Exclusive: Crisis deepens for Resonance and BASE Edu as lenders manage to freeze bank account

Kota-based coaching major Resonance Group and its subsidiaries, including BASE Educational Services Pvt Ltd, have faced a crisis after their expense accounts were frozen following the company’s failure to repay debt to multiple lenders, including banks and NBFCs.

In an internal communication dated February 3, 2026, seen by Entrackr, the company informed employees that Resonance has been negotiating a settlement with its lenders for the past few years. As part of efforts by lenders to secure repayments, they approached the court and obtained a stay on the expense accounts of the Resonance Group, including BASE.

“As a result, BESPL may not be able to process and disburse salary and other expenses till 11th February 2026,” the note further said. Meanwhile, its legal advisors are working to vacate the stay and expect relief by that date. As per the note, the management also sought to distance BASE from the crisis, stating that staff are undergoing the ordeal “for no fault”.

Importantly, the note said that BASE has sufficient funds in its bank accounts to cover expenses for the next year, indicating that the issue is not one of liquidity but of restricted access to funds due to the court order. BASE is a subsidiary of Resonance, which the group acquired in 2015.

Resonance Group, once a prominent name in offline test preparation, has faced mounting financial stress in recent years amid declining enrolments, rising competition from digital-first edtech platforms, and a broader slowdown in the coaching sector. 

According to sources, Resonance managed to raise nearly Rs 800 crore in debt from a mix of banks and non-banking financial companies (NBFCs) over the years to fund expansion and working capital requirements. The company had also acquired Accelerating Education & Development Private Limited (AEDPL) as part of its growth strategy. 

However, sources said a significant portion of the borrowed funds was deployed in real estate investments, which strained cash flows and impacted core business operations. Missed interest payments and delays in loan repayments eventually triggered lender action.

Financially, Resonance Group reported Rs 160 crore in consolidated revenue with a loss of Rs 2.2 crore in FY24. BASE, a subsidiary, posted Rs 67.5 crore in revenue and a profit of Rs 11.5 crore during the same period. Both companies are yet to file their financial statements for FY25. 

Sources assert that most of the Resonance offline coaching centres were shut during and after Covid-inducued pandemic. Kota centre is the only operational centre which has about 1,000 enrolments, said sources. At its peak (8-10 years ago), the firm had more than 80,000 annual enrollments.

With uncertainty surrounding BASE, the offline test preparation market has effectively narrowed to two major players: PhysicsWallah and Allen. Other large operators are facing their own challenges. Aakash has been under pressure amid ownership-related issues and senior-level exits, while Unacademy has been exploring a sale of its offline business to coaching groups such as Sri Chaitanya.

In this environment, the focus has shifted to the sustainability of offline coaching economics. High faculty costs and aggressive price competition have compressed margins across the sector. However, for scaled players like Allen and PhysicsWallah, margins could improve over time as faculty salaries normalise and tuition fees adjust upward.