Basilic Fly Studio Limited cuts Chennai cloud costs by 50%

Basilic Fly Studio Limited said its completed Chennai on-site and cloud-burst infrastructure cut cloud costs by 50%, while retaining flexibility to scale during peak production demand. The Q2/H1-FY27 operational update also reports local storage caching, a phased Universal Scene Description rollout on a live production and automation tools under development.

How did BFS cut cloud costs by 50%?

BFS said its completed Chennai hybrid project cut cloud costs by 50% by combining an on-site build with cloud-burst capacity. The presentation does not disclose the pre-project cloud-cost base, the rupee value of the saving, implementation spending, or whether the 50% reduction applies to a quarter, a specific production or the entire technology estate. It does state that the design retains flexibility to add capacity during peak demand.

The stated structure separates a Chennai on-site base from cloud-burst capacity for periods of higher workload. BFS presents the 50% figure as an infrastructure outcome rather than a revenue target or a profit forecast. It did not quantify any effect from the project on Q2-FY27 revenue, operating earnings before interest, tax, depreciation and amortisation, or profit after tax.

What does BFS's Chennai hybrid-cloud build include?

BFS's hybrid-cloud arrangement combines Chennai-based infrastructure with cloud capacity available during peak workloads. The Q2/H1-FY27 update places this project alongside a storage initiative that caches London-based storage locally at each site. BFS said this enables artists to access shared data at local network speeds without duplicating storage infrastructure.

The local-cache initiative is separate from the reported 50% cloud-cost reduction, and BFS has not allocated a saving between the two projects. Its stated benefit is local-speed access to shared London-based data. This supports the wider operating model described in the growth roadmap, which identifies a single integrated technology workflow across locations, including studios in Vancouver and London and operating bases in Chennai and Pune.

BFS also reported that its new NetApp storage system is live and performing to expectations. The company said the system improves network and overall studio performance, but did not provide latency, capacity, utilisation, capital-cost or availability measures. The disclosed components therefore cover flexible computing capacity, locally accessible shared storage and a new storage platform.

Which workflow upgrades are live at BFS?

BFS has begun a phased Universal Scene Description, or USD, rollout on a live production, enabling adoption of industry-standard pipeline technology without compromising project delivery. The company did not name the live production, give a completion date for the phases or specify the number of shows or artists using USD. The disclosure therefore confirms an active rollout rather than a completed studio-wide deployment.

BFS also said it is implementing agentic artificial-intelligence tools with a commercially safe generative-AI sandbox. A standalone automation tool for production scheduling and reporting is being built, with intended functions covering documentation, system monitoring, render-farm management and routine information-technology tasks. BFS said these tools are intended to improve operational efficiency and allow teams to focus on higher-value work, but did not disclose automation rates, headcount effects or savings.

Technology and workforce initiatives are linked in the update. BFS said its internal operations teams have been trained in editing and pipeline technicals to improve workflow efficiency and support a planned global data support centre in Chennai. Its completed talent boot-camp programme inducted 90% of trainees into live production, although the presentation does not disclose the size of the trainee cohort.

How do the technology projects fit BFS's FY27 results?

BFS's Q2-FY27 standalone revenue from operations was Rs 29.8 crore, down 13.1% year on year, while operating EBITDA was Rs 16 crore, down 14.4%. Consolidated revenue, in contrast, increased 12.8% to Rs 107.4 crore, while consolidated operating EBITDA declined 11.1% to Rs 22.5 crore. BFS attributed the consolidated margin effect to a change in revenue mix, saying growth came from overseas business, a comparatively lower-margin segment.

The financial data does not establish that the 50% cloud-cost reduction has changed reported margins. Standalone operating EBITDA margin in Q2-FY27 was 53.69%, versus 54.52% a year earlier, a decline of 83 basis points. Consolidated operating EBITDA margin was 20.95%, down from 26.58%, or 563 basis points, with BFS citing overseas revenue mix rather than a quantified infrastructure-cost effect.

For H1-FY27, standalone revenue rose 2.4% to Rs 55.8 crore and operating EBITDA was unchanged at Rs 27 crore. Consolidated revenue grew 11.4% to Rs 210.9 crore, while consolidated operating EBITDA fell 15.7% to Rs 37 crore. Standalone profit after tax declined 33.5% to Rs 11.3 crore and consolidated profit after tax declined 47.5% to Rs 13.9 crore; BFS said year-on-year profit-after-tax margin declines were primarily due to depreciation from Q2-FY27 capitalisation.

Conclusion

BFS has disclosed a 50% reduction in cloud costs from its completed Chennai hybrid infrastructure, supported by cloud-burst capacity for peak workloads, local caching of London-based storage and a live NetApp storage system. However, the Q2-FY27 results do not quantify the saving's contribution to expenses or earnings: consolidated revenue rose 12.8% to Rs 107.4 crore while operating EBITDA fell 11.1% to Rs 22.5 crore.

The next disclosed operating milestone is the Bengaluru studio, scheduled to become operational from January 2027. BFS said the new studio is targeting 40% of total work as headcount doubles, while its Bengaluru creative division has already begun hiring and commenced billing from October FY25 to support the UK subsidiary One Of Us. Future updates may show whether the Chennai infrastructure, USD rollout and automation tools extend with that expansion and whether BFS quantifies their financial effect.