Inspire Films Ltd Management Discussions

The global economy remained resilient in FY2025–26 despite geopolitical and inflationary pressures. Digital transformation is reshaping industries, creating new opportunities. The Media & Entertainment sector is evolving with audiences shifting to OTT, mobile, and short-form digital formats. The Indian economy remains one of the fastest-growing globally, driven by consumption, infrastructure, and digitisation. For the Media & Entertainment industry, Indias large and diverse consumer base, rising digital penetration, increasing smartphone adoption and expanding connected-TV ecosystem provide a strong foundation for long-term growth across languages, platforms and territories.

INDUSTRY OUTLOOK

Indian Media & Entertainment Industry

Indias Media & Entertainment sector grew 9% in 2025 to 2.78 trillion, driven by digital media, advertising, and live experiences. Digital media became the largest segment, crossing 1 trillion in revenues for the first time. The industry is now an AND market, with television, connected TV, OTT, and mobile formats coexisting. Digital advertising rose 26% to 947 billion, while subscription revenues reached 163 billion, reflecting consumer willingness to pay for premium content. These trends are opening opportunities across the content value chain, from development and production to licensing and multi-platform exploitation.

Content and IP Opportunity

The increasing fragmentation of audiences has also increased the importance of strong intellectual property.

A successful story or character can potentially be adapted across languages, formats and platforms and can have a monetisation lifecycle extending significantly beyond its initial broadcast or streaming window.

For content companies, this creates an opportunity to transition from a purely production-led model towards an IP-led model, where the development and ownership of differentiated intellectual properties can create multiple avenues for monetisation.

Inspire Films intends to participate in this opportunity by building a strong portfolio of original and acquired intellectual properties, while continuing to produce content for leading broadcasters and OTT platforms.

REVIEW OF OPERATIONS

Business Overview

Inspire Films Limited is a content creation and production company with capabilities across television, digital content and regional markets.

The Companys business continues to be built around three broad areas:

1. Television Content

2. Digital / OTT Content

3. Regional Content and Emerging Content Opportunities

During FY2025–26, the Company continued to focus on strengthening its content pipeline,developing intellectual properties and building relationships with leading broadcasters and platforms.

The Companys strategy is progressively evolving from being primarily production-led towards becoming an IP-led content enterprise, with an emphasis on developing, acquiring, producing, licensing and monetising intellectual property across multiple platforms.

KEY BUSINESS DEVELOPMENTS DURING FY2025–26

Dhaakad Beera – Colors

One of the significant projects during FY2025–26 was Dhaakad Beera on Colors.

The show represented Inspire Films continued ability to create mainstream television entertainment while addressing a socially relevant and issue-based subject.

The Companys approach has consistently been to develop stories that can combine audience engagement with meaningful themes. Dhaakad Beera reinforced this positioning and demonstrated Inspire Films ability to operate across different genres and narrative formats.

The project also strengthened the Companys relationship with leading television networks and contributed to the diversification of its content portfolio.

Kyunki Papa Kehte Hain – Sony SAB

A significant milestone for the Company is its association with Sony SAB for the upcoming fiction property Kyunki Papa Kehte Hain .

The project represents an important addition to Inspire Films television portfolio and reinforces the Companys ability to collaborate with leading national broadcasters.

The association with Sony SAB is strategically important as the Company continues to strengthen its presence in the Hindi General Entertainment space. The project also provides a strong foundation for further opportunities with leading platforms and broadcasters.

The Company views this association not merely as an individual production opportunity but as an important milestone in its broader strategy of building long-term relationships with established industry partners.

BUILDING A STRONG IP LIBRARY

Inspire Films is strategically focused on building a robust IP library that extends value beyond the initial production cycle. The company is actively acquiring book rights and life rights while simultaneously developing original concepts, resulting in more than two dozen original IPs across genres. These creative assets form a strong foundation to produce content across television, OTT, films, and other formats, tailored to market needs.

The Companys long-term objective is to leverage these IPs through licensing, adaptation, production and other monetisation models, enabling Inspire Films to expand its footprint across:

Languages

Formats

Platforms

Geographies and territories

This IP-led strategy is designed to create a longer monetisation lifecycle for successful properties and establish a scalable, diversified content business.

LICENSING AND CONTENT MONETISATION

The Company continues to explore opportunities to monetise content through multiple channels, including production, licensing, syndication and sublicensing.

