New Product Or Brand Launch
Expected: February 2025HIGH confidence
What: BRAHMA AI Valuation: $1.43bn
“Abu Dhabi-based United Al Saqer Group (UASG) led the investment round in to Brahma in February 2025 which valued Brahma AI at $1.43bn”
Prime Focus Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +15.9%Average12w StreakAccelerating
In , Prime Focus Ltd (Entertainment & Media) is outperforming Nifty 500 with +15.9% relative strength. Fundamentals: Average. On a 12-week streak.
Prime Focus Ltd Key Facts
- PE Ratio
- 88.8x
- Price/Book
- 11.73x
- Market Cap
- ₹23,350 Cr
- PAT Growth YoY
- +170%
- Revenue Growth YoY
- +33%
- OPM
- 33.0%
- RS vs Nifty 500
- +15.9%
PE: Early ExpansionEmerging Opportunity
What's Happening
⏳Steady earner with flat PE — waiting for re-rate catalyst
📊Debt increased 407% YoY — leverage rising
👔Promoter stake down 9.1% this quarter
🌐FII stake decreased 7.3% this quarter
🏛️DII accumulation — stake up 1.1%
💰Trading 97% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. New Product Or Brand Launch
February 2025HIGH
2. Order Book Or Contract Wins
Q4 FY26 and beyondHIGH
3. Tam Expansion Changing Consumption
2025MEDIUM
Key Risks
1. Dependence on a large workforce of 9,800+ employees across 24 locations
MEDIUMSector-Specific Signals
Order Book & Visible Pipeline$775 mn
Utilisation %87%
Revenue from Recurring Customers90%+
India Headcount %75%
Key Numbers
PAT Growth YoY
+170%
Inflection Up
Revenue YoY
+33%
Stable
Operating Margin
33.0%
+400 bps YoY
PE Ratio
88.8
EV/EBITDA
22.2
Current Price
₹301
Fundamental Score
45/100
Average
3Y PAT CAGR
+6%
Market Cap
23.3K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Prime Focus Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Order Book Or Contract Wins
Expected: Q4 FY26 and beyondHIGH confidence
What: Order Book: $775 mn
“Order book & visible pipeline for Q4 FY26 and beyond ~$775 mn ... Order book consists of 70+ projects.”
Tam Expansion Changing Consumption
Expected: 2025MEDIUM confidence
What: Theme Park Revenue: $40bn
“attractions clocking in revenues over USD $40bn in 2025 and growing ... DNEG is quickly establishing its presence in this segment.”
Operating Leverage Inflection
Expected: Q3 FY26MEDIUM confidence
What: Utilisation: 87%
Impact: 33% EBITDA Margin
“Utilisation 87% ... provide services worldwide and at a significantly lower cost due to a large India-based workforce”
Client Mining Cross Selling Wallet Share
Expected: OngoingLOW confidence
What: Recurring Customers: 90%+
“Revenue from recurring customers 90%+ ... 25 years of client relationships ... DNEG has delivered large scale content for world's largest content creators.”
EBITDA Margin at 33%
HIGH confidence
What: EBITDA Margin at 33%
“EBITDA (including Forex gain/loss) ... Q3 FY26 402 ... EBITDA Margin 33%”
What Are the Key Risks for Prime Focus Ltd?
Earnings deceleration risks from management commentary
Dependence on a large workforce of 9,800+ employees across 24 locations
MEDIUMTrigger: The business model relies heavily on skilled VFX talent and artists.
Management view: Leveraging a large India-based workforce to provide services at a significantly lower cost.
Monitor: labor
What Is Prime Focus Ltd's Management Saying?
Key quotes from recent conference calls
“Please find enclosed the Investor Presentation for the financial year 2020-21. Kindly take the above on your record. [Previous Investor Presentation FY21 guidance]”
“real game changer for our business is the rapid scaling of our AI platform, BRAHMA AI ... $153m FY27 Visible Revenue. [Initiative: BRAHMA AI Scaling]”
“High services margin creates natural hedge at 2x to 3x of investment ... Project margin planned at healthy levels. [Initiative: Prime Focus Studios Co-productions]”
“DNEG is currently working on 2 full length digital concerts with revenues in excess of USD $60 mn for FY26. [Initiative: Digital Concerts Expansion]”
What Did Prime Focus Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹1,219 Cr
QoQ +13.7%
Revenue shows sequential growth from ₹1,072 Cr in Q2 FY26 to ₹1,219 Cr in Q3 FY26.
