Baweja Studios Ltd Management Discussions

Annexure"B”

Media & Entertainment Industry Overview (FY 2024-25)

Indias Media & Entertainment sector continues to shine as a “sunrise” industry, driven by widespread digital adoption, mobile penetration, and a youthful population. In 2024, the M&E market grew by 3.3% to reach ^2.5 trillion (~US$ 29.4 billion), and is projected to grow 7.2% to ^2.68 trillion (~US$ 31.6 billion) in 2025.

The Indian M&E sector grew by 3.3% in 2024, reaching INR2.5 trillion (US$29.4 billion) and contributing 0.73% to the GDP, as per the FICCI-EY report, “Shape the future: Indian media and entertainment is scripting a new story". Digital media emerged as the largest segment, accounting for 32% of revenues, while traditional media like television, print, and radio saw declines in core advertising and subscription revenues. Advertising revenues increased by 8.1%, driven by digital performance advertising and demand for premium media. However, subscription revenues fell due to a decrease in Pay TV homes and poor theatrical performances by films. Overall, the sector is projected to grow by 7.2% in 2025, reaching INR2.68 trillion (US$31.6 billion).

Segmental performance in 2024

In 2024, the Indian Media and Entertainment landscape showed varied performance across key segments. Digital channels drove significant growth, while traditional areas faced more challenges amid shifting consumer behaviors. Here is a snapshot of how each segment fared in 2024:

M&E Segmental Performance in 2024

• Digital advertising: Digital advertising grew 17% to reach INR700 billion, which is 55% of total advertising revenues. Growth was led by search and social media (11%) and e- commerce advertising (50%), which reached INR147 billion. Included in digital advertising are spends by SME and long-tail advertisers of over INR258 billion.

• Digital subscription: Revenues grew 15% to INR102 billion. Paid video subscriptions increased by 11 million to 111 million, across 47 million households. Paid music subscriptions rose from 7 million to 10.5 million, while news subscriptions remained at 3.1 million.

• Music: Revenues fell by 2% due to a push to reduce free music consumption and lower streaming royalty rates. Paid subscriptions grew from 8 million to 10.5 million, but the overall audience dropped from 185 million to 175 million. Free alternatives like YouTube and radio limit the growth of the paid subscriber base.

• Film: Revenues dropped 5% to INR187 billion, with over 1,600 films released in 2024. Theatrical admissions declined, and only 11 Hindi films grossed INR1 billion, down from 17 in 2023. Both digital and satellite rights values fell by 10% as broadcast and OTT buyers focused on profitability.

• Animation and VFX: The Hollywood writers strike and struggling international studios led to a 9% revenue decline in 2024. Reduced broadcast ad revenues also impacted the production of animated content in India.

• Television: Linear TV revenues fell for the second consecutive year with a 6% drop in advertising revenue and a 3% decline in subscription revenue. Pay TV homes decreased by six million, while Free

• TV and Connected TV homes increased. Connected TVs grew to 30 million from 23 million in December 2023.

Looking ahead, the Indian Media and Entertainment sector is poised for significant developments. The combination of innovative business models, strategic alliances, and industry consolidation will play a critical role in determining its future direction.

Digital and Gaming Powering Future Growth

New media?comprising digital platforms and online gaming?now contributes 41% of sector revenue, and is expected to rise to 46% by 2027.The gaming market is especially dynamic: valued at roughly US$ 3.7 billion in FY24, its on track to reach US$ 60 billion by 2034. As of 2024, India had approximately 488 million online gamers?a figure expected to cross 517 million in 2025.

Advertising Shifts to Digital Platforms

Indias advertising industry surpassed ^1 lakh crore (~US$ 12 billion) in FY25, with digital media accounting for 46% of spend?a testament to shifting consumer behavior and marketing dollars.

OTT and Streaming Trends

The OTT commentary highlights Indias growing audience base: while 551 million users engage i ^ regularly, OTT revenue remains modest (~US$ 2.1 billion annually), indicating major growth potential. Globally, OTT is projected to hit US$ 343 billion by 2025.

The Changing Face of Indian OTT: Mid-year Insights

The most-watched original content on OTT has a viewership of less than 30 million viewers, which is just about 2% of Indias population. While there has been dramatic growth in Indias digital video population in the last five years, propelled by the pandemic years in particular, this growth is reflected more in the consumption of YouTube, Instagram and sports on OTT, but not on long-form content like fiction series or direct-to-OTT films. To put it in perspective, Pushpa2, released last year, recorded more than 5 Million footfalls in movie theatres. So the top movie has about twice the audience than the top OTT original. And its not like cinema is a mass medium in India by any stretch of the imagination.

