MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
You should read the following discussion and analysis of our financial condition and results of operations, and our assessment of the factors that may affect our prospects and performance in future periods, together with our Restated Financial Information for the the Fiscal 2026 Fiscal 2025 and Fiscal 2024 including the notes thereto and reports thereon, each included in this Red Herring Prospectus. The following discussion relates to our Company and is based on our restated financial statements. Our financial statements have been prepared in accordance with Ind AS, the accounting standards and other applicable provisions of the Companies Act. Unless otherwise indicated or the context otherwise requires, the financial information for the Fiscal 2026, Fiscal 2025 and Fiscal 2024, included herein is derived from the Restated Financial Information, included in this Red Herring Prospectus. For further information, see "Financial Information" on page 253. Our financial year ends on March 31 of each year, and references to a particular year are to the 12 months period ended March 31 of that year.
Unless otherwise indicated, industry and market data used in this section has been derivedfrom the industry report titled "Report on Media & Entertainment Industry " dated December 27, 2024 and updated on July 27, 2026, (the "D&B Report") prepared and issued by Dun & Bradstreet Information Services India Private Limited ("D&B India"), appointed by us on August 31, 2024, and exclusively commissioned and paid for by us in connection with the Offer. D&B India is an independent agency which has no relationship with our Company, our Promoters and any of our directors or KMPs or SMPs. The data included herein includes excerpts from the D&B Report and may have been re-ordered by us for the purposes of presentation. There are no parts, data or information (which may be relevant for the proposed Offer), that has been left out or changed in any manner. Unless otherwise indicated, financial, operational, industry and other related information derived from the D&B Report and included herein with respect to any particular year refers to such information for the relevant calendar year. A copy of the D&B Report is available on the website of our Company at www. sunshinepictures.in until the Bid/Offer Closing Date. For more information, see "Risk Factors-Certain sections of this Red Herring Prospectus disclose information from the D&B Report which have been commissioned and paid for by us exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks " on page 56.
Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward looking statement" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Importantfactors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors. Unless the context otherwise requires, in this section, references to ‘we, ‘us , ‘our , ‘the Company, ‘our Company or ‘SPL refers to Sunshine Pictures Limited.
BUSINESS OVERVIEW
Our Company was originally incorporated as ‘Energetic Films Private Limited, a private limited company under the erstwhile Companies Act, 1956, pursuant to a certificate of incorporation dated July 14, 2007, issued by the Registrar of Companies, Mumbai. Subsequently, our Company changed its name from ‘Energetic Films Private Limited to ‘Sunshine Pictures Private Limited pursuant to a fresh certificate of incorporation dated March 15, 2010. Subsequently, our Company was converted into a public limited company pursuant to a special resolution passed by our Shareholders at an extraordinary general meeting held on August 14, 2024 and a fresh certificate of incorporation dated September 27, 2024 was issued by the Registrar of Companies, Central Processing Centre, recording the change in the name of our Company to ‘Sunshine Pictures Limited. The Corporate Identification Number of our Company is U55100MH2007PLC172341.
Incorporated in year 2007, we are a production-house engaged in the business of originating, creating, developing, producing, marketing and distribution of films, TV serials and web series ("Projects"). Since our incorporation, we have produced various prominent works in modern Indian cinema. Our debut production ‘Force , under our banner was a box office hit. Since then, we have produced and distributed prominent, commercial and socially relevant films such as ‘Commando: A One-Man Army, ‘Holiday: A soldier is never off duty, ‘Force 2, ‘Commando 2: The black money trail, ‘The Kerala Story, etc. Our production, ‘The Kerala Story emerged as the highest return-on-investment blockbuster in 2023, reflecting the companys ability to balance commercial appeal with critical acclaim (Source: D&B Report)
We are a technology-driven content creator and specializes in multi-formats commercial films, emphasizing innovation in storytelling and production techniques (Source: D&B Report). As our business process, we engage in research & development of scripts, end-to-end production of content, intellectual property creation, monetization of rights and distribution. Our proven track record of producing high-quality and commercially successful content has earned our credibility and repeat collaborations with major industry players (Source: D&B Report). We strive to continuously deliver high-quality multi-faceted content to the industry and our audience at large, as well as promote newcomers, actors, composers, directors and others who have the potential to contribute to the Indian film industry.
Our Company has been progressively growing in the field of motion picture production since its inception. As on the date of this Red Herring Prospectus, we have produced; (i) thirteen (13) commercial films out of which seven (7) were co-produced with reputable studios and six (6) were self-produced; (ii) two (2) web series; (iii) three (3) TV serials; and (iv) one (1) short commercial film. Further, as on date, we are co-producing our film "Hisaab" with Jio Studios, which is under post production stage and scheduled for release in Fiscal 2027 and we are solely producing one (1) commercial film out of which one film is scheduled to release in Fiscal 2027. tentatively titled "Samuk", and producing a web series for Amazon Seller Services Private Limited, tentatively titled "Nanavati vs Nanavati". We have recently launched two verticals, namely Sunshine Music and Sunshine Digital (Originals). Presently, we are live on our YouTube channel with thirty-six (36) original music videos and our maiden digital web series "Bawra Mann". Additionally, we also have six (6) films and two (2) web series in the pipeline for production. For details, see "Our Business - Our Projects - Projects under Production" on page 192.
The Production of our Projects starts with conceptualization of content and then crafting a script including story screenplay and dialogues based on the idea of the film and including its narrative structure. Once the script is finalized, it is followed by finalizing the key elements that include cast and crew members. Then, budgeting of the cost of production is prepared that covers the entire pre- production, production and post- production expenses of the Project. A separate Print and Advertising ("P&A") budget is also prepared that includes all the marketing and distribution expenses. For details, see "Our Business" on page 180. For our projects, we generally carry out editing in-house for creative reasons and outsource the dubbing, sound and VFX, to different studios/professionals while closely monitoring such activities. We believe we have maintained cordial relations with such professionals who assist us in our projects in a cost-effective and quality-conscious manner and enable us to carry high-quality and cost-effective productions.
We engage in the production of our Projects, as sole producer or co-producer with reputable studios. We strive to maintain a business portfolio that has a healthy mix of co-produced and standalone Projects, with the former providing certainty in earnings thereby derisking the proposed Project and cashflows and the latter delivering the upside revenue. We adopt a co-production approach especially when the proposed Project requires a big budget. In a co-production model, we partner with a reputable studio and produce the Project for a fixed fee; a share of the intellectual property and profits from the Project with such studios; whereas under the sole production, we finance the entire Project and execute the end-to-end production while retaining all the rights including intellectual property, titles, distribution rights and other interests in the Projects. The sole production approach allows us to retain the entire up-side revenue from the theatrical releases and monetize our rights through sale of Over-the-Top content ("OTT"), music rights, downstream derivatives such as remakes, sequels and/or prequels, spin offs, local language dubbings, foreign language renditions, stage plays, web-series and television production, etc.
A Major portion of our revenue depends upon the box office success of our films and streaming deals with OTT platforms. Our revenue from operations includes revenue from; (i) production and distribution of films and associated rights; (ii) production and distribution of OTT/TV Serials and associated rights; and (iii) other income comprising of income from music rights exploitation, talent management, social media platforms such as Youtube, Instagram and music label. Our Companys revenue from operations for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 are detailed as below:
Operational Segment Revenue |
Fiscal 2026 (Standalone) |
Fiscal 2025 (Consolidated) |
Fiscal 2024 (Consolidated) |
|||
| Amount (in Rs. lakhs) | As % of Revenue from Operations | Amount (in Rs. lakhs) | As % of Revenue from Operations | Amount (in Rs. lakhs) | As % of Revenue from Operations | |
Production and distribution of Films and associated rights |
6675.72 | 89.68 | 5,380.70 | 52.08 | 13,083.38 | 97.78 |
Production and distribution of web series/TV serials and associated rights |
98.50 | 1.32 | 4,950.00 | 47.90 | 275.34 | 2.06 |
Others (Music rights exploitation, Talent management social media platforms such as Youtube, Instagram and music label and etc.) |
669.45 | 8.99 | 2.32 | 0.02 | 21.08 | 0.16 |
Total |
7,443.67 | 100.00 | 10,333.01 | 100.00 | 13,379.80 | 100.00 |
*As certified by M/s. Piyush Kothari & Associates, Chartered Accountants, Independent Chartered Accountants, pursuant to their certificate dated July 27, 2026.
In the past three (3) financial years our revenues from operation were Rs. 13,379.80 lakhs in the FY 2023 -24 and Rs. 10,333.01 lakhs in the FY 2024-25 and Rs 7443.67 Lakhs in FY 2025-26. Our Net Profit after tax for the above- mentioned periods, Rs. 5,334.90 lakhs, 3,446.46 lakhs and 4002.24 Lakhs respectively.
