Basilic Fly Studio Soars: A Deep Dive into H1 FY26 Performance and Future Vision

Basilic Fly Studio Limited (BFS), a pioneering force in the global visual effects (VFX) industry, has announced its unaudited consolidated financial results for Q2 and H1 FY26, showcasing a period of robust growth and strategic consolidation. The company, renowned for creating immersive and high-impact visual experiences, reported an outstanding H1 FY26 performance, driven by significant revenue growth and enhanced profitability. This period marks a strong phase of growth and consolidation for BFS, reflecting its expanding global footprint and technological advancements.

For H1 FY26, Basilic Fly Studio achieved a remarkable 2.5x year-on-year revenue growth, reaching INR 190.5 crore, up from INR 77.4 crore in H1 FY25. This impressive top-line expansion was complemented by a 107.0% increase in EBITDA, which stood at INR 38.7 crore, and a substantial 117.1% surge in Profit After Tax (PAT) to INR 26.8 crore. The growth was fueled by new project wins, the full six-month consolidation of its overseas subsidiary, One of Us (acquired in July 2024), and robust performance across both domestic and international markets. The company's EBITDA margin for H1 FY26 was 20.3%, while the PAT margin was 14.0%.

Strategic Initiatives and Global Expansion

Basilic Fly Studio's strategic roadmap for H2 FY26 and beyond focuses on strengthening its global presence, enhancing operational hubs, and fostering leadership and talent growth. The company successfully completed Phase 1 of its modular USD pipeline in March 2025, with Phase 2, focusing on real-time multi-site asset inter-operations, on track for completion by end of FY26/Q1 FY27. This initiative is expected to significantly improve collaboration and efficiency, potentially yielding 15-20% internal savings and facilitating the transition of high-end CG work to India.

To further expand its global reach, BFS onboarded four senior leadership roles for business development, targeting North America and Europe. This includes industry veterans like Adrian De Wet as VFX Supervisor & Creative Director in Los Angeles and Audrey Ferrara as Art Director in London, bringing extensive experience and connections with major studios like Netflix, Amazon, Disney, and Warner Bros. The company is also actively pursuing strategic acquisitions, particularly in the North American market, to diversify into immersive experiences and advertising, beyond traditional film and TV projects.

Domestically, BFS has initiated a new branch in Bengaluru, with hiring in full swing and billing commencing in October 2025. This expansion, along with continued growth in Chennai and Pune, aims to capitalize on cost arbitrage and enhance offshore capacity. The company's commitment to innovation is further underscored by the establishment of an AI/ML Lab with One of Us, leveraging the UK-India Enhanced Trade Partnership to advance pipeline integration and AI applications for smarter, more efficient creative workflows.

Financial Health and Future Outlook

The company's financial position was significantly bolstered by an INR 85 crore Qualified Institutional Placement (QIP) in September 2025. These funds are earmarked for technology innovation, delivery expansion, and selective inorganic growth, ensuring BFS has the capital to pursue its ambitious plans. This capital infusion has resulted in a strong net cash surplus of INR 48.3 crore, positioning the company for its next phase of growth.

Despite the strong performance, management transparently acknowledged some challenges. The recovery of old receivables, particularly from foreign studios, has been slower than anticipated, though gradual progress is being made. This, combined with high revenue volumes towards the end of H1, led to a negative operating cash flow of INR 17.1 crore for the half-year. Additionally, the overseas business experienced some pricing pressure, which the company is addressing by focusing on niche, higher-priced projects and strengthening its business development efforts.

Looking ahead, Basilic Fly Studio's management is optimistic about H2 FY26, expecting revenue to be similar to or better than H1, targeting INR 400-450 crore. They project a sustainable standalone PAT margin of around 30% in the near future. The company estimates its annual revenue capacity, at 100% utilization with existing resources, to be in the range of INR 550-600 crore. Under Vision 2026-27, BFS aims to build a multi-location, AI-augmented VFX network that combines creative excellence, advanced automation, and global delivery strength to drive sustainable growth and long-term value creation.

Conclusion: A Vision for Sustained Growth

Basilic Fly Studio's H1 FY26 results underscore its unwavering commitment to quality, innovation, and strategic expansion. The company's ability to deliver strong financial performance, integrate acquisitions effectively, and invest in cutting-edge technology positions it as a leader in the evolving VFX landscape. With a clear vision for global diversification, talent development, and technological advancement, Basilic Fly Studio is well-prepared to capitalize on emerging opportunities and sustain its growth trajectory in the years to come, reinforcing investor trust and creating long-term shareholder value.