Optimystix Entertainment India Ltd Management Discussions

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULT OF OPERATIONS

You should read the following discussion of our financial condition and results of operations together with our Financial Statements as Restated which is included in this Red Herring Prospectus. The following discussion and analysis of our financial condition and results of operations is based on our Financial Statements as Restated, for the financial years ended on March 31, 2026, March 2025 and 2024 including the related notes and reports, included in this Red Herring Prospectus is prepared in accordance with requirements of the Companies Act, 2013 and restated in accordance with the SEBI (ICDR) Regulations, 2018, which differ in certain material respects from IFRS, U.S. GAAP and GAAP in other countries. Our Financial Statements, as restated have been derived from our audited statutory financial statements. Accordingly, the degree to which our Financial Statements as Restated will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the readers level of familiarity with Indian GAAP, Companies Act, SEBI Regulations and other relevant accounting practices in India.

This discussion contains forward looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these Forward-Looking Statements as a result of certain factors such as those described under chapters titled "Risk Factors" and "Forward Looking Statements" beginning on pages 26 and 24 respectively.

Our Financial Year ends on March 31 of each year. Accordingly, all references to a Financial Year are to the 12 months ended March 31 of that year.

Our Company was originally incorporated as ‘Optimystix Entertainment India Private Limited, a private limited company under the Companies Act, 1956, on October 31, 2000, pursuant to a certificate of incorporation issued by the Registrar of Companies, Mumbai. Subsequently, the name of our Company was changed from ‘Optimystix Entertainment India Private Limited to ‘Optimystix Entertainment India Limited pursuant to a special resolution passed by the shareholders at the extraordinary general meeting held , May 07, 2025 and a fresh certificate of incorporation reflecting the change was issued and our Company was converted into a public limited company pursuant to an application made under Section 18 of the Companies Act, 2013, and upon receipt of approval from the Central Government. A fresh certificate of incorporation was issued by the Registrar of Companies, Central Processing Centre, on May 16, 2025, recording the change in status of our Company to a public company as ‘Optimystix Entertainment India Limited.

Our company is engaged in the business of content creation for television, films and digital platforms. Established in 2000 by Mr. Vipul D. Shah and co-headed now by Mr. Rajesh Darshan Bahl, Our Company has been associated with the Indian entertainment industry and having two and half decades of experience. Since its inception, Our Company has produced more than 150 television shows, comprising over 7,500 hours of original programming, across all major national broadcasters. Our Company is among the few Indian production houses that has consistently operated across both fiction and non-fiction formats at scale.

Our Company has created landmark shows such as Comedy Circus and Crime Patrol, which are regarded within the industry as significant contributors to the growth of comedy and crime programming in India. It has also delivered long-running and iconic shows such as Laughter Chefs, Baalveer, Saas Bina Sasural and Ladies Special. Its franchises in comedy, crime and childrens genres are among the long-running formats in the industry, some of which have achieved recognition in industry records.

Our Companys work has been recognised with more than 60 awards across various categories in the Indian television industry. It has maintained a presence across prime-time slots with a steady pipeline of programming. Our Company undertakes end-to-end content creation with in-house capabilities that include ideation, scripting, production and post-production. Known within the industry for balancing commercially successful content with themes of social relevance, including women empowerment and family-centric storytelling, Our Company has developed strong brand equity with broadcasters and audiences. Its long-standing relationships with broadcasters, studios and over-the-top (OTT) platforms contribute to recurring demand for its programming and to a diversified revenue base across multiple platforms.

With a rich legacy in television, strategic expansion, and a growing presence in feature films, OTT programming and digital Our Company is positioned to leverage the rapid growth of Indias media and entertainment sector. Our Company seeks to capitalize on rising demand for high-quality, multi-platform entertainment content, both domestically and globally, while continuing to build enduring franchises and innovative formats that cater to evolving audience preferences.

Significant developments subsequent to the last financial year

In the opinion of the Board of Directors of our Company, since the date of the last financial statements disclosed in this Red Herring Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the previous twelve months.

Factors affecting our results of operations

Our companys future results of operations could be affected potentially by the following factors:

1. Growth of Digital & OTT Ecosystem Increasing demand for original, premium, and regional digital content driving revenue opportunities.

