BAWEJA - Baweja Studios L

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

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: Production & Distribution of film and content. Revenue from operations grew by 10.28% YoY, reaching INR 3,549.31 Lacs in H1 FY26 compared to INR 3,218.43 Lacs in H1 FY25.

Geographic Revenue Split

While specific regional revenue splits are not provided, the company maintains a global footprint through its 100% subsidiary, Baweja Studios LLC in the USA, and a 51% subsidiary, Three Knot Studio Ltd in the UK.

Profitability Margins

Net Profit Margin significantly declined to 4.24% in H1 FY26 from 9.37% in H1 FY25. This compression was primarily driven by a 449.5% surge in finance costs and a 17.2% increase in operational expenses.

EBITDA Margin

EBITDA margin stood at approximately 10.19% (INR 361.79 Lacs) for H1 FY26, a decrease from 14.23% (INR 457.88 Lacs) in H1 FY25, reflecting higher production and operational overheads.

Capital Expenditure

Property, Plant & Equipment (PPE) decreased to INR 363.92 Lacs as of September 30, 2025, from INR 409.46 Lacs in March 2025, suggesting minimal new asset acquisition and a focus on utilizing existing production infrastructure.

Credit Rating & Borrowing

Total borrowings (current and non-current) reached INR 3,015.50 Lacs as of September 30, 2025. Finance costs escalated to INR 139.59 Lacs for the half-year, representing an implied semi-annual interest burden of approximately 4.6% on total debt.

⚙️ Operational Drivers

Raw Materials

The primary 'raw materials' are film production inputs, including content rights, talent fees, and technical production services, which are captured under Operational Expenses totaling INR 3,137.40 Lacs (88.4% of revenue).

Import Sources

Not specifically disclosed, though international subsidiaries in the USA and UK suggest global sourcing of talent or co-production services.

Capacity Expansion

The company does not report traditional manufacturing capacity; however, inventory (films under production) increased by 16.26% to INR 8,126.26 Lacs, indicating an expanded pipeline of content.

Raw Material Costs

Operational expenses (production costs) rose 17.2% YoY to INR 3,137.40 Lacs, outpacing revenue growth and indicating higher costs for content creation or acquisition.

Manufacturing Efficiency

Not applicable in a traditional sense; however, the reduction in trade receivables by 35.3% to INR 4,637.21 Lacs indicates improved collection efficiency from distributors.

Logistics & Distribution

Distribution is handled through film and content distribution networks; costs are integrated into operational expenses.

📈 Strategic Growth

Expected Growth Rate

10.28%

Growth Strategy

Growth is pursued through the expansion of the content library, evidenced by the 16.26% increase in inventory (work-in-progress films). The company is also leveraging international subsidiaries in the UK and USA to tap into global distribution and co-production opportunities.

Products & Services

Production and distribution of feature films, digital content, and media rights.

Brand Portfolio

Baweja Studios.

New Products/Services

New film projects are currently in production, reflected in the INR 8,126.26 Lacs inventory, though specific titles and their expected revenue contributions are not listed.

Market Expansion

Expansion into the UK and USA markets via Three Knot Studio Ltd and Baweja Studios LLC to diversify revenue streams beyond the Indian domestic market.

Strategic Alliances

Maintains a 51% stake in Three Knot Studio Ltd (UK) for international collaborations.

🌍 External Factors

Industry Trends

The industry is shifting toward digital-first releases and high-budget OTT content. Baweja is positioning itself by maintaining a large inventory of content (INR 8,126.26 Lacs) to meet this demand.

Competitive Landscape

Competes with major Indian film studios and independent production houses for talent, screen space, and OTT licensing deals.

Competitive Moat

The company's moat is built on its established brand in the Indian film industry and its ability to manage complex, multi-geography productions through its subsidiary network.

Macro Economic Sensitivity

Highly sensitive to consumer discretionary spending and the health of the media and entertainment industry in India and key international markets.

Consumer Behavior

Shift toward diverse, high-quality digital content is driving the need for a larger and more varied content pipeline.

Geopolitical Risks

Operations in the UK and USA expose the company to changes in international co-production treaties and foreign media regulations.

⚖️ Regulatory & Governance

Industry Regulations

Subject to film certification (CBFC) and media broadcasting regulations in India, as well as local media laws in the UK and USA.

Environmental Compliance

Not applicable to the core film production business.

Taxation Policy Impact

Effective tax rate for H1 FY26 was approximately 25.2% (INR 50.67 Lacs tax on INR 201.27 Lacs PBT).

Legal Contingencies

A search was conducted by the Inspector, CGST, Mumbai West Commissionerate at the company's premises on November 11, 2025. While the company states there is no material impact currently, the outcome of this search remains a pending regulatory matter.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the outcome of the CGST search and the potential for high interest rates to continue suppressing net margins (currently at 4.24%).