Tree House Education & Accessories Limited has informed the Exchange regarding Outcome of Board Meeting held on May 09, 2025.
TREEHOUSE · price
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On the reaction day the stock moved 6.5 pts less than Nifty Microcap 250 and 5.7 pts less than its Education peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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The board approved audited standalone and consolidated financial results for Q4 and FY ending March 31, 2025, along with a declaration of an unmodified audit opinion from M/s Rakesh Soni & Co. Revenue from operations fell to ₹714 lakhs (FY24: ₹817 lakhs), a decline of about 12.6%. The company swung to a much larger net loss of ₹1,729 lakhs (standalone) versus a loss of ₹374 lakhs in FY24, hit by a ₹3.5 crore one-time write-off of obsolete assets from closed play schools and a large deferred tax reversal of ₹1,425 lakhs. Operating cash flow stayed negative at ₹(10.85) lakhs. The company has NIL borrowings and is debt-free, but disclosed serious legal overhangs including a forensic audit by Mumbai Police's Economic Offence Wing (FY2011-12 to 2017-18), an FIR and arrests of two independent directors in Vadodara in March 2025, and multiple ongoing arbitration cases. The board also appointed M/s Kaushal Doshi & Associates as Secretarial Auditor for 5 years.
Despite an unmodified audit opinion, shareholders face a sharply weaker P&L, ongoing criminal/forensic investigations against the company and its directors, and a core business that is shrinking. The loss is largely driven by one-time write-offs and tax reversals, but the deteriorating operations and legal cloud are likely to weigh on the stock and investor sentiment.