Crime is no longer the go-to genre for OTT

Of the Top 10 and Top 20 properties, 4 and 8 respectively are shows in the broad Action Crime Thriller (ACT) cluster. Thats just 40% of the top content - a proportion which holds true for the top 50 list as well. And that includes properties like Criminal Justice (the top-ranked original on the list) and Black Warrant, which rely on a lot more than ‘crime for audience engagement. 40%may seem high, but its less than the proportion of ACT content in supply: 45% of OTT original sin India are from the ACT cluster. If almost every other show is of a certain genre cluster, it would be fair to assume that the genre cluster offers good audience returns compared to other genres. However, thats not the case here, and OTT platforms and producers must diversify ton on-ACT content to widen their offerings, and align better to evolving market taste.

Social media isnt the audience

The presence of The Royals in the list on No. 7 has surprised quite a few readers of the report. Its Netflixs top Indian original of the year so far (only Squid Game S3 on the platform is ranked higher), and by a comfortable margin too. The show received significant backlash on social media, for its content and performances. But none of that reflects in the actual performance. Social media chatter about long-form content, be it theatrical, streaming or linear television, can be misleading, because you can find yourself in an echo chamber that is not even remotely reflective of the real world.

Original language is no barrier

While not a new trend as such, the report confirms that Indian audiences are consuming contentacross languages and cultures. Only 34 of the top 50 are Hindi properties. The list has 10 foreign properties, including non-English originals Squid Game S3 (Korean), My Girlfriend Is an AlienS2 (Mandarin), and When Life Gives You Tangerines (Korean). The breakout global show of the year, Adolescence, leads the list of seven English originals. The top 50 list has six properties originally produced in South Indian languages, with four of them in Tamil, led by

Suzhal - The Vortex S2. Of course, a lot of the content is being watched in the language of choice, with platforms providing

audio feeds in more languages than ever before. It will be no surprise to see more non-Hindi Indian properties, especially from Telugu and Malayalam, make a national impact in the coming months.

Ormax Media released its mid-year report, in which the Top 50 most-watched OTT originals in India, across languages, have been ranked.

Transformation through Strategic Collaborations

A landmark merger in early 2025 combined Disney+ Hotstar and JioCinema into the unified platform JioHotstar, offering over 300,000 content hours and bolstered by premium and regional programming. Meanwhile, JioStar rapidly gained more than 280 million users due to IPL content, attracting record viewership and underscoring the potency of sports content in subscription models.

Regulatory and Sectoral Developments

Indias DTH (satellite TV) revenues declined in FY25, while FM radio grew?indicating shifting consumer preferences from traditional pay-TV to other formats. Simultaneously, Karnataka proposed the establishment of a regulatory authority to oversee online gaming, aiming to clamp down on illegal betting while regulating skill-based platforms.

Summary Table: Key Industry Metrics

Metric	FY 2024 / 2025 Data
Total M&E Market Size	^2.5 trillion in 2024; ^2.68 trillion projected in 2025
Digital Media Share	32% of total M&E revenue
New Media Share (Digital + Gaming)	41% currently; up to 46% by 2027
Online Gamers (2024)	488 million; projected 517 million in 2025
Gaming Market Value	US$ 3.7 billion (2024); projected US$ 60 billion by 2034
Advertising Revenue (FY25)	^1 lakh crore total, with 46% digital
OTT Users vs Revenue	551 million users; US$ 2.1 billion in revenue annually
Major Platform Merger	JioHotstar (Disney+ Hotstar + JioCinema), launched 2025
DTH vs FM Trend	DTH falling; FM growing in FY25

THE INDIA BOX OFFICE REPORT

With gross box office of ^11,833 Cr, 2024 became the second-best year of all time at the India box office, trailing only the collections of 2023 (^12,226 Cr):

• Hindi cinema saw a decline in 2024, with collections dropping from ^5,380 Cr in 2023 to ^4,679 Cr, and its box office share reducing by 4 percentage points, to 40%. Notably, 31% of Hindi cinemas collections came from dubbed versions of South Indian films. If only original Hindi language films are considered, the decline in box office was a steep 37%.

• Malayalam cinema doubled its box office share from 5% in 2023 to 10% in 2024, surpassing the ^1,000 Cr mark for the first time ever. Meanwhile, Tamil & Telugu maintained their box office share with marginal differences compared to 2023.

• Pushpa 2: The Rule was the highest-grossing film of 2024, with a gross box office of ^1,403 Cr. Its dubbed Hindi version achieved ^889 Cr, setting a new record as the highest-grossing ‘Hindi film of all time.

Pushpa 2: The Rule, Kalki 2898 AD & Stree2 were the only films to surpass the ^500 Cr mark at the India box office. Devara-Part 1, Bhool Bhulaiyaa3 & The Greatest Of All Time were the other three films to gross above ^300 Cr in 2024.

• 2024 registered 88.3 Cr (883 Million) footfalls, reflecting a 6% decline from 2023. Footfalls in 2024, were lower than the last two years, and continue to remain lower than pre-pandemic levels.

