UFO Moviez India Limited , a leading digital cinema distribution network and in-cinema advertising platform, has reported a robust financial performance for the first quarter, marking a significant turnaround in profitability and continued revenue growth.

Financial Highlights

The company's consolidated revenue saw a 15% year-on-year increase, reaching ₹1,090.00 million, up from ₹945.00 million in the same period last year. This growth was accompanied by a substantial improvement in profitability, with EBITDA surging by 194% to ₹193.00 million.

UFO Moviez has successfully returned to profitability, reporting a net profit of ₹65.00 million for the quarter, a notable improvement from the net loss of ₹42.00 million in the previous year's corresponding quarter.

Operational Performance

The company's advertising network has expanded to cover 3,762 screens, including 2,251 multiplex screens and 1,511 single screens. This extensive network has contributed to a 28% increase in advertisement revenue, while distributor service fees grew by 6%.

A key performance indicator, the average advertisement minutes sold, increased significantly to 4.31 minutes from 2.35 minutes in the previous year. Notably, corporate clients contributed 3.3 minutes of this total, indicating strong demand from the business sector.

Financial Position

UFO Moviez maintains a strong financial position with consolidated cash of ₹1,239.00 million and a net cash position of ₹537.00 million after accounting for outstanding debt.

Market and Content Overview

The quarter saw a mix of regional and mid-budget successes, with films like Ajith Kumar's "Good Bad Ugly" and Ajay Devgn's "Raid 2" performing well. Franchise successes such as "Housefull 5" and Aamir Khan's "Sitaare Zameen Par" also contributed to the positive momentum.

In total, 456 movies were released during the quarter, including various versions and languages, slightly down from 476 in the same quarter of the previous year.

Management Commentary

Rajesh Mishra, Executive Director and Group CEO of UFO Moviez, expressed optimism about the company's performance and future outlook. "The success of small and mid-budget films, select blockbusters, and regional hits reaffirmed the importance of strong storytelling, franchise value, and audience connection," he stated during the earnings conference call.

Future Outlook

Looking ahead to the next quarter, the company remains positive about its prospects. Several high-profile releases are slated, including "Dhadak 2", "Son of Sardar 2", "War 2", and "Coolie", among others. Management believes this robust lineup will help maintain the momentum and potentially deliver an even stronger performance in the coming quarter.

The company also noted improved consumer sentiment towards cinema viewing, which is expected to positively influence advertisers' willingness to commit to cinema advertising for the year.

UFO Moviez's strong quarterly performance, coupled with its expanded screen network and positive industry trends, positions the company well for continued growth in the evolving landscape of film distribution and in-cinema advertising.

UFO Moviez , India's largest in-cinema advertising platform, has reported a robust financial performance for the first quarter of fiscal year 2026, showcasing the company's resilience and strategic focus on profitable growth.

Financial Highlights

UFO Moviez demonstrated significant year-on-year improvements in its Q1 FY26 results:

• Total revenue increased by 15% to ₹1,090.00 million, up from ₹945.00 million in Q1 FY25.
• Advertisement revenue saw a substantial 28% growth, reaching ₹280.00 million compared to ₹227.00 million in the same quarter last year.
• EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) surged by 194% to ₹193.00 million, a marked improvement from ₹66.00 million in Q1 FY25.
• The company turned profitable with a Profit After Tax (PAT) of ₹65.00 million, compared to a loss of ₹42.00 million in the corresponding quarter of the previous year.

Strategic Focus and Growth Drivers

UFO Moviez is capitalizing on its extensive network of 3,762 screens across 1,352 cities and towns in India. The company's strategy for profitable growth includes:

1. Advanced Audience Targeting: Leveraging its wide reach to provide advertisers with more effective and targeted advertising solutions.

2. Rural Market Expansion: Tapping into the potential of rural markets to broaden its advertiser base and increase revenue streams.

3. Digital Content Offerings: Expanding its portfolio to include digital content, adapting to changing consumer preferences and technology trends.

4. Local Theatre Integration: Strengthening partnerships with local theatres to enhance its advertising platform and improve earnings.

Operational Performance

The company reported a mix of positive indicators in its operational metrics:

Management Commentary

Rajesh Mishra, Executive Director and Group CEO of UFO Moviez, commented on the results: "Q1 FY26 marked a decent start, with good performance across key business segments. We saw a fair mix of film releases, with several films performing well in key markets—driving audience engagement and contributing to revenue momentum."

He further added, "Advertising gained steady traction, reflecting improved brand demand, while theatrical revenues remained stable. Product sales continued to grow, supported by strong consumer interest and better market reach."

Future Outlook

UFO Moviez is well-positioned to benefit from the ongoing recovery in the advertising sector and the resurgence of cinema attendance post-pandemic. The company's focus on operational efficiency, coupled with its strategic initiatives in digital content and rural market expansion, is expected to drive long-term value creation for shareholders.

As the company continues to leverage its extensive network and technological capabilities, it aims to solidify its position as India's premier in-cinema advertising platform, with the potential to impact nearly 1.8 billion viewers annually.

UFO Moviez's strong Q1 FY26 performance and its clear strategy for growth indicate a positive trajectory for the company in the evolving landscape of cinema advertising and content delivery.