Vision Cinemas Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian media and entertainment industry continues to evolve with changing consumer preferences, technological advancements and increasing digital consumption. The cinema exhibition sector remains an important part of the entertainment industry, while digital platforms and content consumption are creating new opportunities for the sector. The Company is primarily engaged in movie exhibition and has also undertaken advertisement film production activities during the year under review. The Company continues to monitor developments in the industry and adapt its business strategies to changing market conditions.

2. OPPORTUNITIES AND THREATS

The Company sees opportunities arising from the growing demand for quality entertainment, increasing digital content consumption and the expanding market for advertisement and visual content production. The Company also continues to explore opportunities to diversify its revenue streams and improve operational efficiency. The major challenges include competition from other cinema operators and OTT/digital platforms, changing consumer preferences, dependence on the performance of films and content, rising operating costs, technological changes and regulatory requirements.

3. SEGMENT-WISE / PRODUCT-WISE PERFORMANCE

The Company is engaged in the entertainment sector, primarily comprising movie exhibition and advertisement film production activities. During the year under review, the Company commenced advertisement film production and continues to evaluate opportunities for strengthening and expanding its business activities. The detailed financial performance of the Company for the year under review is provided in the Directors Report forming part of this Annual Report.

4. OUTLOOK

The Company remains focused on strengthening its presence in the entertainment industry and exploring sustainable opportunities in cinema exhibition, advertisement film production and other related activities. The management will continue to evaluate market conditions and undertake appropriate business initiatives based on their commercial viability, with a focus on improving operational performance and creating long-term stakeholder value.

5. RISKS AND CONCERNS

The Companys business is subject to risks associated with competition, changing consumer preferences, performance and availability of film content, OTT and digital platforms, operating costs, technology and regulatory changes. The Company regularly reviews these risks and takes appropriate measures to mitigate their potential impact on its operations and financial performance.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal control systems commensurate with the size and nature of its operations. The controls are designed to ensure proper recording of financial and operational information, safeguarding of assets, prevention and detection of errors and frauds, compliance with applicable laws and reliability of financial reporting. The adequacy and effectiveness of the internal control systems are periodically reviewed by the management and the Audit Committee.

7. FINANCIAL AND OPERATIONAL PERFORMANCE

The financial performance of the Company for FY 2025-26 as compared with FY 2024-25 is summarised below:

Particulars	FY 2025-26 ( Lakhs)	FY 2024-25 ( Lakhs)
Revenue from Operations	89.12	320.30
Other Revenue	2.90	0.06
Total Revenue	92.03	320.36
Employee Benefits Expense	4.86	21.15
Other Expenses	90.94	294.72
Finance Cost	0.01	0.01
Depreciation & Amortisation	3.65	3.65
Profit/(Loss) Before Tax	(7.43)	0.83
Profit/(Loss) After Tax	(6.75)	0.51
Basic EPS ( )	(0.0095)	0.0007

Analysis

During FY 2025-26, the Company recorded revenue from operations of 89.12 lakhs as compared to 320.30 lakhs in the previous year. The decrease in revenue was primarily due to lower business activity during the year. The Company incurred a net loss of 6.75 lakhs as against a net profit of 0.51 lakhs in the previous year, mainly due to the lower revenue in relation to the operating cost structure. Employee benefit expenses and other operating expenses decreased during the year in line with the level of business operations, while depreciation and finance costs remained broadly stable.

The financial position of the Company remained stable during the year under review. The Company maintained adequate liquidity and continues to monitor its working capital and cash flow position closely. The improvement in operating cash flows was primarily attributable to changes in working capital, including reduction in trade receivables.

The Company continues to focus on strengthening its operations, improving revenue generation and exploring opportunities for sustainable growth.

8. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Human resources continue to be an important part of the Companys operations. The Company maintains a conducive work environment and focuses on employee development and operational efficiency.

The industrial relations remained cordial during the year under review. The Company had [4] employees as at 31 March 2026.

9. KEY FINANCIAL RATIOS

In accordance with the applicable requirements of Schedule V of the SEBI LODR Regulations, significant changes in key financial ratios, i.e. changes of 25% or more as compared to the immediately preceding financial year, together with the reasons for such changes, are required to be disclosed.

Based on the standalone financial statements, the significant changes are as follows:

Sl. No Ratio	FY 2025-26	FY 2024-25	Variance
a Current Ratio (in times)	3.56	3.54	2.56%
b Debt-Equity Ratio (in times)	0	0	0.00%
c Debt Service Coverage Ratio (in times)	0	0	0.00%
d Return on Equity Ratio (in %)	-0.004	0	0.00%
e Trade Receivables Turnover Ratio (in times)	0.52	1.97	-0.48%
f Trade Payables Turnover Ratio (in times)	0.33	1.55	-0.79%
g Net Capital Turnover Ratio (in times)	0.11	0.4	-0.89%
h Net Profit Ratio (in %)	-0.08	0	-1.08%
i Return on Capital Employed (in %)	0	0	0.00%
j Return on Investment (in %)			0.00%

The Company continues to monitor its financial performance and key operating parameters on a regular basis. The above ratios have been considered with reference to the standalone financial statements. Where the denominator or numerator is not meaningful due to the nature of the underlying figures, the ratio may not provide a meaningful comparison.

10. RETURN ON NET WORTH

The Return on Net Worth of the Company declined during the year under review, primarily due to the net loss incurred during FY 2025-26 as compared to the net profit recorded in the previous financial year.

11. CONSOLIDATED FINANCIAL PERFORMANCE

The consolidated financial statements of the Company include the financial performance of its subsidiary, prepared in accordance with the applicable accounting standards.

The management reviews the performance of the subsidiary on a regular basis and continues to explore opportunities for improving the overall performance of the Group.

12. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations and projections may constitute forward-looking statements. Actual results may differ materially from those expressed or implied due to various factors including changes in economic conditions, industry developments, competition, regulatory changes, consumer preferences, technological developments and other factors beyond the Companys control.

For and on behalf of the Board	of Directors
Sd/-	Sd/-
MUTHUSWAMY HARIHARAN	BINDIGANAVALE RANGAVASANTH
DIRECTOR	MANAGING DIRECTOR
(DIN: 08497968)	(DIN: 01763289)
Place: Bangalore
Date: 20-05-2026