Prime Focus Ltd: FY2026 Sees Strong Turnaround with ₹301 Crore Profit

Net Profit FY2026: ₹301 crore
Revenue FY2026: ₹4,676 crore

Reader Takeaway: Profitability achieved with strong revenue growth; debt reduction remains a key focus.

What just happened

Prime Focus Limited announced its financial results for the full year and quarter ended March 2026. The company achieved a net profit of ₹301 crore in FY 2026, marking a substantial turnaround from a net loss of ₹458 crore in FY 2025. Revenue for the fiscal year grew by 30% to ₹4,676 crore.

Why this matters

This turnaround signifies a successful recovery for Prime Focus, moving from a loss-making position to profitability. The strong revenue growth, driven by major projects, indicates a healthy operational performance. However, the company's significant gross debt of ₹5,062 crore remains a point of attention for investors.

The backstory

In FY 2025, Prime Focus reported a net loss of ₹458 crore on revenues of ₹3,599 crore. The company has been working to scale its global operations and improve margins. Key tentpole projects are crucial for its revenue generation and profitability.

What changes now

The company's return to profitability is a major milestone. The reported EBITDA margin of 30% and a 81% YoY increase in EBITDA to ₹1,423 crore highlight improved operational efficiency. An order book of approximately $1 billion for FY27 and beyond provides revenue visibility.

Risks to watch

While profitability has been achieved, the company's total gross debt stands at ₹5,062 crore as of FY 2026. The strategy to pare indebtedness through asset monetization, working capital improvement, and fundraising will be critical. An outflow of ₹684 crore in working capital due to content investments also needs to be monitored.

Peer comparison

(No peer comparison data available in the filing).

Context metrics (time-bound)

• FY 2026 Revenue: ₹4,676 crore (up 30% YoY)
• FY 2026 Net Profit: ₹301 crore (Turnaround from ₹(458) crore in FY25)
• FY 2026 EBITDA: ₹1,423 crore (up 81% YoY)
• FY 2026 EBITDA Margin: 30% (up from 22% in FY25)
• Q4 FY26 Revenue: ₹1,384 crore (up 41% YoY)
• Total Gross Debt FY 2026: ₹5,062 crore (up from ₹4,234 crore in FY25)
• Operating Cash Flow FY 2026: ₹1,024 crore
• Working Capital Outflow FY 2026: ₹684 crore

What to track next

Investors will closely monitor the execution of Prime Focus's debt reduction strategy. The successful monetization of content assets and improvements in working capital management will be key indicators of future performance.