India's I&B Sector Attracts ₹5,586 Cr FDI in Q2 FY26, Led by Films & Ads

MEDIA-AND-ENTERTAINMENT
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AuthorKavya Nair|Published at:
India's I&B Sector Attracts ₹5,586 Cr FDI in Q2 FY26, Led by Films & Ads
Overview

Foreign direct investment in India's information and broadcasting sector surged to ₹5,586 crore in the second quarter of FY26, a dramatic increase from ₹147 crore in the same period last year. This inflow was primarily driven by substantial investments in films, advertising, and visual effects, signaling renewed international confidence in India's content creation and production assets. Major beneficiaries include Prime Focus, IVY Entertainment, and 9X Media, with investments routed through various official channels.

FDI Surges in Information and Broadcasting Sector

India's information and broadcasting sector saw foreign direct investment (FDI) skyrocket to ₹5,586 crore in the second quarter of fiscal year 2026. This represents a massive leap from the ₹147 crore recorded in the same quarter of the previous fiscal year. The surge was predominantly fueled by overseas investors increasing their stake in content, production, and post-production assets, with films and advertising leading the charge.

Contrasting Trends Amidst Growth

The sector's performance in the preceding quarter, April-June 2025, presented a different picture. FDI inflows had fallen sharply to ₹552.45 crore, a significant drop from ₹3,374.73 crore in the corresponding period of FY25. However, the September quarter figures reversed this trend, indicating a strong rebound and renewed appetite for Indian media assets.

Films, Advertising Drive Investments

Specifically, the films and advertising segments accounted for ₹5,530 crore of the total inflows during the September quarter. Radio broadcasting also saw investment, attracting ₹56 crore. These investments were facilitated through the Reserve Bank of India's automatic route, the government route, and the acquisition of shares route, demonstrating the diverse pathways for foreign capital entry.

Prime Focus Leads Major Beneficiaries

Visual effects and post-production major Prime Focus emerged as the largest recipient, attracting a cumulative ₹5,333.33 crore in FDI during the quarter. The company secured significant funding through multiple tranches from entities such as A2R Holdings, Luxembourg, and Novator Capital, Cyprus. Additional capital came from Bresino Projects, Cyprus, and other investors.

Film production company IVY Entertainment followed, receiving ₹77.47 crore, primarily from its UAE-based parent. Radio and television broadcaster 9X Media attracted multiple tranches of foreign investment totaling ₹55 crore from NSR PE Mauritius LLC, an affiliate of PE firm New Silk Route. Seventaurus Entertainment Studio also reported inflows of ₹10.15 crore from its French parent, Banijay SAS.

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