Picturepost Studios Ltd Management Discussions

Industry Overview

The global post-production industry is valued at USD 22 billion in 2025 and is expected to grow to USD 46.5 billion by 2030, reflecting a CAGR of 8.5%. The Indian market is on an even stronger trajectory, projected to reach C147 billion by 2031 from C79 billion in 2020, at a CAGR of 17%.

Growth is driven by:

• Rising demand for high-quality content across OTT platforms, films, and advertising.

• Adoption of VFX, CGI, and AR/VR in immersive storytelling.

• Increased marketing spends by global brands.

• Indias strong talent base and cost efficiency make it a preferred destination for outsourcing creative post-production services.

Company Overview

Picturepost Studios Limited (PPSL), headquartered in Mumbai, is a TPN-certified VFX and post-production studio. The company offers a comprehensive suite of services including:

• Visual Effects (VFX)

• Computer Generated Imagery (CGI)

• Color grading (HDR, Dolby Vision)

• Offline & Online Editing

• Creative Editorial

• Mastering & Quality Control

With over 1,000 projects completed and a client roster including Hyundai, Netflix, Malabar Gold, Parle Platina, MyGlamm, Head & Shoulders, and major OTT producers, PPSL has positioned itself as a trusted partner for both advertising and entertainment industries.

Key Developments & Operational Highlights

• Transitioned from LLP to Public Limited Company in 2024, successfully listed on NSE Emerge.

• Achieved TPN certification, ensuring compliance with global content security standards.

• Delivered marquee projects such as Panchayat Season 3, Half CA, Mera Bhai, and multiple high-value advertising campaigns.

• Strengthened infrastructure with AI-powered workflows, Autodesk Flame, and Dolby Vision HDR grading.

• Expanded its talent pool with award-winning artists and industry veterans.

Financial Performance (FY 2024-25)

For the period 01 April 2024 to 31 March 2025, PPSL delivered: eeue C 3,712.4 lakhs C 983.2 lakhs (26.5% margin) P C 503.7 lakhs (13.6% margin) 17.8% : ROCE: 22.3% eeue mi 91.51% from Commercial Advertisement; 8.49% from Films & OTT.

Financial Performance (FY 2023-24)

For the period 11 July 2023 to 31 March 2024, PPSL delivered: eeue C 2,197.85 lakhs

C 521.31 lakhs (23.71% margin) P C 292.13 lakhs (13.29% margin) 68% : ROCE: 26.75% eeue mi 96.9% from Commercial Advertising; 3.1% from Films & OTT.

This performance demonstrates significant year-on-year growth compared to FY 2022-23 (Revenue: C 1,084.84 lakhs, PAT: C 59.97 lakhs).

Opportunities & Strengths

• Expanding OTT content creation and brand-driven digital campaigns.

• Rising global outsourcing opportunities for Indian VFX & post-production.

• Strong relationships with top 20 customers contributing ~84% of revenues.

• Certified as a Trusted Partner Network (TPN) studio, enhancing global client confidence.

• High scalability enabled by proprietary technology platforms.

Challenges & Risks

• Heavy reliance on advertising clients for revenue.

• Increasing competition from domestic and global studios.

• Rapid technology evolution requiring continuous investment in infrastructure and talent.

• Talent retention challenges due to industry-wide demand for skilled professionals.

• Currency fluctuation risks impacting international earnings.

Risk Management

• PPSL has adopted a multi-pronged risk management framework:

• Diversified client portfolio across advertising, films, and OTT.

• Robust internal controls to ensure financial discipline and compliance.

• TPN-certified IT security to safeguard content.

• Regular investment in talent development programs to retain creative leadership.

• Hedging policies to mitigate forex-related risks.

Outlook

The outlook for PPSL remains strong with growth fueled by:

• A robust pipeline of advertising and OTT projects.

• Expansion into emerging technologies such as AR/VR and immersive media.

• Increasing collaborations with international production houses.

• Ongoinginvestmentsintechnology,talent,andinfrastructure.

PPSL aims to further enhance shareholder value by leveraging its creative expertise, global certifications, and strong client base to consolidate its leadership in the post-production industry.