V R Films & Studios Limited reported a standalone net loss of ₹114.08 lakh for the first quarter ended June 30, 2026, marking a sharp reversal from the net profit of ₹51.93 lakh recorded in the same period of FY26. The Mumbai-based film distribution and dubbing company saw its revenue from operations contract by nearly half to ₹128.99 lakh, compared to ₹267.77 lakh in Q1FY26. This decline in top-line performance, coupled with persistent operational costs, drove the company into a loss position, signaling potential headwinds in its core business segments during the initial quarter of FY27.

The Board of Directors approved the standalone and consolidated unaudited financial results on August 06, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, B L Dasharda & Associates, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The meeting commenced at 03:00 p.m. and concluded at 03:40 p.m. The consolidated results also reflect a net loss of ₹114.07 lakh for the period.

Financial Performance

The company’s total income stood at ₹135.04 lakh, comprising ₹128.99 lakh from operations and ₹6.05 lakh from other income. Total expenses remained elevated at ₹249.73 lakh, primarily driven by employee benefits expense of ₹75.91 lakh and other expenses of ₹51.33 lakh. Cost of production was recorded at ₹52.63 lakh. The profit before tax stood at a deficit of ₹114.69 lakh. After accounting for deferred tax benefits of ₹0.61 lakh, the net loss for the period was determined at ₹114.08 lakh.

Consolidated View

The consolidated financial statements include the results of its wholly-owned subsidiary, Krismicbon Ai Tech Private Limited, which was incorporated on September 19, 2025. The subsidiary contributed to a comprehensive loss of ₹114.07 lakh for the quarter. As this is the first time consolidated statements are being prepared following the acquisition, comparative figures for Q1FY26 are not presented for the consolidated segment. The paid-up equity share capital remains unchanged at ₹1,097.60 lakh.

What the Numbers Show

The divergence between revenue contraction and expense stability is the defining feature of this quarter’s performance. While revenue from operations dropped by over 50% year-on-year, total expenses increased by 12.5% to ₹249.73 lakh. Employee benefits and other expenses accounted for the majority of this cost base, suggesting fixed-cost rigidity that amplified the impact of lower sales. The shift from a ₹51.93 lakh profit to a ₹114.08 lakh loss highlights the sensitivity of the company’s margins to volume fluctuations in film distribution and dubbing services.

V R Films & Studios announced the outcome of its Board of Directors meeting held on May 08, 2026, wherein the board approved both standalone and consolidated audited financial results for the quarter and year ended March 31, 2026. The meeting, which commenced at 02:30 P.M. and concluded at 3:40 P.M., also addressed the appointment of internal auditors and other regulatory matters. The intimation was signed by Mr. Manish Dutt, Managing Director (DIN: 01674671). Subsequently, as per Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the audited standalone and consolidated financial results were published in "Active Times" and "Mumbai Lakshdeep" on May 09, 2026. The company reported a significant turnaround in profitability, driven by reduction in overall expenses, improved inventory management, and better monetisation of content assets.

Standalone Financial Performance

The company reported a significant turnaround in its standalone financials for the year ended March 31, 2026, swinging to a profit from a prior-year loss. The statutory auditors, M/s B. L. Dasharda & Associates, issued an unmodified opinion on the audited standalone financial results. The following table summarizes the standalone performance:

For Q4 FY26, Total Income stood at ₹316.78 lakh against ₹243.88 lakh in the corresponding quarter of the previous year, while Profit Before Tax came in at ₹21.46 lakh compared to a loss of ₹400.56 lakh in the same period of FY 2024-25. Net Profit after Tax for the quarter was ₹9.66 lakh as against a net loss of ₹274.63 lakh in the corresponding quarter of FY 2024-25. For the full year FY 2025-26, Total Income was ₹1,207.47 lakh against ₹1,248.56 lakh in the previous year, with Profit Before Tax of ₹125.93 lakh compared to a loss of ₹493.03 lakh in FY 2024-25, and Net Profit after Tax of ₹96.62 lakh against a net loss of ₹374.44 lakh in the prior year.

Standalone Balance Sheet Highlights

The standalone balance sheet as at March 31, 2026 reflects a strengthened equity position and growth in total assets. Key balance sheet figures are presented below:

On a standalone basis, net cash flow from operating activities stood at ₹133.68 lakh for the year ended March 31, 2026, compared to ₹285.33 lakh in the prior year. Net cash from investing activities was ₹63.25 lakh, while net cash used in financing activities was ₹(198.89) lakh, resulting in a net decrease in cash and cash equivalents of ₹(1.96) lakh. Cash and cash equivalents at the end of the period stood at ₹10.37 lakh.

Consolidated Financial Performance

The consolidated results include the performance of the company's subsidiary, M/s Krishnabhan AI Tech Pvt Ltd, incorporated on September 19, 2025, in which V R Films & Studios holds a 50% stake with a share capital contribution of ₹6,00,000. As the subsidiary was incorporated during the current year, comparative figures for the prior year are not presented in the consolidated statements. The consolidated audited results for the year ended March 31, 2026 are summarized below:

Consolidated Balance Sheet and Cash Flow

The consolidated balance sheet as at March 31, 2026 shows total assets of ₹1,771.11 lakh, with total equity of ₹888.00 lakh (including non-controlling interest of ₹3.80 lakh), total non-current liabilities of ₹117.04 lakh, and total current liabilities of ₹766.07 lakh. On a consolidated basis, net cash flow from operating activities was ₹132.70 lakh, net cash from investing activities was ₹65.45 lakh, and net cash used in financing activities was ₹(198.89) lakh, resulting in a net decrease in cash and cash equivalents of ₹(0.74) lakh. Consolidated cash and cash equivalents at the end of the period stood at ₹11.59 lakh.

Board Decisions and Auditor Appointments

During the meeting, the board approved the appointment of M/s M.R.V. & Associates, Chartered Accountants (Firm Reg. No. 135836W), as Internal Auditors of the company for the financial year 2026-2027, in accordance with Section 138 of the Companies Act, 2013. The firm has experience in auditing, taxation, and company law, with exposure to audits of banks, financial institutions, and public and private sector entities. M/s B. L. Dasharda & Associates (Firm Registration Number: 112615W) served as the statutory auditors and issued an unmodified opinion on both the standalone and consolidated audited financial results. The trading window for designated persons and their immediate relatives, which was closed on April 1, 2026, will reopen 48 hours after the announcement of these results. The company also confirmed that there has been no deviation or variation in the use of public issue proceeds raised from its Initial Public Offering, rendering the Statement of Deviation(s) or Variation(s) under Regulation 32 of SEBI (LODR) Regulations, 2015 not applicable for the quarter ended March 31, 2026. The management remains focused on strengthening operational efficiencies, expanding digital distribution opportunities, and enhancing revenue generation from content and OTT platforms.