BTML

Bodhi Tree Multimedia is undergoing a significant strategic pivot from a commissioned content model to an IP ownership and co-creation model. The company aims for a 50-50 IP to services revenue mix within the next three years, moving from the current 80-90% reliance on commissioned work. This shift is driven by the insight that less than 1% of content created in India is owned by its creators, despite a $13 billion OTT market, positioning Bodhi Tree to build, build fast, and own IP.

The company reported robust financial growth for Q2 and H1 FY26. Q2 FY26 total income increased by 65% year-over-year to INR24.4 crores, with EBITDA rising 53% to INR4.91 crores and net profit growing 36% to INR3.05 crores. For the first half of FY26, total income reached INR42.8 crores, a 30% increase, while EBITDA surged 149% to INR6.47 crores and net profit grew 185% to INR3.53 crores, highlighting improved operating leverage and content pipeline quality.

To support its IP-led strategy, Bodhi Tree is building a multi-studio creator ecosystem, currently comprising over 10 creator-led studios. Key collaborations include Madlab Alpha (creators of 'Asur'), Amit Khan Content Hub (Hindi Pulp Fiction), Guroudev Bhalla Screens (daily soaps), and a partnership with Moving Images (unscripted content and digital IPs). This ecosystem aims to leverage diverse creative voices to build a powerful, scalable IP machine, contributing to growth over the next two to three years.

The company is actively integrating AI into its operations, with plans for significant announcements soon. An AI unit, led by Aditya Pratap Singh, is focused on 'agentic AI' to streamline content production, break down tasks, and enhance efficiency. This AI-driven approach is expected to provide a first-mover advantage in creating and monetizing content more effectively, making hits more likely and profitable.

Bodhi Tree Ventures serves as the IP monetization engine, focusing on global syndications, sponsorships, YouTube monetization, format licensing, and content-to-commerce, ensuring long-term and recurring revenue. The company employs a 'fail fast' strategy, launching multiple IPs monthly and quickly retiring those that do not gain traction, allowing for rapid iteration and reinvestment. This approach aims to build a library of profitable IPs and expand creative universes.

The business exhibits clear seasonality, with Q1 and Q2 typically slower due to factors like IPL and monsoon, respectively. Q3 and Q4 are stronger, driven by festive seasons and higher advertising budgets, leading to increased viewership and content consumption. The company expects FY26 total income to be around INR80+ crores, a downward revision from the INR130 crores mentioned in the investor presentation, reflecting a more conservative outlook based on current pipeline visibility.

The company's working capital requirements are managed through internal accruals, with expansion funded by existing cash flows and increased IP creation. Other current assets of approximately INR80 crores include advances for projects in the pipeline for a subsidiary and content creations (INR14-15 crores), along with INR21 crores in inventory for projects developed but not yet commercialized. These assets are part of the ongoing investment in building the IP portfolio.