2. Sustained Demand for Television Content Strong viewership in Tier 2 and Tier 3 cities maintaining consistent demand for TV programming.

3. Branded Content and Advertising Integration Rising trend of brands preferring content-led storytelling over traditional ads, creating new revenue streams.

4. Regional and Vernacular Content Consumption Growing audience preference for regional language content boosting production and monetization opportunities.

5. Feature Films and Direct-to-Digital Releases Increasing acceptance of direct-to-digital films providing alternate revenue models beyond theatrical releases.

6. Competitive Industry Landscape Intense competition from established production houses and digital-first players impacting content pricing and talent access.

7. Technological Disruption Emergence of AI-driven content creation, AR/VR, and changing content consumption habits requiring continuous innovation.

8. Regulatory Environment Evolving media and OTT regulations, including intellectual property enforcement, influencing operational flexibility and risk exposure.

9. Hit-Driven Business Model Dependence on a few successful shows or films impacting revenue predictability and financial stability. 10. Strategic Partnerships Collaborations (e.g., T-Series, Google Veo-3) essential for content promotion, distribution, and technological edge, yet exposing the company to third-party risks.

The following table set forth certain key performance indicators for the years indicated: Key Financial Performance Indicators of Our Company*

Key Performance Indicators of the Company (in Lakhs unless specified)

( in Lakhs, except percentage)

			( in Lakhs, except percentage)
Key Financial Performance	Financial Year ended March 31, 2026	Financial Year ended March 31, 2025	Financial Year ended March 31, 2024
Revenue from operations (1)	13,498.75	12,439.35	5,476.24
EBITDA (2)	3,110.18	2,392.72	448.32
EBITDA Margin (3)	23.04%	19.24%	8.19%
PAT	2,396.30	1,723.86	668.90
PAT Margin (4)	17.81%	13.86%	12.21%
Profit after tax growth (%)	39.45%	157.72%	-
Trade Receivables days (5)	94	55	65
Trade Payable days (6)	96	68	78
RONW % (6)	18.23%	17.74%	11.21%
RoCE% (7)	23.05%	24.42%	6.68%
Debt-Equity Ratio (times) (9)	-	0.00	0.01
Net fixed asset turnover ratio (times) (10)	74.65	147.91	93.34
Current Ratio (times) (11)	4.34	3.31	2.23
Net Asset Value per equity share (in Rs.) (12) Post Bonus	71.97	76.48	98.65

Notes:

(1) Revenue from operation means revenue from sale of the products

(2) EBITDA is calculated as Profit before tax + Depreciation + Interest Costs Other Income

(3) EBITDA Margin is calculated as EBITDA divided by Revenue from Operations

(4) PAT Margin is calculated as PAT for the period/year divided by revenue from operations

(5) Trade receivable days is calculated as average trade receivables divided by revenue from operations multiplied by 365 for fiscal years

(6) Trade payable days is calculated as average trade payables divided by operating expenses multiplied by 365 for fiscal years. Employee benefit expenses have been defined as salary expenses of employee other benefits provided to employees

(7) Return on Equity is calculated by comparing the proportion of net income against the amount of shareholder equity

(8) Return on Capital Employed is calculated as follows: Profit for the period year plus interest cost plus tax expenses

(EBIT) divided by Capital employed (Equity share capital plus reserves plus long term and short term borrowings).

(9) Debt to Equity ratio is calculated as Total Debt (short term and long term) divided by equity

(10) Net fixed asset turnover ratio is calculated by dividing net sales by the average fixed assets (property plant and equipment)

(11) Current Ratio is calculated by dividing Current assets to Current Liabilities

(12) Net Asset Value per share (in ) = Restated net worth at the end of the year (or) period / Number of Equity Shares outstanding at the end of period after adjusted for bonus issues

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Our financial performance and results of operations are influenced by a variety of factors as discussed below as well as in thesection titled "Risk Factors" and "Business Overview-Our Strengths" on beginning on page 26 and 137 of this red herring prospectus.