EBITDA
₹402 Cr
Margin 33%
EBITDA margins improved sequentially from 25% in Q2 to 33% in Q3.
PAT
₹70 Cr
QoQ +1650%
PAT saw a sharp sequential recovery from ₹4 Cr in the previous quarter.
Other Highlights
• Utilisation stood at 87% for the Visual Effects & Animation segment in Q3 FY26.
• India headcount for the VFX and Animation segment reached 75% of total.
• Recurring customers contributed over 90% of revenue for the segment.
What Sector Metrics Matter for Prime Focus Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Order Book & Visible Pipeline
$775 mn
Utilisation %
87%
Revenue from Recurring Customers
90%+
India Headcount %
75%
Gross Contribution %
44%
Brahma AI Valuation
$1.43bn
Why: Investment round led by United Al Saqer Group
Brahma AI Visible Revenue FY27
$153m
Why: Quick traction in the Brahma AI product business
VFX Oscars (Last 10 Years)
8
YoY +1
Why: Won Oscar for Tenet
What Is Prime Focus Ltd's Management Guidance?
Forward-looking targets from management for FY2030
Revenue Outlook
$1,000 mn
Volume
Order book & visible pipeline for Q4 FY26 and beyond at ~$775 mn
Management Tone: BULLISH
How Fast Is Prime Focus Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +33% | +2% | Stable |
| PAT (Net Profit) | +170% | +6% | Inflection Up |
| OPM | 33.0% | +400 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: Prime Focus Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Prime Focus Ltd's latest quarterly results?
Prime Focus Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +169.7% (turning around (inflection up))
- Revenue Growth YoY: +32.8%
- Operating Margin: 33.0% (volatile)
Is Prime Focus Ltd's profit growing or declining?
Prime Focus Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +169.7% (latest quarter)
- PAT Growth QoQ: +1625.0% (sequential)
- 3-Year PAT CAGR: +6.2%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Prime Focus Ltd's revenue growth trend?
Prime Focus Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +32.8%
- Revenue Growth QoQ: +13.8% (sequential)
- 3-Year Revenue CAGR: +2.0%
How is Prime Focus Ltd's operating margin trending?
Prime Focus Ltd's operating margin is volatile.
- Current OPM: 33.0%
- OPM Change YoY: +4.0% basis points
- OPM Change QoQ: +5.0% basis points
What is Prime Focus Ltd's 3-year profit and revenue CAGR?
Prime Focus Ltd's long-term compounding rates
- 3-Year Profit CAGR: +6.2%
- 3-Year Revenue CAGR: +2.0%
Is Prime Focus Ltd's growth accelerating or decelerating?
Prime Focus Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
- YoY Acceleration: +180.0% bps
- Sequential Acceleration: +100.0% bps
What is Prime Focus Ltd's trailing twelve month (TTM) performance?
Prime Focus Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹-69 Cr
- TTM PAT Growth: +76.0% YoY
- TTM Revenue: ₹4,000 Cr
- TTM Revenue Growth: +22.3% YoY
- TTM Operating Margin: 27.5%
Is Prime Focus Ltd overvalued or undervalued?
Prime Focus Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 88.8x
- Price-to-Book: 13.4x
What is Prime Focus Ltd's current PE ratio?
Prime Focus Ltd's current PE ratio is 88.8x.
- Current PE: 88.8x
- Market Cap: 23.4K Cr
How does Prime Focus Ltd's valuation compare to its history?
Prime Focus Ltd's current PE is 88.8x.
- Current PE: 88.8x
- Valuation Assessment: Significantly Overvalued
What is Prime Focus Ltd's price-to-book ratio?
Prime Focus Ltd's price-to-book ratio is 13.4x.
- Price-to-Book (P/B): 13.4x
- Book Value per Share: ₹22
- Current Price: ₹301
Is Prime Focus Ltd a fundamentally strong company?
