Prime Focus Limited returned to profitability for the financial year ended March 31, 2026, reporting a consolidated net profit of ₹301.42 crore compared to a net loss of ₹458.28 crore in the previous year. The company's revenue from operations for FY26 rose by 30% year-on-year to ₹4,676 crore, driven by robust performance across its verticals. The board approved the audited financial results for the quarter and year ended March 31, 2026, at its meeting held on May 28, 2026. The statutory auditors, M/s. M S K A & Associates LLP, issued an unmodified opinion on the standalone and consolidated financial results. The board decided not to recommend any dividend on equity shares for the financial year ended March 31, 2026.

Q4 Performance

Prime Focus delivered a strong quarterly performance, with Q4 consolidated net profit rising to ₹118 crore compared to a net loss of ₹252 crore in the same period last year. Q4 revenue from operations stood at ₹1,384 crore versus ₹979 crore year-on-year, reflecting a 41% growth. EBITDA for the quarter surged 110% to ₹488 crore from ₹232 crore in the prior-year period, while EBITDA margin expanded to 35% from 24% year-on-year. The growth was driven by tentpole projects, including Ramayana, Dune 3, Masters of the Universe, and Blade Runner 2099.

The Q4 highlights are presented below:

Full Year Financial Performance

For the full year FY26, consolidated revenue from operations rose to ₹4,676 crore from ₹3,599 crore in FY25. Total income for the year stood at ₹4,783.43 crore. EBITDA for the year increased by 81% to ₹1,423 crore, with an EBITDA margin of 30%. On a standalone basis, the company reported a net loss of ₹2.74 crore for FY26, significantly narrower than the net profit of ₹185.90 crore recorded in the previous year, which included exceptional gains. Standalone revenue from operations decreased to ₹27.86 crore from ₹39.76 crore in the prior year.

The following table summarises key consolidated financial metrics for the full year:

Operational Highlights and Outlook

The company reported a strong operating cash flow of ₹1,024 crore for FY26, supported by robust revenue growth and operational efficiencies. The order book and visible pipeline for FY27 and beyond stands at approximately $1 billion. Prime Focus aims to reduce debt by $150-$200 million over the next twelve months, supported by the monetisation of content assets, working capital improvements, and capital markets fundraising.

Legal and Regulatory Updates

The National Company Law Appellate Tribunal (NCLAT) has stayed the insolvency proceedings initiated against the company by Rasalfa Services Private Limited (RASPL). The Supreme Court disposed of a civil appeal filed by RASPL without interfering with the NCLAT order. The company has deposited ₹353.80 crore in an interest-bearing account with the Registrar, NCLAT, as directed. The matter remains sub judice, and the company believes it has adequate financial resources to meet any obligations arising from the settlement. The trading window for the company's securities, which was closed, will reopen 48 hours after the declaration of the audited financial results.

Prime Focus has announced plans to reduce its debt by $150-$200 million over the next 12 months, underscoring the company's commitment to strengthening its balance sheet.

Debt Reduction Plan

The company has set a clear near-term target for debt reduction, with the planned repayment falling in the range of $150-$200 million within a 12-month timeframe. The following table summarizes the key details of the announced plan:

This initiative reflects Prime Focus's strategic priority of deleveraging, which is aimed at improving the company's overall financial health and reducing its debt obligations over the stated period.