SIGNIFICANT ACCOUNTING POLICIES

For Significant accounting policies please refer Significant Accounting Policies in Annexure V under "Auditors Report and Financial Information of our Company" on page 225.

(Amount in Lakhs)

									(Amount in Lakhs)
	FY 2026				FY 2025				FY 2024
Particulars
			% of Total				% of Total				% of Total
	Amount				Amount				Amount
			Income				Income				Income
Revenue from
operations	13,498.75		99.33%		12,439.35		99.46%		5,476.24		99.59%
Other Income	90.59		0.67%		67.50		0.54%		22.52		0.41%
Total Income	13,589.34		100.00%		12,506.85		100.00%		5,498.76		100.00%
Operating Expenses
/ Cost of Production	11,366.48		83.64%		10,611.46		84.85%		6,521.33		118.60%
Change in inventory	(1,873.70)		(13.79)%		(1,066.46)		(8.53)%		(2,041.94)		(37.13)%
Employee benefit
expense	503.27		3.70%		185.24		1.48%		219.94		4.00%
Finance costs	1.39		0.01%		7.63		0.06%		11.78		0.21%
Depreciation &
amortization	79.63		0.59%		18.15		0.15%		47.09		0.86%
Administrative &
Other Expenses	392.53		2.89%		316.39		2.53%		328.28		5.97%
Total Expenses	10,469.59		77.04%		10,072.42		80.54%		5,086.48		92.50%
Profit before tax	3,119.75		22.96%		2,434.43		19.46%		412.29		7.50%
Share of Net
Profit of
Associates		-		-		-		-		(0.31)		(0.01)%
Tax expense		715.98		5.27%		710.67		5.68%		(256.82)		(4.67)%
Profit / (Loss) for
the period		2,403.77		17.69%		1,723.76		13.78%		668.79		12.16%

Overview of Revenue and expenditure

Revenue and Expenditure

Total Revenue: Our total revenue comprises of revenue from operations and other income.

Revenue from Operations: Our revenue from operations comprises of production income from Television, Film, Digital content creation and Sale of IPS.

Other Income: Our other income comprises of interest income, interest on fixed deposits, other income, forex gain, amount written back and other non-operating income.

Expenses: Our expenses comprise of employee benefit expenses, finance cost, depreciation and amortization expenses and other expenses.

Employee Benefit Expenses: Our employee benefit expense consists of salaries, wages & bonus, directors remuneration, gratuity, staff welfare expenses and employers contribution to provident fund & ESIC.

Finance Cost: Our finance costs comprise of bank & other finance charges and interest on loans.

Depreciation and Amortization Expenses: Tangible assets are depreciated over periods corresponding to their estimated useful lives. depreciation includes depreciation charged on property, plant and equipment. Other Expenses: Our other expenses include consumables expenses, insurance expenses, rent, hotel accommodation charges, training fees, water expenses, legal and professional fees, listing fees, audit fees, advertising expense, balance written off / bad debt, business promotion expenses, commission, computer, printing and stationery expenses, , director sitting fees, internet expenses, electricity expenses, forex loss, office expenses, repair & maintenance expenses, customs duty charge, interest and late fees on statutory dues, other expense, telephone expenses, reimbursement of expenses, rent, rate and taxes, security services, service charges, donation expenses, travelling and conveyance expenses and registration and tender expenses.

Tax Expenses:

Our tax expense or credit for the period represents the tax payable on the current periods taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences.

Comparison of FY 2025-26 with FY 2024-25

Income

Our Total Income increased by 1082.49 lakhs, from 12,506.85 lakhs for the financial year ended March 31, 2025 to 13,589.34 lakhs for the financial year ended March 31, 2026, due to the factors described below:

Revenue from operations

Our Revenue from operations increased by 1,059.40 lakhs, from 12,439.35 lakhs for the financial year ended March 31, 2025, to 13,498.75 lakhs for the financial year ended March 31, 2026, representing a growth of 8.52%.

Other Income

Our Other income increased by 23.09 lakhs, from 67.50 lakhs for the financial year ended March 31, 2025, to 90.59 lakhs for the financial year ended March 31, 2026, representing a growth of 34.21%. The increase is mainly due to interest on FD with bank and Share of Profit from LLP.