FINANCIAL KPIs OF THE COMPANY:
(t in lakhs except. for percentage and ratios)
For the year ended March 31, |
|||
Particulars |
(Standalone) FY 2026 | 2025 | 2024 |
| (Standalone) | (Consolidated) | (Consolidated) | |
Revenue from Operations ( Rs. in Lakhs) (1) |
7443.67 | 10,333.01 | 13,379.80 |
Growth in Revenue from Operations (%) |
(27.96%) | (22.77%) | 404.72% |
Total Inome |
7627.49 | 10,580.27 | 13,946.01 |
Operating EBITDA ( Rs. in Lakhs) (2) |
5,702.55 | 4,827.52 | 6,831.08 |
Operating EBITDA Margin (%)(3) |
76.61% | 46.72% | 51.06% |
Profit After Tax ( Rs. in Lakhs) (4) |
4,002.24 | 3,446.46 | 5,334.90 |
PAT Margin (%) *(5) |
53.77% | 33.35% | 39.87% |
Net worth (6) |
14,513.46 | 10,506.88 | 7,059.63 |
Return on Equity ("RoE") (%) (7) |
31.99 % | 39.24% | 108.99 |
Return on Capital Employed("RoCE") (%) (8) |
36.54% | 41.74% | 81.68% |
Net Asset Value Per Share ( Rs.) (Post - Bonus) (9) |
55.08 | 39.88 | 26.79 |
Debt- Equity Ratio (10) |
0.06 | 0.11 | 0.24 |
*As certified by our Statutory Auditor-M/s Satyanarayan Goyal & Co. LLP, Chartered Accountants, pursuant to their certificate dated
August 10, 2026.
Note:
1. Revenue from Operations: This represents the income generated by the Company from its core operating operation. This gives information regarding the scale of operations. Other Income is the income generated by the Company from its non core operations.
2. Operating EBITDA is calculated as earnings before interest, taxes, depreciation and amortisation, less other income and exceptional items for the financial year or during given period.
3. Operating EBITDA margin calculated as the Operating EBITDA during a given financial/period as a percentage divided by Revenue from Operations.
4. Profit for the year represents the restated profits of the Company after deducting all expenses.
5. PAT Margin (%) is calculated as Profit for the year as a percentage of Revenue.
6. Net Worth is computed as Equity Share Capital plus Other Equity.
7. Return on Equity is calculated as Profit after tax, as restated, attributable to the owners of the Company for the year divided by average equity. Average equity is calculated as average of opening and closing balance of total equity (Shareholders funds) for the year.
8. Return on capital employed calculated as Earnings before interest and taxes divided by capital employed as at the end of respective year. (Capital employed calculated as the aggregate value of total equity, total debt and deferred tax liability).
9. Net Asset Value per Share is calculated as Net Worth divided by the total number of outstanding equity shares as at the respective date, adjusted for the effects of bonus issue.
10. Debt- equity ratio is calculated by dividing total debt by total equity. Total debt represents long-term and short-term borrowings. Total equity is the sum of share capital and reserves & surplus.
FACTORS AFFECTING OUR RESULT OF OPERATIONS
Except as otherwise stated in this Red Herring Prospectus and the Risk Factors given in the Red Herring Prospectus, the following important factors could cause actual results to differ materially from the expectations include, among others:
1. General economic and business conditions in the markets in which we operate and in the local, regional, national, and international economies;
2. Increased competition in the industry in which we operate;
3. Companys ability to successfully implement our growth strategy and expansion plans;
4. Inability to successfully obtain registrations in a timely manner or at all;
5. General economic, political, and other risks that are out of our control;
6. Any adverse outcome in the legal proceedings in which we are involved;
7. The success of films and media content is inherently uncertain and depends on audience preferences, market trends, and critical reception.
8. Delays in production, post-production, or release schedules due to unforeseen circumstances such as regulatory hurdles, strikes, or logistical issues could impact revenue recognition and cash flow.
9. Our operations depend significantly on the availability and performance of directors, actors, and other creative professionals, and any disruption in their availability could adversely impact our projects.
10. The unauthorized distribution or piracy of films and content could result in revenue loss and impact the companys profitability.
11. Rapidly changing consumer tastes and preferences, including the shift to digital platforms, could impact our traditional theatrical revenue model.
12. Revenues from theatrical releases are subject to volatility due to competition, seasonality, and audience turnout, which can fluctuate significantly.
13. A significant portion of our revenue depends on agreements with distributors, OTT platforms, and broadcasters, and any adverse changes in these partnerships or market dynamics could affect revenue streams.
14. A substantial portion of our revenue is derived from a limited number of high-budget projects, and failure of any such project to meet expectations could adversely affect our financial condition.
15. Changes in censorship laws, regulations governing media content, or tax policies related to the entertainment industry could adversely affect our operations.
16. Rising costs of talent, production facilities, and post-production services could adversely impact our margins if not adequately controlled.
17. Expansion into international markets involves risks related to cultural differences, market acceptance, and compliance with foreign regulations.
18. Our business depends on the availability of funding for high-budget projects, and delays or inability to secure adequate funding could impact project completion and financial performance.
19. Rapid technological advancements in media consumption, such as AI-generated content, may disrupt traditional film production models, requiring continuous innovation and adaptation.
20. The Indian film industry faces intense competition from domestic and international players, including independent studios and global streaming platforms.
21. Any macroeconomic slowdown or reduction in disposable income could lead to decreased audience spending on entertainment, affecting box office and subscription revenues.
22. The reputation of the company and its projects is critical in the film industry, and negative publicity related to our films, talent, or operations could harm future business prospects.
23. Increased focus on sustainable practices and compliance with environmental norms in film production could raise costs and operational complexities.
24. Films and media content typically have a limited revenue-generating lifecycle, and delays in release or market saturation could impact profitability.
25. Pandemics or other unforeseen events like natural disasters could disrupt production schedules, content distribution, and overall business operations.
SIGNIFICANT ACCOUNTING POLICY
a) Statement of Compliance with Ind AS
The restated Ind AS financial information comprise of the restated Ind AS statement of assets and liabilities as at March 31, 2026, 2025 & 2024, the restated Ind AS statement of profit and loss (including Other Comprehensive income), the restated Ind AS statement of cash flows and the restated Ind AS statement of changes in equity for the year ended March 31, 2026, 2025 & 2024 and the statement of notes to the restated Ind AS financial information (hereinafter collectively referred to as "restated Ind AS financial information").
The restated standalone financial information for the year ended March 31, 2026 have been compiled by the Company from the Audited Standalone Ind AS financial statements of the company as at and for the year ended March 31, 2026. The restated consolidated financial information for the year ended March 31, 2025 and March 31, 2024 have been compiled by the Company from the Audited Consolidated IndAS financial statements of the company as at and for the year March 31, 2025 and March 31, 2024 has been compiled by the Company from the audited Ind AS converged financial statements as at/for the year ended March 31, 2023 which was prepared under the previous generally accepted accounting principles followed in India (‘Previous GAAP or Indian GAAP) on which proforma IND AS adjustments following accounting policies choices (both mandatory exceptions and optional exemptions) has been applied.
In accordance with Ind AS 101 First-time Adoption of Indian Accounting Standard, the Company has presented a reconciliation from the presentation of restated financial information under Accounting Standards notified under Previous GAAP to Ind AS of restated balance sheet as at March 31, 2023 for the purpose of reconciling total equity. Refer note 43(B) in Annexure V for the reconciliation.
The restated Financial Information has been specifically prepared by the management for inclusion in the offer document to be filed by the Company with the Securities and Exchange Board of India ("SEBI") and National Stock Exchange of India Limited and BSE Limited, where the Equity Shares are proposed to be listed (the "Stock Exchanges") in connection with the proposed Initial Public Offer (‘IPO) of equity shares of the Company (referred to as the "Issue"), in accordance with the requirements of:
• Section 26 of Part I of Chapter III of the Companies Act, 2013, as amended (the "Act");
• The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("ICDR Regulations"), as amended from time to time, in pursuance of provisions of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("ICDR Regulations"), as amended from time to time, in pursuance of provisions of Securities and Exchange Board of India Act, 1992; and
• The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India ("ICAI"), as amended from time to time (the "Guidance Note").
Basis of Preparation
These financial statements have been prepared on historical cost basis except for certain financial instruments which are measured at fair value or amortised cost at the end of each reporting period. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. All assets and liabilities have been classified as current and non-current as per the Companys normal operating cycle. Based on the nature of services rendered to customers and time elapsed between deployment of resources and the realization in cash and cash equivalents of the consideration for such services rendered, the Company has considered an operating cycle of 12 months.
