Baba Arts FY26 Net Profit Falls to ₹65.30 Lakh Despite Revenue Surge

4 min read     Updated on 21 May 2026, 10:21 PM
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AI Summary

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.

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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 Day5 Days1 Month6 Months1 Year5 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?

Baba Arts Board Meeting Scheduled on May 21, 2026 to Approve FY26 Audited Financial Results

1 min read     Updated on 08 May 2026, 10:41 PM
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Reviewed by
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AI Summary

Baba Arts has scheduled a Board of Directors meeting on May 21, 2026, at 3:30 p.m. at its registered office in Mumbai, pursuant to Regulation 29 of the SEBI (LODR) Regulations, 2015. The board will consider and approve the audited financial results for the quarter and year ended March 31, 2026. The Trading Window for equity share dealings, closed since April 1, 2026, will remain shut until May 23, 2026, in accordance with the company's Insider Trading Policy.

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Baba Arts has informed BSE Limited of an upcoming Board of Directors meeting, pursuant to Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The meeting is scheduled for Thursday, May 21, 2026, at 3:30 p.m. at the company's registered office located at B1 & B4, Baba House, 86, M.V. Road, Andheri (East), Mumbai – 400093.

Board Meeting Details

The primary agenda of the board meeting is to consider and approve the audited financial results of the company for the quarter and year ended March 31, 2026. The key details of the scheduled meeting are outlined below:

Parameter: Details
Meeting Date: Thursday, May 21, 2026
Meeting Time: 3:30 p.m.
Venue: B1 & B4, Baba House, 86, M.V. Road, Andheri (East), Mumbai – 400093
Regulatory Framework: Regulation 29, SEBI (LODR) Regulations, 2015
Agenda: Audited Financial Results for Quarter and Year Ended March 31, 2026

Trading Window Closure

In line with the company's Insider Trading Policy, the Trading Window for dealing in equity shares of the company was closed from Wednesday, April 1, 2026. As communicated earlier vide the company's letter dated March 25, 2026, the Trading Window shall remain closed until Saturday, May 23, 2026 (both days inclusive), which is 48 hours after the declaration of financial results at the aforementioned board meeting.

Parameter: Details
Trading Window Closure Start: Wednesday, April 1, 2026
Trading Window Closure End: Saturday, May 23, 2026 (both days inclusive)
Reason for Closure: 48 hours after declaration of financial results
Prior Communication Date: March 25, 2026

The intimation was signed by Naishadh H. Mankad, Company Secretary & Compliance Officer of Baba Arts, and was addressed to The BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400001.

Historical Stock Returns for Baba Arts

1 Day5 Days1 Month6 Months1 Year5 Years
+4.96%+13.04%+1.38%+94.43%+54.25%-30.23%

How do Baba Arts' audited financial results for FY2026 compare to the previous year's performance in terms of revenue growth and profitability?

Will the board meeting on May 21, 2026 also consider any dividend declaration or capital allocation decisions alongside the financial results approval?

How has Baba Arts' stock price performed during the extended trading window closure period from April 1 to May 23, 2026?

More News on Baba Arts

1 Year Returns:+54.25%