Zee Learn Q2 FY27 results: net loss narrows to ₹1.72 crore, revenue down 26.4%

How did Zee Learn perform in Q2 FY27?

Zee Learn reported consolidated revenue of ₹54.62 crore for the July–September 2026 quarter, down 26.4% from ₹74.25 crore in Q2 FY26 and down 41.5% from ₹93.32 crore in Q1 FY27. Total income fell to ₹58.14 crore from ₹79.59 crore a year earlier, a decline of ₹21.45 crore. On a standalone basis, revenue was ₹48.72 crore, 24.1% lower than a year ago, and profit was ₹4.98 crore against ₹0.47 crore.

Consolidated EBITDA was ₹16.74 crore, up ₹4.58 crore or 37.7% from ₹12.16 crore in Q2 FY26, and the EBITDA margin widened by 14.3 percentage points to 30.7%. Against the previous quarter, EBITDA fell ₹15.84 crore to ₹16.74 crore and the margin was 4.2 percentage points lower than the 34.9% reported in Q1 FY27.

Profit before tax was ₹0.51 crore in Q2 FY27, against a loss of ₹5.80 crore in Q2 FY26 and profit of ₹16.90 crore in Q1 FY27. After tax of ₹2.20 crore, the company reported a net loss of ₹1.72 crore, compared with a net loss of ₹6.14 crore a year earlier and a profit of ₹8.42 crore in the previous quarter. Basic EPS was ₹0.05, against ₹0.19 a year ago and ₹0.26 in Q1 FY27.

What changed in Zee Learn's costs and profit?

Total expenses fell to ₹58.96 crore from ₹85.39 crore in Q2 FY26, a reduction of ₹26.43 crore or 31.0%. Employee cost was the largest change, down ₹27.39 crore to ₹15.51 crore from ₹42.90 crore, while finance costs fell ₹3.63 crore to ₹9.10 crore from ₹12.73 crore. Other expenses were higher by ₹1.90 crore at ₹14.12 crore, and depreciation was higher by ₹1.41 crore at ₹11.98 crore against ₹10.57 crore.

Other income declined ₹1.81 crore to ₹3.52 crore from ₹5.33 crore in Q2 FY26, and the company reported an exceptional gain of ₹1.33 crore, against no exceptional item in the year-ago quarter. Tax expense was ₹2.20 crore, up ₹1.86 crore from ₹0.34 crore. Against the previous quarter, employee cost fell ₹1.24 crore, other expenses fell ₹3.36 crore, finance costs rose ₹1.05 crore and other income fell ₹0.42 crore.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue fell 19.0% to ₹147.94 crore from ₹182.62 crore in H1 FY26, and total income fell 19.1% to ₹155.39 crore from ₹192.15 crore. Profit before tax rose to ₹17.41 crore from ₹1.08 crore, a difference of ₹16.33 crore.

Profit after tax turned to ₹6.70 crore in H1 FY27 from a loss of ₹4.25 crore in H1 FY26. Basic EPS was ₹0.20, against a loss of ₹0.13 a year earlier. On a standalone basis for the quarter, revenue was ₹48.72 crore and profit was ₹4.98 crore against ₹0.47 crore.

What do the balance sheet and cash flow show?

Total assets were ₹1,555.96 crore as on 30 September 2026, against ₹1,592.81 crore as on 31 March 2026. Total equity rose to ₹242.68 crore from ₹235.03 crore, and borrowings rose to ₹349.68 crore from ₹338.40 crore. Cash and cash equivalents were lower at ₹5.82 crore against ₹56.63 crore. Inventories fell to ₹23.14 crore from ₹26.96 crore, while trade receivables rose to ₹58.64 crore from ₹47.29 crore and trade payables fell to ₹21.04 crore from ₹22.00 crore.

