PNC - Prit Nandy Comm.

📊 NSE: PNC 🏢 Entertainment / Electronic Media Software 📅 Last Updated: 12/14/2025 11:17

💰 Financial Performance

Revenue Growth by Segment

The Content segment generated INR 2,540.36 Lakhs in H1 FY26, representing a growth of 11.58% compared to INR 2,276.55 Lakhs in H1 FY25. The Wellness segment revenue declined by 100%, falling from INR 2.00 Lakhs in H1 FY25 to zero in H1 FY26, as the company pivoted focus entirely toward media production.

Geographic Revenue Split

Not disclosed in available documents; however, the company produces content for global streaming platforms like Amazon Prime and Netflix, suggesting a mix of domestic production and international distribution rights.

Profitability Margins

Net Profit Margin was -1.17% in H1 FY26 (loss of INR 29.65 Lakhs on revenue of INR 2,540.36 Lakhs), worsening from -0.76% in H1 FY25. Profitability is constrained by high production cycles where costs are recognized ahead of major platform payouts.

EBITDA Margin

EBITDA margin remains thin to negative; the loss before tax for H1 FY26 was INR 28.43 Lakhs (-1.12% of revenue) compared to a loss of INR 30.57 Lakhs (-1.34% of revenue) in H1 FY25, showing a marginal improvement in core operational efficiency despite the net loss.

Capital Expenditure

The company made payments of INR 252.33 Lakhs to acquire property, plant, and equipment in H1 FY26, a significant increase from INR 2.01 Lakhs in H1 FY25, indicating investment in production infrastructure or creative studio upgrades.

Credit Rating & Borrowing

Total borrowings stood at INR 147.23 Lakhs (INR 140.46 Lakhs non-current and INR 6.77 Lakhs current). Finance costs increased by 46.74% YoY to INR 6.53 Lakhs in H1 FY26, reflecting higher utilization of credit lines or increased interest rates.

⚙️ Operational Drivers

Raw Materials

The primary 'raw material' is Cost of Content (production expenses), which accounts for 84.38% of total revenue at INR 2,143.59 Lakhs.

Import Sources

Not disclosed in available documents; typically involves domestic and international talent and production services.

Key Suppliers

Not disclosed in available documents; involves various production crews, technical vendors, and talent agencies.

Capacity Expansion

Current capacity is tied to the creative studio's pipeline. Planned expansion includes the production of 'The Royals' Season 2 and other series in development for global streaming platforms.

Raw Material Costs

Cost of content was INR 2,143.59 Lakhs in H1 FY26, representing 84.38% of revenue. This is an 8.57% increase from INR 1,974.34 Lakhs in H1 FY25, driven by higher production values for premium OTT series.

Manufacturing Efficiency

Not applicable as a service/content provider; however, employee benefit expenses rose 31.77% to INR 238.72 Lakhs, indicating a ramp-up in creative staff for new productions.

Logistics & Distribution

Distribution is primarily digital via OTT platforms; other expenses (including distribution-related costs) were INR 209.39 Lakhs.

📈 Strategic Growth

Expected Growth Rate

12.27%

Growth Strategy

Growth is driven by the 'sequel strategy' for successful IPs, such as 'Four More Shots Please' Season 4 and 'The Royals' Season 2. The company is also developing new films and series for global streaming platforms to diversify its revenue base beyond existing hits.

Products & Services

Streaming series (OTT content), cinematic films, and digital media content.

Brand Portfolio

PNC (Pritish Nandy Communications), 'Four More Shots Please', 'The Royals'.

New Products/Services

Season 4 of 'Four More Shots Please' (Amazon Original) and Season 2 of 'The Royals' (Netflix Original) are the primary new drivers for FY26 revenue.

Market Expansion

Targeting global audiences through partnerships with international streaming giants like Amazon Prime Video and Netflix.

Strategic Alliances

Key partnerships with Amazon Prime Video and Netflix for original series production and distribution.

🌍 External Factors

Industry Trends

The industry is shifting toward high-quality, multi-season digital series (OTT). PNC is positioned as a premium content creator for these platforms, benefiting from the 12% growth in H1 revenue as platforms demand more local Indian content.

Competitive Landscape

Competes with other major Indian production houses and creative studios for platform budgets and talent.

Competitive Moat

The moat is built on established creative IP (like 'Four More Shots Please') and long-term relationships with global streaming platforms. This is sustainable because successful franchises reduce the 'hit-or-miss' risk for platforms.

Macro Economic Sensitivity

Sensitive to consumer discretionary spending on OTT subscriptions and platform content budgets, which are influenced by broader economic growth.

Consumer Behavior

Increasing preference for binge-watchable, high-production-value episodic content over traditional cinema.

Geopolitical Risks

Minimal, though international filming locations could be affected by regional instabilities.

⚖️ Regulatory & Governance

Industry Regulations

Subject to content censorship guidelines and digital media ethics codes in India, which can impact production timelines or content themes.

Environmental Compliance

Not applicable for a media production company.

Taxation Policy Impact

The company recorded a deferred tax credit of INR 1.22 Lakhs in H1 FY26, compared to a credit of INR 13.39 Lakhs in H1 FY25.

Legal Contingencies

The company has a pending matter before the City Civil Court; management considers the amount involved as 'good and fully recoverable' and has made no provision for loss.

⚠️ Risk Analysis

Key Uncertainties

Timing of content releases on OTT platforms can cause revenue to fluctuate by more than 50% between quarters, as seen in the Q2 vs H1 revenue disparity.