Basilic Fly Stud — Q4 FY26 earnings call

Call held 2 Jun 2026

Management summary

Basilic Fly Studio delivered a strong FY26 with consolidated total income growing 36.6% YoY to INR 418 crores and PAT increasing 13.2% YoY to INR 50.6 crores. Standalone performance was particularly robust, with revenue up 64% YoY to INR 120 crores and EBITDA margin improving to 43.1%. However, consolidated margins saw some compression due to project rescheduling and initial costs associated with 14 senior leadership hires. The company is investing heavily in AI-powered workflows and the USD pipeline, and has a promising order book of INR 232 crores for FY27.

Highlights

  • Consolidated total income grew 36.6% YoY to INR 418 crores in FY26, up from INR 306 crores last year.

  • Consolidated PAT grew 13.2% YoY to INR 50.6 crores in FY26, up from INR 44.7 crores last year.

  • Standalone operational revenue grew 64% YoY to INR 120 crores in FY26, up from INR 74 crores last year.

  • Standalone EBITDA margin improved 0.5% YoY to 43.1% in FY26, from 42.6% last year.

  • Standalone PAT margin improved 1.5% YoY to 24.2% in FY26, from 22.7% last year.

Concerns

  • Consolidated EBITDA margin shrank 2.6% YoY to 20.9% in FY26, down from 23.5% last year.

  • Consolidated PAT margin shrank 2.5% YoY to 12.1% in FY26, down from 14.6% last year.

  • Consolidated margins were impacted by project shifting to FY27 and initial period costs of 14 senior hires.

Key financials

  1. Consolidated Total Income ₹418 Cr +36.6%YoY
  2. Consolidated PAT ₹50.6 Cr +13.2%YoY
  3. Consolidated EBITDA Margin 20.9% -2.6%YoY
  4. Consolidated PAT Margin 12.1% -2.5%YoY
  5. Standalone Operational Revenue ₹120 Cr +64%YoY
  6. Standalone EBITDA Margin 43.1% +0.5%YoY
  7. Standalone PAT Margin 24.2% +1.5%YoY
  8. Consolidated Operating Cash Flow ₹22.9 Cr

What they filed

Q1 FY27: revenue up 28.1%, net profit up 17.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue19 12 28 20 34 +83%39 +231%27 −4%26 +28%
EBITDA7 4 12 9 19 +157%17 +355%8 −31%11 +29%
Net profit6 1 6 5 12 +105%12 +859%3 −51%6 +17%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹232 Cr

as of 2026-03-31 quantified

Execution

90% of existing orders executed by end of Q4 next year (FY27), some spill over to Q1 following year (FY28).

Pipeline

qualified rfp

Active pipeline of approximately INR 456 crores

The company has a strong order book and a robust bid pipeline, with an improved winning ratio for larger ticket-size projects.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹15 Cr
    • AI, USD pipeline, NetApp storage, workflows, tools upgrade ₹73 Cr
    So, this INR 73 crores, not only the Al, it is multiple aspects and it is within India as well as outside India... I would say it may be another close to 15 to 20 across the year, not immediate.
  • M&A One of Us Acquisition · Integrated

    Acquired a 20-year-old legacy, Emmy and BAFTA award-winning company based out of the UK.

    We acquired a 20-year-old legacy, Emmy and BAFTA award-winning company based out of the UK, named "One of Us" in July 2024.
  • M&A Deal Acquisition · Abandoned

    Earlier LOI on hold from the seller side.

    To be transparent and honest with you, that the earlier LOI, what we were talking about in the earlier calls, that is on hold currently from the seller side.
  • M&A Deal Acquisition · Announced

    Diversification of geography and services, including gaming, commercial, and immersive experiences.

    We are in the advanced stage with the 2 to 3 players... The typical ticket size that we are evaluating ranges in between the Rs. 200 crore to Rs. 300 crore ticket size of the M&A acquisitions.
  • Liquidity Cash ₹45 Cr
    I think the cash balance is about INR 45 crores.

Guidance & targets

Revenue

  • Organic Revenue Growth Revenue · FY27 · High confidence 30% more than current year
    Yes, I think we would be able to add on 30% to what we did in the current year and the last financial year.

    — Balakrishnan

Profitability

  • PAT Profitability · FY27 · High confidence INR 65-70 crores
    So, we think that with the as-is position, it should take us comfortably within the range of the 65 to 70 crores of the PAT with the current visibility.

