control environment is exercised by the Audit Committee of the Board, chaired by an Independent Director. The Committee periodically reviews audit reports, control assessments, compliance matters, and significant observations raised by internal and statutory auditors, ensuring appropriate corrective measures and governance standards are maintained across the organization.

Human Resource

The Companys people remain central to its long-term success and growth strategy. MT Educare continues to focus on building a capable, engaged, and performance-driven workforce by fostering a culture of learning, collaboration, accountability, and continuous development.

The Company invests in structured learning and development initiatives aimed at enhancing professional capabilities, domain expertise, and functional competencies across various levels of the organization. These programmes enable employees to strengthen their skills, adapt to changing business requirements, and contribute effectively to organizational objectives.

Recognising the importance of leadership in driving sustained

performance, MT Educare places significant emphasis on managerial and leadership development. Through targeted interventions, mentoring opportunities, and role-specific learning programmes, the Company seeks to build future-ready leaders capable of navigating an increasingly dynamic business environment.

Continuous learning remains a key focus area, with employees encouraged to upgrade their capabilities through ongoing training, knowledge-sharing initiatives, and skill enhancement programmes. This approach supports greater agility, innovation, and adaptability across the workforce.

The Company also remains committed to fostering a positive and inclusive work environment through employee-focused policies and engagement initiatives that promote well-being, collaboration, and professional growth. By nurturing a supportive workplace culture, MT Educare seeks to attract, retain, and develop talent aligned with its long-term vision.

As on March 31,2026, the Company had a workforce strength of over 69 employees.

Cautionary Statement

This document contains statements that may constitute forward-looking statements within the meaning of applicable securities laws and regulations. These statements include expectations regarding future business performance, growth prospects, industry developments, financial results, and operating performance.

Forward-looking statements are based on assumptions, expectations, estimates, and projections that the Company believes to be reasonable at the time of preparation. However, such statements are subject to various risks, uncertainties, and other factors that could cause actual results, performance, or achievements to differ materially from those expressed or implied in such statements.

Factors that may influence actual outcomes include, among others, changes in economic conditions, regulatory developments, competitive intensity, technological advancements, market dynamics, and other risks beyond the Companys control. Readers are therefore advised to exercise caution and not place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. The statements contained herein should be read in conjunction with the risks, assumptions, and qualifications discussed elsewhere in this Annual Report.

Shareholders Report

To,

The Members of MT Educare Limited

It is a pleasure in presenting the Twentieth Annual Report of the Company together with Audited Financial Statements for the year ended March 31, 2026.

Brief Status of Corporate Insolvency Resolution Process (CIRP)

The Company was admitted into the Corporate Insolvency Resolution Process (CIRP) pursuant to an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Connect Residuary Private Limited (CRPL), an Operational Creditor, vide order dated December 16, 2022. Accordingly, the CIRP of the Company commenced with effect from the said date.

Subsequent to the commencement of CIRP, the constitution of the Committee of Creditors (CoC) was stayed by the Honble National Company Law Appellate Tribunal (NCLAT), New Delhi, pursuant to an appeal filed by Mr. Vipin Choudhary, an erstwhile director of the Company. The said appeal was dismissed on August 18, 2023, thereby allowing the CIRP proceedings to continue.

Thereafter, Mr. Ashwin B. Shah constituted the Committee of Creditors on August 21, 2023 and functioned as the Deemed Resolution Professional until January 22, 2024, when the Honble National Company Law Tribunal (NCLT), Mumbai Bench confirmed the appointment of Mr. Arihant Nenawati as the Resolution Professional (RP). Mr. Nenawati subsequently took charge and continued the CIRP process.

In furtherance of the CIRP, Form G was published on January 8, 2024 inviting Expressions of Interest (EOIs) from prospective resolution applicants. A total of nine EOIs were received, out of which two Resolution Applicants submitted Resolution Plans. Following evaluation, negotiations, and deliberations, the Committee of Creditors approved the selected Resolution Plan through the requisite voting process. Meanwhile, Shamrao Vithal Co-operative Bank Limited (SVC Bank) submitted its claim in Form C on October 6, 2023 before the erstwhile Resolution Professional, claiming dues outstanding as on July 31, 2023 together with continuing interest from August 1, 2023 until realization. Certain clarifications sought by the erstwhile Resolution Professional vide email dated October 11, 2023 were duly furnished by SVC Bank on October 16, 2023.

However, vide communication dated November 3, 2023, the erstwhile Resolution Professional rejected the claim of SVC Bank on the ground that neither had the corporate guarantee allegedly issued by the Corporate Debtor been invoked nor had any demand notice been issued on or before December 16, 2022, being the Insolvency Commencement Date. Accordingly, it was held that no dues were outstanding against the Corporate

Aggrieved by the rejection of its claim, SVC Bank filed an Interlocutory Application seeking admission of its claim. During the pendency of the said application, Mr. Arihant Nenawati was appointed as the Resolution Professional vide order dated January 22, 2024.

Further, on February 7, 2024, SVC Bank initiated proceedings under Section 14 of the SARFAESI Act, 2002 before the jurisdictional Magistrate Court and obtained directions for taking possession of the property situated at Door Nos. 1-18/50, 1-18/51, 1-18/52, 1-18/53 and 1-18/54, Near Kottara Chowki, Bangrakuloor, Kuloor Post, Mangalore - 575013 (Subject Property).

Subsequently, the Resolution Professional informed SVC Bank vide email dated March 18, 2024 that the Corporate Debtor was undergoing CIRP and that no action could be taken to dispossess the Corporate Debtor from the Subject Property during the subsistence of the moratorium under the IBC. The Resolution Professional also filed I.A. No. 3314 of 2024 before the Honble NCLT seeking appropriate directions regarding possession of the Subject Property.

Thereafter, vide order dated March 27, 2025, the Honble NCLT, Mumbai Bench dismissed the claim filed by SVC Bank. Aggrieved by the said order, SVC Bank preferred an appeal before the Honble NCLAT, New Delhi. The appeal remains pending adjudication before the Appellate Tribunal.

The Resolution Plan approved by the Committee of Creditors has not yet been taken up for final consideration and remains pending before the Honble NCLT, Mumbai Bench, inter alia, on account of the pending appeal filed by SVC Bank before the Honble NCLAT, New Delhi, which is yet to be heard and adjudicated.