Baba Arts FY26 Net Profit Falls to ₹65.30 Lakh Despite Revenue Surge
Baba Arts Limited reported audited standalone financial results for the quarter and year ended March 31, 2026, with full-year net profit declining to ₹65.30 lakh from ₹143.84 lakh in FY25, despite total operating income nearly doubling to ₹1,594.52 lakh. Digital Media Content was the primary revenue driver at ₹1,292.22 lakh, while cash and cash equivalents surged to ₹612.03 lakh. A promoter-level Share Purchase Agreement for 74.68% stake sale to Skybridge Interactive LLP at ₹6/- per share is currently in progress.

*this image is generated using AI for illustrative purposes only.
Baba Arts Limited announced its audited standalone financial results for the quarter and year ended March 31, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The board approved the results at its meeting held on May 21, 2026. The statutory auditors, M/s. M M Nissim & Co LLP, issued an unmodified opinion on the financial results.
Financial Performance
For the full year, the company reported total operating income of ₹1,594.52 lakh, a significant increase from ₹688.53 lakh in the previous year. Despite the revenue growth, net profit for the year declined to ₹65.30 lakh from ₹143.84 lakh in FY25, as total expenses rose sharply to ₹1,510.87 lakh from ₹494.46 lakh in the prior year. Profit before tax for the year stood at ₹83.65 lakh, compared to ₹194.07 lakh previously.
The following table outlines the key financial metrics for the quarter and year ended March 31, 2026:
| Particulars: | Quarter Ended 31.03.2026 (₹ in Lakh) | Quarter Ended 31.03.2025 (₹ in Lakh) | Year Ended 31.03.2026 (₹ in Lakh) | Year Ended 31.03.2025 (₹ in Lakh) |
|---|---|---|---|---|
| Net Sales/Income from Operations | 515.82 | 289.74 | 1,494.75 | 558.88 |
| Other Income | 55.73 | 30.34 | 99.77 | 129.65 |
| Total Operating Income | 571.55 | 320.08 | 1,594.52 | 688.53 |
| Total Expenses | 560.71 | 260.04 | 1,510.87 | 494.46 |
| Profit Before Tax | 10.84 | 60.04 | 83.65 | 194.07 |
| Net Profit | 10.43 | 43.94 | 65.30 | 143.84 |
| Total Comprehensive Income | 9.69 | 40.45 | 64.34 | 140.02 |
| Basic & Diluted EPS (₹) | 0.020 | 0.084 | 0.124 | 0.274 |
Segment Performance
Segment revenue for the year was primarily driven by Digital Media Content, which contributed ₹1,292.22 lakh, compared to ₹374.34 lakh in the previous year. Trading in IPR of Film Rights reported revenue of ₹202.53 lakh against ₹184.54 lakh previously. The Digital Media Content segment reported a profit before tax and interest of ₹120.10 lakh for the year, while Trading in IPR of Film Rights recorded a loss before tax and interest of ₹88.98 lakh.
| Segment: | Year Ended 31.03.2026 — Revenue (₹ in Lakh) | Year Ended 31.03.2025 — Revenue (₹ in Lakh) | Year Ended 31.03.2026 — PBT & Interest (₹ in Lakh) | Year Ended 31.03.2025 — PBT & Interest (₹ in Lakh) |
|---|---|---|---|---|
| Trading in IPR of Film Rights | 202.53 | 184.54 | (88.98) | 24.89 |
| Production of Films & TV Serials | — | — | (33.95) | — |
| Digital Media Content | 1,292.22 | 374.34 | 120.10 | 44.81 |
| Total | 1,494.75 | 558.88 | (2.83) | 69.70 |
Assets and Liabilities
As of March 31, 2026, the company's total assets stood at ₹2,846.24 lakh, a decrease from ₹2,937.11 lakh in the previous year. Total equity increased to ₹2,740.17 lakh from ₹2,675.82 lakh, supported by share capital of ₹525.00 lakh and other equity of ₹2,215.17 lakh. Cash and cash equivalents increased significantly to ₹612.03 lakh from ₹22.28 lakh in the prior year, while inventories declined sharply to ₹98.60 lakh from ₹622.56 lakh.
| Particulars: | As at March 31, 2026 (₹ in Lakh) | As at March 31, 2025 (₹ in Lakh) |
|---|---|---|
| Total Non-Current Assets | 545.17 | 425.90 |
| Total Current Assets | 2,301.07 | 2,511.21 |
| Total Assets | 2,846.24 | 2,937.11 |
| Total Equity | 2,740.17 | 2,675.82 |
| Total Non-Current Liabilities | 39.75 | 20.61 |
| Total Current Liabilities | 66.32 | 240.68 |
| Total Equity and Liabilities | 2,846.24 | 2,937.11 |
Cash Flow
For the year ended March 31, 2026, net cash from operating activities stood at ₹80.32 lakh, compared to a cash outflow of ₹640.54 lakh in the prior year. Net cash generated from investing activities was ₹509.43 lakh, driven by fixed deposit maturities of ₹850.00 lakh and interest income of ₹65.63 lakh, partially offset by loans given of ₹400.00 lakh and capital expenditure of ₹32.20 lakh. The net increase in cash and cash equivalents for the year was ₹589.75 lakh.
Corporate Development
The company disclosed that Mr. Gordhan P. Tanwani, the Promoter of Baba Arts Limited, entered into a Share Purchase Agreement with Skybridge Interactive LLP on February 25, 2026. Under the agreement, the Promoter agreed to sell 3,92,00,000 equity shares of face value Re 1/- each, representing 74.68% of the equity and voting share capital of the company, to the acquirer at a price of ₹6/- per equity share payable in cash. The open offer process is currently in progress.
Historical Stock Returns for Baba Arts
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.96% | +13.04% | +1.38% | +94.43% | +54.25% | -30.23% |
How might Skybridge Interactive LLP's acquisition of a 74.68% stake reshape Baba Arts' strategic direction in digital media content and film rights trading?
Given the Trading in IPR of Film Rights segment swung to a loss of ₹88.98 lakh, will the new promoter restructure or divest this business unit post-acquisition?
With expenses growing at a far faster pace than revenue, what cost rationalization measures could management implement to restore profit margins to FY25 levels?


































