Moving Media Entertainment Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

1. INDUSTRY OVERVIEW

The Indian Media and Entertainment ("M&E") industry continues to undergo significant transformation, driven by increasing digital consumption, expansion of Over-The-Top ("OTT") platforms, growth in content production, advertising expenditure, regional content, live events and the increasing demand for high-quality visual content.

The continued expansion of digital platforms and the increasing consumption of video content have resulted in sustained demand for professional production infrastructure and equipment. Film, television, OTT, advertising, corporate content, music videos and other forms of audio-visual production require sophisticated cameras, lenses, lighting, sound and related equipment. This has created opportunities for specialised equipment rental companies that can provide access to high-quality equipment without requiring customers to make substantial capital investments in ownership of such assets.

The industry is also witnessing rapid technological advancement, with newer camera systems, lenses, imaging equipment and associated production accessories being introduced at regular intervals. This creates a favourable environment for professional equipment rental businesses that are able to maintain a relevant and diversified equipment portfolio and respond efficiently to changing production requirements.

The Management believes that the increasing professionalisation of content creation, growth in OTT and digital video consumption and continued investments in the Indian entertainment ecosystem provide a favourable long-term operating environment for the Company.

2. COMPANY OVERVIEW AND BUSINESS OPERATIONS Entertainment Limited ("the Company") is engaged in providing camera and lens equipment and allied production equipment on a rental basis to customers operating primarily in the media and entertainment industry.

The Company provides a range of professional equipment and solutions including cameras, camera lenses, filters, grips, gimbals, monitors, sound equipment, lighting equipment and other related production peripherals. The Companys rental model enables production houses, filmmakers, advertising agencies, content creators and other industry participants to access professional-grade equipment according to their project requirements without having to incur the full capital expenditure associated with purchasing such equipment.

The Companys business model is focused on maintaining a suitable equipment portfolio, ensuring equipment availability, providing timely delivery and support, and developing long-term relationships with customers.

The Company continues to focus on expanding its equipment portfolio, improving operational efficiency and strengthening its position as a dependable equipment rental partner for the media and entertainment ecosystem.

3. OPERATIONAL PERFORMANCE

During the financial year ended March 31, 2026, the Company continued to witness growth in its business operations.

Revenue from Operations increased to INR5,131.23 lakh during FY 2025-26 from INR3,706.38 lakh during FY 2024-25, representing a growth of approximately 38.43%. The growth reflects increased business activity and continued demand for the Companys equipment rental services.

The Company continued to invest in its equipment infrastructure to support its business requirements and enhance its ability to service projects involving professional production equipment. Property, Plant and Equipment increased from INR6,170.45 lakh as at March 31, 2025 to INR9,480.16 lakh as at March 31, 2026, reflecting the Companys continued investment in its equipment base.

The Company remains focused on maintaining the quality and relevance of its equipment portfolio and providing customers with access to equipment suited to varying production requirements.

4. FINANCIAL PERFORMANCE

The financial performance of the Company for the year under review is summarised below:

The Companys Revenue from Operations increased by approximately 38.43% during FY 2025-26. Profit Before Tax increased by approximately 20.94%, while Profit After Tax increased by approximately 21.29%.

The increase in profitability reflects the Companys continued business growth and operating performance during the year. The increase in depreciation and amortisation expenses is primarily associated with the Companys investment in its equipment and fixed asset base.

The Companys cash flow from operating activities remained positive during the year, with net cash generated from operating activities amounting to INR956.26 lakh. The Company also incurred significant capital expenditure towards purchase of fixed assets, consistent with its strategy of expanding and strengthening its equipment base.

Annexure - A

Particulars	FY 2025-26 (INR in lakh)	FY 2024-25 (INR in lakh)	Growth
Revenue from Operations	5,131.23	3,706.38	38.43%
Other Income	13.46	-	-
Total Income	5,144.69	3,706.38	38.80%
Profit Before Tax	1,691.15	1,398.44	20.94%
Profit After Tax	1,261.01	1,039.68	21.29%
EPS – Basic & Diluted (INR)	7.31	8.5	-

The Companys Revenue from Operations increased by approximately 38.43% during FY 2025-26. Profit Before Tax increased by approximately 20.94%, while Profit After Tax increased by approximately 21.29%.

The increase in profitability reflects the Companys continued business growth and operating performance during the year. The increase in depreciation and amortisation expenses is primarily associated with the Companys investment in its equipment and fixed asset base.

The Companys cash flow from operating activities remained positive during the year, with net cash generated from operating activities amounting to INR956.26 lakh. The Company also incurred significant capital expenditure towards purchase of fixed assets, consistent with its strategy of expanding and strengthening its equipment base.

5. FINANCIAL CONDITION AND LIQUIDITY

The Companys financial position remained sound during the year under review. As at March 31, 2026, the Companys total assets stood at INR13,210.54 lakh as compared to INR9,478.51 lakh as at March 31, 2025.

The Companys Property, Plant and Equipment stood at INR9,480.16 lakh as at March 31, 2026, representing a significant increase over the previous year, primarily on account of investment in equipment required for its business operations.

The Company generated positive cash flows from operating activities during the year. The Company continues to monitor its working capital requirements, receivables and liquidity position with a view to maintaining adequate financial flexibility for its ongoing operations and future growth.

