Prime Focus Q4 FY26 Results (NSE: PFOCUS)
Signal: Loss reversed
The read
Prime Focus continued its margin recovery streak, with consolidated OPM expanding for the 6th consecutive quarter to 35% as revenue growth of 41% YoY drove operating leverage. PAT turned positive at ₹118 Cr after a loss of ₹252 Cr a year ago, aided by other income (32% of PBT). The key risk is the ongoing insolvency petition (NCLAT stayed) which could crystallise a liability of ~₹354 Cr. The standalone entity remains a loss-making holding company, reliant on subsidiary dividends and tax credits.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,384 Cr | 41.4% | 14.7% |
| EBIT | ₹484 Cr | 98.4% | |
| Net profit | ₹118 Cr | N/A (swing from loss of ₹252 Cr) | |
| EPS | ₹1.06 | N/A (swing from loss per share) | |
| EBIT margin | 35% |
P&L walk
Revenue ₹1,384 Cr (+41% YoY, +15% QoQ) driven by strong volume growth in film and media services; EBITDA margin expanded 1100bps YoY to 35%, the 6th consecutive quarter of margin expansion, supported by operating leverage and cost controls. PAT swung to ₹118 Cr from a loss of ₹252 Cr in Q4FY25, though other income contributed 32% of PBT, warranting caution.
Key positives
- 6th consecutive quarter of margin expansion (OPM from 24% in Q2FY25 to 35% in Q4FY26), demonstrating sustained operating leverage.
- Consolidated revenue growth accelerated for the 4th straight quarter, up 41% YoY to ₹1,384 Cr, driven by volume and new client wins.
- PAT moved from a loss of ₹252 Cr to a profit of ₹118 Cr, supported by higher EBITDA and low finance cost growth.
Key concerns
- Insolvency proceedings under IBC admitted by NCLT (stayed by NCLAT) – a potential liability of ₹354 Cr remains sub judice.
- Other income constituted 32% of consolidated PBT, indicating dependence on non-operating items for profitability.
- Standalone business continues to report operating losses (PBT loss of ₹15.8 Cr for Q4), relying on tax credits and subsidiary income.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.