Basilic Fly Stud

Basilic Fly Studio reported strong standalone performance with Q3 revenue at ₹39 crores and YTD revenue at ₹94 crores, marking a 2.1x YoY growth from ₹46 crores last year. Standalone PAT also saw a 2.5x YoY growth, with YTD PAT margin reaching 29.2% compared to 23.5% last year. The company secured new wins exceeding ₹300 crores for April-December FY26, with an outstanding order book of over ₹200 crores yet to be delivered, signaling continued momentum.

While consolidated YTD revenue grew 1.7x YoY to ₹294 crores from ₹169 crores last year, consolidated EBITDA margin shrunk by 2.8% to 19.9% and PAT margin by 2.4% to 11.8% YTD. This compression is attributed to strategic initiatives including annual appraisal revisions, leadership hiring, one-off^📎 severance costs, and the impact of IndAS conversion, cumulatively affecting margins by 2.5-2.8%. Management expects these initiatives to improve long-term efficiency and scalability.

The company is strengthening its global delivery model by increasing offshore headcount by 58 FTE and making strategic hires in business development and VFX supervision across UK and US markets. Notable additions include Adrian De Wet and Mariann for the Los Angeles market, and Audrey Ferrara and Teresa for the UK market, bringing extensive experience from major franchises. These hires are intended to enhance client engagement and business opportunities, particularly in the North American market.

Basilic Fly Studio is transitioning from a full AWS-based workflow to a hybrid infrastructure model, aiming for a 50% reduction in infrastructure costs and potential annual savings of ₹5-14 crores from FY27 onwards. This shift involves centralizing storage in the cloud while bringing rendering and processes to India. The company has also deployed an AI-enabled performance monitoring system and implemented company-wide Universal Access to enhance productivity and accelerate creative output.

Aged receivables greater than 180 days stood at ₹53.05 crores as of March 31, 2025, with only about 9% recovered by YTD December. This situation is primarily from India business and was impacted by European holidays, though management expects larger parts to be collected in the current and following quarters. Of the ₹85 crores raised via QIP in September 2025, 48% has been utilized, with the remaining funds earmarked for inorganic growth opportunities, which are currently at an advanced LOI discussion stage.

Management projects a top-line CAGR of 25-30% and aims for a 1.5-2% year-over-year margin improvement, driven by increased offshoring, cost optimization, and new business development efforts. The company is actively pitching for several high-value marquee projects, including three businesses and one with Amazon MGM, and is working on major projects for Netflix, Disney, and Warner Bros. The focus on a hybrid AI and VFX model for commercials and ads is also expected to drive revenue.