    — Gaurav Mehra

  • PAT Margin Improvement Profitability · Annually · Medium confidence 1.5-2%
    With the initiative being driven, that should add another 2% to 3% in the range, if not fully, I think it should comfortably add within the range of the 1.5% to 2% on an annual basis.

    — Gaurav Mehra

Receivables

  • Aged Receivables (>6 months) Receivables · End of Q1 FY27 · High confidence Under INR 40 crores
    So, in my mind this should come down under 40 by the end of the Q1 of FY '27.

    — Gaurav Mehra

Capex

  • Investment Capex · FY27 · Medium confidence INR 15-20 crores
    I would say it may be another close to 15 to 20 across the year, not immediate.

    — Gaurav Mehra

What to watch in Q1 FY27

Aged Receivables (>6 months)

End of Q1 FY27
Current Close to INR 59.5 crores (before April/May knockoff), expected to be INR 40 crores after
Target Under INR 40 crores

Why it matters

Indicates improvement in working capital management and cash flow efficiency.

And if I do the knock-off of April and May, it should come down by 7 to 8 crores. In June we also expect some collections. So, in my mind this should come down under 40 by the end of the Q1 of FY '27.

Risks & concerns

  • Consolidated Margin Compression

    medium

    Consolidated EBITDA and PAT margins shrank in FY26 due to project rescheduling to FY27 and initial period costs of 14 senior hires.

    Management acknowledged

  • Aged Receivables

    low

    INR 100 crores of debtors outstanding as of March 31, with INR 59.5 crores being aged (>6 months) before recent collections, though management expects significant reduction by Q1 FY27.

    Analyst acknowledged

  • Acquisition Delays

    low

    An earlier Letter of Intent (LOI) for a potential acquisition is currently on hold from the seller's side.

    Management acknowledged

Q&A highlights

6 direct
Impact of 14 Senior Hires Direct
So, your first question relates to the senior hire cost and the benefit out of that... This is strengthening our team. 14 Hires roles go to different areas... we have also got first winning done via our senior hires in the month of April to the tune of close to 3 to 3.5 million GBP. These all the 14 strategic hires go to different, different roles. About five to six people are in the business development role across the geographies of North America, Europe, UK... All put together, variable & fixed, the total cost will vary in the range of GBP 1.2 to 1.5 million annually, all resources put together.

Explains the strategic rationale and financial impact of recent senior leadership hires, linking them to new business wins and future growth drivers.

Asked by Nitin Babulal Gandhi

Bid Pipeline Conversion and Scalability Direct
Traditionally, our winning ratio ranges from 60% to 70%, but it is hard to say. What is changing for us is that in the previous period, we used to do the bidding for an average ticket size of 1 to 2 million. We have changed our bidding scalability with the connection through the leadership hires... I mentioned in the bidding pipeline that the projects are to the tune of the 7 million, 5 million.

Provides insight into the company's sales strategy, indicating a shift towards larger, more valuable projects and the role of new hires in this transition.

Asked by Nitin Babulal Gandhi

FY27 Revenue and PBT Targets Direct
Yes, I think we would be able to add on 30% to what we did in the current year and the last financial year... So, we think that with the as-is position, it should take us comfortably within the range of the 65 to 70 crores of the PAT with the current visibility. With the initiative being driven, that should add another 2% to 3% in the range, if not fully, I think it should comfortably add within the range of the 1.5% to 2% on an annual basis. So, it should surpass the INR 70 crore number, which you mentioned.

Clarifies management's expectations for FY27 organic revenue growth and PAT, providing key financial guidance for investors.

Asked by Viraj Mahadevia

Aged Receivables Status and Recovery Direct
So, we have got good collections done in March. Just to name you, we got an outstanding collection of about INR 20 crores within the month of March. And post the balance sheet, we have received another INR 17 crores. So, within the last two months, April and May, so in the last three months, we have received close to INR 37 crores... So, in my mind this should come down under 40 by the end of the Q1 of FY '27.

Details the progress on collecting aged receivables and sets a clear target for reducing them, addressing concerns about working capital management.

Asked by Viraj Mahadevia

Nature of INR 73 Crores Investment Direct
So, this INR 73 crores, not only the Al, it is multiple aspects and it is within India as well as outside India... So, as we briefly mentioned, we are investing into something called USD, Universal Scene Description, which enables the India team to operate on the same pipeline where the London people are operating... We are investing into storage... We are also investing into Al. We are investing into the workflows. We are upgrading our tools.

Provides a detailed breakdown of the significant investment made, clarifying its strategic importance beyond just AI to include core infrastructure and workflow improvements.

