Prime Focus Q1 FY27 Results (NSE: PFOCUS)
Signal: Growth reaccelerated
The read
The operating trajectory remains structurally large but has weakened sequentially: consolidated revenue was ₹1266.82 Cr, +85.9% YoY but -16.3% QoQ, while EBITDA margin contracted to 26.7% from 33.6% in the year-ago quarter and PAT was overwhelmed by a ₹65.29 Cr exceptional settlement charge; the key test is whether margin recovers after this one-off and elevated depreciation burden.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹12.67 Cr | +85.9% | -16.3% |
| EBIT | ₹1.59 Cr | -43.1% | |
| Net profit | ₹-0.41 Cr | -137.4% | |
| EPS | ₹0.53 | -74.1% | |
| EBIT margin | 26.7% |
P&L walk
Revenue rose to ₹1266.82 Cr, +85.9% YoY but -16.3% QoQ; EBITDA fell 15.4% YoY to ₹338.52 Cr and margin contracted to 26.7%, with depreciation up 45.4% and a ₹65.29 Cr exceptional loss pushing PAT to a ₹41.33 Cr loss.
Segments
The group reports a single integrated post-production operating segment, and the major divergence is between consolidated revenue of ₹1266.82 Cr and standalone revenue of ₹7.62 Cr, confirming that earnings are generated almost entirely by subsidiaries.
Key positives
- Consolidated revenue reached ₹1266.82 Cr, up 85.9% YoY, maintaining substantial scale despite a 16.3% QoQ decline.
- The ₹65.29 Cr exceptional loss relates to settlement of the RASPL dispute, and the filing states that the CIRP and related litigation are fully resolved.
- The group added a 48.45% stake in Anima Kitchent Canarias for approximately ₹13.69 Cr, broadening its animation capability through a joint venture.
Key concerns
- EBITDA declined 15.4% YoY to ₹338.52 Cr and EBITDA margin contracted to 26.7% from 33.6% in the year-ago quarter.
- Depreciation rose 45.4% YoY to ₹179.12 Cr, reducing EBIT to ₹159.40 Cr despite strong revenue growth.
- Employee benefits expense increased 27.3% YoY to ₹748.19 lakh, contributing to the margin contraction.
- The group reported a ₹41.33 Cr PAT loss, with operating profit before exceptional items of only ₹33.05 Cr against finance costs of ₹126.24 Cr.
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