V R Films & Studios Ltd Management Discussions

Industry Overview

The year 2025 marked a significant turning point for Indias Media & Entertainment (M&E) industry, characterized by rapid digital transformation, evolving consumer preferences, and increasing adoption of technology-driven content delivery platforms. The convergence of content, technology, artificial intelligence, and digital distribution has fundamentally reshaped the industry landscape, creating new opportunities for content creators, distributors, localization companies, and OTT platforms.

According to FFICI-EY Report 2026, the Indian Media & Entertainment sector grew by approximately 9% during 2025 to reach INR 2.78 trillion (US$32 billion), outperforming Indias nominal GDP growth. The sector currently contributes around 0.8% of Indias GDP, provides direct employment to nearly 2.75 million people and indirect employment to more than 10 million people.

The industry is expected to continue its growth trajectory and reach approximately INR 2.86 trillion in 2026 and INR 3.30 trillion by 2028, driven primarily by digital media, OTT platforms, connected television, advertising, localization services, and international content consumption.

Key trends

Category	2022	2023	2024	2025	2026E	2028E	CAGR 2025-2028
Digital media	571	686	851	1,110	1,301	1,640	14%
Television	726	711	679	617	587	535	-5%
Print	250	259	257	259	264	264	1%
Filmed entertainment	172	197	187	205	224	253	7%
Online gaming and video games	222	236	236	195	74	92	-22%
Live events	73	88	101	145	140	196	10%
Animation and VFX	107	114	103	105	113	138	10%
Out-of-home media	48	54	59	67	74	85	8%
Music	46	54	53	59	64	75	9%
Radio	21	23	25	23	23	22	-2%
Total	2,237	2,422	2,553	2,785	2,862	3,301	6%
Growth	23.3%	8.3%	5.4%	9.1%	2.8%

Segmental performance in 2025

Digital advertising: Rising 26% to INR947 billion, the segment made up 63% of total ad revenues. E-commerce and point-of-sale ads surged 50% to INR220 billion, which is equivalent to 85% of TV ad revenues. Digital advertising also includes INR363 billion from over a million SME and long-tail advertisers

Digital subscriptions: Digital subscription revenues increased by 60%, reaching INR163 billion. Paid video subscriptions rose to 216 million, spanning 143 million households in India, driven by the introduction of premium sports and films behind paywalls. Paid music subscriptions expanded by 37% to 14.4 million, following measures by music streaming platforms to discourage free usage. News subscriptions remain limited to only 4 million, primarily due to the abundance of free alternatives available.

? At 63% of the total advertising, digital advertising dominated marketing budgets in 2025

? E-commerce and point-of-sale advertising grew 50% as large advertisers and SMEs moved traditional spends to the medium due to better attribution

? Advertising on Connected TVs increased from INR69 billion in 2024 to INR99 billion in 2025 as subscriptions grew 35% in 2025 and provided affluent audiences to marketers

? Other segments that provided affluent audiences, such as premium OOH, English-language print and in-cinema advertising also grew in 2025

Source: FICCI-EY Report 2026

? Digital advertising is expected to lead the growth, adding INR446 billion as large organizations and SMEs continue to invest in high attribution e-commerce, shoppable and point-of sale advertising, and Connected TVs grow from 40 million to 67 million connections

? Digital subscription revenue is projected to grow by INR85 billion as video OTT subscriptions expand from 143 million to approximately 191million households. Meanwhile, TVOD revenues are expected to rise from INR5 billion to INR7.4 billion, and audio OTT subscriptions are set to double, reaching between 28 million and 30 million

? Animation and VFX revenues are projected to increase as global content pipelines stabilize, and Indian producers incorporate additional VFX and post-production capabilities to accommodate evolving audience preferences. Furthermore, international demand is anticipated to rise, as major studios focus on enhancing profitability by increasingly offshoring to countries like India, China and Mexico

OUR COMPETITIVE STRENGTHS

The following are the key strengths which enable our Company to be competitive in this business:

? Well equipped with advance technology

The Company is well equipped with all the advance equipments as needed in the Industry. This provides company with the edge over its competitors.

? Experienced Promoters and Technically Sound Operation Team

Our Promoters have significant industry experience and have been instrumental in the consistent growth of our Company. Our management and team combines expertise and experience to outline plans for future development of our company. Our dubbing team comprising of writers, artists, directors, sound recording and mixing engineers. We always carry a trending outlook, optimistic nature and a confident attitude towards every assignment may it be Dubbing or Film distribution.

? Marque Clientele

Our Company has worked with large number of marque clients which includes Viacom 18 Media Private Limited, Bangla Entertainment Pvt. Ltd, Discovery Communications India, Paramount Pictures Corporation, Paramount Pictures International Limited, SDI Media Hong Kong Limited, Sony Pictures Networks India Private Limited, Zee Entertainment Enterprises Limited, ATL Media Limited (Mauritius), Genx Entertainment Limited.

? Wide number of languages dubbed

The Company has experience of dubbing various languages including various International languages such as English, Hindi, Tamil, Telugu, Malayalam, Punjabi, Bengali, Oriya, Urdu, Gujarati, Marathi, Malaysia, Mandarin, Thai, Russian, etc.

HUMAN RESOURCES

Our promoters, with their knowledge and experience are well-assisted by our Key Managerial Persons who have helped us retain entrenched relations with existing customers and also helped us engage new customers. We believe that our experience, knowledge and human resources will enable us to drive the business in a successful and profitable manner. Our Company is committed towards creating an organization that nurtures talent. We have employed a prudent mix of the experienced staff and youth which gives us the dual advantage. Our company also conducts regular training programs which is aimed towards strengthening skills, enhancing productivity and building sense of ownership among its employees.

INTERNAL CONTROL SYSTEMS AND ADEQUACY:

Internal Control System has been designed to provide reasonable assurance that assets are safeguard, transactions are executed in accordance with managements authorization and properly recorded and accounting records are adequate for preparation of financial statements and other Financial Information. Internal Check is conducted on a periodical basis to ascertain the adequacy and effectiveness of internal control system.

OUR CLIENTS