• Average Ticket Price (ATP) saw a marginal growth of 3% over 2023, from ^130 to ^134, compared to double-digit growth over the last two years, indicating more stability in ticket prices in 2024.

• Hollywood experienced the steepest de-growth in 2024, with its gross box office collections dropping by 17% compared to 2023.

• Gujarati cinema recorded an impressive 66% increase over 2023, which is only behind the growth of Malayalam cinema.

BOX OFFICE COLLECTION

Despite a marginal 3% decline compared to the previous year, 2024 stands as the second- highest-grossing year at the Indian box office, falling just short of the ^12,000 crore milestone. It also marks the fourth year to surpass the ^10,000 crore mark, following 2019, 2022 & 2023.

BOX OFFICE COLLECTION BY LANGUAGE

The great Indian box office divide

In February 2024, Omex Media published this year-end analysis highlighting how the chasm between big-ticket films and smaller films is becoming a permanent feature of the Indian box office in the post-pandemic era. Box office data from 2024 solidified this reality, reinforcing the dominance of a select few films at the box office. Heres a deep-dive.

In 2022, when theatres resumed normalcy, the top 10 films contributed 41% to the Indian box office, compared to 28-29% in the pre-pandemic undisrupted years of 2018 and 2019. This trend continued in 2023 with top 10 films contributing 40%, confirming that the divide ? between big-ticket event films, versus smaller story-driven films, in 2022 was not an aberration. 2024 confirms this yet again, as seen in the chart below. Of the ^11,833 Cr gross box office in 2024 (read our annual box office report here), 41% (i.e., ^4,878 Cr) came from the top 10 films of the year.

Lets examine how this trend unfolded across different languages in 2024. The chart below captures the contribution of top 10 films to the Indian box office for key languages.

For most major languages, the top 10 films account for over 70% of their total box office in 2024. Malayalam, while being at 64%, has seen increased polarisation over the last three years, from 48% to 61% to 64%. This increase is particularly striking for an industry which had multiple hit films during the year, and witnessed an exceptional 104% growth in the box office.

Telugu also touched its highest-ever mark on this parameter in 2024, at 70%. Hindi, Hollywood, Kannada, Punjabi, and Marathi continue to be highly dependent on the top 10 films, similar to 2023. Tamil is the only exception, where the share of the top 10 films has dropped from 71% to 60%.

Box office trends from the past three years indicate that big-ticket films will continue to become bigger, while smaller films across languages will face increasing challenges in attracting theatrical audiences.

The India Box Office Report On Growth of the Industry in 2025

The first half of 2025 grossed a healthy ^5,723 Cr (14% higher than 2024) at the India box office, with 17 films crossing the ^100 Cr mark, compared to just 10 in Jan-Jun 2024.

Monthly feature The India Box Office Report tracks the performance of the various films released every month at the Indian (domestic) box office. Monthly reports are published on this website in the third week of the following month. In this mid-year edition, we look at the overall performance of the Indian box office in the six-month period, i.e., Jan-Jun 2025.

Cumulative Box Office: Jan-Jun 2025The cumulative box office for Jan-Jun releases stands at ^5,723 Cr, which is 14% higher than the same period in 2024, and just ^12 Cr short of the 2022 record for Jan-Jun box office.

June 2025 was another steady month at the India box office, with gross collections crossing ^900 Cr, including projected future collections of June releases still running in theatres. Hindi films Sitaare Zameen Par & Houseful 5 emerged as the top grossers of the month, touching the ^200 Cr gross mark. Kuberaa (Tamil/ Telugu) and F1: The Movie (Hollywood) were the other major contributors to the months box office.

Over the last two years, the Jan-Jun period has contributed 42% to the annual box office. Applying that proportion, 2025 can be expected to close at ^13,500 Cr, which will make it the ^best year ever at the India box office. Whether that happens on not will depend on the ? performance of the big releases lined up in the second half of the year, such as Kantara: Chapter 1, Avatar: Fire and Ash, War 2, Coolie, Akhanda 2, Thama, OG, etc.

Language Share

For language share calculation, language-wise box office of films releasing in multiple languages is assigned to the corresponding language. However, for Hollywood, the data for all languages is reported under the language head ‘Hollywood.

The shares of various languages are very similar to the cumulative figures of 2024, where Hindi led with 40% share, followed by Telugu and Tamil at 20% and 15% respectively. Hollywood ? has returned to the double-digit share after three years, having last crossed the 10% mark in 2022.

Above is social media chart and user data in which it shows that age group of person uses which social media frequently and their content strategies their cons while using of it.

FUTURE OUTLOOK

Global Media & Entertainment Landscape - 2025

1. Market Size & Growth

The global Media & Entertainment (M&E) industry in 2025 is valued at approximately US$ 2.75 trillion, reflecting its position as one of the largest sectors in the world economy. It is projected to grow at a CAGR of 3.7% to reach US$ 3.5 trillion by 2029.

