Tree House Education & Accessories Limited Approves Q2 Results Amid Ongoing Legal Disputes

Tree House Education & Accessories Limited Approves Q2 Results Amid Ongoing Legal Disputes​

Tree House Education & Accessories Limited announced the approval of its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The company also detailed significant ongoing legal matters, including disputes related to property sales and security deposits, in connection with its board meeting held on August 7, 2026.

The Board of Directors reviewed and approved the Q2 financial statements, alongside the annual management documents for the fiscal year ended March 31, 2026. The company also finalized the appointment of M/s Dharmesh Parekh & Associates, Chartered Accountants (Proprietor), as an Internal Auditor for the fiscal year 2026-27.

Financial Snapshot and Performance Analysis​

The unaudited standalone financial results showed specific performance metrics for the quarter ended June 30, 2026. The company reported Revenue from Operations of 114.98 lakhs, generating a Total Income of 121.68 lakhs. However, the company recorded a Profit/(Loss) after tax of (212.52) lakhs for the quarter.

For context, the financial performance metrics for the standalone company in recent periods are as follows:

Legal Disputes and Operational Matters​

The reviewed financial statements included notes detailing several material legal matters involving the company:

Property and Litigation:
A forensic audit by the Economic Offence Wing of Mumbai Police against the Company for the period from FY 2011-12 to 2017-18 is currently underway. The Company has been defending and pursuing various legal cases in different forums relating to this matter.

The company is also involved in a civil suit filed by Mira Education Trust before the Hon Vadodara Civil Judge (CD) against Zebar Realty LLP, where Tree House Education & Accessories Limited is named as a defendant. This dispute relates to property sold by the company in Vadodara during FY 2022-23, concerning forceful occupation by Mira Education Trust which runs 'Tree House High School'.

Security Deposit and Arbitration:
The Company holds a refundable security deposit of Rs.136.18 crores provided to Mira Education Trust as per a Facilitation Service Agreement dated March 1, 2012. The total refundable amount was set at Rs. 143 Cr. Till June 30, 2026, the company had received Rs.5 lakhs during the quarter and a cumulative total of Rs. 17.95 crores towards the refund.

Furthermore, the Company had been awarded an arbitration award from Vidya Bharti Samiti for minimum guarantee charges and refund of security deposit amounting to Rs. 29 Crores. However, in April 2026, Vidya Bharti Samiti notified the company that they were unable to honor the award due to the closure of their school in Jaipur, and the Company is currently exploring legal options against them.

Internal Audit Findings:
The management reported that an internal audit concerning Income and Expenditure for the quarter ended June 30, 2026, was carried out and relied upon by the company's auditors.

Consolidated Results and Associates​

The consolidated unaudited financial results included performance details of associated entities such as JT INFRASTRUCTURE PRIVATE LIMITED (Associate Company, 50%) and Aaviv Tutorials LLP and Aaviv Tutorials (both capital investments at 51%). The reported figures reflected the share of net profit/(loss) from these associates.

TREEHOUSE Stock Price Movement​

On Friday, shares of Tree House Education & Accessories Limited slipped by 0.48% to settle at ₹6.30. The equity traded with a volume of 8,049 shares during the session, hitting a day low of ₹6.20.