Whalesbook
Panorama Studios Secures ₹65 Crore Credit Facility from Kotak Mahindra Bank
Panorama Studios International's Board has approved accepting fund and non-fund based credit facilities totaling ₹65 crore from Kotak Mahindra Bank. The company also noted an in-principle offer for an additional ₹10 crore from the same bank.
Facility Details and Collateral
The Board of Directors has given the go-ahead for the ₹65 crore credit facility, which will support the company's core business operations. This funding includes both fund-based and non-fund-based credit lines.
An additional in-principle offer for a ₹10 crore credit facility was also disclosed by the bank. This supplementary funding is subject to further approvals and necessary documentation.
The approved ₹65 crore facility will be secured by hypothecation of the company's current and movable assets. Additionally, a mortgage over specific immovable property located in Andheri West, Mumbai, will serve as collateral.
Strategic Importance
This credit facility enhances Panorama Studios' liquidity, which is essential for funding its film production and distribution operations. Given the hit-driven nature of the film industry and the company's historical financial volatility, secure access to working capital is critical for project continuity. Shareholders had previously approved an aggregate borrowing limit of ₹1,250 crore for the company, a decision dated September 30, 2025, indicating a strategic aim for sustained financial flexibility for future growth initiatives.
Company Background and Financials
Panorama Studios operates in the competitive Media & Entertainment sector, involved in film production and distribution. The company has experienced revenue volatility and consistent cash burn, with free cash flow being negative in three of the last four fiscal years (FY2021-FY2025).
While net sales and operating profit showed moderate growth over five years, recent quarterly results have faced pressure. In the September 2025 quarter, operating profit saw a significant drop. MarketsMojo issued a 'Strong Sell' rating in January 2026, citing very negative financial trends and deteriorating profitability. Total debt has risen from ₹257 million in FY2021 to ₹792 million in FY2025.
Impact for Operations and Shareholders
Shareholders can take comfort that the company is actively securing funds to support its main operations, potentially easing short-term liquidity issues. The approved facility could allow Panorama Studios to undertake new projects or continue ongoing ones without immediate financial constraints. Access to credit helps manage working capital needs, which have been a recurring challenge for the company due to its cash burn and receivables cycle.
Risks and Industry Challenges
The additional ₹10 crore credit facility is currently an in-principle offer, dependent on due diligence, definitive agreements, and further approvals from Kotak Mahindra Bank, introducing execution risk.
Panorama Studios has a history of highly volatile financial performance, and a 'Strong Sell' rating was issued by MarketsMojo in January 2026 due to deteriorating profitability and bearish market sentiment.
The media and entertainment sector is inherently cyclical and competitive, presenting ongoing challenges for revenue generation and profitability.
Separately, a commercial IP suit was filed against the company by Viacom 18 Media Pvt Ltd in May 2021.
Peer Comparison
Panorama Studios operates within the Indian Media & Entertainment industry alongside companies such as Balaji Telefilms Ltd., Saregama India Ltd., and Eros International Media Ltd. These firms also navigate the dynamic content creation and distribution landscape, each with different business models and financial structures.
Monitoring Key Developments
Investors will be watching the finalization of documentation and approvals for the additional ₹10 crore credit facility from Kotak Mahindra Bank.
It will be important to observe how Panorama Studios utilizes the ₹65 crore facility to support its production and distribution activities.
Tracking the company's upcoming financial results will be key for signs of improved operational stability and cash flow management. Investors should also look for any further corporate actions or strategic announcements regarding expansion or the project pipeline.