Asked by Shikhar Mundra

Mainboard Migration Update Direct
So, we have already kick-started the process. As you know, as per the norm, our eligibility lies by September 2026. To take the advantage and to move fast, the process has already been kick-started internally, whatever the preparation can be done before the timelines. And we are taking it up with the right consultant to move as fast as we can.

Offers an update on the company's progress towards migrating to the mainboard, which is important for market visibility and investor base.

Asked by Bhavya Kumariya

Acquisition Strategy and Pipeline Partial
To be transparent and honest with you, that the earlier LOI, what we were talking about in the earlier calls, that is on hold currently from the seller side... We are exploring with the other prospects and hopefully we should have the signed LOI very soon.

Reveals that a previously discussed LOI is on hold, but the company is actively pursuing other acquisition targets, indicating ongoing inorganic growth efforts despite a setback.

Asked by Bhavya Kumariya

Future Dividend Payouts Partial
That is always into the consideration of the management. But I would like you to appreciate that currently the company focuses more on investment and expansion. So, this cost what we have invested are not the smaller ones, both in the people and the technology.

Indicates management's current capital allocation priority is growth through investment rather than immediate significant shareholder returns, providing clarity on dividend policy.

Asked by Shikhar Mundra

3 min read 7 chapters

Detailed narrative

FY26 Financial Performance Overview

Consolidated total income for FY26 reached INR 418 crores, marking a 36.6% year-on-year growth from INR 306 crores in the previous year. PAT for the year stood at INR 50.6 crores, a 13.2% increase from INR 44.7 crores last year, with an EBITDA percentage of 20.89%. Standalone operational revenue also saw robust growth, increasing 64% YoY to INR 120 crores, while standalone EBITDA and PAT margins improved by 0.5% and 1.5% respectively.

Strategic Investments in Technology and Talent

The company invested INR 73 crores in FY26, not solely in AI software, but also in the Universal Scene Description (USD) pipeline, NetApp enterprise storage, and general workflow and tool upgrades. These investments aim to reduce operating costs by approximately 62% through a hybrid cloud model and enable the company to secure Tier 1 mandates by improving interoperability and reducing redundancy. Additionally, 14 senior leadership hires were made in FY26, contributing to business development, VFX supervision, and AI initiatives, with an estimated annual cost of GBP 1.2 to 1.5 million.

Order Book and Pipeline for FY27

Basilic Fly Studio's order book for FY27 stands at INR 232 crores, complemented by an active bid pipeline of INR 456 crores. The company traditionally has a winning ratio of 60-70% for bids, but new senior hires have enabled bidding for larger ticket sizes, now ranging from 5-7 million GBP compared to the previous 1-2 million GBP. Management expects 90% of the existing orders to be executed by Q4 FY27, with some spilling into Q1 FY28.

Receivables Management and Liquidity

The company reported debtors of INR 100 crores as of March 31, 2026, after initial collections. Significant recovery efforts led to INR 20 crores collected in March and an additional INR 17 crores in April/May, reducing the outstanding debtors to INR 86 crores. Management anticipates bringing aged receivables (over 6 months) under INR 40 crores by the end of Q1 FY27, demonstrating a focus on improving cash flow and balance sheet health. The company's cash balance is approximately INR 45 crores.

M&A and Expansion Strategy

Following the acquisition of 'One of Us' in July 2024, Basilic Fly Studio is actively pursuing further inorganic growth. The company has evaluated 7-8 potential targets and is in advanced stages with 2-3 players, with a typical M&A ticket size (top line) ranging from INR 200-300 crores. The strategy focuses on geographical diversification into North America and Spain, as well as service diversification beyond gaming to include commercial and immersive experiences, although an earlier LOI is currently on hold from the seller's side.

Mainboard Migration and Shareholder Returns

The company has initiated the process for migrating to the mainboard, with eligibility expected by September 2026, and is actively working with a consultant to expedite this. While shareholder returns are always considered by management, the current priority is on investment and expansion into new technologies and markets, suggesting that significant dividend payouts are not an immediate focus as the company aims to reinvest for long-term growth.

Consolidated Margin Compression and Outlook

Despite strong revenue growth, consolidated EBITDA margin for FY26 shrank by 2.6% to 20.9%, and PAT margin shrank by 2.5% to 12.1%. This compression is primarily attributed to the rescheduling of projects to FY27 and the initial period costs associated with the 14 senior leadership hires, whose full-year costs are expected to be absorbed in FY27. Management anticipates PAT to reach INR 65-70 crores in FY27, with a potential 1.5-2% annual improvement in PAT margin as investments yield returns and operational leverage increases.

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