Company Overview

Mukta Arts Limited (BSE: 532357, NSE: MUKTAARTS) reported its FY26 financial results alongside notice of its 44th Annual General Meeting scheduled for 22-Sep-2026.

Financial Performance

Consolidated Results: Revenue from operations grew to ₹1,739.06 million (FY25: ₹1,667.24 million) with EBITDA increasing 52% to ₹264.4 million. However, the company reported a net loss of ₹118.0 million, representing a 32% reduction from FY25's loss of ₹173.11 million. Earnings per share stood at (₹5.24).

Standalone Performance: Revenue declined 27% to ₹148.21 million due to non-recurrence of 'Janaki' TV serial income, though other income increased 15% to ₹165.16 million. Profit after tax was ₹55.93 million with EPS of ₹2.48.

Subsidiary Performance & Challenges

Whistling Woods International Limited: Revenue grew 7% to ₹584.2 million with EBITDA up 29% to ₹65.2 million. However, the subsidiary faces significant uncertainty due to ongoing litigation with Maharashtra Film Corporation involving ₹591.97 million demand and ₹641.38 million receivables.

Mukta A2 Cinemas Private Limited: Revenue grew 18% with EBITDA more than doubling to ₹147.7 million. However, it reported accumulated losses of ₹1,074.25 million with net worth fully eroded, raising going concern issues.

Mukta A2 Multiplex WLL, Bahrain: Revenue declined 27% to ₹152.8 million but achieved positive EBITDA of ₹10.1 million. The subsidiary also faces material uncertainty regarding going concern.

Corporate Actions & AGM Agenda

The 44th AGM will seek approval for:

  • Adoption of FY26 financial statements
  • Re-appointment of Mr. Parvez Farooqui as Director
  • Special resolution to divest 30-40% stake in Mukta A2 Cinemas to investor Sunil Patil for ₹100 million (₹61.2 million equity + ₹38.8 million CCDs), reducing company's holding from 70% to 42-49%

Audit Qualifications & Litigation

Auditors GAMS & Associates LLP issued a qualified opinion due to uncertainty regarding recoverability of ₹841.30 million exposure to Whistling Woods International. The ongoing land dispute with Maharashtra Film Corporation involves review petitions against Bombay High Court's 2012 order quashing the JVA. Total payments of ₹149.54 million have been made to date, treated as deposits pending case settlement.

Regulatory Compliance & Contingencies

The company paid fines of ₹147,000 plus GST each to BSE and NSE for regulatory non-compliance. Contingent liabilities total ₹19.93 million, while bank guarantees of ₹16.26 million were provided for EPCG scheme commitments.

Segment Performance

  • Education: ₹1,066.26 million revenue, ₹42.21 million loss
  • Theatrical exhibition: ₹623.60 million revenue, ₹37.85 million loss
  • Software division: ₹65.95 million revenue, ₹10.12 million loss
  • Equipment division: ₹2.47 million revenue, ₹1.84 million profit
  • Others: ₹112.27 million revenue, ₹60.93 million profit

Board & Management

Key personnel include Chairman Subhash Ghai, Managing Director Rahul Puri, CFO Jabir Contractor, and Company Secretary Pratiksha Panchal. The board composition remained stable with appointment of two new independent directors during the year.