Zee Learn Limited has informed the Exchange regarding Outcome of Board Meeting held on May 15, 2025.
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Zee Learn's board approved audited standalone and consolidated financial results for the quarter and year ended March 31, 2025. Standalone revenue from operations for FY25 rose to Rs 27,384.04 lakhs from Rs 25,263.15 lakhs in FY24, a growth of about 8%, while Q4 FY25 revenue jumped 24% YoY to Rs 12,819.74 lakhs. Net profit for FY25 stood at Rs 5,418.56 lakhs (EPS Rs 1.66) versus Rs 5,000.60 lakhs (EPS Rs 1.53) last year. The board also appointed Vaibhav P Joshi & Associates as Cost Auditors for FY26 and M P Sanghavi & Associates as Secretarial Auditors for a five-year term from FY26. The statutory auditor, Ford Rhodes Parks & Co LLP, issued a qualified opinion on the standalone results, flagging issues including non-assessment of impairment on Rs 69,458.74 lakhs recoverable from four trusts, non-recognition of corporate guarantee liabilities for its subsidiary DVPL, and uncertainties around the carrying value of Rs 34,388.10 lakhs in investments and receivables from DVPL. The auditor also explicitly highlighted a 'Material Uncertainty relating to Going Concern' due to negative working capital, invoked corporate guarantees of over Rs 63,436 lakhs now payable to ACRE under a Supplemental Facilities Agreement, and ongoing insolvency proceedings against subsidiary Digital Ventures Private Limited.
Despite decent headline profit growth, the auditor's qualified opinion and explicit going-concern warning are significant red flags for shareholders. Corporate guarantee exposure of around Rs 634 crores (settled to ACRE) vastly exceeds the company's equity base of Rs 163 crores, and the negative working capital position heightens solvency and stock-price risks. Investors should weigh the strong-looking Q4 results against the deep underlying legal and financial uncertainties hanging over the company and its subsidiaries.