Prime Focus Limited (PFOCUS)
₹290.30 +4.63% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Prime Focus' revenue was ₹1,267 Cr (+23.8% year on year, -8.5% on the previous quarter), and net profit ₹-45.8 Cr (against a profit a year earlier); the operating margin was 23.8%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹1,267 | +23.8% | -8.5% |
| Operating profit | ₹301 | +23.4% | -38.2% |
| Net profit | ₹-45.8 | to loss | to loss |
| EPS (₹) | -0.53 | to loss | to loss |
| Operating margin | 23.8% | — | — |
PFOCUS delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 6.74% of the PFOCUS shares traded on NSE were taken to delivery, against the stock's own 20-session average of 19.27%. That is close to its usual level.
Delivery in the last 5 sessions: 5.7% · 6.4% · 18.6% · 6.8% · 6.7%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Prime Focus Limited has issued a notice for an Extra-Ordinary General Meeting (EGM) on November 07, 2026, seeking shareholder approval to cease control over subsidiaries Brahma AI Holdings Limited and Brahma AI Services India Limited. Step-down subsidiary Double Negative Holdings' voting rights in Brahma Holdings will reduce from 89.27% to 24.99%, reclassifying Brahma from a subsidiary to an associate company. This follows Multiples Private Equity funds subscribing to compulsorily convertible preference shares, while Prime Focus retains a 65.67% indirect economic interest. Additionally, the company seeks approval for a material related party framework deed under which DNEG S.a.r.l. provides a 7-year indemnity to Brahma Holdings.
- Voting rights in Brahma AI Holdings Limited to decrease from 89.27% to 24.99%, reducing board representation to 1 out of 6 directors.
- Indirect economic ownership in Brahma Holdings and Brahma India will remain at 65.67%.
- Brahma AI entities will cease to be subsidiaries and will be reclassified as associate companies.
- DNEG Parent to provide indemnity obligations to Brahma Holdings for liabilities notified within 7 years.
- Multiples Private Equity Gift Fund IV and Multiples Private Equity Fund IV to subscribe to CCPS in Brahma entities.
Prime Focus Limited's board has approved key transactions related to an investment by Multiples Private Equity (Gift Fund IV and Fund IV) into subsidiaries Brahma AI Holdings and Brahma AI Services India via Compulsorily Convertible Preference Shares (CCPS). The proposed transaction will lead to a cessation of control over both material subsidiaries. The board also recommended material related party transactions, including an Ancillary Framework Deed with indemnity obligations, a Shareholders Agreement, and a platform licensing arrangement between DNEG Parent and Brahma Holdings. An Extra Ordinary General Meeting (EOGM) has been scheduled for November 7, 2026, to seek shareholder approval.
- Multiples PE to subscribe to CCPS in material subsidiaries Brahma AI Holdings and Brahma AI Services India.
- Transaction will result in PFOCUS's cessation of control over Brahma Holdings and Brahma India under Regulation 24(5).
- Material related-party transactions approved including platform licensing of Brahma AI Platform exceeding materiality thresholds.
- EOGM scheduled for Saturday, November 7, 2026, via Video Conferencing to seek shareholder approval.
Prime Focus Limited announced that the Income Tax Department's search and seizure proceedings, which started on October 7, 2026, concluded on the morning of October 14, 2026. The search covered select company offices and promoter director residences in Mumbai. As of today, no adverse order, direction, or findings have been issued to the company. Management stated that operations and financials remain unaffected, with business activities continuing normally.
- Search and seizure proceedings initiated on October 7, 2026 concluded on October 14, 2026
- Proceedings covered company offices and residences of individual promoter directors
- No adverse order or direction issued indicating adverse findings as on date
- Company reports no impact on operations, financials, or regular business activities
Prime Focus Limited clarified to exchanges that the Income Tax Department initiated search proceedings at certain offices on the morning of October 07, 2026. The search is ongoing, and the company confirmed it has not yet received any formal findings, demands, or notice of contraventions. Prime Focus stated that its business operations continue as normal without operational disruption. The clarification followed media reports highlighting that company shares dropped 8% following the news of the tax search.
