UFO Moviez India Limited Q2&H1FY27 Earnings Conference Call Summary

Management Participants

  • Mr. Rajesh Mishra – Executive Director and Group CEO
  • Mr. Ashish Malushte – Chief Financial Officer
  • Mr. Siddharth Bhardwaj – CEO, Digital Cinema Network Business

Q2 FY27 Theatrical Performance Highlights

  • Healthy theatrical momentum with diverse content slate across languages and genres
  • 386 movies released (including versions/languages) during Q2 FY27, compared to 462 in Q2 FY26 and 399 in Q1 FY27
  • July: Strong opening led by "Spider-Man: Brand New Day," supported by "The Odyssey" and "Dhamaal 4"
  • August: Varied performance with "Hanuman Ansh" emerging as notable sleeper hit exceeding expectations, "Awarapan 2" delivering strong performance, while "Batwara 1947" and "Toxic: A Fairy Tale for Grown-ups" underperformed
  • September: "Mirzapur: The Movie" delivered strong performance, while "Haiwaan" underperformed
  • Advertising footprint: 3,946 screens (2,606 multiplex screens + 1,340 single screens)

Financial Results for Q2 FY27

  • Consolidated revenue: ₹1,299 million (compared to ₹1,113 million in Q2 FY26, ₹1,118 million in Q1 FY27)
  • EBITDA: ₹213 million (compared to ₹218 million in Q2 FY26, ₹189 million in Q1 FY27)
  • Net profit: ₹64 million (compared to ₹75 million in Q2 FY26, ₹57 million in Q1 FY27)

H1 FY27 Financial Performance

  • Consolidated revenues: ₹2,417 million (compared to ₹2,203 million in H1 FY26)
  • EBITDA: ₹402 million (compared to ₹411 million in H1 FY26)
  • Net profit: ₹121 million (compared to ₹141 million in H1 FY26)
  • Consolidated cash as of September 30, 2026: ₹1,657 million
  • Net cash: ₹865 million after considering outstanding debt

Q&A Session Key Points

Capital Structure and Promoter Holding Clarification:

  • Promoter stake reduction was due to depromoterization of Apollo International (IPO-time promoter), not selling by founder promoters
  • Founder Promoter Group (Valuable Technologies, Mr. Sanjay Gaikwad, Mr. Hete) stake remains intact
  • Accumulated tax losses: approximately ₹119 crore (carried as deferred tax asset)
  • No Companies Act accumulated losses due to NCLT-approved restructuring and share capital reduction completed 2 years back
  • Company is now positioned to declare dividend or buyback
  • Capital distribution policy expected to be announced in Q3 or Q4 FY27

Operating Cost Analysis:

  • Operating direct costs increased 28% YoY in Q2 FY27
  • Breakdown of cost increase:
  • Advertisement revenue share: +2%
  • VPF revenue share: +16% (in line with VPF revenue growth)
  • Other direct costs: +5% (from ₹89 million to ₹93 million)
  • Cost of goods sold: +66% (from ₹19-32 crore)
  • Sale of product revenues increased 66% from ₹254 million to ₹422 million
  • Net margin from sale of products improved 68% YoY
  • Manpower incentive component increased by approximately ₹1 crore in Q2 FY27 compared to Q2 FY26

Q3 FY27 Outlook and Content Pipeline:

  • Q3 commenced with releases including "Drishyam 3", "Jailer 2", "Udta Teer", "Prahaar"
  • Upcoming releases: "Ramayana Part 1", "King" (Shah Rukh Khan starrer), "Avengers: Doomsday", "Eetha", "Yeh Prem Mol Liya"
  • Advertisers showing excitement for established IPs and sequels
  • Management confident about better H2 performance but refrained from providing specific revenue guidance
  • No expected cost surprises in coming quarters