Prime Focus Ltd is rated Average with a fundamental score of 44.84/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +32.8% (10% weight)
- PAT Growth YoY: +169.7% (10% weight)
- PAT Growth QoQ: +1625.0% (10% weight)
- Margins stable (10% weight)
- EV/EBITDA: 22.2x vs sector median (15% weight)
Is Prime Focus Ltd debt free?
Prime Focus Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹5,000 Cr
What is Prime Focus Ltd's return on equity (ROE) and ROCE?
Prime Focus Ltd's return ratios over recent years
- FY2023: ROCE 16.0%
- FY2024: ROCE -2.0%
- FY2025: ROCE 8.0%
Is Prime Focus Ltd's cash flow positive?
Prime Focus Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹295 Cr
- Free Cash Flow (FCF): ₹-57 Cr
What is Prime Focus Ltd's dividend yield?
Prime Focus Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹301
Who holds Prime Focus Ltd shares — promoters, FII, DII?
Prime Focus Ltd's shareholding pattern (Mar 2026)
- Promoters: 60.8%
- FII (Foreign): 3.7%
- DII (Domestic): 1.2%
- Public: 34.4%
Is promoter holding increasing or decreasing in Prime Focus Ltd?
Prime Focus Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 60.8% (Mar 2026)
- Previous Quarter: 60.8% (Dec 2025)
- Change: 0.00% (stable)
How long has Prime Focus Ltd been outperforming Nifty 500?
Prime Focus Ltd has been outperforming Nifty 500 for 12 consecutive weeks, indicating strong sustained outperformance.
Is Prime Focus Ltd a new momentum entry or an established outperformer?
Prime Focus Ltd is an established outperformer with 12 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Prime Focus Ltd?
Prime Focus Ltd has 6 key growth catalysts identified from recent earnings analysis
- New Product Or Brand Launch — Investment round led by United Al Saqer Group valued the AI business at $1.43bn.
- Order Book Or Contract Wins — Order book consists of 70+ projects with additional addressable opportunities of $500 mn+.
- Tam Expansion Changing Consumption — Expansion into screen-based content for Theme Parks and Digital Concerts.
- Operating Leverage Inflection — High utilization and India-based workforce lower service costs.
What are the key risks in Prime Focus Ltd?
Prime Focus Ltd has 1 key risk worth monitoring
- [MEDIUM] Dependence on a large workforce of 9,800+ employees across 24 locations — The business model relies heavily on skilled VFX talent and artists.
What did Prime Focus Ltd's management say in the latest earnings call?
In Q3 FY26, Prime Focus Ltd's management highlighted
- "Please find enclosed the Investor Presentation for the financial year 2020-21. Kindly take the above on your record. [Previous Investor Presentation ..."
- "real game changer for our business is the rapid scaling of our AI platform, BRAHMA AI ... $153m FY27 Visible Revenue. [Initiative: BRAHMA AI Scaling]"
- "High services margin creates natural hedge at 2x to 3x of investment ... Project margin planned at healthy levels. [Initiative: Prime Focus Studios C..."
What is Prime Focus Ltd's management guidance for growth?
Prime Focus Ltd's management has provided the following forward guidance for FY2030
- Revenue outlook: $1,000 mn
- Margin outlook: Not Given
- Management tone: bullish
What sector-specific metrics matter most for Prime Focus Ltd?
Prime Focus Ltd's most important sub-sector-specific KPIs from the latest concall
- Order Book & Visible Pipeline: $775 mn
- Utilisation %: 87%
- Revenue from Recurring Customers: 90%+
- India Headcount %: 75%
- Gross Contribution %: 44%
- Brahma AI Valuation: $1.43bn — Investment round led by United Al Saqer Group
Is Prime Focus Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Prime Focus Ltd may be worth studying
- Earnings growing at +169.7% YoY
- Cash flow is positive — CFO ₹295 Cr
What is the investment thesis for Prime Focus Ltd?
Prime Focus Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +32.8% YoY
- Growth catalyst: New Product Or Brand Launch
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Dependence on a large workforce of 9,800+ employees across 24 locations
What is the future outlook for Prime Focus Ltd?
Prime Focus Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: New Product Or Brand Launch
- Key Risk: Dependence on a large workforce of 9,800+ employees across 24 locations
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.