Baba Arts Limited reported a standalone net profit of ₹10.43 lakh for the quarter ended March 31, 2026, marking a significant shift from its prior operational model as the company undertook no business activity in any of its erstwhile segments. The profit was derived exclusively from interest income on deposits and surplus funds, alongside rental income from investment properties, rather than from its traditional Digital Media, Film, TV Serial Production, or Trading in IPR divisions. This operational pause means the reported figures represent the balancing amount between the audited full-year results and the year-to-date figures up to the third quarter.

The Board of Directors, chaired by Nikhil G. Tanwani, approved the unaudited financial results at a meeting held on July 28, 2026, following a review by the Audit Committee. The filing was submitted to the BSE Limited in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors M M Nissim & Co LLP conducted a limited review under Standard on Review Engagement (SRE) 2410 and issued an unmodified opinion, confirming that the statement discloses all required information without material misstatement.

Financial Performance

Total operating income for the quarter stood at ₹571.55 lakh, comprising ₹515.82 lakh from operations—which in this context refers to incidental income—and ₹55.73 lakh from other income. Total expenses amounted to ₹560.71 lakh, leading to a profit before tax of ₹10.84 lakh. After accounting for current tax expense of ₹1.39 lakh, deferred tax expense of ₹0.31 lakh, and a prior year tax credit of ₹1.29 lakh, the net profit after tax settled at ₹10.43 lakh. Earnings per share (EPS) were ₹0.020, compared to ₹0.028 in the corresponding quarter of the previous year.

What the Numbers Show

The financial data reveals a complete cessation of core business activities during the fourth quarter. While the comparative quarter ended June 30, 2025, showed segment revenue of ₹360.24 lakh from Digital Media and Trading in IPR, the current quarter reports zero revenue from these lines. Instead, the company’s income profile has shifted entirely to passive sources. The Chief Operating Decision Maker reviewed the operations as a single unit, noting that income earned is incidental to asset holding rather than business segments. Consequently, segment disclosures under Ind AS 108 are not applicable for the current period, though comparative figures have been restated for consistency. The company maintains a debt-free balance sheet with no external borrowings, supporting its going concern status despite the lack of active trading.

Balance Sheet and Compliance

Baba Arts Limited holds a paid-up equity share capital of ₹525.00 lakh. The company confirmed it had no outstanding defaults on loans or debt securities and no deviation in the utilization of proceeds from public issues. Other equity excluding revaluation reserves stood at ₹2,215.17 lakh at the end of FY26. The firm continues to hold income-yielding assets and possesses a positive net worth, enabling it to meet liabilities as they fall due. The unaudited results were prepared in accordance with Ind AS 34 and other generally accepted accounting principles in India.

Skybridge Interactive LLP has acquired a 74.67% stake in Baba Arts Limited through a Share Purchase Agreement dated February 25, 2026. The acquisition involved 3,92,00,000 fully paid-up equity shares of face value ₹1 each at an offer price of ₹6 per share. This transaction was followed by a mandatory open offer to public shareholders in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (SEBI SAST Regulations).

The open offer, managed by Bonanza Portfolio Limited, was open for tender between June 09, 2026, and June 22, 2026. While the acquirer proposed to acquire up to 1,32,92,000 equity shares representing 25.32% of the equity and voting share capital, the actual participation was negligible. Only 602 equity shares were tendered and accepted, resulting in a total consideration payout of ₹3,612 on July 07, 2026.

The disparity between the proposed offer size of ₹7,97,52,000 and the actual payout highlights the limited interest from public shareholders. The offer size was restricted to the shares held by public shareholders, which represented 25.32% of the capital, slightly below the 26.00% threshold typically mandated by Regulation 7 of the SEBI SAST Regulations.

Acquisition and Shareholding Details

The following table outlines the proposed versus actual figures for the acquisition and the open offer:

Regulatory Compliance

The Post Offer Advertisement was submitted to BSE Limited and published in Financial Express, Jansatta, and Mumbai Lakshadeep. The detailed public statement was initially released on March 05, 2026, with a corrigendum published on June 08, 2026. Skybridge Interactive LLP confirmed full responsibility for the accuracy of the information contained in the advertisement and compliance with SEBI SAST Regulations. Purva Sharegistry (India) Private Limited acted as the Registrar to the Offer.