Basilic Fly Studio delivers end-to-end visual effects for films, television and streaming, with front-end client-facing studios in London, Paris and Canada and high-spec delivery centers in Chennai, Pune and Bengaluru. The company sits at the high-value end of the VFX value chain, working directly for major studios and platforms such as Netflix, Amazon, Disney and Warner Bros., with 85-90% of work now direct rather than subcontracted. The global high-end VFX niche is concentrated; only a few firms have the certification, talent and production capacity to handle tier-1 mandates. Basilic's India standalone business earned a 43.1% EBITDA margin in FY26, while the consolidated margin was 20.9% due to overseas operations and strategic hires. That gap is the core opportunity: as more work is offshored to India, consolidated margins should compress toward the standalone level.
The persistent economics rest on multiple barriers that are hard to replicate. Client qualification cycles are long, requiring security certifications such as TPN Gold (renewed through 2028), Apple and Disney compliance, and a track record of Oscar-nominated projects. The company has built proprietary AI and USD pipelines that reduce production times and costs, and it holds over 20 years of asset libraries. The India-led delivery model provides a 30-40% cost advantage versus traditional hubs, and the hybrid cloud-on-premise setup cuts infrastructure costs by up to 62%. Switching costs are high because production teams embed Basilic in their workflows, and the multi-season Warner Bros. engagement and Netflix's reliance (over 50% of revenue) demonstrate stickiness. However, this concentration is a risk, not a moat.
The inflection is already underway. FY27 guidance targets 30% organic revenue growth, PAT of INR 65-70 crore (up from INR 50.6 crore in FY26), and a 2-2.5% consolidated EBITDA margin improvement. The order book stands at INR 232 crore, 90% of which is expected to be executed by Q4 FY27, and the bid pipeline is INR 456 crore (about GBP 35 million) with a historical conversion rate of 60-70%. Average ticket sizes have doubled to GBP 5-7 million, and the first win from new senior leadership hires was a GBP 3-3.5 million project in April 2026. By mid-2028, the company expects to have closed a North American M&A (adding a top line of INR 200-300 crore per target), scaled Bengaluru to over 100 artists, and fully deployed AI workflows. Management's own projection of INR 700-800 crore revenue in 2-3 years with improved profitability is grounded in these levers.
The management has consistently delivered against its stated targets. In Nov 2025, they guided FY26 consolidated revenue of INR 400-450 crore; actual was INR 408 crore, in range. They raised FY27 PAT guidance from an earlier INR 50 crore to INR 65-70 crore on the June 2026 call, citing AI and USD efficiency gains. They also committed to receivables recovery, and collections have normalized to a 96-day DSO. Capital allocation has been disciplined: INR 85 crore QIP raised in September 2025, with 48% utilized by March 2026 and the rest earmarked for inorganic growth. The company is evaluating 2-3 M&A targets, each with INR 200-300 crore top-line potential, though a previous LOI fell through on the seller's side. They have not diluted further and maintain a net-cash balance sheet.
The earnings path is quantifiable. FY27 revenue should be around INR 530 crore (30% growth on INR 408 crore), with PAT of INR 65-70 crore as guided. For FY28 and beyond, the order book plus pipeline conversion supports continued 20-25% growth, and with margin expansion from offshoring and AI, PAT could double by FY28-29. The key assumption is that conversion rates remain in the 60-70% range and that project timelines do not slip materially. The single biggest falsifier is client concentration: Netflix alone exceeds half of revenue, and a loss of a major contract or a shift in production schedules would cause quarterly volatility. The tension in the data, consolidated PAT margin declining in FY26 while India margins rose, is operational, not structural, as it stems from one-time hiring costs and project rescheduling, both of which are reversing in FY27.
companyname: Basilic Fly Studio Limited ticker: BASILIC sector: Visual Effects (VFX) for Film, TV, OTT, and Commercials The corrected report is below. I have replaced the em dash in the flagged line with a comma, as per the instruction. Basilic Fly Studio Limited is a visual effects company that builds and delivers the computer-generated imagery, digital environments, and complex compositing work that appears in films, television series, streaming content, and commercials. The company was foun...
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FY27 revenue growth guided at 30% driven by order book and bid pipeline expansion; PAT expected to reach INR 70 crores
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