BFS Q2 revenue rises 13% while net profit falls 50% year on year

Basilic Fly Studio Limited reported Q2 FY27 consolidated revenue of Rs 107.4 crore, up 12.82% year on year, while net profit fell 49.66% to Rs 7.3 crore for the quarter ended September 30, 2026. BFS attributed the profit decline to a changed revenue mix with more London-subsidiary revenue in H1 FY27 and higher depreciation and amortisation from Q2 FY27.

What were BFS's Q2 and H1 FY27 financial results?

BFS reported Q2 FY27 revenue of Rs 107.4 crore, earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 22.5 crore, and net profit of Rs 7.3 crore. Revenue increased 12.82% year on year, while EBITDA declined 11.07% and net profit declined 49.66%, showing that the reported sales increase did not translate into higher operating or net earnings.

The Q2 EBITDA margin was 20.95%, with BFS disclosing a year-on-year change of negative 5.63%. Total comprehensive income (TCI) was Rs 7.9 crore, down 45.14% year on year. These were unaudited consolidated results for the quarter ended September 30, 2026.

For H1 FY27, BFS recorded revenue of Rs 210.9 crore, EBITDA of Rs 37 crore and net profit of Rs 13.9 crore. The H1 revenue increase of 11.35% was below Q2's 12.82% increase, while the H1 EBITDA margin of 17.54% was lower than the Q2 margin of 20.95%.

Why did BFS's profit decline despite revenue growth?

BFS said its Q2 net-profit decline of 49.66% and H1 decline of 47.55% reflected a change in revenue mix, with more revenue coming from its London subsidiary in H1 FY27, and increased depreciation and amortisation from Q2 FY27. The release did not quantify the individual financial effects of the London mix or the additional depreciation and amortisation.

The movement from Q2 EBITDA of Rs 22.5 crore to net profit of Rs 7.3 crore occurred after EBITDA itself declined 11.07% year on year. In H1 FY27, EBITDA declined 15.72% to Rs 37 crore, while net profit fell 47.55% to Rs 13.9 crore, extending the gap between revenue growth and reported profitability across the six-month period.

BFS reported TCI of Rs 14.4 crore for H1 FY27, down 49.30% year on year, compared with a 45.14% decline in Q2 TCI to Rs 7.9 crore. The company did not disclose segment-level revenue, profit, client concentration or the amount of revenue generated by the London subsidiary in this release.

What projects and operating changes did BFS report in Q2 FY27?

BFS said it delivered visual-effects work in Q2 FY27 for Hashtag Love, Jailer 2, Ramayana, Orphans 3, Ahsoka Season 2, Practical Magic 2 and Elsinore. The company described these as domestic and international production deliveries involving relationships with global studios and streaming platforms.

BFS commissioned a NetApp storage system and completed its Project Hybrid infrastructure, which combines on-site capacity with cloud burst capability. Management said Project Hybrid had reduced cloud costs by 50%, while the release did not disclose the prior cloud-cost base or the savings in rupees.

The company also implemented cloud caching and began a phased rollout of Universal Scene Description, an open pipeline standard for large-scale and multi-site production. It delivered an upgrade to its production-management tool for scheduling, resourcing and cross-site reporting, while Version 2 enhancements and multi-site bidding tools remained in training and deployment during Q2 FY27.

What is BFS planning after the September 2026 quarter?

BFS said its Bengaluru studio is scheduled to open in January 2027 and is targeting 40% of the company's total work as headcount doubles. The release did not state the headcount base, the expected capital spending, or the period over which the Bengaluru studio is expected to reach that work target.

Project Hybrid is expected to be fully rolled out by January 2027, according to BFS. The company also plans to expand adoption of artificial intelligence through a commercially safe generative-AI sandbox and is building automation tools for production scheduling, reporting, documentation, system monitoring, render-farm management and routine information-technology tasks.

BFS appointed Katy Mummery as Executive Producer at One Of Us in London and held two talent boot camps in Chennai and Pune. The company said 90% of trainees were inducted into live production and that it expanded its new-technology, or AI, team in Chennai during the period.

When will BFS discuss the Q2 FY27 results?

BFS scheduled an earnings conference call for November 6, 2026, at 4:00 PM Indian Standard Time to discuss results for the quarter and half-year ended September 30, 2026. The company said its analyst and institutional-investor presentation would be submitted to stock exchanges and hosted in its investor-relations section.

The results were prepared under Indian Accounting Standards, or Ind AS, and BFS said detailed financial statements and segment results were available through its investor-relations website. The media release itself provides consolidated headline figures of Rs 107.4 crore in Q2 revenue and Rs 210.9 crore in H1 revenue, rather than a segment breakdown.

Conclusion

BFS reported a divergence between sales and earnings in FY27's first half: Q2 EBITDA fell 11.07% and H1 EBITDA fell 15.72%, despite revenue increasing 12.82% in Q2 and 11.35% in H1. Management linked the decline in net profit to London-subsidiary revenue mix and depreciation and amortisation that increased from Q2 FY27.

The next disclosed event is the November 6, 2026 earnings call, followed by the planned January 2027 Bengaluru studio opening and full Project Hybrid rollout. BFS is targeting 40% of its total work through Bengaluru as headcount doubles, while the financial effects of that expansion, the London mix and higher depreciation remain undisclosed in the release.