PFOCUS - Prime Focus

📊 NSE: PFOCUS 🏢 Entertainment / Electronic Media Software 📅 Last Updated: 12/14/2025 11:16

💰 Financial Performance

Revenue Growth by Segment

Creative Services (including India FMS) revenue was INR 3,219 Cr in FY 2024-25, contributing 90% of total revenue. Tech/Tech-Enabled Services revenue was INR 380 Cr, contributing 10%. Total income from operations declined 8.9% YoY from INR 3,951 Cr to INR 3,599 Cr due to macroeconomic and industry challenges.

Geographic Revenue Split

The company operates across 5 continents with 23 global locations. While specific regional revenue percentages for FY25 are not disclosed, 87% of the company's debt is overseas, reflecting a heavy international revenue base primarily from Hollywood studios.

Profitability Margins

Operating profit margin improved significantly to 14.34% in FY25 from -0.73% in FY24. Net profit margin remained negative at -12.95% in FY25 compared to -12.43% in FY24, adversely impacted by exceptional costs of INR 380 Cr.

EBITDA Margin

Adjusted EBITDA margin increased to 28.5% in FY 2024-25 from 12.1% in FY 2023-24, representing a 135% improvement in margin basis points due to production efficiencies.

Capital Expenditure

The company raised INR 5,552.02 Cr through a preferential issue of equity shares in 2025. As of Q2 FY26, INR 120.89 Cr has been utilized for expansion of business operations and investment in subsidiaries.

Credit Rating & Borrowing

Interest and finance charges were INR 251 Cr in FY21 on a debt base of ~INR 3,500 Cr. The company is monitored by CARE Ratings regarding its preferential issue proceeds. Interest coverage ratio improved to 0.94x in FY25 from -0.05x in FY24.

⚙️ Operational Drivers

Raw Materials

Professional talent and technician fees represent the primary 'raw material' cost, with personnel costs accounting for 63-74% of total operating income.

Import Sources

Talent is sourced globally across 23 locations including India, UK (London), USA (LA, NY), Canada (Montreal, Toronto, Vancouver), and Bulgaria (Sofia).

Key Suppliers

Not applicable as a service provider; however, major studio partners providing the work include Disney, Warner Bros., Marvel, Paramount, Universal, and Netflix.

Capacity Expansion

Current capacity includes 23 global locations. Planned expansion is funded by the INR 5,552.02 Cr preferential issue, with INR 120.89 Cr already deployed for subsidiary investments and business growth.

Raw Material Costs

Personnel costs (including technician fees) were INR 1,581 Cr in FY21, representing approximately 60.5% of total income. The company uses workforce rationalization to manage these costs.

Manufacturing Efficiency

Production efficiencies led to a 2056% improvement in operating margins during FY25, moving from a loss to a 14.34% margin.

Logistics & Distribution

Distribution is primarily digital/cloud-based; Tech-Enabled services (INR 380 Cr revenue) utilize cloud technology to enable efficient content delivery.

📈 Strategic Growth

Expected Growth Rate

10-12%

Growth Strategy

Growth will be achieved through cross-selling integrated VFX, 3D, and CG animation services; expanding the tech-enabled client base with AI technology (CLEAR); and utilizing the INR 5,552 Cr equity infusion to unlock value and fund subsidiary expansion.

Products & Services

Visual effects (VFX), Stereo 3D conversion, Animation, Cloud-based AI media services (CLEAR), Equipment rental, and Sound stages.

Brand Portfolio

DNEG, Prime Focus Technologies (PFT), CLEAR, Brahma AI.

New Products/Services

Expansion of Tech-Enabled services incorporating new AI modules and analytics, which currently contribute 10% of revenue (INR 380 Cr).

Market Expansion

Targeting growth in regional and non-urban consumer bases in India and expanding global reach through the DNEG subsidiary.

Market Share & Ranking

Market leader in Creative Services and a prominent independent service provider for post-production globally.

Strategic Alliances

Strategic collaboration with major content creators and studios (Disney, Netflix) to provide price-optimized, high-quality VFX solutions.

🌍 External Factors

Industry Trends

The M&E sector is shifting toward digital/online gaming, expected to reach 46% of revenue by 2027. Traditional media is projected to contribute 41%.

Competitive Landscape

Heightened competitive intensity due to advancements in Artificial Intelligence and new entrants attracted by M&E growth prospects.

Competitive Moat

Moat is built on a track record of award-winning work (6 Oscars) and global scale (23 locations), creating high switching costs for major studios requiring high-end VFX.

Macro Economic Sensitivity

Sensitive to per capita disposable income growth, which is expected to increase the moviegoer base from 100 million to 120 million by 2027.

Consumer Behavior

Shift toward OTT platforms and Transactional Video on Demand (TVOD) is driving demand for high-quality digital content.

Geopolitical Risks

Global presence across 5 continents mitigates regional downturns but exposes the company to international labor strikes and regulatory changes in multiple jurisdictions.

⚖️ Regulatory & Governance

Industry Regulations

Subject to evolving consumer preferences and change in regulatory policies in the media sector across multiple global jurisdictions.

Taxation Policy Impact

Standalone tax rate was 76% in FY23, but consolidated financials show net losses, making the effective tax rate less representative of long-term fiscal impact.