Baba Arts FY26 Net Profit Falls to ₹65.30 Lakh
Baba Arts Limited reported a decline in net profit to ₹65.30 lakh for FY26, compared to ₹143.84 lakh in the previous year, even as total operating income surged to ₹1,594.52 lakh. The board approved the audited results on May 21, 2026. Additionally, the promoter entered into an agreement to sell 74.68% of the company's equity to Skybridge Interactive LLP.

*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. The board approved the results at its meeting held on May 21, 2026. The statutory auditors issued an unmodified opinion on the financial results, which were prepared in accordance with the Indian Accounting Standards (Ind AS).
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. 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 |
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 |
|---|---|---|---|---|---|
| +1.26% | +2.94% | -0.29% | +113.95% | +47.89% | -21.55% |
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 sharp decline in net profit margin despite 131% revenue growth, what cost optimization measures could management implement to restore profitability in FY27?
With the Trading in IPR of Film Rights segment swinging to a loss of ₹88.98 lakh, will the new promoters consider divesting or restructuring this underperforming business unit?


