The statement of cash flows has been prepared under indirect method, whereby profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated. The Company considers all highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value to be cash equivalents.
Basis of consolidation
The Financial Statements (FS) include the financial statements of the Company together with the share of the total comprehensive income of associates.
Associates are entities over which the Group exercise significant influence but does not control.
Control, significant influence and joint control is assessed annually with reference to the voting power (usually arising from equity shareholdings and potential voting rights) and other rights (usually contractual) enjoyed by the Group in its capacity as an investor that provides it the power and consequential ability to direct the investees activities and significantly affect the Groups returns from its investment. Such assessment requires the exercise of judgement and is disclosed by way of a note to the Financial Statements. The Group is considered not to be in control of entities where it is unclear as to whether it enjoys such power over the investee.
An investment in an associate is initially recognised at cost on the date of the investment, and inclusive of any goodwill / capital reserve embedded in the cost, in the Balance Sheet. The proportionate share of the Group in the net profits / losses as also in the other comprehensive income is recognised in the Statement of Profit and Loss and the carrying value of the investment is adjusted by a like amount (referred as ‘equity method).
While preparing CFS, appropriate adjustments are made to associates financial statements to ensure conformity with the Groups accounting policies.
Basis of measurement
The Restated Financial Statements have been prepared on a historical cost convention on accrual basis, except certain financial assets and liabilities measured at fair value.
Current and non current classification
All assets and liabilities have been classified as current or non current as per the Companys normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013 and Ind AS 1 - Presentation of financial statement based on the nature of products / service and the time between the acquisition of assets for processing / providing the services and their realisation in cash and cash equivalents. The Company has ascertained its operating cycle as 12 months for the purpose of current, non current classification of assets and liabilities.
b) Use of estimates
The preparation of Restated Financial Statements in conformity with Ind AS requires the management to make estimate and assumptions that affect the reported amount of assets and liabilities as at the Balance Sheet date, reported amount of revenue and expenses for the period and disclosures of contingent liabilities as at the Balance Sheet date. The estimates and assumptions used in the accompanying Restated Financial Statements are based upon the managements evaluation of the relevant facts and circumstances as at the date of the Restated Financial Statements. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates, if any, are recognized in the year in which the estimates are revised and in any future years affected.
c) Property, plant and equipment
Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the assets carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to Statement of Profit and Loss during the period in which they are incurred.
Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under other non-current assets and the cost of assets not put to use before such date are disclosed under ‘Capital work-in-progress.
Depreciation methods, estimated useful lives
The Company depreciates property, plant and equipment over their estimated useful lives using the written-down value method. The estimated useful lives of assets are taken as prescribed useful lives under Schedule II to the Companies Act, 2013. The management believes that such estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.
Depreciation on addition to property plant and equipment is provided on pro-rata basis from the date of acquisition. Depreciation on sale/deduction from property plant and equipment is provided up to the date preceding the date of sale, deduction as the case may be. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in Statement of Profit and Loss under Other Income or Other Expenses as the case may be.
d) Borrowing cost
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.
e) Foreign Currency Transactions
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. At the period-end, monetary assets and liabilities denominated in foreign currencies are restated at the period-end exchange rates. The exchange differences arising from settlement of foreign currency transactions and from the period-end restatement are recognised in profit and loss.
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. Foreign currency nonmonetary items carried in terms of historical cost are reported using the exchange rate at the date of the transactions.
f) Investments in Associates
Investments in associates are carried at cost less provision for impairment, if any. Investments in associates are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the carrying amount of investments exceeds its recoverable amount.
Transition to Ind AS
On transition to Ind AS, the Company has elected to measure its investments in all its associates at its previous GAAP carrying value and use those values as the deemed cost of such investments.
g) Investments (other than investments in associates) and other financial instruments
(i) Classification
The Company classifies its financial assets in the following measurement categories:
• those to be measured subsequently at fair value (either through other comprehensive income or through profit or loss); and
• those to be measured at amortised cost.
The classification depends on the Companys business model for managing the financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. In accordance with Ind AS 101, the Company had irrevocably designated its investment in equity instruments as FVTPL on the date of transition to Ind AS.
(ii) Measurement
At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.
Investments other than investments in associate and bonds: The Company subsequently measures all such investments at fair value. Where the Companys management has elected to present fair value gains and losses on such investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss. Changes in the fair value of financial assets at fair value through profit or loss are recognised in ‘Other Income in the Statement of Profit and Loss.
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance income using the effective interest rate method.
(iii) Impairment of financial assets
The Company assesses on a forward-looking basis the expected credit losses associated with its assets which are not fair valued through profit or loss. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Note 39 details how the Company determines whether there has been a significant increase in credit risk.
For trade receivables only, the Company applies the simplified approach as per Ind AS 109,Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
(iv) Derecognition of financial assets
A financial asset is derecognised only when
• the Company has transferred the rights to receive cash flows from the financial asset; or
• retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.
Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.
Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset.
Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.
(v) Financial liabilities: Classification, subsequent measurement and gains and losses
Financial liabilities are classified as measured at amortised cost or FVTPL.
a) Financial liabilities through fair value through profit or loss (FVTPL)
A financial liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in Statement of Profit and Loss. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109.
b) Financial liabilities at amortised cost
Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in Statement of Profit and Loss.
Any gain or loss on derecognition is also recognised in Statement of Profit and Loss.
For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximates fair value due to the short maturity of these instruments.
(vi) Fair value of financial instruments
In determining the fair value of financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis and available quoted market prices. All methods of assessing fair value result in general approximation of value, and such value may never actually be realised.
(vii) Offsetting financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
h) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates. Borrowings are removed from the Balance Sheet when the obligation specified in the contract is discharged, cancelled or expired. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.
i) Revenue Recognition
Revenue from Operations:
a) The Company has applied Ind AS 115, Revenue from Contracts with Customers, which establishes a comprehensive framework for determining whether, how much and when revenue is to be recognised.
b) Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those products or services.
• Revenue from the sale of content is recognised at the point in time when control is transferred to the customer. Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, price concessions and incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes collected from customers.
• Revenue from theatrical distribution is recognised on exhibition of films. In case of distribution through theatres, revenue is recognised on the basis of box office reports received from various exhibitors. Contracted minimum guarantees are recognised on theatrical release.
• Revenue from Sale of films rights are recognised on assignment of such rights as per terms of the sale/licencing agreements.
• Revenue from exploitation of music rights through digital platforms such as YouTube, audio streaming applications and other digital media platforms is recognized in accordance with Ind AS 115 upon satisfaction of performance obligations and when collection is reasonably certain. Such revenue includes advertisement monetization, streaming income, licensing and content exploitation revenue, and is recognized based on platform reports, contractual arrangements or usage data. Revenue is measured net of platform commissions, discounts/rebates, indirect taxes and other applicable adjustments.
• - Revenue from production support and line production consultancy services provided is recognized when the agreed services are rendered and collection of consideration is reasonably certain. Such revenue is recognized based on contractual terms, milestones achieved or services performed.
Other income:
Interest income is accrued on a time proportion basis, by reference to the principal outstanding and the effective interest rate applicable. Dividend income from investments and other income is recognised when the companys rights to receive payment have been established.
j) Taxes
Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the year.
(i) Current income tax
Current tax assets and liabilities are measured at the amount expected to be recovered or paid to the taxation authorities in accordance with the relevant prevailing tax laws. Tax expenses relating to the items in profit & loss account shall be treated as current tax as part of profit and loss and those relating to items in other comprehensive income shall be recognised as part of OCI.
(ii) Deferred tax
Deferred income tax is recognised for all the temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in Restated Financial Statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the year and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
At each balance sheet, the company re-assesses unrecognised deferred tax asets, if any, and the same is recognised to the extent it has become probable that future taxable profit will allow the deffered tax asset to be recovered. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority.
k) Leases
The Companys lease asset classes primarily consist of leases for godown premises. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii)the Company has substantially all of the economic benefits from use of the asset through the period of the lease and
(iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognises a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee.
The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e.the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option.
