Mukta Arts Limited has terminated the Shareholders Agreement and Securities Subscription Agreement with Maverick Media Private Limited regarding its subsidiary, Mukta A2 Cinemas Private Limited. The termination is effective September 22, 2026.

The decision follows mutual agreement between the parties due to unresolvable differences. The original agreements were executed on August 7, 2024, involving the company, its subsidiary, Mr. Rajiv Malhotra, and the proposed investor, Maverick Media.

Regulatory disclosures

The company filed an update under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This update supersedes an earlier intimation dated September 15, 2026, which had announced the termination effective from a different date. The company clarified that there is no change in the information disclosed previously, except for the effective date of termination.

Impact on business

Mukta Arts stated that the termination of these transaction documents does not have any material adverse impact on the operations, revenue, or business of the company. The parties executed Consent Terms to formalize the end of the Binding Term Sheet dated February 28, 2024, and the subsequent agreements.

Key agreement details

The following table summarizes the key details of the terminated agreements as disclosed in Annexure A:

Mukta Arts shareholders approved a special resolution to sell, divest, dilute, or dispose of the company's investments in a material subsidiary during the 44th Annual General Meeting held on September 22, 2026.

The meeting, conducted via video conferencing, also adopted the audited standalone and consolidated financial statements for FY26 and reappointed Parvez Farooqui as a director retiring by rotation. This corporate action follows a fiscal year where consolidated EBITDA rose 52% to ₹2,644 lakh, driven by operational improvements in cinema and education segments.

Key resolutions passed

The AGM addressed both ordinary and special business items. The ordinary business included the adoption of financial reports and the re-appointment of directors. The special business focused on strategic portfolio adjustments.

All resolutions were deemed passed subject to receipt of requisite majority votes cast through remote e-voting and e-voting at the meeting.

Financial performance context

The approval for subsidiary divestment comes after a year of strengthened financial positions across key operating entities. Consolidated revenue from operations grew 4.3% to ₹17,391 lakh, while net loss narrowed by 32% to ₹1,180 lakh. The improvement reflects genuine operating leverage, with consolidated margins expanding from 10% to 15%.

Segment-wise, Mukta A2 Cinemas saw revenue rise 18% and EBITDA surge 127% to ₹1,474 lakh. Whistling Woods International posted a 7% revenue increase to ₹5,842 lakh and a 29% jump in EBITDA to ₹652 lakh.

Strategic initiatives and outlook

Beyond the subsidiary divestment, Mukta Arts Production is returning to active film production with projects like Maanya, Taal 2, and Khalnayak 2. The company is also diversifying into animation through SGM Studios and expanding its live entertainment portfolio with events such as Eva Live × Mithoon. Additionally, Mukta A2 Cinemas has entered a management-contract partnership with One Cinemas to build a capital-light model, reducing exposure to box office cycles while retaining ownership of high-performing assets.