Baba Arts Limited has announced the immediate resignation of Independent Director Mr. Hasmukh Shah, effective January 15, 2026. The departure follows his inability to meet mandatory regulatory requirements for independent directors, prompting immediate board restructuring.

Resignation Details and Regulatory Compliance

Mr. Hasmukh Shah (DIN 00150891) submitted his resignation letter on January 15, 2026, citing his failure to clear the mandatory Online Proficiency Self-Assessment Test for Independent Directors. This test is prescribed under Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, making it a regulatory requirement for all independent directors.

The company has confirmed that no other material reasons exist for the resignation beyond the stated regulatory non-compliance. Shah also provided written confirmation that there are no additional material reasons for his departure.

Committee Restructuring

Following Shah's resignation, he automatically ceased his membership in three key board committees. The Board of Directors convened a meeting on January 15, 2026, from 4:00 PM to 4:30 PM to reconstitute the affected committees with immediate effect.

Audit Committee Composition

Nomination and Remuneration Committee

Stakeholder's Relationship Committee

Regulatory Compliance and Disclosure

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The intimation was filed with BSE Limited, where Baba Arts Limited trades under scrip code 532380 and scrip name BABA.

Company Secretary & Compliance Officer Naishadh H. Mankad signed the regulatory filing, ensuring all required documentation was submitted to the stock exchange. The resignation letter from Mr. Shah was enclosed as Annexure "A" with the official intimation, providing complete transparency regarding the circumstances of his departure.

The reconstituted committees maintain the required composition of independent and non-independent directors, ensuring continued compliance with corporate governance norms. Mr. Hemraj Chheda and Mr. Shekhar Mennon, both Non-Executive-Independent Directors, will lead the restructured committees alongside Mrs. Malavika A. Acharya.

Baba Arts Limited has announced its unaudited financial results for the second quarter and first half of the fiscal year 2026, showcasing a strong performance across key financial metrics.

Financial Highlights

Key Takeaways

Revenue Growth

Baba Arts Limited reported a total income from operations of Rs. 368.37 lakhs for Q2 FY2026 and Rs. 735.89 lakhs for H1 FY2026. Notably, the company has already surpassed its full-year FY2025 revenue of Rs. 688.53 lakhs in just the first half of FY2026, indicating strong growth momentum.

Profitability

The company's net profit after tax stood at Rs. 35.07 lakhs for Q2 FY2026 and Rs. 49.80 lakhs for H1 FY2026. This represents a solid performance, especially when compared to the full-year FY2025 net profit of Rs. 143.84 lakhs.

Earnings Per Share

Basic earnings per share (EPS) was reported at Rs. 0.07 for Q2 FY2026 and Rs. 0.10 for H1 FY2026, showing consistent profitability on a per-share basis.

Corporate Governance and Compliance

The financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors at their meeting held on November 11, 2025. In compliance with regulatory requirements, the statutory auditors conducted a limited review of the financial results and expressed an unmodified opinion, affirming the accuracy and fairness of the reported figures.

Investor Considerations

The improved performance in the first half of FY2026 compared to the entire FY2025 may be of interest to investors and market analysts. The sustained revenue growth and profit generation could be indicative of positive business momentum. However, it's important to consider broader market conditions and industry trends when evaluating the company's prospects.

Investors are advised to conduct their own research and consider their financial goals before making investment decisions based on these results.