The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognised as an expense on a straight-line basis over the lease term.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.
l) Inventories
Media Content are valued at lower of cost and net realisable value. Cost comprises acquisition/direct production cost. Cost of a Media Content is fully expensed on telecast/broadcasting to the extent of revenue recognised. Expenses of under production films incurred till the films are ready for release are inventorised. Cost of content are recognised as expense in Statement of Profit and Loss as per the terms of licencing of multiple rights. Cost of unamortised content is recognised in the ratio of expected unrealised revenue to total expected revenue. If net expected unrealised revenue is less than the unamortised cost, the same is written down to net expected revenue. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Music rights and any other form of media content for digital exploitation by the company are amortised over a period of ten years from the date of release of content.
m) Impairment of non-financial assets
The carrying value of assets / cash generating units at the Balance Sheet date are reviewed for impairment, if any indication of impairment exists. If the carrying amount of the assets exceed the estimated recoverable amount, an impairment is recognised for such excess amount. The impairment loss is recognised for such excess amount.
n) Provisions and contingent liabilities
Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
o) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand and short-term deposits net of bank overdraft with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, cash in banks and short-term deposits original maturity of three months or less. net of bank overdraft.
p) Trade receivables
Trade receivables are amounts due from customers for goods sold or services rendered in the ordinary course of business. Trade receivables shall be initially measured at their transaction price unless those contain a significant financing component determined.
q) Trade payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial period which are unpaid. Trade payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.
r) Asset classified as held for sale
As per Ind AS 105 "Non-current assets held for sale and Discontinued 342perations", Assets classified as held-for-sale are due to managements decision to sell/dispose off in the next 12 months. Such assets are generally measured at the lower of their carrying amount and fair value less costs to sell. Once classified as held-for-sale, property, plant and equipment are no longer depreciated.
s) Employee Benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the year in which the employees render the related service are recognized in respect of employees services up to the end of the year and are measured at the amounts expected to be paid when the liabilities are settled.
(ii) Other long-term employee benefit obligations
a) Defined contribution plan
A Defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions towards Provident Fund. The Companys contribution is recognised as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service
b) Defined benefit plans
Gratuity: The Company provides for gratuity, a defined benefit plan (the ‘Gratuity Plan") covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary. The Companys liability is provided at the end of each year.
t) Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Companys earnings per share is the net profit or loss for the year after deducting preference dividends and any attributable tax thereto for the period, if any. The weighted average number of equity shares outstanding during the year and for all the years presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.
Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs (with two places of decimal) as per the requirement of Schedule III, unless otherwise stated.
(viii) Significant accounting judgments, estimates and assumptions
The preparation of Restated Financial Statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future years.
(ix) Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the year end date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the Restated Financial Statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
RESULTS OF OUR OPERATIONS
The following table sets forth certain information from restated standalone statements of profit and loss for the statements of profit and loss for for the Fiscals 2026, Fiscals 2025 and 2024, the components of which are also expressed as a percentage of our total income for such periods:
(Amount Rs. in lakhs) |
||||||
Fiscal 2026 |
Fiscal 2025 |
Fiscal 2024 |
||||
Particulars |
(Standalone) |
(Consolidated) |
(Consolidated) |
|||
| Amount | % oi Total* * | Amount | % of Total** | Amount | % of Total** | |
INCOME |
||||||
Revenue from Operations |
7443.67 | 10,333.0 1 | 97.66% | 13,379.8 0 | 95.94% | |
| 97.59 % | ||||||
Other Income |
183.82 | 2.41% | 247.26 | 2.34% | 566.21 | 4.06% |
Total Revenue (A) |
7627.49 | 100% | 10,580.2 7 | 100.00 % | 13,946.0 1 | 100.00 % |
EXPENDITURE |
||||||
Operational Cost |
1362.50 | 17.86 % | 5,097.53 | 48.18% | 6,223.63 | 44.63% |
Employee Benefit Expenses |
208.36 | 2.73% | 135.39 | 1.28% | 23.77 | 0.17% |
Finance Costs |
176.35 | 2.31% | 175.45 | 1.66% | 68.65 | 0.49% |
Depreciation and Amortization expense |
272.06 | 3.57% | 277.61 | 2.62% | 222.14 | 1.59% |
Other expenses |
170.26 | 2.23% | 272.57 | 2.58% | 301.32 | 2.16% |
Total Expenses (B) |
2189.53 | 28.71 % | 5958.55 | 56.32% | 6839.51 | 49.04% |
Profit/(loss) before Share of profit of associate, exceptional items & tax (A-B) |
5437.96 | 71.29 % | 4621.72 | 43.68% | 7106.50 | 50. 96% |
Share of profit of associate |
- |
- |
- |
- |
- |
- |
Profit/(loss) before Exceptional items & tax |
5437.96 | 71.29 % | 4621.72 | 43.68 | 7106.52 | 50. 96% |
Exceptional Items |
||||||
Gain on sale of associate |
- |
- |
1.00 | 0.01% | - |
- |
Statutory impact of new Labour Code |
(31.56) | 0.41% | ||||
Profit/(loss) before tax |
5406.40 | 70.88 | 4622.72 | 43.69 | 7106.50 | 50. 96% |
Tax Expense/ (benefit) |
||||||
(a) Current Tax Expense |
1463.47 | 19.19 % | 1,177.52 | 11.13% | 1,742.09 | 12.49% |
(b) Deferred Tax |
(59.31) | -0.78% | (0.37) | 0.00% | 29.52 | 0.21% |
Net tax expense / (benefit) |
1404.16 | 18.41 % | 1,177.15 | 11.13% | 1,771.61 | 12.70% |
Profit/(Loss) for the Period |
4002.24 | 52.47 % | 3446.46 | 32.55 | 5334.90 | 38.26% |
** Total refers to Total Revenue
Components of our Profit and Loss Account Income
Our total income comprises of revenue from operations and other income.
Revenue from Operations
Our revenue from operation as a percentage of our total income was 97.59%, 97.66% %, 95.94% and 98.53% for the Fiscal 2026 the Fiscals 2025 and2024 respectively.
| (% In Lakhs) | |||
Particulars |
For the year ended |
||
| Fiscal 2026 (Standalone) | Fiscal 2025 (Consolidated) | Fiscal 2024 (Consolidated) | |
Sale of Media Content |
7443.67 | 10,333.01 | 13,379.80 |
TOTAL |
7443.67 | 10,333.01 | 13,379.80 |
Other Income
Our Other Income primarily consists of Gain on Disposal/Fair Valuation of Investments, Interest Income on Investments, Dividend Income on Investments, Interest on income tax refund, E&O Insurance claim received.
| ( Rs.In Lakhs) | |||
For the year ended |
|||
Particulars |
Fiscal 2026 (Standalon e) | Fiscal 2025 (Consolidate d) | Fiscal 2024 (Consolidate d) |
Income on financial assets carried at fair value through profit or loss |
|||
Net Gain on Disposal/Fair Valuation of Investments |
66.18 | 92.63 | 270.34 |
Interest Income on Investments |
- |
5.69 | 4.15 |
Dividend Income on Investments |
- |
3.73 | 2.22 |
Interest Income on Fixed Deposits (Net of early premature penalty) * |
16.79 | 1.6 | - |
Income on financial assets carried at Amortized Cost |
|||
Interest Income |
68.53 | 80.43 | 134.46 |
Other Non-Operating Income |
|||
Interest on income tax refund |
- | 0.26 | - |
Profit on Sale/disposal of Fixed Assets |
- | - | - |
E&O Insurance claim received |
- | 58.05 | 155 |
Net exchange gain on foreign exchange fluctuations |
30.44 | 0.64 | - |
Royalty received |
1.79 | 2.48 | 0.01 |
Gain on Early Lease Termination |
- | 1.75 | - |
Other income |
0.09 | - | 0.03 |
TOTAL |
183.82 | 247.26 | 566.21 |
Expenditure
Our total expenditure primarily consists of Operational Cost, Employee benefit expenses, Finance costs, Depreciation & Amortization Expenses and Other Expenses.
Operational Cost
| (€In Lakhs) | |||
For the year ended |
|||
Particulars |
Fiscal 2025 (Standalone) | Fiscal 2025 (Consolidated) | Fiscal 2024 (Consolidated) |
Opening Stock of Media Content (including Under Production) |
2,407.56 | 2,431.68 | 1,641.30 |
Add: Cost Incurred during the year |
6460.96 | 5,073.41 | 7,014.01 |
Closing Stock of Media Content (including Under Production) |
(7506.02) | (2,407.56) | (2,431.68) |
Operational Cost |
1362.50 | 5,097.53 | 6,223.63 |
Employee Benefit Expenses
Our employee benefits expense comprises of Salaries & Wages, Provision for Gratuity, Staff Welfare and Remuneration to Key managerial persons.