Expenses

Our Total Expenses excluding finance cost, depreciation and tax expenses was 10,469.59 lakhs for the year ended March 31, 2026, as compared to 10,072.53 lakhs for the financial year March 31, 2025, representing an increase of 3.40% due to the factors described below:

Operating Expenses & Change in inventory

Operating Expenses and change in inventory collectively have been decreased by 0.55% from 9,545.00 in FY 2024-25 to 9,492.78 in FY 2025-26. This expense has been increased corresponding to increase in revenue from operations from

12,439.35 in FY 2024-25 to 13,498.75 in FY 2025-26. The expenses have been improved by 6.41 % from 76.73% in FY 2024-25 to 70.32% % in FY 2025-26 on account of overall operation efficiency.

Employee benefits expenses

Employee Benefit Expenses increased by 318.03 lakhs, from 185.24 lakhs in FY 2024-25 to 503.27 lakhs in FY 2025-26, reflecting a 171.69% increase. This increase was mainly due to directors remuneration paid during the financial year 2025-26 of 299.57 lakhs which was Nil in FY24.

Finance costs

Our Finance Cost decreased to 1.39 lakhs for FY 2025-26 as compared to 7.63 lakhs in FY 2024-25, representing a reduction of 81.80% due to reduction in borrowed funds.

Depreciation and amortization expense

Our Depreciation and Amortization Expenses decreased by 61.48 lakhs, from 18.15 lakhs in FY 2024-25, to 79.63 lakhs in FY 2024-25, representing an increase of 338.64%.

Other expenses

Our Other Expenses increased by 76.13 lakhs, from 316.39 lakhs in FY 2024-25 to 392.53 lakhs in FY 2025-26. Increase in expenses to support growth of revenue from operation.

Profit before tax

Our Profit before Tax increased by 685.32 lakhs, from 2,434.43 lakhs in FY 2025-25, to 3,119.75 lakhs in FY 2025-26, representing a growth of 28.15%. Major factor for increase in profits are

Total revenue has been increased during the by 8.66% from 12,506.85 in FY 2024-25 to 13,589.34 FY 2025-26

Operating expense decreased from 9,545.00 lakhs in FY25 to 9,492.78 lakhs in FY26 and overall improvement of operating margin has been increased in absolute terms by 1,111.62 lakhs from 2,894.35 lakhs in FY25 to 4,005.97 lakhs in FY26 showcasing the operational efficiency of the company.

Finance cost has been reduced to 1.39 lakhs in FY26 from 7.63lakhs in FY25 as company has repaid it debt and reducing its reliance on borrowings

Other Expenses has been increased by 76.13 lakhs in absolute term but as percentage of revenue it has decreases by

0.36%.

Tax expenses

Our tax expenses for FY 2026 amounted to 715.98 lakhs whereas in FY2025 it was 710.67 lakhs. The increase was on account of increase in overall income during the year.

Profit After Tax

Our Profit for the year increased by 680.02 lakhs, from 1,723.76 lakhs in FY 2024-25 to 2,403.77 lakhs in FY 2025-26 representing a growth of 28.29%. Main reason was due to increase in revenue and on account of improvement in margin, and overall efficiency in the expenditure. The increase was on account of increase in revenue and gross profitability margins on account of improved operating efficiency, i.e. GP for March 2026 was 29.68% ass against March 2025 GP of 23.27%.

A. Increase in revenue for the year ended March 31, 2026

Revenue in year March 31, 2026 consisted of not only production income from Television shows but also from OTT and Film business. Revenue has increased by 1,059.40 lakhs. The break-up of the film, Tv and OTT vertical are as under.