Regional Performance:

• North America remains the largest market, contributing approximately US$ 880 billion, driven by mature but stable segments such as premium streaming, sports broadcasting, and advertising.

• Asia-Pacific is the fastest-growing region, valued at approximately US$ 710 billion, propelled by rising internet penetration, mobile-first content consumption, and expanding middle-class entertainment spending.

Growth Drivers:

• The advertising segment, particularly digital formats such as mobile ads, social media campaigns, and connected TV advertising, is experiencing the fastest growth rate.

• Consumer entertainment time has reached a daily average of six hours in developed markets such as the United States. However, with limited expansion in discretionary time and spending, competition for consumer attention is intensifying.

• Engagement strategies must focus on personalization, interactive formats, and community-building content to maintain relevance.

In this evolving environment, technology adoption, scale of operations, and content localization are critical differentiators. Global players are re-aligning their models to balance subscription revenue with ad-supported formats, and to capture regional audiences through tailored content strategies.

2. Digital Media Leads the Charge

Digital transformation continues to redefine the global M&E industry, with digital revenues now accounting for nearly 40% of total market value. This shift is being driven by:

• Streaming and OTT services overtaking traditional cable TV as the dominant mode of television consumption.

• Expansion of global platforms such as Netflix, Disney+, Amazon Prime Video, and YouTube, which are aggressively localizing content and launching ad-supported tiers to cater to price-sensitive segments.

• Increased investment in regional content production, leveraging local storytelling to enhance subscriber acquisition and retention.

• Growth in mobile-first viewing habits, especially in emerging markets, creating demand for short-form video and social video platforms.

Implications for Industry Participants:

• Monetization models are diversifying, combining subscription (SVOD), advertising (AVOD), and hybrid formats (freemium tiers).

• The competitive edge lies in platform scalability, ability to offer personalized recommendations, and integration of interactive and immersive experiences such as

4 ?AR/VR.

• Strategic partnerships with telecom providers and device manufacturers are expanding reach in under-penetrated markets.

As the adoption of emerging technologies such as Artificial Intelligence (AI), Machine Learning (ML), and the Metaverse accelerates, the range of applications in the Media & Entertainment (M&E)

sector is set to expand significantly, driving profound industry transformation. According to Manpreet Singh Ahuja, Chief Digital Officer and Leader of Technology, Media & Telecom at PwC India, “Media companies and content creators are already striving to deliver more interactive and immersive experiences to audiences. We anticipate that M&E enterprises will invest heavily in transformative ideas to maintain relevance with their viewers.”

Industry participants are increasingly leveraging advanced digital tools to create personalized, on-demand, and immersive content experiences, ensuring higher engagement and stronger audience loyalty. Investment in emerging formats?spanning augmented and virtual reality, gamified experiences, and AI-driven content recommendations?is expected to accelerate in the coming years.

In the Indian context, Bollywood has witnessed a remarkable rise in global influence over recent decades. This expansion is underpinned by diverse storytelling, enhanced production values, and strategic international marketing. The Indian film industrys ability to resonate with both domestic and overseas audiences has positioned it as a significant cultural export? not only across Asia but also in non-traditional markets such as West Africa, where its themes, music, and narratives enjoy widespread appeal.

3. AI Revolution in Content Creation - 2025

Artificial Intelligence (AI) is rapidly transforming the Media & Entertainment (M&E) landscape, with AI-driven personalization, generative content, and real-time localization becoming central to content strategies. In 2025, AI adoption is no longer experimental?it is integral to competitive positioning across the industry.

Key AI Trends in 2025

• Tiered adoption of generative AI across production pipelines, from script development to visual effects.

• Agentic AI enabling advanced user interaction, immersive storytelling, and AI-led content creation.

• Real-time monetization through dynamic, context-aware advertising integrated into content streams.

Generative AI is embedded in nearly every aspect of strategic planning for large global players, many of whom have developed or commercialized some of the most advanced AI systems in the world. For these market leaders, AI is amplifying operational capabilities, enhancing efficiency, and widening competitive moats. At the same time, its increasing affordability and efficacy are encouraging mid-sized and emerging players to experiment with new use cases.

However, AIs influence is dual-edged?it can amplify the productivity and efficiency of established TV, film, and gaming studios, but also disrupt traditional competitive advantages around premium content. It empowers creators and brands to produce more tailored content and run precision-targeted advertising campaigns, while simultaneously increasing the volume of synthetic media, virtual influencers, and potentially harmful or low-quality content on digital platforms.

Three Key Patterns Shaping M&E in 2025

1. Ads, Aggregators, and New Moats - Social platforms are leveraging AI to deepen engagement and enhance ad performance, building new competitive barriers.

2. Scale and Asymmetric Competition - Traditional studios are competing for audience attention and revenue against tech-enabled platforms with billions of global users.