- Income Tax Department initiated search proceedings on the morning of October 07, 2026
- News reports indicated shares declined by 8% following reports of the search
- No formal finding, demand, or alleged contravention received by the company as of October 07, 2026
- Operations remain unaffected and continue as usual according to the company
Prime Focus Limited's shareholders have approved all 17 resolutions at the 29th Annual General Meeting held on September 30, 2026. Key approvals include an enabling resolution to raise funds up to ₹3,000 crore (equivalent to ~10% of its market cap of ₹29,853 crore and ~61% of TTM revenue) via equity, debt, or convertible instruments, passing with 99.96% votes in favor. Shareholders also approved multiple material related-party restructuring transactions involving DNEG S.a.r.l. and Brahma AI entities, along with the redesignation of Mr. Namit Malhotra as Whole-time Director (99.63% approval).
- Shareholders approved fundraise of up to ₹3,000 crore through equity or debt securities with 99.9580% votes in favor
- Restructuring of Brahma AI Services India and Prime Focus Technologies Inc. between DNEG S.a.r.l. and Brahma AI approved
- Redesignation of Mr. Namit Naresh Malhotra to Whole-time Director passed with 99.6329% votes in favor
- Total e-voting turnout stood at 76.77% across 59.79 crore votes polled on standard resolutions
Prime Focus Limited's shareholders approved an enabling resolution to raise up to ₹3,000 crore via equity, debt, or other securities at its 29th AGM on September 30, 2026. This approved fundraise represents approximately 10.0% of the company's current market capitalization of ₹29,853 crore. Shareholders also approved an increase in authorized share capital and key internal restructurings, including DNEG S.a.r.l. selling Brahma AI Services India for USD 90.09 million and acquiring PFT US for around USD 21 million. In addition, founder Namit Malhotra's designation was changed to Whole-time Director for a 3-year term.
- Shareholder approval granted to raise funds up to ₹3,000 crore via equity/debt or equity-linked instruments
- Internal transfer of Brahma AI Services India from DNEG S.a.r.l. to Brahma AI Holdings for USD 90.09 million
- Sale of Prime Focus Technologies Inc. (PFT US) to DNEG S.a.r.l. for approximately USD 21 million
- Brahma India accounted for ₹328.72 crore (7.03%) of consolidated FY26 turnover and ₹278.63 crore (10.95%) of net worth
- Change in designation of Namit Malhotra to Whole-time Director effective August 07, 2026, for a 3-year term
Prime Focus Limited's shareholders approved an enabling resolution to raise up to ₹3,000 crore via equity, debt, or other securities at its 29th AGM on September 30, 2026. This approved fundraise represents approximately 10.0% of the company's current market capitalization of ₹29,853 crore. Shareholders also approved an increase in authorized share capital and key internal restructurings, including DNEG S.a.r.l. selling Brahma AI Services India for USD 90.09 million and acquiring PFT US for around USD 21 million. In addition, founder Namit Malhotra's designation was changed to Whole-time Director for a 3-year term.
- Shareholder approval granted to raise funds up to ₹3,000 crore via equity/debt or equity-linked instruments
- Internal transfer of Brahma AI Services India from DNEG S.a.r.l. to Brahma AI Holdings for USD 90.09 million
- Sale of Prime Focus Technologies Inc. (PFT US) to DNEG S.a.r.l. for approximately USD 21 million
- Brahma India accounted for ₹328.72 crore (7.03%) of consolidated FY26 turnover and ₹278.63 crore (10.95%) of net worth
- Change in designation of Namit Malhotra to Whole-time Director effective August 07, 2026, for a 3-year term
Prime Focus Limited's shareholders approved an enabling resolution to raise up to ₹3,000 crore via equity, debt, or other securities at its 29th AGM on September 30, 2026. This approved fundraise represents approximately 10.0% of the company's current market capitalization of ₹29,853 crore. Shareholders also approved an increase in authorized share capital and key internal restructurings, including DNEG S.a.r.l. selling Brahma AI Services India for USD 90.09 million and acquiring PFT US for around USD 21 million. In addition, founder Namit Malhotra's designation was changed to Whole-time Director for a 3-year term.