Production and distribution of films and Associated rights - 4,015.50 lakhs Television Programing - 6,014.90 lakhs OTT / Web series Content 3,468,.35 lakhs

Comparison of FY 2024-25 with FY 2023-24

Income

Our Total Income increased by 7,008.09 lakhs, from 5,498.76 lakhs for the financial year ended March 31, 2024 to 12,506.85 lakhs for the financial year ended March 31, 2025, due to the factors described below:

Revenue from operations

Our Revenue from operations increased by 6,963.11 lakhs, from 5,476.24 lakhs for the financial year ended March 31, 2024, to 12,439.35 lakhs for the financial year ended March 31, 2025, representing a growth of 127.15%. During the year, Company has added the new show/ Sale of IP rights which contributed 9,982.00 lakhs and discontinue show worth

3,751.00 lakhs

Other Income

Our Other income increased by 44.98 lakhs, from 22.52 lakhs for the financial year ended March 31, 2024, to 67.50 lakhs for the financial year ended March 31, 2025, representing a growth of 199.70%. The increase is mainly due to interest on loan 32.38 lakhs and Share of Profit from LLP 19.18 Lakhs

Expenses

Our Total Expenses excluding finance cost, depreciation and tax expenses was 10,072.42 lakhs for the year ended March

31, 2025, as compared to 5,086. lakhs for the financial year March 31, 2024, representing an increase of 98.02% due to the factors described below:

Operating Expenses & Change in inventory

Operating Expenses and change in inventory collectively has been increased by 113.09% from Rs. 4,479.38 in FY 2024-25 to Rs. 9,545.00 in FY 2025. This is expenses has been increased corresponding to increase in revenue from 5,476.24 in FY 2023-24 to 12,439.35 lakhs in FY 2024-25. Despite the Increase in expenses this has been improved by 5.06SS % from 81.80 % in FY 2023-24 to 76.73 % in FY 2024-25 on account of overall operation efficiency.

Employee benefits expenses

Employee Benefit Expenses decreased by 34.71 lakhs, from 219.94 lakhs in FY 2023-24, to 185.24 lakhs in FY 2024-25, reflecting a 15.78% decline. Instead of increase in this expenses corresponding to increase in revenue this been improved by 2.53 % as percentage of revenue from operation from 4.02 % FY 2023-24 to 1.49 % FY 2024-25 on account of operational efficiency.

Finance costs

Our Finance Cost decreased to 7.63 lakhs for FY 2024-25 as compared to 11.78 lakhs in FY 2023-24, representing a reduction of 35.19% as company has maintained the cash flow and minimised the utilisation of the borrowing fund.

Depreciation and amortization expense

Our Depreciation and Amortization Expenses decreased by 28.93 lakhs, from 47.09 lakhs in FY 2023-24, to 18.15 lakhs in FY 2024-25, representing a decrease of 61.45%.

Other expenses

Our Other Expenses decreased by 11.89 lakhs, from 328.28 lakhs in FY 2023-24 to 316.39 lacs in FY 24-25.

Profit before tax

Our Profit before Tax increased by 2,022.46 lakhs, from 411.97 lakhs in FY 2023-24, to 2,434.43 lakhs in FY 2024-25, representing a growth of 490.92%. Major factor for increase in profits are

Total revenue has been increased during the by 127.15% from 5,498.76 in FY 2023-24 to 12,506.85 FY 2024-25 .

Operating margin has been increased by 1933.21 Lacs (5.35 %) from 996.86 (18.20%) in FY 2023-24 to 2,930.07 (23.55 %) in FY 2024-25. Increase in margins are on account change in revenue mix with higher margin, Increase in revenue and operating efficiency.

Employees benefit cost has been reduced by Rs. 34.71 Lacs (2.53 % ) from Rs. 218.84 lacs ( 4.02 %) in FY 23-24 to 185.24 lacs ( 1.49 %) in FY 2024-25 on account of operating efficiency.

Finance cost has been reduced 4.15 lacs ( 0.15 % ) from 11.78 L( 0.22 % ) FY 2023 -24 to 7.63 lacs ( 0.06% ) in FY 204-25 as company has maintained the cash flow from operation and not utilised the borrowing amount.

Depreciation and amortization expenses has been reduced by 28.93 lacs (0.71 %) from 47.09 lacs ( 0.86 % ) FY 2023-24 to 18.15 lacs (0.06 % ) FY 2024-25 as major expenses incurred on lease hold improvement has been amortised in earlier years as per the policy of the company and other assets has been significantly amortised in previous year.