3. AI Empowerment and Market Rebalancing - While generative AI strengthens the capabilities of major studios, it also lowers the barriers for smaller creators, potentially reshaping market dynamics.

Beneath these shifts lies an increasingly VUCA (Volatile, Uncertain, Complex, and Ambiguous) operating environment. In 2025, the sector faces volatility in consumer demand, financing costs, revenue models, technology adoption, and regulatory frameworks. The rapid evolution of AI could accelerate these challenges, making adaptability and strategic foresight more critical than ever for sustained success.

4. Immersive & Experiential Entertainment - 2025

The global entertainment landscape is witnessing a surge in Augmented Reality (AR), Virtual Reality (VR), and location-based immersive experiences. High-profile examples such as Abba Voyage, Elvis Evolution, and Netflix Houses in London and other major cities highlight the potential of these formats to deepen fan engagement while enabling revenue diversification through premium experiences, merchandising, and cross-platform storytelling.

Our Media Experience Factory integrates an experience studio and a digital factory, designed to combine creativity with advanced technology to deliver next-generation immersive content. The cloud-based platform harnesses the convergence of content, gaming, and interactive services to drive real-time consumption of digital media.

Applications span across industries and use cases, including:

• Sports, travel, and recreation: offering interactive virtual tours and event-based engagement.

• Insurance and home decor: enabling price discovery and package exploration through immersive simulations.

• Industrial training: delivering interactive manufacturing procedures, repair manuals, and storage literature.

We employ advanced capabilities to superimpose, replace, replicate, recreate, or simulate physical environments with virtual elements?delivered through smart devices, interactive displays, game consoles, and wearable technology such as headsets and smart gloves. This approach enables location-based content services with real-time personalized engagement, particularly impactful in live sporting events.

5. Mergers & Consolidation

The Media & Entertainment industry continues to witness significant merger and acquisition (M&A) activity as companies seek to achieve scale, enhance technology capabilities, and expand content libraries to remain competitive in a rapidly evolving marketplace. A notable transaction in 2025 was the merger of Skydance Media with Paramount Global, completed in August 2025, creating a strengthened global entertainment entity with diversified content portfolios and expanded production capabilities.

Industry consolidation is expected to remain a key strategic lever as players adapt to shifting consumption patterns and rising content production costs. However, regulatory frameworks are evolving at a slower pace, creating potential challenges for cross-border transactions, competition oversight, and technology integration.

6. Cultural Fragmentation

Global audiences are increasingly fragmented, driven by algorithm-driven recommendations, niche streaming platforms, and the proliferation of specialized content ecosystems.

Unlike previous decades, where “monoculture” phenomena were shaped by a few dominant media channels, todays audience is dispersed across diverse genres, languages, and formats.

This shift presents both challenges and opportunities for content creators:

• Challenges: Harder to achieve mass-market penetration and global cultural moments.

• Opportunities: Ability to serve highly targeted audience segments with personalized, culturally relevant content, leading to stronger loyalty within specific niches.

A STUDIO CALLED INDIA

The Indian media and entertainment industry stands as a beacon of creativity and innovation on the global stage. With its rich cultural heritage and diverse storytelling traditions, India has consistently produced world-class content that resonates with audiences worldwide. This report delves into the core capabilities that make India a powerhouse in the entertainment sector.

Indias media and entertainment sector stands at the forefront of global innovation and growth, making it a preferred destination for content studios and media tech companies worldwide. The sectors remarkable evolution is driven by several key factors that position India as an attractive investment hub. With over 1.4 billion people, including a rapidly growing middle class, the demand

for varied and high-quality content is ever-increasing. This demographic advantage ensures a steady and expanding market for media and entertainment products. It is interesting to note that digital media overtook television for the first time, becoming the largest segment in India at over INR800 billion (US$9.4 billion), contributing 32% of M&E sector revenues in 2024. This digital revolution has transformed the landscape of content consumption. 200,000 hours of content was produced in the country last year, excluding news bulletins and UGC, reflecting the vast and diverse consumer market the country offers to content creators.

• The M&E sector crossed INR2.5 trillion (US$29.4 billion) in 2024, contributing 0.73% to Indias GDP

• New media (comprising digital media and online gaming) now accounts for 41% of the M&E sectors revenues

• Global M&E companies such as Google, Meta, Netflix, Prime Video, Lionsgate, Disney, Warner Bros. Discovery, and many others have a presence in India

• The sector is expected to grow at over 7% annually until 2027, reaching INR3.07 trillion (US$36.1 billion), outpacing Indias GDP growth rate

• We estimate digital media may reach INR1,107 billion by 2027 (US$13 billion) as the penetration of smartphones and connected TVs continues to increase

• India creates around 200,000 hours of original content a year, making it one of the largest content houses in the world, producing over:

? 1,600 films

4 ? 4 2,600 hours of premium OTT content

? 190,000 of television content

? 20,000 original songs

REVENUE STREAM

Theatrical Revenue:

