Basilic Fly Studio Ltd (Entertainment & Media) — fundamental analysis, earnings data, and key metrics. PE: 8.1. ROE: 24.8%. This stock is not currently in the Nifty 500 momentum outperformers list.
Deep value thesis based on recent earnings • Updated Feb 28, 2026
Basilic Fly Studio's strategic investments in capacity and talent are creating temporary margin pressure but positioning the company for sustainable market leadership in the global VFX market with a clear path to 50% cost reduction by mid-2026.
Verdict
EARLY_INNINGS
Re-rating catalysts over the next 2-4 quarters • Updated Feb 28, 2026
50% operational cost reduction target from AI-enabled production systems and real-time rendering by July 2026
Impact: +₹52.51 Cr revenue
“Management guidance in Q3 FY26 earnings call”
Return to previous EBITDA margin levels as one-time hiring costs normalize and Bengaluru hub reaches full utilization
“Historical margin recovery pattern after expansion phases”
Delivery of >₹200 Cr in backlog representing 50% of YTD revenue, driving sequential profit growth
Impact: +₹200 Cr revenue
“Management disclosure of order book status in Q3 FY26 results”
Potential entry of global VFX player seeking Indian talent base, given BFS's Tier-1 certifications
“Industry consolidation trends and BFS's strategic positioning”
Risks that could prevent re-rating or deepen the value trap
If attrition rate exceeds 25% in next quarter
Impact: -500 bps margin impact
Management view: Management acknowledges talent competition but cites improved compensation structure and career pathing as retention tools
Monitor: Q4 attrition rate and compensation expense as % of revenue
If DSO increases by >15 days sequentially
Impact: -300 bps margin impact
Management view: Management expects improved cash conversion cycle as projects reach completion milestones
Monitor: DSO and cash conversion cycle in Q4 results
If major streaming platforms announce in-house VFX capabilities
Impact: -800 bps margin impact
Management view: Management believes BFS's hybrid model positions them as beneficiary rather than victim of AI adoption
Monitor: Client concentration and new project win rates for AI-enhanced workflows
Forward-looking targets from management for FY27
Revenue Growth Target
50%
Implied PAT Growth
75%
OPM Guidance
23%
Capex Plan
₹0 Cr
Credit Growth Target
0%
NIM Guidance
0%
Key Milestones
• Project Hybrid completion by July 2026
• Bengaluru hub at 80% utilization by Q2 FY27
• Expansion to 75+ clients by end-FY27
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Feb 28, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Basilic Fly Studio Ltd's latest quarterly results (Dec 2025) show
Basilic Fly Studio Ltd's current PE ratio is 8.1x.
Basilic Fly Studio Ltd's price-to-book ratio is 1.4x.
Basilic Fly Studio Ltd's fundamental strength based on key financial ratios
Basilic Fly Studio Ltd has a debt-to-equity ratio of N/A.
Basilic Fly Studio Ltd's return ratios over recent years
Basilic Fly Studio Ltd's operating cash flow is positive (FY2025).
Basilic Fly Studio Ltd currently does not pay a significant dividend (yield 0.00%).
Basilic Fly Studio Ltd's shareholding pattern (Dec 2025)
Basilic Fly Studio Ltd's promoter holding has remained stable recently.
Basilic Fly Studio Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
Basilic Fly Studio Ltd has 4 key growth catalysts identified from recent earnings analysis
Basilic Fly Studio Ltd has 3 key risks worth monitoring
Basilic Fly Studio Ltd's management has provided the following forward guidance for FY27
Based on quantitative research signals, here is why Basilic Fly Studio Ltd may be worth studying
Basilic Fly Studio Ltd investment thesis summary:
Basilic Fly Studio Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
