BABA ARTS Q2 FY27 results: net profit down 48.6% to ₹0.18 crore

How did BABA ARTS perform in Q2 FY27?

BABA ARTS reported standalone revenue of ₹0 crore in Q2 FY27, compared with ₹3.53 crore in Q2 FY26 and ₹0 crore in Q1 FY27. Total income was ₹0.47 crore, down ₹3.21 crore from ₹3.68 crore a year earlier but up ₹0.08 crore from ₹0.39 crore in the previous quarter.

EBITDA was a loss of ₹0.22 crore in Q2 FY27, against EBITDA of ₹0.33 crore in Q2 FY26. The EBITDA margin was -108900.0%, compared with 9.3% in the year-ago quarter; Q1 FY27 did not have a reported EBITDA margin.

Profit before tax was ₹0.23 crore in Q2 FY27, down from ₹0.47 crore in Q2 FY26 and up from ₹0.14 crore in Q1 FY27. Net profit was ₹0.18 crore, compared with ₹0.35 crore a year earlier and ₹0.12 crore in the previous quarter, while basic EPS was ₹0.03 versus ₹0.07 and ₹0.02, respectively.

What changed in BABA ARTS's costs and profit?

Total expenses fell to ₹0.24 crore in Q2 FY27 from ₹3.21 crore in Q2 FY26, a decline of ₹2.97 crore. Other expenses decreased by ₹2.66 crore to ₹0.10 crore, while cost of materials fell by ₹0.05 crore to ₹0 crore; employee cost and depreciation were unchanged at ₹0.12 crore and ₹0.02 crore, respectively.

Other income rose by ₹0.32 crore to ₹0.47 crore from ₹0.15 crore in Q2 FY26. Tax expense was lower by ₹0.07 crore at ₹0.05 crore, compared with ₹0.12 crore, and there was no exceptional item in either quarter.

Against Q1 FY27, total expenses were lower by ₹0.01 crore at ₹0.24 crore, as other expenses fell by ₹0.01 crore to ₹0.10 crore. Other income rose by ₹0.08 crore to ₹0.47 crore, while tax expense increased by ₹0.03 crore to ₹0.05 crore; employee cost and depreciation were unchanged.

How did the first half of FY27 go?

In the first half of FY27, standalone revenue was ₹0 crore, compared with ₹7.13 crore in H1 FY26. Total income fell by ₹6.5 crore to ₹0.86 crore from ₹7.36 crore, a decline of 88.3%.

Profit before tax declined by ₹0.3 crore to ₹0.37 crore from ₹0.67 crore, while net profit fell by ₹0.2 crore to ₹0.3 crore from ₹0.5 crore. Basic EPS decreased to 0.06 from 0.1, with profit after tax down 40.0%.

What do the balance sheet and cash flow show?

Total assets were ₹28.4 crore as on 30 September 2026, compared with ₹28.46 crore as on 31 March 2026. Total equity rose to ₹27.7 crore from ₹27.4 crore, while the company reported no borrowings at either date and cash increased to ₹15.61 crore from ₹6.12 crore.

Inventories remained at ₹0.99 crore as on 30 September 2026. Trade receivables fell to ₹0.02 crore from ₹0.24 crore, while trade payables were unchanged at ₹0.01 crore.

H1 FY27 operating cash flow was an outflow of ₹2.85 crore, compared with an outflow of ₹5.82 crore in H1 FY26. Investing cash flow was an inflow of ₹12.34 crore, compared with ₹6.34 crore a year earlier; financing cash flow and capital expenditure were ₹0 crore in both periods.

How has BABA ARTS done over the last 8 quarters?

Revenue in the quarterly series peaked at ₹5.16 crore in Q4 FY26 and bottomed at ₹0 crore in Q1 FY27, remaining at ₹0 crore in Q2 FY27. Profit reached its high of ₹0.44 crore in Q4 FY25 and its low of ₹0.05 crore in Q3 FY26; it rose to ₹0.18 crore in Q2 FY27.

The reported EBITDA margin peaked at 10.8% in Q4 FY25 and bottomed at -8.3% in Q4 FY26. It was not reported in Q1 FY27 and stood at -108900.0% in Q2 FY27, as revenue remained at ₹0 crore while expenses were incurred.

What else did the company announce?

Around the result, BABA ARTS filed disclosures on a change in control following Skybridge Interactive LLP’s open offer. The company reported a transfer of 3,27,00,000 equity shares, or 62.29%, on 6 October 2026, with a further 65,00,000 shares, or 12.38%, designated as the final tranche under the share purchase agreement.

The board appointed five additional directors on 9 October 2026 and elected Chandresh Dutt Upadhyay as Chairperson. It also appointed Vidya Pishe as Managing Director for 5 years from 9 October 2026 to 8 October 2031, subject to members’ approval.

The board noted the resignations of Nikhil G. Tanwani as Chairman and Managing Director, Malavika A. Acharya and Hemraj Chheda and Shekhar Mennon as directors, and Ajay D. Acharya as CFO, all following the change in management and control. The company also submitted an expression of interest for a resolution plan concerning Planet Marathi Seller Services Private Limited; no dividend or fund-raising filing was disclosed.

How did BABA ARTS shares react?

After the filing, the stock fell 2.1% within 5 minutes, was down 0.4% after 15 minutes and down 1.0% after 30 minutes. On the reaction day, it closed 1.1% above the previous close; the industry median for the Film Production, Distribution & Exhibition group fell 1.0% over the same close.

By the next day’s close, the stock was up 12.2% from its pre-results close, compared with a 0.0% move for the industry median. By the fifth session, it was up 18.5% from that close, while the industry median was up 0.7%; the excess moves were 12.2 percentage points and 17.8 percentage points, respectively.

Earlier reaction-day moves were positive on five of the eight listed results dates, including 3.8% on 28 July 2026 and 5.0% on 21 May 2026. The other listed moves were 5.0%, 2.9%, -1.0%, 1.0%, -0.5% and -0.9%.