Year	Gross Collections (^ Cr)	Key Highlights
2021	^4,706 Cr	Recovery year post COVID - 19; limited theatrical runs, occupancy restrictions
2022	^10,637 Cr	Strong comeback led by RRR, KGF2, and Brahmastra; footfalls crossed 90 Cr
2023	^12,226 Cr (alltime high)	Highest ever collections; hits like Jawan, Pathaan, Gadar 2, Leo
2024	m,833 Cr	Slight dip ( 3%); lower footfalls but higher ATP; Pushpa 2, Kalki 2898 AD led collections

Box Office & Revenue Trends

• Strong Growth: The Indian box office is showing robust momentum?with collections nearing ^5,000 crore in just the first five months of 2025, marking a 27% year-on-year increase The Times of India.

• Monthly Momentum: This growth trend aligns with the first quarter of FY26, where PVR INOXs box office collections surged 38%, driven by blockbusters

like Raid 2, Housefull 5, and Sitaare Zameen Par The Economic Times.

• Jio Studios Clout: Jio Studios has emerged as a dominant force, accounting for over 40% of the Hindi net box office and crossing ^1,000 crore in theatrical earnings in FY25 The Economic Times.

Satellite Rights Revenue

> Aggregate DTH Revenue:

The combined revenue of Indias major private DTH operators?including Tata Play, Bharti Telemedia (Airtel Digital TV), Dish TV, and Sun Direct?fell by over 5% in FY24, totaling approximately ^10,230 crore.The Economic Times

> Industry Dynamics:

• This drop was driven by a subscriber loss of 3.28 million homes, indicating a clear shift of consumers toward OTT and digital platforms.The Economic Times

• Among the players, Bharti Telemedia (Airtel Digital TV) was the only operator to register growth, with revenues up around 3% to ^3,045 crore, while Tata Play saw a 6% decline to ^3,983 crore.The Economic Times

OTT Rights Revenue

• OTT?emerged as the largest segment within Indias Media & Entertainment sector, contributing 32% to the total M&E revenues, surpassing television for the first

^ ? time.mintFICCI

^ ^ • The digital media revenue for the year reached approximately ^80,200 crore.

The OTT user universe in India grew 14% in 2024, reaching 547 million, driven largely by growth in AVOD (free, ad-supported consumption) .The Economic Times

India is currently the second fastest growing video gaming market globally, trailing behind Pakistan. The sector garnered $1.7 billion in revenue during 2022 and is anticipated to experience a growth of 19%, to reach $4.2 billion by 2027.

The cinema industry has shown strong recovery from pandemic lows. After falling to $402 million in 2021, cinema revenue rebounded to $1.1 billion in 2022. This positive trajectory is expected to continue, with a projected 15% growth, leading to $2.3 billion in annual revenue by 2027.

Similarly, admissions rebounded from $379 million in 2021 to $986 million in 2022, with an expected rise to $1.4 billion by 2027. Live music and cultural events revenue are also projected to surpass the 2019 pre-pandemic peak this year.

The report notes that nearly all the growth in entertainment and media on a global scale will come from digital products and services. With that expansion of digital media comes some risk: The industry will need to keep an eye on threats of regulation that could restrict digital products, algorithms, and platforms. Those include privacy laws, a flurry of emerging regulation on AI, and other legislation.

1) Source:https://www.deIoitte.com/us/en/insiahts/industrv/technoIoay/technoIoay-media-teIecom-outIooks/2025-media- entertainment-outIook.html

2) https://www.consuItancy.in/news/4023/indian-media-entertainment-industrv-to-reach-74-binion-bv-2027

BUSINESS OVERVIEW

Baweja Studios Limited is a technology-driven content production house committed to pushing the boundaries of storytelling and technological innovation in the Media & Entertainment sector. Headquartered in Mumbai, the Company specializes in the research and development of scripts, end-to-end content production, Intellectual Property (IP) creation, and monetization across multiple formats. Over the years, Baweja Studios has built a reputation as a global player with a proven track record of delivering high-quality, commercially successful content.

Business Model

Our core business revolves around content production through multiple sourcing channels, including:

• In-house script development

• Content acquisition Remake rights

• Adaptations from books

2 %,<?>? „ ?

Each project undergoes a rigorous selection and evaluation process at multiple levels before

being approved for production. The management committee then determines the most suitable production model?in-house production, co-production, or acquisition?to optimize returns. Upon completion, the final content is delivered to our clients, including leading platforms and studios, under pre-agreed commercial arrangements that ensure predictable _<p^rofitability.

Diversification & Capabilities

Baweja Studios has successfully diversified its portfolio to include:

• Feature Films

• Web Series

• Digital Films

• Animation Films

• Punjabi & Tamil Cinema

Our commitment to excellence in production quality and storytelling craft has positioned us among the leaders in Indian film-making across formats.