Other Expenses has been increased by 23.83 in absolute term but as percentage of revenue it has decreases by 3.16 % resulting in saving of 393.72 lacs from FY 23-24 to FY 24-25.

Tax expenses

Our tax expenses for FY 2024-25 amounted to 710.67 lakhs as against tax benefits of 256.82 lakhs in FY 2023-24. The net increase of 967.49 lakhs is on account of higher Current Tax and reversal of Deferred Tax credits.

Profit After Tax

Our Profit for the year increased by 1,054.97 lakhs, from 668.79 lakhs in FY 2023-24, to 1,723.76 lakhs in FY 2024-25 representing a growth of 157.74%. Increase in revenue on account of improvement in margin, reduction in employment cost and overall efficiency in the expenditure.

Further, to substantiate the increase in revenue year-wise given below are the year-wise explanations for FY 2024 and FY 2025.

A. Increase in revenue for the year ended March 31, 2024

Revenue in Year March 31, 2024, mainly consisted of production income from Television shows. Further, revenue in the March 31, 2024 increased by 2,365.91 lakh over the previous year. The increase in revenue was primarily on account of production income of a new television production for Culver Max Entertainment Pvt. Ltd., namely Baalveer, which on its own contributed 2,839.54 lakh during the year.

B. Increase in revenue for the year ended March 31, 2025

Revenue in Year March 31, 2025 consisted of not only production income from Television shows but also films business . Revenue has increased by 6,963.10 lakh year-on-year, on account of revenue from television and films as detailed below: -

i. Increase in Revenue on account of Television Production Income: During the year on the television side, the company produced Laughter Chef (Seasons 1 3) for Culver Max Entertainment Pvt. Ltd., contributing 2,825.40 lakh, and Tulsi for Enter 10 Television Pvt. Ltd., adding 1,537.86 lakh.

In addition, the company continued its production of Madness Machayenge India Ko Hasayenge from the last year (i.e.

March 2024) against which the Company earned revenue of 2,214.52 lakhs, while other television production revenues aggregated 157.00 lakh; together, these television activities accounted for 4,363.26 lakh from new shows and 2,371.53 lakh from ongoing/other TV, respectively.

ii.	Increase in Revenue on account of Film Revenue: During the year, the company earned revenue from below
	mentioned films:-
	Vicky Vidya Ka Woh Wala Video - 3,230.33 lakh;
	Khel Khel Mein - 1,050.00 lakh,
	Arzi - 750.00 lakh,
	Kiah - 550.00 lakh,
Other revenue from operation - 122.50 lakh.

Expense

A. On account of overall efficiency in the operating expenses (FY 2025).

Profit after tax (PAT) rose to 1,721.87 lakh from 664.99 lakh which meant an absolute increase of 1,056.88 lakh.

The increase was on account of increase in revenue and gross profitability margins on account of improved operating efficiency i.e. GP for March 2025 was 23.5% as against March 2024 GP of 18.2%.

Further, during March 2025 there was decrease in employee benefits cost by 34.70 lakh finance costs by 4.15 lakh and depreciation reduced by 28.94 lakh while administrative/other expenses rose by 23.83 lakh in line with the larger operating base. As a result, PBT increased to 2,434.33 lakh from 411.86 lakh. The higher profitability also led to outflow of tax expense of 712.46 lakh.

Changes in Cash Flows

The table below summaries our cash flows from our Restated Financial Statements for the financial period March 31, 2026, 2025 and 2024:

					( in Lakh)
	For the Financial Year ended on
Particulars
	March 31, 2026		March 31, 2025		March 31, 2024
Net cash (used in)/generated from operating
	(804.93)		87.20		(280.69)
Activities
Net cash (used in)/generated from investing
	(1,351.26)		0.76		7.91
Activities
Net cash (used in)/ generated from financing
	1,021.52		1,986.40		(57.50)
Activities
Net increase/ (decrease) in cash and cash
	(1,134.67)		2,074.36		(330.27)
Equivalents
Cash and Cash Equivalents at the beginning
	2,086.39		12.04		342.31
of the period
Cash and Cash Equivalents at the end of the
		951.72		2,086.39		12.04
Period

OPERATING ACTIVITIES

Financial Year 2025-26

Our net cash generated from operating activities was (804.93) Lakhs for the year ended March 31, 2026, supported by our revenue from operations amounting to 13,498.75 lakhs. The negative cashflow was mainly due to increase in trade receivable amounting to (2,810.16) lakhs & increase in inventory totalling to (1,873.70) Lakhs.

