Basilic Fly Studio LtdQ1 FY25Entertainment

Basilic Fly Studio Ltd

Q1 FY25 Earnings Call Analysis

Management growth scorecard

Revenue

Category 2

Margin

Category 1

Fundraise

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Revenue guidance

Category 2

→Basilic Fly Studio expects strong growth in FY26 with revenues projected between INR 450 to 500 crores, up from INR 306 crores in FY25.
→The VFX industry is poised for a strong recovery and expansion with a projected CAGR of 13% through 2027, reaching INR 147 billion.
→The UK subsidiary's order book remains robust at around INR 290 crores as of May 2025, with a steady monthly delivery run rate of INR 35-40 crores.
→Increased demand following industry events like the writer strike and large production budgets (e.g., Netflix's $18 billion spend in 2025) drive growth.
→The company is investing in technology, offshoring work to India for cost arbitrage, and hiring senior talent to boost capacity and delivery.
→Future volumes and margins are expected to improve due to more offshoring, technical integration, and higher resource utilization.
→Growth opportunities also stem from planned technology advancements and AI lab initiatives to innovate and enhance production efficiency.

Category 1

→The company expects consolidated revenue to reach INR 450-500 crores in FY26, driven by strong order books and industry recovery post-writer strike.
→Margins are anticipated to improve by 2-3% due to increased offshoring work and completion of the first phase of tech integration.
→PAT margins for the standalone business are expected to gradually increase with enhanced resource utilization and cost arbitrage from India.
→UK subsidiary "One of Us" margins showed significant improvement, with further margin expansion expected as offshoring work grows.
→Operating leverage is expected to improve as most employee hiring is complete, enabling better profitability even with limited employee cost increases.
→Management is optimistic about continued margin improvement and expansion driven by technology upgrades and integration of global delivery centers.
→Future ROE (currently 28%) and ROCE (currently 23%) are expected to improve as top-line grows and operational efficiencies increase, though exact guidance will be shared later.

Get access to all 5 sections — revenue, margin, fundraise, orderbook, and capex — for Basilic Fly Studio Ltd and 1,400+ other companies.

→There is no immediate plan for fundraising this year as per management.
→The company is open to exploring fundraising opportunities as and when the right opportunity arises.
→They aim to maintain a balanced approach between investments and fundraising.
→No specific debt or equity issuance has been announced or planned at present.
→The management will consider fundraising based on future strategic needs and market conditions.

Yes

→As of the end of January 2025, the UK subsidiary's order book was around ₹300 crores.
→By the end of May 2025, 55% (₹165 crores) of that order book was successfully executed.
→Out of ₹165 crores executed, ₹110 crores (37%) were accounted for by March 2025.
→As of May 2025, the refreshed order book stands close to ₹290 crores for the UK subsidiary, including old and new wins.
→The order book is scheduled for delivery mostly between July to September 2025, with some portions extending into Q1 and Q3 of 2026.
→The company is actively winning new orders with several big deals in the pipeline.
→The management expects FY26 to be a landmark year with a growing order book due to increased industry demand and production spend.

Yes

→Basilic Fly Studio is investing deeply in future-proofing technologies, including embedding smart workflows powered by real-time cloud collaboration, modular infrastructure, and AI-driven tools.
→The company plans to set up an AI lab in collaboration with teams in the UK and India, leveraging cross-border talent.
→This AI lab initiative aligns with the UK-India trade agreement to benefit from R&D incentives while driving innovation in VFX and production technology.
→There's a focus on technological upskilling and integration to enable more offshoring work, improve margins, and enhance delivery capabilities.
→No immediate plans for large acquisitions, but the management remains open to attractive partnership or acquisition opportunities as part of their inorganic growth strategy.
→Capital investment is clearly geared towards technology upgrades, talent enhancement, and expanding global operational capabilities.

How does Basilic Fly Studio Ltd rank vs peers in Entertainment?

Pro feature

1Basilic Fly Studio Ltd

Rev 2Mar 1

See full Entertainment sector rankings

Want more stocks like Basilic Fly Studio Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.