- Shareholder approval granted to raise funds up to ₹3,000 crore via equity/debt or equity-linked instruments
- Internal transfer of Brahma AI Services India from DNEG S.a.r.l. to Brahma AI Holdings for USD 90.09 million
- Sale of Prime Focus Technologies Inc. (PFT US) to DNEG S.a.r.l. for approximately USD 21 million
- Brahma India accounted for ₹328.72 crore (7.03%) of consolidated FY26 turnover and ₹278.63 crore (10.95%) of net worth
- Change in designation of Namit Malhotra to Whole-time Director effective August 07, 2026, for a 3-year term
Prime Focus Limited's shareholders approved an enabling resolution to raise up to ₹3,000 crore via equity, debt, or other securities at its 29th AGM on September 30, 2026. This approved fundraise represents approximately 10.0% of the company's current market capitalization of ₹29,853 crore. Shareholders also approved an increase in authorized share capital and key internal restructurings, including DNEG S.a.r.l. selling Brahma AI Services India for USD 90.09 million and acquiring PFT US for around USD 21 million. In addition, founder Namit Malhotra's designation was changed to Whole-time Director for a 3-year term.
- Shareholder approval granted to raise funds up to ₹3,000 crore via equity/debt or equity-linked instruments
- Internal transfer of Brahma AI Services India from DNEG S.a.r.l. to Brahma AI Holdings for USD 90.09 million
- Sale of Prime Focus Technologies Inc. (PFT US) to DNEG S.a.r.l. for approximately USD 21 million
- Brahma India accounted for ₹328.72 crore (7.03%) of consolidated FY26 turnover and ₹278.63 crore (10.95%) of net worth
- Change in designation of Namit Malhotra to Whole-time Director effective August 07, 2026, for a 3-year term
Prime Focus Limited's shareholders approved an enabling resolution to raise up to ₹3,000 crore via equity, debt, or other securities at its 29th AGM on September 30, 2026. This approved fundraise represents approximately 10.0% of the company's current market capitalization of ₹29,853 crore. Shareholders also approved an increase in authorized share capital and key internal restructurings, including DNEG S.a.r.l. selling Brahma AI Services India for USD 90.09 million and acquiring PFT US for around USD 21 million. In addition, founder Namit Malhotra's designation was changed to Whole-time Director for a 3-year term.
- Shareholder approval granted to raise funds up to ₹3,000 crore via equity/debt or equity-linked instruments
- Internal transfer of Brahma AI Services India from DNEG S.a.r.l. to Brahma AI Holdings for USD 90.09 million
- Sale of Prime Focus Technologies Inc. (PFT US) to DNEG S.a.r.l. for approximately USD 21 million
- Brahma India accounted for ₹328.72 crore (7.03%) of consolidated FY26 turnover and ₹278.63 crore (10.95%) of net worth
- Change in designation of Namit Malhotra to Whole-time Director effective August 07, 2026, for a 3-year term
Prime Focus Limited's shareholders approved an enabling resolution to raise up to ₹3,000 crore via equity, debt, or other securities at its 29th AGM on September 30, 2026. This approved fundraise represents approximately 10.0% of the company's current market capitalization of ₹29,853 crore. Shareholders also approved an increase in authorized share capital and key internal restructurings, including DNEG S.a.r.l. selling Brahma AI Services India for USD 90.09 million and acquiring PFT US for around USD 21 million. In addition, founder Namit Malhotra's designation was changed to Whole-time Director for a 3-year term.
- Shareholder approval granted to raise funds up to ₹3,000 crore via equity/debt or equity-linked instruments
- Internal transfer of Brahma AI Services India from DNEG S.a.r.l. to Brahma AI Holdings for USD 90.09 million
- Sale of Prime Focus Technologies Inc. (PFT US) to DNEG S.a.r.l. for approximately USD 21 million
- Brahma India accounted for ₹328.72 crore (7.03%) of consolidated FY26 turnover and ₹278.63 crore (10.95%) of net worth
- Change in designation of Namit Malhotra to Whole-time Director effective August 07, 2026, for a 3-year term
Prime Focus Limited concluded its 29th AGM on September 30, 2026, where shareholders passed all 17 resolutions with the requisite majority. Key approvals include an enabling resolution to raise funds up to ₹3,000 crore via equity or debt-linked instruments, representing ~10% of current market cap and ~61% of TTM revenue. Shareholders also approved significant inter-subsidiary restructuring involving DNEG S.a.r.l. and Brahma AI entities, along with the redesignation of Mr. Namit Naresh Malhotra as Whole-time Director. Additionally, the secretarial auditor flagged an inadvertent share trading non-compliance under SEBI ICDR regulations by preferential allottee CFLL during Q2 FY26, which received an advisory letter from NSE.
- Approved enabling resolution to raise funds up to ₹3,000 Crore through equity or debt securities
- Sanctioned internal restructuring transferring Brahma AI Services India from DNEG to Brahma AI Holdings
- Approved transfer of Prime Focus Technologies Inc. from Brahma India to DNEG S.a.r.l.