Financial Year 2024-25

Our net cash generated from operating activities was 87.20 Lakhs for the year ended March 31, 2025, aligned with our profit after tax for the year. This performance was primarily driven by revenue from operations of 12,439.35 Lakhs, representing 99.46% of total income, partially offset by operating expenses of 10,611.46 Lakhs. Supported by increase in Trade Receivable by 367.25 lakhs, Inventory 1066.46 lacs. Increase in other current Assets 114.78 increase in trade payable by 815.75 lakhs, reduction in current liabilities 1,338.92 lakhs , Short term loans and advances 93.52 ,Short term provision 120.58 Lakhs and Long-term provision 1.38 lakhs and Net tax payment of 472.81 lakhs. .

Financial Year 2023-24

Our net cash generated from operating activities was (280.69) Lakhs for the year ended March 31, 2024, supported by revenue from operations of 5,476.24 Lakhs partially offset by operating expenses 5,086.59 lakhs, increase in trade receivable 1,431.10 lakhs, Inventory 2041.94 lacs, Other current assets 785.94 lakhs, other current liabilities by 2,979.01 lakhs and Increase in trade payable by 821.80 lakhs.

INVESTING ACTIVITIES

Financial Year 2025-26

Our net cash generated from investing activities was (1,351.26) Lakhs for the year ended March 31, 2026, mainly due to increase in loans and advance totalling (1,222.95) lakhs.

Financial Year 2024-25

Our net cash generated from investing activities was 0.76 Lakhs for the year ended March 31, 2025, interest income, 41.91 Lakhs and Purchase of fixed assets 43.59 Lakhs

Financial Year 2023-24

Our net cash generated from investing activities was 7.91 Lakhs for the year ended March 31, 2024, primarily attributable to Movement in assets and interest income. Supported by interest income 17.68 Lakhs and purchase of fixed assets 6.62 Lakhs.

FINANCING ACTIVITIES

Financial Year 2025-26

Our net cash used in financing activities was 1,021.52 Lakhs for the year ended March 31, 2026, mainly due to issuance of share capital totalling to 1,279.66 Lakhs.

Financial Year 2024-25

Our net cash generated from financing activities was 1,986.40 Lakhs for the year ended March 31, 2025, primarily due to proceeds from offer of fresh share capital and premium 2,028.87 lakhs, repayment of borrowings 34.83 Lakhs, partly offset by finance costs 7.63 lakhs

Financial Year 2023-24

Our net cash used in financing activities was (57.50) Lakhs for the year ended March 31, 2024, mainly due to repayment of borrowings 45.71 lakhs and finance costs 11.78 lakhs

Other Key Ratios

The table below summaries key ratios in our Restated Financial Statements for the financial year ended March 31, 2026, March 31, 2025 and March 31, 2024:

March 31, 2025 and March 31, 2024:
	For the year	For the year	For the year
Particulars	ended March	ended March	ended March
	31, 2026	31, 2025	31, 2024
Current Ratio	4.34	3.31	2.23
Debt Equity Ratio	-	-	0.01

Current Ratio: This is defined as current assets divided by current liabilities, based on Financial Statements as Restated.

Debt Equity Ratio: This is defined as total debt divided by total shareholder funds. Total debt is the sum of long-term borrowings, short-term borrowings and current maturities of long-term debt, based on Financial Statements as Restated.

Financial Indebtedness

As on March 31, 2026 the total outstanding borrowings of our Company is NIL . For further details, refer to the chapter titled "Statement of Financial Indebtedness" beginning on page 241.

Related Party Transactions

Related party transactions with our promoter, directors and their entities and relatives primarily relate to purchase and sale of services. For further information, please refer to the chapter titled "Financial Statements as Restated" on page 225.

