Basilic Fly Stud

Basilic Fly Studio reported a strong H1 FY26, with consolidated revenue reaching INR 190.5 crores, marking a 146% year-on-year growth. PAT also saw a significant increase of 117% year-on-year, totaling INR 26.8 crores, while EBITDA margin stood at 20.3%. India's standalone performance was robust, with total income of INR 55.5 crores (1.6x YoY growth) and a PAT margin of 31%.

The company successfully integrated "One of Us," yielding visible synergies and contributing to INR 265 crores in new wins during H1. The Bengaluru team commenced deliveries in October 2025, enhancing offshore capacity and leveraging India's cost advantage. Basilic Fly Studio also partnered with Netflix for a South Indian original project, strengthening its domestic footprint in high-end content.

Phase 1 of the modular USD pipeline initiative was completed in March 2025, with Phase 2 on track for completion by end of FY26/Q1 FY27. This initiative aims to redefine collaboration across international and Indian teams, making the production network more seamless and efficient. The modular UHD pipeline is expected to generate 15-20% internal savings and facilitate work transition from London/Paris to India.

The global visual effects market is projected to grow from US$11.19 billion in 2025 to US$20.29 billion by 2034, at a CAGR of 6.83%. Management noted a revival in the broader industry, with major streaming platforms resuming content investment and tax incentives in key markets. The company's hybrid model, combining global creative excellence with India's efficiency, positions it uniquely in this evolving market.

Basilic Fly Studio strengthened its liquidity with a net cash surplus of INR 48.3 crores, following a successful QIP of INR 85 crores. This capital will be deployed for technology innovation, delivery expansion, and selective inorganic growth. Despite a positive DSO reduction to 92 days, operating cash flow was negative INR 17.1 crores in H1, primarily due to peak revenue recognition late in the period.

The company is actively pursuing acquisitions to diversify into the North American market, immersive experiences, and advertisements. Management is evaluating multiple options, with potential targets ranging from INR 250 crores to INR 400 crores in revenue. The QIP funds, along with internal accruals, will support these strategic inorganic growth initiatives.

While H1 FY26 saw some margin shrinkage in overseas subsidiaries due to pricing pressures, management anticipates H2 to be stronger, driven by better employee utilization and overhead recovery. The company targets a sustainable consolidated PAT margin of around 30% in the near future, supported by operational efficiencies from technology integration and offshoring.