In H1 FY27, net cash from operating activities was an outflow of ₹20.06 crore, against an inflow of ₹5.72 crore in H1 FY26. Investing activities generated ₹6.69 crore against ₹2.52 crore a year earlier, and financing activities used ₹39.47 crore against ₹29.89 crore. Capital expenditure was ₹1.55 crore, compared with ₹6.36 crore in H1 FY26.

How has Zee Learn done over the last 8 quarters?

Revenue has moved unevenly across the last eight quarters, reaching a high of ₹176.77 crore in Q4 FY26 and a low of ₹54.62 crore in Q2 FY27. EBITDA margin peaked at 40.7% in Q4 FY25 and bottomed at 11.0% in Q3 FY26, and stood at 30.7% in the latest quarter.

Profit after tax was highest at ₹45.42 crore in Q4 FY26 and lowest at a loss of ₹6.14 crore in Q2 FY26. In the latest quarter, revenue fell from ₹93.32 crore in Q1 FY27 and profit moved from ₹8.42 crore to a loss of ₹1.72 crore, while the margin eased from 34.9% to 30.7%.

Which businesses drove the quarter?

The educational services and related activities segment reported revenue of ₹48.72 crore and EBIT of ₹7.21 crore, an EBIT margin of 14.8%. The construction and leasing segment, which the company describes as being for education, reported revenue of ₹5.90 crore and EBIT of a loss of ₹2.45 crore, an EBIT margin of -41.5%.

The filings do not provide segment revenue or EBIT for the year-ago quarter, so no year-on-year comparison for the two segments is available in the disclosed figures.

What else did the company announce?

The Board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the limited review report of Ford Rhodes Parks & Co LLP. The Board also noted the completion of the sale of the company's entire shareholding in Liberium Global Resources Private Limited, which accordingly ceased to be a subsidiary.

The Board discussed the superannuation of Mr. Manish Rastogi, Chief Executive Officer and Whole-time Director, and noted that he would retire from his position on 8 November 2026. On 23 October 2026, the company filed that Mr. Rakesh Chaturvedi, who continues as Chief Financial Officer, had been appointed as an Additional Director in the category of Whole-time Director with effect from 9 November 2026, subject to shareholder approval. A separate filing the next day said an inadvertent clerical error had led to incorrect EPS figures in the results filing, and provided corrected figures.

What did the auditors point out?

Ford Rhodes Parks & Co LLP reviewed the unaudited standalone results for the quarter and half year ended 30 September 2026. The report states that a review is substantially less in scope than an audit and consequently does not enable the auditors to obtain assurance that they would become aware of all significant matters that might be identified in an audit; accordingly, the auditors do not express an audit opinion.

The report sets out a basis for a qualified conclusion, noting that Yes Bank had invoked corporate guarantees issued by the company and by subsidiary Digital Ventures Private Limited, and that ACRE had called upon the company and DVPL to pay an amount of ₹66,861.26 lakhs including interest as on 15 September 2026, with ₹66,968.90 lakhs as on 30 September 2026, while CIRP petitions before the NCLT were pending for admission. The auditors also state that the company has not carried out an impairment assessment on the recoverable amount of ₹81,346.45 lakhs from the four trusts and entities, and in the absence of that assessment they were unable to comment on any adjustments required.

The report also carries a material uncertainty relating to going concern, stating that the conditions indicate the existence of material uncertainty that may cast significant doubt on the company's ability to continue as a going concern. The company stated that it strongly believes the amounts payable to ACRE will be settled through steps including monetisation of assets of DVPL along with four trusts and entities, and that the financial results have been prepared on a going concern basis.

How did Zee Learn shares react?

The filing appeared after market hours. From the price when the filing appeared, the stock fell 1.6% after 5 minutes, 0.9% after 15 minutes and 2.8% after 30 minutes. On the reaction day it closed 3.4% below the previous close of ₹5.80, and by the next day's close it was down 1.4% from that pre-results close. By the fifth session, it was down 5.0% from the same base.