Track Record & Pipeline

Since inception, Baweja Studios has produced over 29 films across genres and languages, reflecting both commercial viability and creative excellence. As of the reporting year, seven projects are in pre-production for the forthcoming year, with several more in the research and development stage?ensuring a robust content pipeline for sustained growth.

OPPORTUNITIES

Baweja Studios Limited is strategically positioned to capitalize on multiple growth avenues in the evolving Media & Entertainment (M&E) sector:

• Rising Demand for Content - Escalating consumption across theatrical, digital, and international platforms.

• Technological Advancements - Integration of AI, VFX, and virtual production tools to enhance efficiency and creative output.

• Digital Transformation - Expansion into OTT, social media, and other online channels to reach wider audiences.

• International Expansion - Opportunities to tap into global markets through crossborder collaborations and overseas releases.

• Strategic Collaborations & Partnerships - Alliances with leading studios, OTT platforms, and distributors to accelerate growth.

• New-Age Media & Short-Form Content - Leveraging short-format storytelling to engage younger, mobile-first audiences.

STRENGTHS

The Companys competitive edge is built upon its creative vision, industry relationships, and operational efficiency:

• Experienced Promoters - Leveraging decades of creative and commercial expertise in film-making.

• Flexible Production Model - Ability to adapt between in-house production, coproduction, and content acquisition based on project needs.

• Qualified Senior Management - A leadership team with deep domain expertise across production, finance, and distribution.

• Established Industry Relationships - Long-standing ties with talent, studios, distributors, and OTT platforms.

• Commitment to Quality - High production standards ensuring consistent delivery of premium content.

• Diverse Content Library - A growing repository of IP across genres, languages, and formats.

• Robust Pipeline - Multiple projects in various stages of development and production.

• Multi-Vertical Presence - Capabilities across films, web series, animation, and regional cinema.

RISKS & THREATS WITHIN THE M&E SECTOR

Despite its growth potential, the M&E industry presents certain inherent risks that require careful monitoring and strategic mitigation:

• Intense Competition & Market Fragmentation - High competition from both domestic and international players across theatrical, OTT, and regional segments.

• Changing Audience Preferences - Rapid shifts in viewing habits and geme preferences in the domestic market.

• International & Regional mm Competition - Growing popularity of global cinema and strong regional film industries.

• Piracy & Intellectual Property Risks - Unauthorized distribution of content impacting revenue and brand value.

• Regulatory Uncertainty - Evolving policies on content regulation, censorship, and digital distribution.

• Economic Volatility - Macroeconomic factors, currency fluctuations, and inflation impacting production budgets and audience spending.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year under review, the Company recorded a total income of ^7,627.23 lakhs, compared to ^6,513.28 lakhs in the previous year, reflecting a growth of 17.10%.

The Company achieved a profit of ^828.26 lakhs for the year, as against ^822.27 lakhs in the previous year, representing a marginal increase of 0.73%.

In spite of decrease in the total Income the Company has managed to earn better profits, which are results of better Efficiency in production & along with Economies of Scale.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

M/s. A N P M & Co. LLP, Chartered Accountants, Mumbai is appointed as the Internal Auditors of the company for the Financial Year 2024-25. Based on the report of Internal Audit function,

corrective action are undertaken in the respective areas and thereby strengthen the controls. Significant audit observations and corrective actions thereon are presented to the Audit Committee of the Board.

During the year under review, no material or serious observation has been received from the Internal Auditors of the Company for inefficiency or inadequacy of such controls.

Discussion on financial performance with respect to operational performance Material developments in Human Resources / Industrial Relations front, including number of people employed.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The Company has hired Mr. Nikunj Shyamsunder Bagdi - A Chartered Accountant by qualification with more than 15 years of work experience in the field of Finance & Accounting. Specialize in the Field of Business Finance, Financial Management & Strategic Development for more than decade in Media & Entertainment. The company was able to retain the talents despite of the hefty attrition rates in its peer companies. The Company continued to maintain cordial relations with its employees.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR, INCLUDING:

