MUKTAARTS - Mukta Arts

📊 NSE: MUKTAARTS 🏢 Entertainment / Electronic Media Software 📅 Last Updated: 12/14/2025 10:07

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 grew 1.4% YoY to INR 86.09 Cr. The Exhibition segment (Mukta A2 Cinemas) grew 21% YoY to INR 40.05 Cr. The Education segment (Whistling Woods International) grew 9% YoY to INR 30.10 Cr. Standalone revenue (Production/Distribution) stood at INR 12.82 Cr.

Geographic Revenue Split

The company operates primarily in India and Bahrain (via Mukta A2 Multiplex W.L.L.). Specific percentage split by region is not disclosed in available documents.

Profitability Margins

Standalone PAT margin improved significantly from 10% to 19% on a YoY basis for H1 FY26. Standalone EBITDA margin improved from 36% to 53% YoY. Consolidated net loss before tax narrowed to INR 0.95 Cr in H1 FY26 from a loss of INR 10.87 Cr in H1 FY25.

EBITDA Margin

Consolidated EBITDA margin for H1 FY26 was 8%, amounting to INR 7.02 Cr. Standalone EBITDA margin reached 53%, reflecting high core profitability in the standalone production/distribution business.

Capital Expenditure

Net cash used in investing activities (purchase of fixed assets) for H1 FY26 was INR 0.15 Cr, a significant reduction from INR 3.07 Cr in H1 FY25.

Credit Rating & Borrowing

Consolidated finance costs dropped by 90.5% YoY to INR 0.64 Cr in H1 FY26 from INR 6.79 Cr in H1 FY25, indicating a substantial reduction in debt or borrowing costs.

⚙️ Operational Drivers

Raw Materials

Film Content Rights (estimated at 30-40% of exhibition costs) and Faculty/Human Capital (primary cost for education segment).

Key Suppliers

Film Distributors and Production Houses (e.g., major studios providing content for Mukta A2 Cinemas).

Capacity Expansion

Whistling Woods International (WWI) recorded revenue of INR 30.10 Cr in H1 FY26. Mukta A2 Cinemas operates as the exhibition arm; specific screen count expansion targets were not detailed in the provided snippets.

Raw Material Costs

Not applicable as a manufacturing metric; however, film hire costs are a primary operational expense for the exhibition segment (INR 40.05 Cr revenue).

Manufacturing Efficiency

Not applicable for this service-oriented business model.

📈 Strategic Growth

Growth Strategy

Restructuring the exhibition arm through a binding Term Sheet (Feb 2024) and Subscription Agreement (Aug 2024) for Mukta A2 Cinemas. Leveraging the 21% growth in exhibition and 9% growth in education to scale the consolidated group revenue (INR 86.09 Cr).

Products & Services

Cinema tickets, food and beverage (F&B) at cinemas, film production and distribution rights, and media/creative arts education degrees and diplomas.

Brand Portfolio

Mukta A2 Cinemas, Whistling Woods International, Mukta Arts.

Market Expansion

Expansion of the Mukta A2 Cinemas footprint and increasing student intake at Whistling Woods International.

Strategic Alliances

Joint Venture with Mukta V N Films Limited (51.89% stake) and a strategic subscription agreement with Mr. Rajiv Rameshchandra Malhotra for Mukta A2 Cinemas.

🌍 External Factors

Industry Trends

The industry is shifting toward premium multiplex experiences and specialized vocational training in creative arts. Mukta Arts is positioned as an integrated player across the entertainment lifecycle.

Competitive Landscape

Competes with major multiplex chains like PVR Inox and various private media universities.

Competitive Moat

Strong brand legacy of Subhash Ghai and the premier reputation of Whistling Woods International provide a durable competitive advantage in attracting talent and students.