| (€In Lakhs) | |||
For the year ended |
|||
Particulars |
Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| (Standalone) | (Consolidated) | (Consolidated) | |
Salaries |
51.60 | 36.14 | 23.77 |
Staff welfare expenses |
5.46 | 5.5 | - |
Gratuity expenses |
22.25 | 23.56 | - |
Contribution to ESIC, EPF, LWF |
5.50 | 2.74 | |
Remuneration to Key managerial persons |
123.55 | 67.45 | - |
Total |
208.36 | 135.39 | 23.77 |
Finance costs
Our Finance cost expenses comprise of Bank Charges and Interest on Borrowings, Interest on delayed payment of taxes Interest on late payment to MSME creditors
| (Rs.In Lakhs) | |||
For the year ended |
|||
Particulars |
Fiscal 2026 (Standalone) | Fiscal 2025 (Consolidate d) | Fiscal 2024 (Consolidate d) |
Interest expense on financial liabilities measured at amortised cost: |
|||
-Borrowings |
37.87 | 37.14 | 28.56 |
-Borrowings of Related Party |
57.64 | 102.43 | 31.73 |
-Lease Liabilities |
2.83 | 1.78 | 2.28 |
Interest on Delayed Payment of taxes |
70.40 | 26.93 | 3.51 |
Other Borrowings Cost |
4.28 | 5.27 | 2.57 |
Interest on late payment to MSME creditors |
3.33 | 1.9 | - |
TOTAL |
176.36 | 175.45 | 68.65 |
Depreciation and Amortization Expenses
Depreciation and Amortization primarily include Depreciation on Property Plant and Equipment and amortization of Asset held under Lease
| (€In Lakhs) | |||
For the year ended |
|||
Particulars |
Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| (Standalone) | (Consolidated) | (Consolidated) | |
Depreciation of Property, Plant & Equipment |
259.99 | 265.8 | 210.48 |
Amortization of ROU asset |
12.07 | 11.81 | 11.66 |
TOTAL |
272.06 | 277.61 | 222.14 |
Other Expenses
Other expenses primarily include Donation & CSR Expense, Insurance Premium, Legal, Consulting and Professional Fees, Rent, Rates and Taxes and Office Expenses.
| (Rs.In Lakhs) | |||
For the year ended |
|||
Particulars |
Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| (Standalone) | (Consolidated) | (Consolidated) | |
Donation & CSR Expense |
78.65 | 1.00 | 101.00 |
Directors Sitting Fees |
6.90 | 2.00 | - |
Valuation fee |
- | - | - |
Insurance Premium |
2.18 | 7.62 | 5.90 |
Net Loss on Disposal/Fair Valuation of Investments valued at FVTPL |
- | - | - |
Remuneration to Auditors (Refer Note below) |
3.00 | 3.00 | 3.00 |
Members and subscriptions |
3.32 | 2.11 | 0.71 |
Legal, Consulting and Professional Fees |
27.35 | 21.30 | 101.43 |
Brokerage |
0.89 | 9.05 | - |
Rent, Rates and Taxes |
31.66 | 108.23 | 114.42 |
Office Expenses |
13.44 | 45.77 | 63.40 |
Printing & Stationery Expenses |
1.34 | 1.10 | 0.27 |
Travelling Expenses |
1.28 | 0.51 | 0.14 |
Net exchange loss on foreign exchange fluctuations |
- | - | 0.09 |
Loss on Sale of Fixed Assets |
- |
- |
0.46 |
Allowance for Expected Credit Loss |
- |
- | - |
Sundry Balance written off |
0.13 | 12.88 | - |
Service tax demand (Including penalty and late fees) |
- | 0.98 | - |
Entry fees |
0.12 | 0.12 | - |
TOTAL |
170.26 | 215.67 | 390.82 |
Provision for Tax
The provision for current taxation is computed in accordance with relevant tax regulation. Deferred tax is recognized on timing differences between the accounting and the taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized in future.
For the Fiscal 2026
Revenue from Operations
The revenue from operations of our company for the Fiscal 2026, was Rs. 7443.67 Lakhs.
Other Income
The other income of our company for the for Fiscal 2026, was Rs. 183.82 Lakhs.
Total Income
The total income of our company for the Fiscal 2026 was Rs. 7627.49 Lakhs.
Expenditure Operational cost
The operational cost by our company for the Fiscal 2026, were Rs. 1362.50 Lakhs.
Employee Benefits Expenses
The employee benefits expenses of our company for the Fiscal 2026, were Rs. 208.36 Lakhs.
Finance Costs
The finance costs incurred by our company for the Fiscal 2026, were Rs. 176.35 Lakhs.
Depreciation and amortization expense
The depreciation and amortization expense of our company for the Fiscal 2026, was Rs. 272.06 Lakhs.
Other Expenses
The other expenses incurred by our company for the Fiscal 2026, were Rs. 170.26 Lakhs.
Profit Before Tax
The profit before tax of our company for the Fiscal 2026, was Rs. 5437.96 Lakhs.
Profit for the Year
The profit for the year of our company for the Fiscal 2026, was Rs.
4002.24 Lakhs.
Fiscal 2026 compared with fiscal 2025 Revenue from Operations
The Revenue from Operations of our company for fiscal year 2026 was Rs. 7,443.67 Lakhs against Rs. 10,333.01 Lakhs for Fiscal year 2025, representing a decrease of 27.96% in revenue from operations. The decrease was due to the exceptional performance and monetization of Bhed Bharam in Fiscal 2025, which contributed significantly to that years results. Fiscal 2026 reflects a normalized base, as fewer projects reached revenue-recognition milestones. Certain ongoing projects are scheduled for release and billing in Fiscal 2026-27, with revenues to be recognized in subsequent periods. The year-on-year movement is therefore reflective of project timing and release cycles inherent to the industry.
Other Income
The other income of our company for fiscal year 2026 was Rs. 183.82 Lakhs against Rs. 247.26 Lakhs for Fiscal year 2025, representing a decrease of 25.66% in other income. The higher Other Income in Fiscal 2025 was mainly due to higher gains from fair valuation and disposal of investments and an E&O insurance claim received during the year. Fiscal 2026 reflects a more normalized level of income, comprising primarily investment returns and interest income.
Total Income
The total income of our company for fiscal year 2026 was Rs. 7,627.49 Lakhs against Rs. 10,580.27 Lakhs for Fiscal year 2025, representing a decrease of 27.91% in total income. This movement is largely explained by a very strong base in Fiscal 2025, which benefitted from the extraordinary success of Bhed Bharam and related monetisation, along with higher one-time gains recognised in other income. Fiscal 2026 reflects a normalised operating performance where comparatively fewer projects reached the stage of revenue recognition. Certain large projects currently under production are scheduled for release in Fiscal 2026-27, with revenues expected to be recognised in subsequent periods.
Expenditure Operational Cost
In Fiscal year 2026, our Operational Cost was Rs. 1,362.50 Lakhs against Rs. 5,097.53 Lakhs in fiscal year 2025, representing a decrease of 73.27%. The decrease was primarily attributable to lower recognition of content costs during Fiscal 2026, as a significant portion of production expenditure relating to ongoing projects remained included in closing inventory pending release or revenue recognition.
Employee Benefit Expenses
In Fiscal year 2026, our Company incurred employee benefit expenses of Rs. 208.36 Lakhs against Rs. 135.39 Lakhs in fiscal year 2025, representing an increase of 53.90%. The increase reflects strategic strengthening of our organisation structure, including induction of senior leadership and key managerial personnel, higher salaries and statutory contributions, as well as team expansion to support the Companys long-term growth pipeline.
Finance Costs
The finance costs for the Fiscal year 2026 were Rs. 176.35 Lakhs against Rs. 175.45 Lakhs for Fiscal year 2025, representing an increase of 0.51%. The marginal increase was primarily due to higher interest on delayed payment of taxes and interest on late payment to MSME creditors, partly offset by lower interest on related-party borrowings.
Other Expenses
In fiscal year 2026, our other expenses were Rs. 170.26 Lakhs against Rs. 272.57 Lakhs in fiscal year 2025, representing a decrease of 37.54%. The decrease was primarily attributable to lower rent, rates and taxes, office expenses, brokerage and sundry balances written off, partly offset by higher donation and CSR expenses, directors sitting fees and legal, consulting and professional fees.
Profit/(loss) before Exceptional items & tax
Our Company reported a profit before Exceptional items & tax for the Fiscal year 2026 of Rs. 5,437.96 Lakhs against Rs. 4,621.72 Lakhs in Fiscal year 2025, representing an increase of 17.66%. This increase was primarily attributable to the significant decrease in Operational Cost and other expenses, partly offset by lower revenue from operations and other income and higher employee benefit expenses.
Profit/ (Loss) before Tax
Our Company reported a profit before tax for the Fiscal year 2026 of Rs. 5,406.40 Lakhs against Rs. 4,622.72 Lakhs in Fiscal year 2025, representing an increase of 16.95%. The increase was primarily attributable to the higher profit before Exceptional items & tax, partly offset by the statutory impact of the new Labour Code of Rs. 31.56 Lakhs in Fiscal year 2026 and the Rs. 1.00 Lakh gain on sale of an associate recognised in Fiscal year 2025.
