BASILIC - Basilic Fly Stud

📊 NSE: BASILIC 🏢 Entertainment / Electronic Media Software 📅 Last Updated: 12/13/2025 19:11

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 146.3% YoY to INR 190.5 Cr in H1 FY26. Standalone (India) revenue grew 58.0% YoY to INR 55.5 Cr, while overseas subsidiaries (UK, Canada, France) contributed the remaining ~71% of total revenue following the consolidation of the 'One of Us' acquisition.

Geographic Revenue Split

India (Standalone) contributes 29.1% of total revenue (INR 55.5 Cr), while international operations across the UK, Canada, and France contribute 70.9% (INR 135.0 Cr).

Profitability Margins

Consolidated PAT margin stood at 14.0% in H1 FY26, a slight dip from 15.9% in H1 FY25. However, Standalone PAT margins improved significantly to 31.0% in H1 FY26 from ~25% in FY25 due to better utilization and higher volumes.

EBITDA Margin

Consolidated EBITDA margin was 20.3% in H1 FY26, down from 24.1% in H1 FY25. Standalone EBITDA margin improved by 4.6% YoY to reach 45.9% in H1 FY26.

Capital Expenditure

Raised INR 85 Cr via QIP in 2025 for inorganic expansion and acquisitions. H1 FY26 saw INR 7.2 Cr spent on fixed assets and intangible assets.

Credit Rating & Borrowing

Total consolidated debt stood at INR 66.3 Cr as of Q2 FY26, up from INR 51.2 Cr in FY25. Finance costs for H1 FY26 were INR 2.9 Cr.

⚙️ Operational Drivers

Raw Materials

Human Capital/Talent (VFX Artists) represents the primary cost, with Employee Benefits Expense totaling INR 122.3 Cr in H1 FY26, accounting for 64.2% of total income.

Import Sources

Talent is sourced globally from operational hubs in Chennai, Pune, and Bengaluru (India), London (UK), Paris (France), and Vancouver (Canada).

Key Suppliers

Not disclosed in available documents as the company is a service-based VFX studio.

Capacity Expansion

Current workforce exceeds 700 artists (423 in India, 271 in London). Total delivery capacity is estimated between INR 550 Cr and INR 600 Cr at 100% utilization. A new Bengaluru branch is currently hiring to expand domestic capacity.

Raw Material Costs

Employee benefits expense grew 217.8% YoY to INR 122.3 Cr in H1 FY26, reflecting the expanded global workforce post-acquisition.

Manufacturing Efficiency

Standalone margins improved due to higher utilization rates and better overhead recoveries from increased domestic volumes.

📈 Strategic Growth

Expected Growth Rate

30-47%

Growth Strategy

Growth will be driven by inorganic expansion in the North American market using INR 85 Cr QIP funds, organic expansion through the new Bengaluru branch, and hiring high-level creative directors to win niche, high-margin projects. The company also aims to leverage UK tax reliefs (40%) and cost synergies from the 'One of Us' acquisition.

Products & Services

End-to-end VFX solutions for Movies (1,150+ projects), Web Series (2,200+ projects), and Commercials (8,160+ projects).

Brand Portfolio

Basilic Fly Studio, One of Us (OOU).

New Products/Services

Diversifying into advertisements and commercials; targeting high-end niche film projects to achieve a long-term 30% PAT margin.

Market Expansion

Expanding into Bengaluru (India) and actively evaluating acquisition targets in North America.

Strategic Alliances

Maintains 'Vendor of Choice' status with major global streamers including Netflix, Amazon, and Sony.

🌍 External Factors

Industry Trends

The UK VFX industry is growing at 9.1% CSAGR; enhanced tax reliefs (40%) for visual effects taking effect in April 2025 will significantly lower production costs for clients, driving demand.

Competitive Landscape

Facing pricing pressure from overseas studios with idle capacity; competing by moving up the value chain into niche creative work.

Competitive Moat

Durable moat built on a global delivery model that combines high-end creative presence in London/Paris with low-cost execution in India. Sustainable through 'Vendor of Choice' status with Tier-1 studios and a 20-year leadership track record.

Macro Economic Sensitivity

Highly sensitive to global film production volumes; the UK is expected to become the second-largest film production center globally by 2026, benefiting the company's London operations.

Consumer Behavior

Increasing consumer demand for high-quality visual effects in streaming content and high-end films.

⚖️ Regulatory & Governance

Industry Regulations

UK Visual Effects tax relief (40%) and business rates relief available until 2034 are key regulatory tailwinds for the subsidiary.

Taxation Policy Impact

Standalone tax rate is 26%. Consolidated tax is lower because the UK entity has accumulated losses that offset current tax liabilities.

⚠️ Risk Analysis

Key Uncertainties

Pricing pressure on overseas margins (potential 5-10% impact) and slower-than-expected recovery of aged receivables from foreign studios not yet at pre-strike levels.