Sr. No. Particulars	Variations (%) Increase / (Decrease) over Precious Financial Year
a) Current Ratio (in times)	The Current ratio for the year was 2.11 as compared to 4.13 in the immediate previous financial year. There is substantial decrease in the current ratio by 48.75% due to increase cashflow from the public issue in FY 2022-23
b) Debt-Equity Ratio (in times)	The Debt-Equity ratio for the year was 0.30 as comapred to 0.04 in the immediate previous financial year. There is substantial increase in the current ratio by 697.57% since the company has raised invested in inventory and funded the working capital cycle.
	The Debt-Service Coverage ratio for the year was 9.25 as compared to 13.81 in the immediate previous financial Year.
c) Debt-Service Coverage Ratio (in times)	There is substantial decrease in the current ratio by 32.99% since the Companys borrowing has increased as compared to previous year. Since previous year company had raised capital through a public issue during the year leading to a major change in the finance flow of business operations.
d) Return on Equity Ratio (in %)	The Return on Equity ratio for the year was 8.28 as comapred to 14.23 in the immediate previous financial year. There is substantial decrease in the current ratio by 41.71% since in previous year company has raised capital through a public issue during the year leading to a major change in the finance flow of business operations.
(e ) Inventory Turnover Ratio (in times)	The Inventory Turnover ratio for the year was 1.32 as compared to 2.40 in the immediate previous financial year. There is substantial decrease in the current ratio by 45.08% since the company is in process of investing in new projects.
(f) Trade Receivables Turnover Ratio (in times)	The Trade Receivables Turnover Ratio for the year was 1.62 as compared to 4.46 in the immediate previous financial year. There is substantial decrease in the current ratio by 63.57 % since the projects got delivered the project in Feb and March receivables are high
(g) Trade Payables Turnover Ratio (in times)	The Trade Payables Turnover Ratio for the year was 3.19 as compared to 2.98 in the immediate previous financial year. There is no substantial change
(h) Net Capital Turnover Ratio (in times)	The Return on Equity ratio for the year was 0.81 as compared to 0.75 in the immediate previous financial year. There is no substantial change
(i) Operating Margin Ratio	The Current ratio for the year was 18.78 as compared to 18.64 in the immediate previous financial year. There is no substantial change
(j) Net Profit Ratio (in %)	The Current ratio for the year was 10.97 as compared to 12.76 in the immediate previous financial year. There is no substantial change
(k) Return on Capital employed (in %)	The Return on Equity ratio for the year was 9.05 as compared to 11.52 in the immediate previous financial year. There is no substantial change
(l) Return on Investment (in %)	The Return on Equity ratio for the year was 1.95 as comapred to 2.40 in the immediate previous financial year. There is no substantial change

DISCLOSURE OF ACCOUNTING TREATMENT:

Where in the preparation of financial statements, a treatment different from that prescribed in an Accounting Standard has been followed, the fact shall be disclosed in the financial statements, together with the managements explanation as to why it believes such alternative treatment is more representative of the true and fair view of the underlying business transaction.

PARTICULARS OF EMPLOYEES

1) The information required under Section 197 of the Act read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given below:

a. The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the financial year:

Non-executive directors	Ratio to Median Remuneration
Not Applicable as company has not paid remuneration to any non-executive director

 

Sr. No Name	Designatio n	Remuneratio n in paid for FY 2024-25 (In Rs.)	Remuneration paid for FY 2023-24 (In Rs.)	% increase -in remunerati on in the FY 2024-25	Ratio/ times per median of employee remunerati on
1 *Mr. Amar Raut	Chief Financial Officer	1,50,000	9,00,000	-	2.89
2 **Ms. Nidhi Gajera	Company Secretary & Compliance Officer	1,80,000	1,97,500	-	0.77
3 ***Mrs. Hashmita Sumant Karmakar	Company Secretary & Compliance Officer	20,000	-	-	0.77
4 ****Mr. Nikunj Shyamsunder Bagdi	Chief Financial Officer	-	-	^ -	-

* Mr. Amar Raut resigned as a CFO of the Company w.e.f. May 31, 2024.

** Ms. Nidhi Kamlesh Gajera has resigned as a Company Secretary and Compliance Officer of the Company w.e.f January 04, 2025.

*** Mrs. Hashmita Sumant Karmakar was appointed as the Company Secretary and Compliance Officer of the Company with effect from March 03, 2025.

**** Mr. Nikunj Shyamsunder Bagdi was appointed as a CFO of the Company w.e.f. June 01, 2024 at the meeting of Board of Directors held on May 30, 2024. The Company has not paid a salary to Mr. Nikunj Bagdi; instead, payments have been made to him as professional fees based on project-specific work.

Median remuneration of employees in FY 2024-25 (per month)	Median remuneration of employees in FY 2023-24 (per month)	Percentage increase/(decrease)
Rs. 25,958	Rs. 30,625	(15.24)%

b. The percentage increase in remuneration of each director, chief executive officer, chief financial officer, company secretary or manager, if any, in the financial year: NIL

c. The percentage increase in the median remuneration of employees in the financial year: NIL

d. The number of permanent employees on the rolls of Company: Fourteen (14) Employees as on March 31, 2025

e. Average percentile increases already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

f. Affirmation that the remuneration is as per the remuneration policy of the Company:

It is hereby affirmed that the remuneration paid is as per the remuneration policy of the Company.

2) The statement containing particulars of employees as required under Section 197(12) of the Act read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014: Not Applicable

By order of the Board of Directors,
For Baweja Studios Limited
Sd/-	Sd/-
Harman Baweja	Paramjit Baweja
Chairman and Managing Director	Director
DIN:02663248	DIN:02663280
Place: Mumbai
Date: 23/08/2025