💰 Financial Performance

Revenue Growth by Segment

Historical revenue grew at a CAGR of 17.5% from FY2011 to FY2016, reaching INR 1,603.6 Cr. However, current performance shows severe distress with a Loss Before Tax of INR 35.99 Cr for the period ended September 30, 2025. Segment-wise growth is not currently disclosed due to the company operating as a single reportable segment.

Geographic Revenue Split

Based on historical data, the theatrical segment contributed 43.9%, Overseas distribution accounted for 26.1%, and Television & Others contributed 30.0% of total revenue.

Profitability Margins

Historical PAT margins were 18.1% in 9M FY2017 compared to 14.1% in 9M FY2016. Q3 FY2017 PAT margins reached 30.3%. Currently, profitability is negative with a Loss Before Tax of INR 50.04 Cr for the half-year ended September 30, 2025, leading to a total erosion of net worth.

EBITDA Margin

Historical EBIT grew at a CAGR of 15.9% (FY11-FY16). Current EBITDA is severely impacted by a provision for doubtful trade receivables of INR 11.75 Cr and amortization on film rights of INR 25.17 Cr for the half-year ended September 30, 2025.

Capital Expenditure

The company reported a sale of tangible assets (net) of INR 45 Cr in the prior period. Current cash flow shows minimal investment in tangible assets as the company focuses on liquidity conservation.

Credit Rating & Borrowing

Acuité has moved the company to a 'Non-cooperation' status due to failure to submit required information for surveillance. The company has defaulted on statutory dues and faces restricted borrowing facilities due to its financial position.

⚙️ Operational Drivers

Raw Materials

Film rights and content advances represent the primary 'raw materials,' with amortization of film rights costing INR 25.17 Cr (approx. 50% of total operating adjustments) for H1 FY2026.

Import Sources

Content is primarily sourced from the Indian Film Industry (Bollywood and regional markets), with significant international distribution rights managed through UK and UAE-based entities.

Key Suppliers

The company co-produces and acquires content from various Indian production houses and talent; specific vendor names for the current period are not disclosed.

Capacity Expansion

Not applicable as a media company; however, the company is focusing on 'maximizing revenue' by entering long-term contracts to monetize its existing film and music library.

Raw Material Costs

Amortization on film rights was INR 25.17 Cr for the half-year ended September 30, 2025. The company is restricting new content advances to conserve cash.

Manufacturing Efficiency

Not applicable; efficiency is measured by the ability to monetize the film library across multiple formats (Theatrical, TV, Digital).

Logistics & Distribution

Distribution is handled through theatrical releases, television syndication, and digital platforms; costs are integrated into the single reportable segment.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company aims to stabilize operations by monetizing its extensive film and music library through long-term contracts. It is also pursuing the recovery of INR 462.19 Cr in overdue receivables from Eros Worldwide FZE to improve liquidity and address the 100% erosion of its net worth.

Products & Services

Co-production, acquisition, and distribution of Indian language films in multiple formats including theatrical, television, and digital/OTT.

Brand Portfolio

Eros International, Eros Now (implied via media world website).

New Products/Services

Focus is currently on monetizing existing library assets rather than new launches due to financial constraints.

Market Expansion

Historically focused on global distribution of Indian content; current plans are restricted to maintaining operations as a going concern.

Market Share & Ranking

Not disclosed in current documents; historically a leading player in the Indian film industry.

Strategic Alliances

The company operates through various subsidiaries including Eros International Films Private Limited and Eyeqube Studios Private Limited.

🌍 External Factors

Industry Trends

The industry is shifting toward digital monetization of film catalogues. Eros is attempting to pivot by entering long-term contracts for its library to ensure steady revenue streams amidst a 100% erosion of net worth.

Competitive Landscape

Competes with major Indian studios and global OTT platforms for content acquisition and viewer eyeballs.

Competitive Moat

The primary moat is the company's vast library of Indian language film rights. However, this moat is currently threatened by the company's inability to fund new content and the 'Going Concern' uncertainty.

Macro Economic Sensitivity

Highly sensitive to consumer discretionary spending and the health of the Indian media and entertainment sector.

Consumer Behavior

Shift toward digital consumption of films and music, which the company is trying to capture through library monetization.

Geopolitical Risks

Operations in the UK and UAE (Eros Worldwide FZE) expose the company to international regulatory and economic shifts.

⚖️ Regulatory & Governance

Industry Regulations

Subject to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company is currently under scrutiny for related party transactions and overdue receivables.

Environmental Compliance

Not a significant factor for media distribution; ESG costs not disclosed.

Taxation Policy Impact

The company reported a lower effective tax rate of 20.7% in historical periods; current tax impacts are minimal due to ongoing losses.

Legal Contingencies

The company has defaulted on payment of statutory dues on certain occasions. It is also 'co-operating with authorities' regarding ongoing inquiries, though specific case values are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

There is a 'material uncertainty' regarding the company's ability to continue as a 'Going Concern' due to a Loss Before Tax of INR 35.99 Cr and fully eroded net worth.

Geographic Concentration Risk

Significant revenue and receivable dependency on international markets, particularly the UAE and UK.

Third Party Dependencies

Extreme dependency on Eros Worldwide FZE for the recovery of INR 462.19 Cr in trade receivables.

Technology Obsolescence Risk

Risk of library value declining if not successfully transitioned to modern digital and high-definition formats.

Credit & Counterparty Risk

High credit risk; trade receivables of INR 462.19 Cr from EWW and INR 77.49 Cr from Eros UK are long overdue, with a provision of INR 11.75 Cr already made for doubtful receivables.