Profit/ (Loss) after Tax
Profit after tax for the Fiscal year 2026 was Rs. 4,002.24 Lakhs against Rs. 3,446.46 Lakhs in fiscal year 2025, representing an increase of 16.13%. The increase was primarily due to the higher profit before tax, partly offset by higher total tax expense of Rs. 1,404.16 Lakhs in Fiscal year 2026 against Rs. 1,176.26 Lakhs in Fiscal year 2025.
Fiscal 2025 compared with fiscal 2024
Revenue from Operations
The Revenue from Operations of our company for fiscal year 2025 was Rs. 10,333.01 Lakhs against Rs. 13,379.80 Lakhs for Fiscal year 2024, representing a decrease of 22.77% in revenue from operations. The higher revenue in Fiscal 2024 was primarily due to the exceptional performance and monetization of The Kerala Story, which contributed significantly to that years results. Fiscal 2025 reflects a normalized base, as fewer projects reached revenue-recognition milestones. Certain ongoing projects are scheduled for release in subsequent periods. The year-on-year movement is therefore reflective of project timing and release cycles inherent to the industry.
Other Income
The other income of our company for fiscal year 2025 was Rs. 247.26 Lakhs against Rs. 566.21 Lakhs for Fiscal year 2024, representing a decrease of 56.33% in other income. The higher Other Income in Fiscal 2024 was mainly due to higher gains from fair valuation and disposal of investments and an E&O insurance claim received during the year. Fiscal 2025 reflects a more normalized level of income, comprising primarily investment returns and interest income.
Total Income
The total income of our company for fiscal year 2025 was Rs. 10,580.27 Lakhs against Rs. 13,946.01 Lakhs for Fiscal year 2024, representing a decrease of 24.13% in total income. This movement is largely explained by a very strong base in Fiscal 2024, which benefitted from the extraordinary success of The Kerala Story and related monetisation, along with higher one-time gains recognised in other income. Fiscal 2025 reflects a normalised operating performance where comparatively fewer projects reached the stage of revenue recognition. Certain projects under production during Fiscal 2025 reached revenue-recognition milestones in subsequent periods.
Expenditure Operational Cost
In Fiscal year 2025, our Operational Cost was Rs. 5,097.53 Lakhs against Rs. 6,223.63 Lakhs in fiscal year 2024, representing a decrease of 18.09%. This decline corresponds to the lower scale of content releases compared with FY24 and more efficient cost management, while development and production activities for upcoming projects continued at steady levels.
Employee Benefit Expenses
In Fiscal year 2025, our Company incurred employee benefit expenses of Rs. 135.39 Lakhs against Rs. 23.77 Lakhs in fiscal year 2024, representing an increase of 469.58%. The increase reflects strategic strengthening of our organisation structure, including induction of senior leadership and key managerial personnel, recognition of gratuity and statutory contributions, as well as team expansion to support the Companys long-term growth pipeline.
Finance Costs
The finance costs for the Fiscal year 2025 was Rs. 175.45 Lakhs while it was Rs. 68.65 Lakhs for Fiscal year 2024. An increase of 155.57% was primarily due to higher average borrowings during the year to support content production and working capital, even though the closing balance of borrowings reduced from Rs.1,666.82 lakhs to Rs.897.93 lakhs. Interest rates remained broadly stable; however, longer drawdown periods and timing of repayments led to higher finance cost. The increase also reflects a higher incidence of interest on statutory dues during the year.
Other Expenses
In fiscal year 2025, our other expenses were Rs. 272.57 Lakhs and Rs. 301.32 Lakhs in fiscal year 2024. This decrease of 9.542% was primarily attributable to higher one-time expenses incurred in Fiscal 2024, including CSR expenditure whereas Fiscal 2025 reflects a more streamlined and normalised cost base with improved operating efficiency.
Profit/(loss) before Exceptional items & tax
Our Company reported a profit before Exceptional items & tax for the Fiscal year 2025 of Rs. 4,621.72 Lakhs against Rs. 7,106.50 Lakhs in Fiscal year 2024, representing a decrease of 34.96%. The decrease was primarily attributable to lower revenue from operations and other income, partly offset by lower Operational Cost and other expenses.
Profit/ (Loss) before Tax
Our Company reported a profit before tax for the Fiscal year 2025 of t 4,622.72 Lakhs against t 7,106.50 Lakhs in Fiscal year 2024, representing a decrease of 34.95%. This decrease was primarily attributable to the exceptionally strong revenue base in Fiscal 2024, driven by the release and monetisation of The Kerala Story, together with higher other income recognised during that year. Fiscal 2025 reflects a normalised earnings profile, with lower project deliveries during the period and reduced contribution from other income, partly offset by lower Operational Cost and other expenses.
Profit/ (Loss) after Tax
Profit after tax for the Fiscal year 2025 was t 3,446.46 Lakhs against t 5,334.90 Lakhs in fiscal year 2024, representing a decrease of 35.40%. This decrease was due to the exceptionally high base of Fiscal 2024, which benefitted from the success and monetisation of The Kerala Story and higher other income during that year. Fiscal 2025 represents a normalised profit level, with the impact of lower revenue recognition and other income partly offset by continued cost discipline and stable effective tax rates.
Cash Flows
| (Amount Rs. in lakhs) | |||
For the year ended March 31, |
|||
Particulars |
Fiscal 2026 (Standalone) | 2025 (Consolidated) | 2024 (Consolidated) |
Net Cash from/ (used in) Operating Activities |
(3,320.63) | 2,847.30 | 3,159.64 |
Net Cash from/ (used in) Investing Activities |
2,594.48 | (1,080.90) | (2,996.77) |
Net Cash from/ (used in) Financing Activities |
(389.75) | (735.47) | (65.84) |
Cash Flows from Operating Activities
1. For the Fiscal 2026, net cash used in operating activities was t3,320.63 Lakhs. This comprised of Profit before exceptional items and tax of t5406.40 Lakhs, which was primarily adjusted for depreciation and amortization expenses of t272.06 Lakhs, Interest income of t85.32 Lakhs, Finance Cost of 1176.35 Lakhs and Gratuity Provision of t22.25 Lakhs, Loss on Disposal/Fair Valuation of Investments of t48.59 Lakhs, Gain on foreign exchange fluctuations of t30.42 Lakhs and Interest expense of t176.35 Lakhs The resultant operating profit before working capital changes was t5809.91 Lakhs, which was primarily adjusted for increase in inventory t5,098.46, Trade receivables of t3,780.97 Lakhs, other current assets of t62.77 Lakhs, decrease in Other financial assets of t1.09 Lakhs, other non current financial assets t 251.32 Lakhs, increase in Provisions of t33.18 Lakhs and trade payables of t255.13 lakhs, other current liabilities of t 138.76 Lakhs and decrease in other financial liabilities t0.79 Lakhs.
Cash used in operations in was t2,453.60 lakhs. After payment of direct taxes of t867.03 lakhs, resulting in net cash used in operating activities amounted to t3,320.63 lakhs.
2. In FY 2025, net cash flow from operating activities was t 2,847.30 Lakhs. This comprised of Profit before exceptional items and tax of t 4,622.72 Lakhs, which was primarily adjusted for depreciation and amortization expenses of t 277.61 Lakhs, Interest income of t 87.98 Lakhs, Finance Cost of t 175.45 Lakhs and Gratuity Provision of t 23.56 Lakhs, Loss on Disposal/Fair Valuation of Investments of t 163.98 Lakhs, Gain on Early Lease Termination of t 1.75 Lakhs, Gain on sale/divestment of investment in associates of t 1 Lakhs, Dividend Received of t 3.73 Lakhs, Gain on foreign exchange fluctuations of t 0.02 Lakhs. The resultant operating profit before working capital changes was t 5,168.84. Lakhs, which was primarily adjusted for increase in trade receivables of t 2042.54 Lakhs, Other financial assets of t 275.10, , Provisions of t 1.97 Lakhs, other current liabilities of t 392.81 Lakhs and decrease in inventory of t 24.12 lakhs, Other non-current financial assets of t 560.19 Lakhs, other current assets of t 123.45 lakhs, trade & other payables of t 247.13 Lakhs.
Cash generated from operations in Fiscal 2025 was t 3,706.63 lakhs. After payment of direct taxes of t 859.33 lakhs, the net cash flow from operating activities amounted to t 2,847.30 lakhs.
3. In Fiscal 2024, net cash flow from operating activities was Rs.3,159.64 lakhs. This was based on profit before exceptional items and tax of Rs.7,106.50 lakhs, adjusted for non-cash and non-operating items including depreciation and amortisation of Rs.222.14 lakhs, finance costs of Rs.68.65 lakhs, loss on foreign exchange fluctuations of Rs. 0.19 lakhs and loss on sale of fixed assets of Rs.0.46 lakhs. These were partly offset by interest income of Rs.138.61 lakhs, dividend income of Rs.2.22 lakhs and gains from disposal/fair valuation of investments of Rs.212.61 lakhs.