Off-Balance Sheet Items

We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with any entity that have been established for the purposes of facilitating off-balance sheet arrangements.

Qualitative Disclosure about Market Risk Financial Market Risks

Market risk is the risk of loss related to adverse changes in market prices, including interest rate risk. We are exposed to interest rate risk, inflation and credit risk in the normal course of our business.

Interest Rate Risk

Our financial results are subject to changes in interest rates, which may affect our debt service obligations and our access to funds.

Effect of Inflation

We are affected by inflation as it has an impact on variable costs associated with running our day-to-day operations, etc. In line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.

Credit Risk

We are exposed to credit risk on monies owed to us by our customers. If our customers do not pay us promptly, or at all, we may have to make provisions for or write-off such amounts.

Reservations, Qualifications and Adverse Remarks

Except as disclosed in chapter titled "Financial Statements as Restated" beginning on page 225, there have been no reservations, qualifications and adverse remarks.

Details of Default, if any, including therein the Amount Involved, Duration of Default and Present Status, in Repayment of Statutory Dues or Repayment of Debentures or Repayment of Deposits or Repayment of Loans from any Bank or Financial Institution.

Except as disclosed in chapter titled "Financial Statements as Restated" beginning on page 225 there have been no defaults in payment of statutory dues or repayment of debentures and interest thereon or repayment of deposits and interest thereon or repayment of loans from any bank or financial institution and interest thereon by the Company.

FACTORS THAT MAY AFFECT THE RESULTS OF THE OPERATIONS

Unusual or infrequent events or transactions

There are no transactions or events, which in our best judgment, would be considered unusual or infrequent that have significantly affected operations of the Company.

Significant economic changes that materially affected or are likely to affect income from continuing operations

There are no significant economic changes that materially affected Companys operations or are likely to affect income from continuing operations. Any slowdown in the growth of Indian economy or future volatility in global commodity prices, could affect the business including the future financial performance, shareholders funds and ability to implement strategy and the price of the Equity Shares. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations

Other than as disclosed in the chapter titled "Risk Factors" beginning on page 26to our knowledge, there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

Future changes in relationship between costs and revenues in case of events such as future increase in labour or material cost or prices that will cause material change

According to our knowledge, there are no future relationship between cost and income that would be expected to have a material adverse impact on our operations and revenues. However, increase in the cost of the services in which the Company deals, will affect the profitability of the Company. Further, the Company may not be able to pass on the increase in prices of the services to the customers in full and this can be offset through cost reduction.

The extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new services or increased prices

The increase in revenue is by and large linked to increase in volume of all the activities carried out by the Company.

Competitive Conditions

We have competition with Indian and international companies, and our results of operations could be affected by competition in the entertainment and film industry in India and international markets in the future. We expect competition to intensify due to possible new entrants, existing competitors expanding their content libraries and production capabilities, as well as our entry into new markets where we may face well-established players, including both organized and unorganized entities. This, we believe, may impact our financial condition and operations. For details, please refer to the chapter titled "Risk Factors" beginning on page 26.

A key factor in our revenue growth is our exclusive content creation and distribution network. Unlike many competitors, our state-of-the-art production facilities and strong creative partnerships are available only through our company, offering a distinctive advantage. This exclusivity not only enhances our appeal to audiences and distribution partners but also ensures that we remain at the forefront of the industry. Our dedicated facilities are equipped with the latest technology and resources, enabling us to deliver high-quality entertainment experiences that set us apart from the competition.

Increase in income

Increases in our income are due to the factors described above in in this chapter under "Factors Affecting Our Results of Operations" and chapter titled "Risk Factors" beginning on page 26

Status of any Publicly Announced New Business Segments

Except as disclosed elsewhere in the Red Herring Prospectus, we have not announced and do not expect to announce in the near future any new business segments.

Optimystix Entertainment India Ltd (Formerly know as Optimystix Entertainment India Pvt Ltd")

CIN No - U59113MH2000PLC129417

Address :- Bunglow No. 21, SVP Nagar,

Janki Devi Public School Road,

4 Bunglow, Mhada, Near Versova

Telephone Exchange, Andheri West,

Mumbai - 400