Mukta Arts Limited reported a consolidated net loss of ₹118.00 crore for FY26, down 32% from the previous year's loss of ₹173.11 crore. The group posted revenue from operations of ₹1,739.06 crore, marking a 4.3% increase over FY25.

The 44th Annual General Meeting is scheduled for September 22, 2026. The meeting will address the adoption of financial statements and a special resolution regarding the dilution of shareholding in Mukta A2 Cinemas Private Limited (MA2).

Consolidated Financial Performance

Consolidated EBITDA expanded significantly to ₹264.40 crore from ₹174.20 crore in the prior year, pushing the EBITDA margin to 15%. This margin expansion reflects operating leverage across the group's key businesses rather than one-off gains.

Segment Performance

Mukta A2 Cinemas (MA2) was the standout performer. Revenue grew 18%, while EBITDA more than doubled to ₹147.70 crore from ₹65.00 crore. Footfalls increased to 31.81 million admits from 30.95 million. Average ticket prices improved to ₹213.60 from ₹194, and food and beverage spend per head rose to ₹79 from ₹60.

Whistling Woods International (WWI) saw revenue grow 7% to ₹584.20 crore. EBITDA grew at a faster pace of 29% to ₹65.20 crore, expanding margins from 9% to 11%. This indicates efficient translation of top-line growth into profitability.

Bahrain Operation delivered a turnaround despite a 27% revenue decline to ₹152.80 crore. Decisive cost actions swung EBITDA from a loss of ₹0.30 million to a positive ₹10.10 million.

Standalone Company Metrics

At the standalone level, Mukta Arts reported a profit after tax of ₹55.93 crore, down from ₹74.41 crore in FY25. Revenue from operations fell to ₹148.21 crore from ₹203.17 crore due to the non-recurrence of prior-year TV serial income. However, other income grew 15% to ₹165.16 crore, driven by higher interest on inter-corporate deposits.

What the Numbers Show

Standalone other income of ₹165.16 crore exceeded operating revenue of ₹148.21 crore for the first time in recent history. This inversion highlights a structural shift where interest earnings and investment returns are currently outpacing core film production and distribution revenues at the parent company level.

Corporate Actions

Shareholders will vote on the dilution of the company's stake in MA2, which will reduce its holding below 50% following an investment by Mr. Sunil Shamrao Patil or affiliates. The transaction involves an injection of approximately ₹61.2 million in equity and ₹38.8 million in compulsorily convertible debentures.

Mukta Arts disclosed that its material subsidiary, Mukta A2 Cinemas Private Limited, received a show cause notice from tax authorities regarding GST audit observations. The notice covers financial years 2020-21 through 2023-24.

The company informed stock exchanges on August 26, 2026, about the notice dated August 24, 2026. The delay in disclosure was attributed to internal review and verification processes required to ensure accurate reporting under SEBI regulations.

Regulatory Details

The notice was issued by the Office of the Commissioner of CGST and Central Excise Audit Commissionerate Vadodara. It is issued under section 74 of the CGST Act, 2017. The department has asked Mukta A2 to regularize contraventions of various sections and rules of the GST Act.

Company Response

Mukta A2 stated it is seeking expert advice to contest the notice. The subsidiary plans to submit a formal response to the authorities. The company noted that any penalty adjudicated and payable would be borne by Mukta A2.

Financial Impact

The listed entity stated there is no material impact on its financial, operational, or other activities. The financials of Mukta A2 are consolidated with those of Mukta Arts Limited. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.