Operating profit before changes in working capital was Rs. 7044.12 lakhs. This was adjusted for an increase in inventories of Rs.790.38 lakhs, increase in trade receivables of Rs.796.70 lakhs, increase in other non-current financial assets of Rs.808.14 lakhs, increase in other financial assets of Rs.25.70 lakhs, and increase in other current assets of Rs.254 lakhs. It also reflected an increase in trade and other payables of Rs.296.85 lakhs, increase in other current liabilities of Rs.181.05 lakhs and an increase in provisions of Rs.0.90 lakhs.
Cash generated from operations in Fiscal 2024 was Rs.4,848.28 lakhs. After payment of direct taxes of Rs.1,688.64 lakhs, the net cash flow from operating activities amounted to Rs.3,159.64 lakhs.
Cash Flows from Investment Activities
1. For the Fiscal, 2026, net cash flow from investing activities was Rs. 2594.48 lakhs. This primarily included capital expenditure on fixed assets (including capital advances) of Rs. 41.82 lakhs, purchase of investments of Rs. 481.84 lakhs and loan given to related parties and other of Rs. 15.91 and payment including advances for acquiring right-of-use assets (Net of termination) of Rs. 0.39 Lakhs. These outflows were partly offset by inflows from sale of investments of Rs. 3049.12 lakhs and interest received of Rs. 85.32 lakhs.
2. In Fiscal 2025, net cash used in investing activities was Rs.1,080.90 lakhs. This primarily included capital expenditure on fixed assets (including capital advances) of Rs.521.65 lakhs, purchase of investments of Rs.4,067.23 lakhs and payment of Rs.0.45 lakhs towards right-of-use assets. These outflows were partly offset by inflows from sale of investments of Rs.3,330.63 lakhs, repayment of loans by related parties and others of Rs.86.09 lakhs, interest received of Rs.87.98 lakhs and dividend income of Rs.3.73 lakhs.
3. In Fiscal 2024, net cash used in investing activities was Rs.2,996.77 lakhs. This primarily comprised capital expenditure on fixed assets (including capital advances) of Rs.1,203.73 lakhs, purchase of investments of Rs.3,794.21 lakhs and loans advanced to related parties and others amounting to Rs.317.33 lakhs. These outflows were partly offset by inflows from sale of investments of Rs.2,114.61 lakhs, proceeds from sale/disposal of property, plant and equipment of Rs.63.06 lakhs, interest received of Rs.138.61 lakhs and dividend income of Rs.2.22 lakhs.
Cash Flows from Financing Activities
1. For the Fiscal 2026 net cash used in financing activities was Rs. 389.75 lakhs. This primarily comprised Proceeds from borrowings of Rs. 271.16 lakhs, repayment of borrowings of Rs. 477.94 lakhs, payment of finance costs of Rs. 170.19 lakhs, and lease liability repayments of Rs. 12.78 lakhs.
2. In Fiscal 2025, net cash used in financing activities was Rs.735.47 lakhs. This primarily comprised Proceeds from borrowings of Rs. 978.56 lakhs, repayment of borrowings of Rs. 1,560.35 lakhs, payment of finance costs of Rs.140.60 lakhs, and lease liability repayments of Rs.13.08 lakhs.
3. In Fiscal 2024, net cash used in financing activities was Rs.65.84 lakhs. This primarily comprised Proceeds from borrowings of Rs. 1,764.61 lakhs, payment for buyback of shares 998.73 Lakhs repayment of borrowings of Rs. 774.62 lakhs, offset by outflows on account of buyback of shares of Rs.998.73 lakhs, lease liability repayments of Rs.12.26 lakhs, finance cost payments of Rs.37.81 lakhs, and dividend payments of Rs.7 03 lakhs
Indebtedness
As of March 2026, our total borrowings, on a standalone basis was Rs. 909.42 Lakhs and as on March 31, 2026, For a description of the principal terms and financial covenants of our material indebtedness, see "Financial Indebtedness" on page 328 and "Restated Financial Information" on page 253. The following table provides the amounts of our borrowings for the periods indicated:
| (% in Lakhs) | |||
| As At | |||
Particulars |
31.03.2026 (Standalone) | 31.03.2025 (Consolidated) | 31.03.2024 (Consolidated) |
Secured |
|||
Non- Current Borrowings |
|||
Vehicle Loans from Banks |
165.59 | 218.27 | |
Working Capital Loans from Banks |
|||
-Dropline Overdraft |
271.16 | - | 578.26 |
Current Maturities of Long-term Debt* |
52.67 | 48.2 | - |
Unsecured |
|||
Loan from director |
420 | 849.73 | 1,088.56 |
TOTAL |
909.42 | 1,116.20 | 1,666.82 |
*Vehicle Loan has been repaid before signing of annual financials for FY 2022-23 and hence, classified to short-term borrowings.
Capital expenditures
Our capital expenditure primarily relates to the purchase of property, plant and equipment (including Building, computers, furniture and other fixtures, vehicles, office equipment, editing equipment, server and Electrical equipments). The following table sets forth details on our capital expenditures in relation to property, plant and equipment (Tangible assets) and capital WIP for the periods indicated:
| (Rs. in Lakhs) | |||
| Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |
Particulars |
(Standalone) | (Consolidated) | (Consolidated) |
Property, Plant & Equipment (Tangible Assets) Addition |
8.50 | 329.69 | 539.74 |
Capital WIP |
- | 663.99 | |
Total Capex |
8.50 | 329.69 | 1203.73 |
For further information, see "Restated Financial Statements" on page 253.
Related Party Transactions
We enter into various transactions with related parties in the ordinary course of business. These transactions principally include Rent paid to entities where any of our KMPs or their relatives have control or significant influence, Professional fees paid to entities where any of our KMPs or their relatives have control or significant influence, interest expense paid to KMPs, Interest Income and purchases from Associate, Marketing expenses paid to Associate, unsecured loan taken/repaid to/from our KMPs, remuneration paid to KMPs, Loans given/repaid to/from associates and Buy back of shares from KMPs.
For further information relating to our related party transactions, see "Financial Information - Restated Financial Information- Note 42: Related party transactions" on page 59.
Contingent liabilities & Commitments
As of March 31, 2026, we did not have any material contingent liabilities as per Ind AS 37-Provisions, Contingent Liabilities and Contingent Assets, other than mentioned in below table:
| (Rs. in Lakhs) | |
Particulars |
As at March 2026 |
Contingent Liabilities: |
|
(a) Other money for which the company is contingently liable. |
3172.96 |
Total |
3172.96 |
Off-balance sheet arrangements
We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with unconsolidated entities that have been established for the purposes of facilitating off-balance sheet arrangements.
Corporate Social Responsibility
As per Section 135 of the Companies Act, 2013 (Act), a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are Healthcare including Preventive healthcare, providing Safe drinking water, sanitation facility, promoting education, Old Age Home maintenance, Environmental sustainability and promotion and development of traditional art and handicrafts. A CSR committee, has been formed by the company as per the Act. The funds were primarily allocated to a corpus and utilised through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.
| (Rs. in Lakhs) | |||
Particulars |
For the year ended 31.03.2026 (Standalone ) | For the year ended 31.03.2025 (Consolidated ) | For the year ended 31.03.2024 (Consolidated ) |
Amount required to be spent by the Company during the year |
78.44- | 56.90 | |
(i) Construction/acquisition of any asset |
- | - | - |
(ii) On purposes other than (i) above |
46 | 101.00 | |
Total of previous years shortfall/(excess) |
(32.60) | (89.50) | - |
Nature of CSR activities |
In terms of CSR policy approved by the Board of Directors of the Company. |
||
Details of related party transactions in relation to CSR expenditure as per relevant Indian Accounting Standard |
NA | NA | NA |
Where a provision is made with respect to a liability incurred by entering into a contractual obligation, the movements in the provision during the year should be shown separately. |
|||
Excess amount Spent as per section 135(5) |
- |
- |
101.00 |
Carry Forward |
0.16 | 32.60 | 89.5 |
Financial Risk Management:
The principal financial assets of the Company include trade and other receivables, and cash and bank balances that derive directly from its operations. The principal financial liabilities of the company, include loans and borrowings, trade and other payables and the main purpose of these financial liabilities is to finance the day-today operations of the company.
The Company is exposed to market risk, credit risk and liquidity risk. The Companys senior management oversees the management of these risks and that advises on financial risks and the appropriate financial risk governance framework for the Company.
This note explains the risks which the company is exposed to and policies and framework adopted by the company to manage these risks:
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: foreign currency risk, interest rate risk, investment risk.
(i) Foreign currency risk
"The company operates internationally and business is transacted in several currencies."
