UFO Moviez Q4 FY26: Revenue up 43%, PAT positive

What changed in Q4 FY26

UFO Moviez India Limited reported a stronger Q4 FY26, aided by improving theatrical momentum and a better content pipeline that supported both footfalls and advertising demand. Management commentary linked the quarter’s performance to improved audience engagement and a stronger March, while noting that February was relatively soft due to fewer meaningful releases. The company also indicated a positive outlook for Q1 FY27, citing several high-profile film releases expected to support growth momentum.

On the stock market, the scrip was indicated at around INR 73 with a marginal move of +0.26% (BSE: 539141) in the provided data snapshot.

Q4 FY26 headline numbers: growth with a sharper profit swing

Consolidated total revenue in Q4 FY26 increased 43% year-on-year to INR 1,342 million from INR 940 million in Q4 FY25. EBITDA grew faster than revenue, rising 55% to INR 182 million from INR 118 million, pointing to operating leverage within the quarter. Profit after tax (PAT) swung to a profit of INR 45 million versus a loss of INR 7 million in the same quarter last year.

Sequentially, the company reported a smaller step-up: revenue rose 2% quarter-on-quarter from INR 1,319 million in Q3 FY26. However, EBITDA declined 13% QoQ from INR 210 million and PAT declined 30% QoQ from INR 64 million, showing that Q4 strength was not uniform across all profitability lines on a quarter-to-quarter basis.

Where the growth came from: exhibitors and advertising

The quarter’s revenue increase was described as broad-based, with the strongest momentum coming from exhibitor-related revenue and advertising.

Exhibitor revenue rose to INR 671 million in Q4 FY26 from INR 399 million in Q4 FY25, a 68% increase. This segment includes lease rental income, sale of products, and other operating revenues. Within it, sale of products increased to INR 439 million from INR 197 million, up 122% YoY. Lease rentals were largely steady at INR 152 million versus INR 150 million.

Advertising revenue increased 66% to INR 378 million from INR 227 million. In-cinema advertisement revenue was INR 369 million within the total. Operational ad metrics improved: average minutes sold per show per ad screen rose to 3.81 in Q4 FY26 from 2.77 in Q4 FY25, and ad revenue per screen increased to INR 94,124 from INR 59,118.

Monthly box office cadence: January steady, February soft, March strong

Management commentary described January as healthy, supported by a mix of commercial and regional releases. Films cited as helping traction included Ikkis, The Rajasab, Border 2, and Mardani. February was called out as relatively weak, with releases such as Oromio and Dodiwana Shareme generating modest traction and softer advertising engagement.

March was described as the strongest month of the quarter, led by the success of “Dhurandhar” or “Durandar the Revenge” (as referenced in the provided text). CFO Ashish Malushte attributed part of the quarter’s improvement to higher advertisement sales and significant revenue booked from this film, which released toward the end of the financial year.

Full-year FY26: higher revenue and a large jump in profitability

For FY26, UFO Moviez reported total revenue of INR 4,864 million, up 15% from INR 4,240 million in FY25. EBITDA increased 36% to INR 803 million from INR 591 million.

On PAT, the provided material contains multiple reference points: the results table shows PAT of INR 249 million in FY26 versus INR 92 million in FY25 (up 172%), while other excerpts cite FY25 profit as INR 96 million and describe increases of 161% or 11%. Separately, another line states the company “earlier reported” net profit of “Rs 249 crore” for FY26, which would be INR 2,490 million in normalized units. The presentation-style numbers and the financial table consistently show FY26 PAT as INR 249 million.

Working capital and cash position

The article flags a meaningful increase in trade receivables, ending at INR 1,620 million versus INR 1,150 million last year. CFO Ashish Malushte also noted an improvement in net cash from INR 483 million to INR 590 million despite working capital constraints.

As of March 31, consolidated cash was reported at INR 1,362 million, and net cash was INR 590 million after considering outstanding debt.

Key risks highlighted: costs, receivables, and revenue-sharing pressure

Alongside the revenue recovery, the negative points in the provided text focus on cost and efficiency pressures. Employee and operating costs were noted as increasing faster than revenue and profit, raising questions on cost optimisation. Revenue per screen was said to have dropped in both CDC and VPF categories (no figures were provided), and revenue-sharing with exhibitors on ad revenue was said to have increased, weighing on profitability margins.

The company also discontinued its loss-making Caravan business, which was cited as an impact on overall profitability.

Summary table: Q4 FY26 and FY26 financial snapshot

Market impact: what the quarter signals for investors

The quarter reinforced two measurable drivers: exhibitor-led revenue (including product sales) and advertising. Advertising effectiveness improved as minutes sold and ad revenue per screen rose, indicating stronger utilisation of the network during a stronger release period.

At the same time, rising trade receivables to INR 1,620 million and commentary on faster-rising employee and operating costs point to balance sheet and margin items investors are likely to track closely. The QoQ decline in EBITDA and PAT in Q4 FY26 versus Q3 FY26 also suggests sensitivity to release timing, particularly when February-like months see weaker content traction.

Outlook: Q1 FY27 content pipeline in focus

Management’s stance in the provided text remains optimistic for Q1 FY27, anchored on upcoming high-profile releases. The company also reiterated focus on strengthening its advertising network and premium cinema initiatives.

For markets, the next set of datapoints likely to matter will be whether advertising yields remain elevated beyond the March-led spike and whether working capital metrics such as receivables stabilise while the company manages exhibitor revenue-sharing terms and operating costs.