The changing content ecosystem is creating increasing opportunities for content to travel across platforms and markets. Inspire Films intends to leverageits growing IP library and content catalogue to participate in these opportunities.

The Company believes that future value creation in the content business will increasingly depend not only on the ability to produce content efficiently, but also on the ability to own,control, license and monetise intellectual property over its lifecycle.

OPPORTUNITIES

1. Growth of the Indian M&E Sector

The Indian M&E sector grew 9% in 2025 to 2.78 trillion and is expected to reach approximately 3.3 trillion by 2028. This provides a favourable structural environment for companies operating across content creation and distribution.

2. Growing Digital Consumption

Digital media has emerged as the largest segment of Indias M&E industry, crossing 1 trillion in 2025. Increasing digital consumption and subscription revenues create opportunities for original content and IP owners.

3. Television Continues to Provide Scale

Despite the growth of digital platforms,television continues to have enormous reach in India. Connected television is also creating a bridge between traditional television and digital consumption.

For Inspire Films, this provides an opportunity to continue developing strong television properties while simultaneously building digital and OTT capabilities.

4. IP Ownership and Licensing

The Companys growing library of original IPs, acquired bookrights and life rights provides a platform for future development and licensing opportunities.

The ability to adapt and license IP across languages, formats and territories can potentially create multiple revenue opportunities over thelifecycle of a successful property.

5. Regional Content

Indias linguistic and cultural diversity provides significant opportunities for regional content. The Company intends to explore opportunities across regionallanguages and markets as part of its long-term expansion strategy.

6. Global Opportunity for Indian Content

Indian stories and production capabilities are increasingly relevant beyond the domestic market. The growth of digital distribution provides opportunities for Indian IPs to travel internationally through licensing, adaptation and localisation.

THREATS AND CHALLENGES

The Media & Entertainment industry is undergoing consolidation among broadcasters and platforms, affecting commissioning volumes and project economics. Intensifying competition from domestic producers, digital creators, and international players is making it harder to secure audiences and talent. Audiences are increasingly fragmented across TV, OTT, social media, and short-form video which in turn demand constant adaptation. Escalating cost pressures from production, talent, and technology investments are squeezing margins. Dependence on platform commissioning exposes companies to risks from changing strategies, budgets, and priorities, impacting project timing and volumes.

RISK MANAGEMENT

Inspire Films manages risks through a diversified strategy, balancing its portfolio across television, digital, and regional content. It strengthens its IP base by developing originals and acquiring rights, ensuring flexibility in monetisation. Operational risks are addressed with project planning, production controls, contracts, and continuous monitoring. Financial discipline is maintained by managing working capital and evaluating projects for commercial viability. This comprehensive approach supports sustainable growth while mitigating creative and financial risks.

OUTLOOK

Indias Media & Entertainment industry outlook remains strong, though it is undergoing major structural changes. The FICCI-EY 2026 report projects the sector to reach 3.3 trillion by 2028, driven by digital media, live experiences, and filmed entertainment. By then, new media is expected to contribute more than half of total revenues, reflecting shifting consumer preferences. In response, Inspire Films is focused on building a diversified and scalable content business to capture opportunities across platforms and formats.

The Companys priorities going forward include:

Building a stronger pipeline of original intellectual properties;

Expanding its portfolio of acquired book rights and life rights;

Developing IPs across multiple genres;

Strengthening relationships with leading broadcasters and OTT platforms;

Increasing opportunities for licensing and syndication;

Expanding across languages and regional markets;

Exploring opportunities for international exploitation of Indian IP;

Improving production and operational efficiencies; and

Maintaining financial discipline while pursuing growth.

The association with Sony SAB for Kyunki Papa Kehte Hain represents an important milestone in the Companys television business, while projects such as Dhaakad Beera demonstrate the Companys ability to work across mainstream and issue-based storytelling. Inspire Films is investing in over two dozen original IPsalong with acquired book rightsand life rights to build a deeper creative asset base. The next phase of growth will be driven by a mix of content creation, IP ownership, licensing, and multi-platform exploitation. The companys objective is to evolve into a content and IP-led enterprise capable of creating value across languages, formats, platforms, and territories.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Inspire Films has built a strong internal control framework to safeguard assets, ensure reliable financial reporting, promote operational efficiency, and comply with regulations. These systems are periodically reviewed to stay aligned with evolving business needs. The Audit Committee, along with internal audit and finance functions, plays a key role in evaluating their adequacy and effectiveness. The company remains committed to high standards of governance and transparency while maintaining financial discipline.