- Approved designation change of Mr. Namit Naresh Malhotra from Non-Executive to Whole-time Director
- Noted NSE advisory letter regarding inadvertent share trade by preferential allottee CFLL under Regulation 167(6)
Prime Focus submitted an investor presentation disclosing key balance sheet and income statement metrics up to Q1 FY27. Revenue from operations reached ₹1,267 Cr in Q1 FY27 (up 24% YoY), while EBITDA was ₹301 Cr with a 23.8% margin. Net debt expanded to ₹4,376 Cr as of Q1 FY27 compared to ₹4,017 Cr at FY26-end, with gross debt standing at ₹5,155 Cr. Q1 FY27 recorded a net loss of ₹46 Cr, which was impacted by an exceptional item of ₹71 Cr towards an NCLT settlement (adjusted net profit was ₹20 Cr).
- Q1 FY27 revenue grew 24% YoY to ₹1,267 Cr, driven by tentpole projects including Ramayana and Dune 3
- Net debt rose to ₹4,376 Cr in Q1 FY27, with gross debt at ₹5,155 Cr versus cash and liquid assets of ₹778 Cr
- Reported Q1 FY27 net loss stood at ₹46 Cr, which includes a ₹71 Cr exceptional item for NCLT proceedings settlement
- FY26 full-year revenue rose 30% YoY to ₹4,676 Cr, with EBITDA reaching ₹1,423 Cr at a 30.4% margin
- Personnel costs accounted for 60% of revenue in FY26, down from 66% in FY25 due to operational efficiencies
Prime Focus Limited's backed entity, Brahma AI, has raised $150 million through an equity issuance led by Multiples at a post-money valuation of $2 billion. Brahma AI has also received an additional $100 million in investor demand and is evaluating an upsize. Following the transaction, Prime Focus will retain approximately 66% economic ownership through its subsidiary DNEG post-dilution (accounting for the fund-raise, ESOP pool, and founder equity). At a $2 billion post-money valuation, Brahma AI is valued at ~Rs 16,600+ Cr, representing a substantial value-unlock relative to Prime Focus's current market cap of Rs 32,403 Cr.
- Brahma AI secured a $150 million fundraise led by Multiples at a $2 billion post-money valuation.
- Prime Focus Limited retains approximately c.66% economic ownership through subsidiary DNEG post-dilution.
- An additional $100 million of investor demand is under evaluation for a potential round upsize.
- Brahma AI operates as an independent entity led by Founder & CEO Prabhu Narasimhan across media, sports, healthcare, and advertising.
Prime Focus Limited's backed entity, Brahma AI, has raised $150 million through an equity issuance led by Multiples at a post-money valuation of $2 billion. Brahma AI has also received an additional $100 million in investor demand and is evaluating an upsize. Following the transaction, Prime Focus will retain approximately 66% economic ownership through its subsidiary DNEG post-dilution (accounting for the fund-raise, ESOP pool, and founder equity). At a $2 billion post-money valuation, Brahma AI is valued at ~Rs 16,600+ Cr, representing a substantial value-unlock relative to Prime Focus's current market cap of Rs 32,403 Cr.
- Brahma AI secured a $150 million fundraise led by Multiples at a $2 billion post-money valuation.
- Prime Focus Limited retains approximately c.66% economic ownership through subsidiary DNEG post-dilution.
- An additional $100 million of investor demand is under evaluation for a potential round upsize.
- Brahma AI operates as an independent entity led by Founder & CEO Prabhu Narasimhan across media, sports, healthcare, and advertising.
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.
Legal Contingencies
Exceptional costs of INR 380 Cr impacted FY25 results. Standalone net losses before exceptional items were INR 30 Cr in FY25.
Risk Analysis
Key Uncertainties
Profitability risk due to low operating margins in the M&E industry and potential revenue loss of ~9% from content release delays.
Geographic Concentration Risk
High revenue concentration in Hollywood/International markets, though diversified across 5 continents to mitigate regional risks.
Third Party Dependencies
High dependency on a few major production studios (Top 5-6) for the majority of the Creative Services order book.
Technology Obsolescence Risk
Risk from AI-driven content creation; mitigated by PFT's AI technology and cloud-powered media services.
Credit & Counterparty Risk
Debtors turnover of 8.70x indicates active management of receivables, with a 13% improvement in collection efficiency YoY.
