Company Overview
Baba Arts Limited convened its 27th Annual General Meeting on 3rd November 2026 through video conferencing and filed its annual report for FY 2025-26.
Financial Performance
For FY 2025-26, the company reported total income of ₹1,594.52 lakhs (previous year: ₹688.53 lakhs) with net profit of ₹65.30 lakhs (previous year: ₹143.84 lakhs), showing significant revenue growth but decreased profitability. Revenue from operations stood at ₹1,494.75 lakhs while other income contributed ₹99.77 lakhs.
Segment Performance
Segment-wise results showed dramatic changes: External revenue declined to ₹202.53 crore from ₹1,292.22 crore in the previous year. The Digital Media segment contributed ₹1,292.22 lakhs with segment result of ₹120.10 lakhs, while Trading in Intellectual Property Rights generated ₹202.53 lakhs revenue but showed segment loss of (₹88.98) lakhs.
Financial Ratios
Key ratios indicated profitability pressure: Return on Equity declined to 2.99% from 6.91%, Net Profit Ratio fell to 0.04% from 0.26%, and Return on Capital Employed dropped to 3.06% from 7.21%. However, working capital management improved with Net Capital Turnover Ratio increasing to 0.67 from 0.25.
Ownership and Management Changes
Skybridge Interactive LLP acquired 74.67% stake through a share purchase agreement, purchasing 3,92,00,000 equity shares at ₹6 per share. The board was completely reconstituted effective 9th October 2026 with Ms. Vidya Pishe appointed as Managing Director for 5 years at remuneration of ₹9.60 lakhs per annum.
Contingent Liabilities
The company disclosed significant contingent liabilities of ₹764.70 lakhs plus equal penalty and interest for service tax demands for FY 2011-12 to 2014-15, with appeal pending before CESTAT, Mumbai. ₹57.35 lakhs was deposited as mandatory pre-deposit with additional ₹270 lakhs deposited under protest.
Auditor Changes
M/s. Dholakia & Associates LLP resigned as Secretarial Auditors effective 9th October 2026, with M/s. G. R. Gupta & Associates appointed for 5 years from FY 2026-27 to 2030-31.
Operational Outlook
No business activity was reported in reportable segments during Q1 FY 2026-27, with only license fee and interest income earned. Future business direction is under review by the reconstituted board, with the company strengthening reserves by not recommending any dividend for FY 2025-26.