The Company operates internationally and transacts in multiple currencies. Consequently, it is exposed to foreign exchange risk on account of fluctuations in currency values. In addition, certain services are procured from outside India, further exposing the Company to currency volatility. Exchange rate movements between the Indian Rupee and foreign currencies may affect the Companys results, as appreciation or depreciation of the Rupee impacts the value of foreign currency-denominated transactions, recognised assets and liabilities, and future probable cash flows. Foreign exchange risk primarily arises from forecasted transactions, recognised monetary assets and liabilities, and cross-border service arrangements denominated in currencies other than the Companys functional currency.
Foreign Currency Risk Sensitivity
The following table demonstrates the sensitivity in INR with all other variables held constant. The below impact on the Companys profit before tax is based on changes in the fair value of unhedged foreign currency monetary assets and liabilities at balance sheet date.
As at March 2026 |
As at March 31, 2025 |
As at March 31, 2024 |
||||
Particulars |
Effect on Profit before tax | Effect on Pre tax Equity | Effect on Profit before tax | Effect on Pre tax Equity | Effect on Profit before tax | Effect on Pre tax Equity |
1% Appreciation |
10.30 | 10.30 | - | 0.11 | 0.11 | |
1% Depreciation |
(10.30) | (10.30) | - | (0.11) | (0.11) | |
(ii) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companys exposure to the risk of changes in market interest rates relates primarily to the Companys debt obligations with floating interest rates.
As the Company has no significant interest-bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates. The Companys exposure to the risk of changes in market interest rates relates primarily to the Companys debt obligations with floating interest rates, which are included in interest bearing loans and borrowings in these financial statements. The companys fixed rate borrowings are carried at amortised cost. They are therefore not subject to inter est rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
(iii) Investment Risk
The company is exposed to price risk arising from investments in equity, AIFs, InVITs and equity- oriented mutual funds and exchange traded funds that will fluctuate due to changes in market traded prices, which may impact the return and value of such investments. The value of investments in such investments as at March 31, 2026 is Rs Nil (March 31, 2025 is Rs 2,141.98 Lakhs and March 31, 2024 is Rs. 1,564.20 Lakhs). Accordingly, fair value fluctuations arising from market volatility is recognised in Statement of profit and loss.
(iv) Liquidity Risk
The financial liabilities of the company, other than derivatives, include loans and borrowings, trade and other payables. The companys principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company monitors the risk of fund shortages through a liquidity planning framework and seeks to maintain sufficient cash and liquid deposits to meet its obligations as they fall due.
The below is the detail of contractual maturities of the financial liabilities of the company at the end of each reporting period:
| (Rs. in Lakhs) | |||
Particulars |
As At 31.03. 2026 | As At 31.03. 2025 | As At 31.03. 2024 |
| (Standalone) | (Consolidated) | (Consolidated) | |
Borrowings |
|||
Expiring within one year |
743.83 | 897.93 | 1,666.82 |
Expiring beyond one year |
165.59 | 218.27 | - |
| 909.42 | 1,116.20 | 1,666.82 | |
Trade payables |
|||
Expiring within one year |
738.14 | 487.56 | 730.14 |
Expiring beyond one year |
- | - | |
| 738.14 | 487.56 | 730.14 | |
Other Financial liabilities (including lease liabilities) |
|||
Expiring within one year |
20.43 | 11.54 | 14.79 |
Expiring beyond one year |
20.21 | 18.10 | 8.30 |
| 40.64 | 29.64 | 23.09 |
Credit Risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables and loans which are typically unsecured. Credit risk on cash and bank balances is limited as the company generally invests in deposits with banks and financial institutions with high credit ratings assigned by credit rating agencies.
The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors. Customer credit risk is managed by the Entitiess established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain
Capital Management
The capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The Company manages its capital to ensure that it will continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The company monitors capital using a gearing ratio.
The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants which otherwise would permit the banks to immediately call loans and borrowings. In order to maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
The Company monitors capital using a gearing ratio, which is net debt divided by total equity.
The Companys gearing ratio was as follows:
(in Rs. lakhs unless stated otherwise) |
|||
Particulars |
Fiscal 2026 (Standalone) | As At 31.03.2025 | As At 31.03.2024 |
| (Consolidated) | (Consolidated) | ||
Total Borrowings (including lease liabilities) |
945.62 | 1,143.94 | 1,689.91 |
Less: Cash and cash equivalents |
48.25 | 1,164.15 | 133.22 |
Net debt |
897.37 | (20.21) | 1,556.69 |
Total equity |
14513.46 | 10,473.38 | 6,970.12 |
Gearing ratio |
0.06 | (0.00) | 0.22 |
Further, there have been no breaches in the financial covenants of any interest-bearing loans and borrowing during the Year ended March 31,2026.
OTHER MATTERS
1. Unusual or infrequent events or transactions
Except COVID-19 or any such kind of pandemic and as described in this Red Herring Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as "unusual" or "infrequent".
2. Significant economic changes that materially affected or are likely to affect income from continuing Operations
Our business has been subject, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in Factors Affecting our Results of Operations and the uncertainties described in the section entitled "Risk Factors beginning on page 28. To our knowledge, except as we have described in the Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes.
3. Known trends or uncertainties that have/had or are expected to have a material adverse impact on revenue or income from continuing operations
Apart from the risks as disclosed under Chapter titled "Risk Factors beginning on page 28 in this Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.
4. Future changes in relationship between costs and revenues, in case of events such as future increase in labour or material costs or prices that will cause a material change are known
Our Companys future costs and revenues will be dependent on audience acceptance of our film, web series and TV serials. The popularity and economic success of our projects depends on many factors including general public tastes, the actors and other key talent involved, the promotion and marketing of the project, the quality and acceptance of other competing programmes released into, or channels existing in, the marketplace at or near the same time, the availability of alternative forms of entertainment and leisure time activities, general economic conditions, the genre and specific subject matter of the film, its critical acclaim, the breadth and format of its initial release and other tangible and intangible factors.
5. Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or increased sales prices.
Our Companys future costs and revenues will be dependent on audience acceptance of our film, web series and TV serials. The popularity and economic success of our projects depends on many factors including general public tastes, the actors and other key talent involved, the promotion and marketing of the project, the quality and acceptance of other competing programmes released into, or channels existing in, the marketplace at or near the same time, the availability of alternative forms of entertainment and leisure time activities, general economic conditions, the genre and specific subject matter of the film, its critical acclaim, the breadth and format of its initial release and other tangible and intangible factors.
6. Total turnover of each major industry segment in which the issuer company operated.
Relevant Industry data and, as available, has been included in the chapter titled "Industry Overview" beginning on page 131.
7. Status of any publicly announced new products or business segment.
Our Company has not announced any new services and segment / scheme, other than disclosure in this Red Herring Prospectus. For list of our projects under production please refer chapter titled "Our Business" beginning on page 180.
8. The extent to which business is seasonal.
Our business does not depend to a certain extent on the seasonal, environmental and climate changes. Hence, our business is not seasonal in nature.
9. Any significant dependence on a single or few suppliers or customers.
We generate a major portion of revenues from renowned studios with whom we co-produced our films and independent distributors whom we sell our distribution rights. Please refer Risk Factor 5 included in the chapter "Risk Factor" beginning on page 28.
10. Competitive conditions:
Despite the growth opportunities, the sector faces several challenges, including heightened competition, regulatory changes, and content saturation. We face intense competition from both Indian and foreign competitors, many of which are substantially larger and have greater financial resources than us. Unlike some of our major competitors, which are part of larger diversified groups, we derive substantially all of our revenue from our production of our films, web series and TV serial and exploitation of rights. Please refer Intensified competition may result in content price escalation which may restrict our ability to access content and/or talent. Risk Factor beginning on page 51.We have, over a period, developed certain competitors who have been discussed in chapter titles "Our Business" beginning on page 180.
Significant developments subsequent to March 31, 2026
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 next twelve months. A few of the below listed developments have taken place since date of the last financial statements disclosed in this Red Herring Prospectus:
Key developments since March 31, 2026 include: (i) the theatrical release of our feature film "Governor: The Silent Saviour" on June 12, 2026;
(ii) continued progress on our co-production "Hisaab" with Jio Studios, which is currently under post-production and scheduled for release in Fiscal 2027; (iii) commencement of production of our feature film "Samuk" and our web series "Nanavati vs Nanavati" for Amazon Seller Services Private Limited, both scheduled for release/delivery in Fiscal 2027; and (iv) continued expansion of our music and digital content verticals, Sunshine Music and Sunshine Digital (Originals). As on the date of this Red Herring Prospectus, the Company has released 36 original music titles and 2 digital originals, namely "Bawra Mann" and "Ankahee."
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