💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations for H1 FY26 was INR 60.38 Cr, representing a 22.37% decline compared to INR 77.78 Cr in H1 FY25. The company is targeting 20-25% YoY growth in its Events & Activation vertical and 3x revenue growth in the Digital Marketing vertical by FY27.

Geographic Revenue Split

The company maintains a PAN-India presence with offices in Delhi, Kolkata, and Ahmedabad. Specific percentage contribution by region is not disclosed, though 80% asset utilization is reported across its national network.

Profitability Margins

Net Profit Margin for H1 FY26 was 4.51%, a decrease from 5.98% in H1 FY25. Profit After Tax (PAT) for H1 FY26 stood at INR 2.72 Cr, down 41.5% from INR 4.65 Cr in the corresponding previous half-year.

EBITDA Margin

Profit Before Tax (PBT) margin for H1 FY26 was 6.31% (INR 3.81 Cr on INR 60.38 Cr revenue), compared to a PBT margin of 6.74% in H1 FY25. Core profitability is impacted by a 62.9% revenue allocation to advertisement costs.

Capital Expenditure

The company utilizes a high-margin, asset-light execution model for its Events & Activation vertical. Historical fixed assets (Property, Plant, and Equipment) were valued at INR 17.58 Cr as of September 30, 2025.

Credit Rating & Borrowing

Consolidated finance costs for H1 FY26 were INR 1.14 Cr, an increase of 107% from INR 0.55 Cr in H1 FY25, indicating higher borrowing levels or increased interest rates. Specific credit ratings are not disclosed.

⚙️ Operational Drivers

Raw Materials

The primary operational cost is 'Cost of Advertisement' (media space and inventory), which accounts for INR 37.99 Cr or 62.9% of total revenue in H1 FY26.

Import Sources

Not specifically disclosed; however, operations are centered in major Indian hubs including Delhi, Kolkata, and Ahmedabad.

Capacity Expansion

Current operations feature 80% asset utilization in the Out-of-Home (OOH) market. The company plans to expand its Digital Marketing vertical to achieve 3x revenue growth by FY27 and scale the Film/AV Production vertical to INR 50 Cr within 3-5 years.

Raw Material Costs

Cost of advertisements decreased to INR 37.99 Cr in H1 FY26 from INR 63.75 Cr in H1 FY25, a 40.4% reduction, aligning with the overall revenue contraction during the period.

Manufacturing Efficiency

Efficiency is driven by an asset-light model in the Events segment and maintaining high (80%) utilization rates for OOH advertising assets.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

20-25%

Growth Strategy

Growth will be driven by cross-selling digital services to 30-40% of the existing client base, expanding into SEO and programmatic media, and leveraging long-standing empanelments with 50+ government ministries and PSUs to capture a larger share of the INR 20,000+ Cr events industry.

Products & Services

Out-of-Home (OOH) advertising, Digital Marketing (SEO, Social, Programmatic), Film and AV Production (PSAs, documentaries), and Event Management/Activation services.

Brand Portfolio

Graphisads, Spike Advertising (subsidiary).

New Products/Services

Expansion into programmatic media and data-led campaigns for OOH clients, expected to contribute to the 3x revenue growth target for the digital vertical by FY27.

Market Expansion

Targeting growth in the national market by leveraging existing networks for cultural and civic outreach and expanding digital service offerings PAN-India.

Market Share & Ranking

Positioned as one of India's key listed players in the fragmented OOH market.

Strategic Alliances

The company operates with a subsidiary, Spike Advertising Private Limited, to broaden its service portfolio.

🌍 External Factors

Industry Trends

The industry is shifting toward digital integration; the Indian digital market is valued at INR 30,000+ Cr. Graphisads is positioning itself as a full-service partner to capture this transition.

Competitive Landscape

Operates in a highly fragmented OOH and advertising market against both large agencies and local niche players.

Competitive Moat

The moat consists of long-standing empanelments with 50+ government entities and an asset-light execution model. These are sustainable due to the high barriers to entry for government contracting and the company's established PAN-India infrastructure.

Macro Economic Sensitivity

Highly sensitive to corporate and government marketing spend, which is influenced by GDP growth and fiscal budget allocations.

Consumer Behavior

Shift toward digital consumption is forcing a transition from traditional OOH to data-led and programmatic advertising.

Geopolitical Risks

Not disclosed as a primary risk factor due to the domestic nature of the advertising and events business in India.

⚖️ Regulatory & Governance

Industry Regulations

Subject to SEBI (LODR) Regulations and advertising standards. As an SME-listed company, certain corporate governance provisions (Regulations 17 to 27) are currently not mandatory but the company claims voluntary alignment.

Taxation Policy Impact

Effective tax rate for H1 FY26 was approximately 28.6% (INR 1.09 Cr tax on INR 3.81 Cr PBT).

Legal Contingencies

The statutory auditor's limited review report for H1 FY26 was unmodified, indicating no material legal or financial discrepancies were identified during the review period.

⚠️ Risk Analysis

Key Uncertainties

Market risk from changing advertising trends (high impact), credit risk from client payment defaults (medium impact), and fraud risk (monitored by top management).

Geographic Concentration Risk

Concentrated in India, with key offices in Delhi, Kolkata, and Ahmedabad.

Third Party Dependencies

Dependent on media owners and technology providers for OOH inventory and digital marketing software.

Technology Obsolescence Risk

High risk due to the permanent nature of technological changes in advertising; mitigated by continuous staff training and software updates.

Credit & Counterparty Risk

Trade receivables stood at INR 39.90 Cr as of September 30, 2025, representing approximately 66% of H1 FY26 revenue, indicating significant credit exposure.