Digikore Studios Reports Strong FY26 Turnaround; Revenue Surges 83.1%
Digikore Studios Limited reported a robust financial performance for FY26, swinging to a consolidated net profit of INR 12.64 crore from a loss of INR 7.20 crore in the previous year, while revenue surged 83.1% to INR 66.02 crore. The turnaround was driven by Project Abhimanyu, which enhanced operating leverage and reduced costs, with total expenses rising only 19% against a 91.5% increase in total revenue. The company also appointed Veerappa B Bendigeri as its new Chief Financial Officer, succeeding Rakesh Nikalje.
*this image is generated using AI for illustrative purposes only.
Digikore Studios Limited delivered a significant financial turnaround for the year ended March 31, 2026, swinging from losses to profitability on both standalone and consolidated bases. The company announced its audited consolidated financial results for FY2025–26, marking a strong recovery driven by its strategic initiative, Project Abhimanyu. The Board of Directors approved the results at its meeting held on May 05, 2026.
Consolidated Financial Performance
At the consolidated level, revenue from operations surged 83.1% to INR 66.02 crore for the year ended March 31, 2026, up from INR 36.05 crore in the prior year. Total revenue grew 91.5% to INR 70.86 crore. The company reported a Profit After Tax of INR 12.64 crore compared to a net loss of INR 7.20 crore in the previous year. The PAT margin improved to approximately 17.8% from a negative 19.5% in FY2024–25.
The following table summarises the consolidated profit and loss performance:
| Metric: | Year Ended March 31, 2026 (Audited) | Year Ended March 31, 2025 (Audited) |
|---|---|---|
| Revenue from Operations: | INR 6,602.49 lakhs | INR 3,605.17 lakhs |
| Other Income: | INR 483.56 lakhs | INR 95.48 lakhs |
| Total Revenue: | INR 7,086.05 lakhs | INR 3,700.65 lakhs |
| Total Expenses: | INR 5,548.70 lakhs | INR 4,662.15 lakhs |
| Profit Before Tax: | INR 1,537.34 lakhs | INR (961.49) lakhs |
| Total Tax Expense: | INR 273.76 lakhs | INR (241.15) lakhs |
| Net Profit / (Loss): | INR 1,263.58 lakhs | INR (720.35) lakhs |
| Basic EPS (INR): | 19.95 | (11.37) |
| Diluted EPS (INR): | 19.95 | (11.37) |
Consolidated total assets stood at INR 11,606.23 lakhs as at March 31, 2026, compared to INR 8,397.41 lakhs as at March 31, 2025. Shareholders' funds on a consolidated basis rose 37.1% to INR 4,768.19 lakhs from INR 3,477.22 lakhs.
Standalone Financial Performance
On a standalone basis, the company's revenue from operations nearly doubled to INR 6,321.01 lakhs for the year ended March 31, 2026, compared to INR 3,560.80 lakhs in the previous year. The company reported a standalone net profit of INR 851.25 lakhs, a sharp reversal from the net loss of INR 724.96 lakhs recorded in the year ended March 31, 2025.
Strategic Initiatives and Efficiency
The turnaround was driven by Project Abhimanyu, a strategic program focused on strengthening financial resilience and execution discipline. The company demonstrated strong operating leverage, with Total Revenue growing 91.5% while Total Expenses increased only 19.0%. Employee Benefits Expense declined 13.4% year-on-year despite the strong increase in business volumes, reflecting improved productivity and operating discipline.
Key Managerial Changes
The Board approved significant changes to Key Managerial Personnel. Mr. Veerappa B Bendigeri was appointed as Chief Financial Officer & KMP effective May 05, 2026, succeeding Mr. Rakesh Nikalje, who resigned due to personal reasons effective May 01, 2026. Mr. Bendigeri brings over 16 years of experience in corporate taxation and financials.
Other Board Decisions
The Board approved the re-appointment of M/s A D S P & Associates LLP as internal auditor for F.Y. 2026-27. The statutory audit was conducted by SKPN & Associates LLP.
Historical Stock Returns for Digikore Studios
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.32% | -1.96% | -0.71% | -6.36% | -63.01% | -75.33% |
How will Digikore Studios sustain its revenue growth trajectory beyond Project Abhimanyu's 12–18 month framework, particularly as the global VFX market becomes increasingly competitive?
Given the sharp rise in trade receivables to INR 6,121.59 lakhs alongside growing short-term borrowings, what risks does Digikore face regarding working capital management and cash conversion cycles in FY2026–27?
As Hollywood production activity continues to normalize post-strikes, which specific international markets or studio partnerships is Digikore Studios best positioned to target for larger-scale VFX contracts?
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