Khyati Multimedia Entertainment reported a net profit of ₹18.82 lakh for the financial year ended March 31, 2026, reversing a net loss of ₹91.44 lakh in the previous year. The turnaround was driven by a significant reduction in operating expenses rather than top-line growth.

Financial Performance

Revenue from operations declined sharply to ₹51.61 lakh from ₹186.68 lakh in FY25. This contraction coincided with a steep drop in total expenses, which fell to ₹21.84 lakh from ₹314.24 lakh in the prior period. The company’s profit before tax stood at ₹29.77 lakh, compared to a loss of ₹127.56 lakh previously.

The decline in revenue reflects the winding down of high-cost event management activities, specifically the Polo Championship, which had driven significant expenditure in FY25. Other income contributed ₹0.61 lakh, primarily from interest on tax refunds.

What the Numbers Show

The profitability reversal is largely structural rather than operational growth. In FY25, specific event-related costs—including ₹70.45 lakh for the Polo Cup, ₹17.88 lakh for marketing, and ₹19.19 lakh for labour—totaled over ₹100 lakh. These line items are absent in FY26, where professional fees also dropped from ₹84.99 lakh to ₹2.13 lakh. While this cost discipline delivered a bottom-line profit, it occurred alongside a 72% revenue contraction, indicating a shift toward a lower-scale business model.

Balance Sheet and Liabilities

Total assets increased to ₹349.47 lakh from ₹321.75 lakh, driven by a rise in trade receivables to ₹59.16 lakh from nil in the prior year. Borrowings from related parties decreased to ₹132.07 lakh from ₹155.37 lakh. However, other current liabilities rose to ₹85.00 lakh from ₹53.56 lakh, suggesting an increase in outstanding operational payables or deferred obligations.

Audit Qualifications

Statutory auditors M/s. Maak & Associates issued a qualified opinion citing four key concerns:

• Unregistered Land Advances: ₹208.75 lakh paid as advances against land lacks registered agreements or party confirmations.
• MoA Compliance: Revenue from sports events was recognized without amending the Memorandum of Association to include event management.
• Revenue Recognition: Lack of written contracts with sponsors and franchisees prevented verification of revenue timing under Ind AS 115.
• Deposit Rules: Customer advances exceeding ₹51 lakh remained outstanding for over 365 days, potentially violating deposit acceptance rules under the Companies Act.

Corporate Actions

The Board did not recommend a dividend for FY26. The 32nd Annual General Meeting is scheduled for September 28, 2026, to approve the audited financials and ratify related-party transactions totaling approximately ₹7.6 crore for the upcoming fiscal year.

Khyati Multimedia Entertainment has scheduled its 32nd Annual General Meeting for Monday, September 28, 2026. The meeting will be held in physical mode at its registered office in Ahmedabad.

The company notified the BSE Limited on September 5, 2026, regarding the upcoming gathering. The notice covers ordinary business items including the adoption of financial statements for the fiscal year ended March 31, 2026.

Agenda Details

Shareholders will consider several key resolutions during the meeting:

• Adoption of the IND AS compliant standalone audited financial statements for FY26.
• Reappointment of Mr Kartik Jasubhai Patel as a director, who retires by rotation.
• Ratification of M/s MAAK And Associates as statutory auditors for FY27 through FY30.

Related Party Transactions

A special resolution seeks approval for related party transactions for the financial year 2026-27. The proposed limits include sales and purchases with entities such as Khyati World Educare Pvt Ltd and Khyati Realities Limited.

These transactions are expected to occur at arm's length prices or prevailing market rates. The board has requested omnibus consent for these recurring arrangements.

Voting Process

Remote e-voting will be available from September 24 to September 27, 2026. The record date for voting eligibility is Friday, September 18, 2026. Shareholders holding shares as on this date can cast their votes electronically via the CDSL e-voting platform.

The share transfer books will remain closed from September 19 to September 28, 2026. Physical attendees are requested to bring their copies of the annual report to the venue.