The Management remains focused on prudent financial management and efficient deployment of capital while balancing investments in equipment and other business requirements.

6. BUSINESS STRENGTHS

The Management believes that the Companys principal strengths include:

- Specialised equipment portfolio: The Companys focus on professional camera, lens and allied production equipment enables it to cater to specialised requirements of the media and entertainment industry.

- Asset-backed business model: The Companys investment in professional equipment provides it with a scalable asset base capable of supporting rental revenues over multiple production cycles.

- Industry knowledge and experience: Understanding of production requirements and equipment specifications enables the Company to provide appropriate solutions to customers.

- Customer relationships: The Company seeks to build long-term relationships with production houses, advertising agencies, content creators and other industry participants.

- Flexible rental model: Customers can access professional equipment for specific projects without incurring the substantial capital expenditure associated with outright ownership.

- Ability to respond to technological changes: Continued investment in equipment enables the Company to remain aligned with evolving production technologies and customer requirements.

7. OPPORTUNITIES

The Company operates in an industry where several structural factors provide opportunities for future growth.

The continued expansion of OTT platforms, digital content, advertising films, web series, feature films, music videos, corporate content and other forms of video production is expected to support demand for professional production equipment.

The increasing preference among production companies and content creators for flexible and cost-efficient access to equipment also provides opportunities for the rental model. Equipment rental enables customers to use specialised equipment for specific projects while avoiding the capital cost, maintenance requirements and technological obsolescence associated with owning a large equipment inventory.

Further opportunities exist through geographic expansion, widening the customer base, increasing equipment utilisation, expanding the range of equipment offered and strengthening relationships with recurring customers.

8. KEY RISKS AND CONCERNS

The Companys business is subject to various risks and uncertainties inherent in the media and entertainment industry and equipment rental business.

Technology and equipment obsolescence: The rapid pace of technological development may result in existing equipment becoming obsolete or less commercially attractive. The Company therefore needs to continuously assess market demand and optimise its equipment portfolio.

Industry cyclicality: Demand for production equipment is influenced by the level of activity in films, OTT, advertising, television, events and other content-production segments. Any slowdown in content production may adversely affect equipment utilisation.

Equipment utilisation: The Companys revenues are dependent, among other factors, on effective utilisation of its equipment. Periods of lower utilisation may adversely affect operating margins.

Equipment damage and maintenance: Rental equipment is subject to usage-related wear and tear and may be exposed to damage or loss. Appropriate operating procedures, maintenance and asset-management practices are therefore important to protect the Companys asset base.

Customer concentration and credit risk: Delays in collection or concentration of revenues among a limited number of customers may impact working capital and liquidity. The Company continues to monitor customer creditworthiness and receivables.

Competition: The equipment rental industry is competitive and includes organised and independent rental operators as well as customers who may choose to purchase equipment. The Companys ability to provide quality equipment, competitive pricing, availability and service remains important to maintaining its competitive position.

The Company has established processes for identifying, monitoring and mitigating material business and operational risks. The Management and the Board periodically review such risks and take appropriate measures as considered necessary.

9. INTERNAL CONTROL SYSTEMS

The Company has established internal financial controls and operational processes commensurate with the size and nature of its business.

The internal control framework is designed to safeguard the Companys assets, ensure the accuracy and reliability of financial reporting, promote operational efficiency, ensure compliance with applicable policies and procedures and support the identification and mitigation of operational and financial risks.

The internal audit function provides an additional layer of review of the Companys processes and controls. The internal audit findings are placed before the Audit Committee for review, and corrective actions, wherever required, are monitored by the Management and the Audit Committee.

The Board believes that the Companys internal financial controls are adequate and operating effectively.

10. HUMAN RESOURCES

Human resources continue to remain an important component of the Companys operations. The Companys business requires personnel with appropriate knowledge of equipment, production requirements, customer servicing, equipment handling, finance and operational management.

The Company seeks to maintain a professional and performance-oriented work environment and continues to focus on employee capability, operational discipline and development of skills relevant to its business.

The Management believes that the Companys relationship with its employees remains cordial and constructive.

11. OUTLOOK

The Management remains cautiously optimistic about the medium- to long-term prospects of the Indian media and entertainment ecosystem.

The continued growth of digital content, OTT platforms, advertising, regional content and professional video production is expected to create sustained demand for high-quality production equipment. At the same time, increasing customer preference for flexible access to specialised equipment rather than outright ownership presents an opportunity for organised rental businesses.

- Going forward, the Company intends to focus on:

- expanding and optimising its equipment portfolio;

- improving utilisation of its existing equipment;

- strengthening relationships with existing and new customers;

- maintaining high standards of equipment quality and availability;

- improving operational and financial efficiency;

- prudent deployment of capital towards revenue-generating assets; and

- strengthening its position within the Indian media and entertainment equipment rental ecosystem.

The Company will continue to evaluate market opportunities while maintaining financial discipline and prudent risk management.

12. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations, estimates or predictions may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to various factors, including changes in economic conditions, industry demand, technological developments, competition, regulatory changes, availability and cost of equipment, customer behaviour and other risks and uncertainties affecting the Companys operations.

The Company assumes no obligation to publicly update or revise any forward-looking statements based on subsequent events or developments, except as may be required under applicable laws and regulations.