PFOCUS
Micro CapPrime Focus Limited
Media
Prime Focus Limited is a global leader in VFX and animation services, with over 9,900 employees and c.94% revenue ex-India. It also develops AI-native enterprise content platforms (Brahma AI) and engages in selective co-productions. The company leverages a large India-based workforce for cost advantage.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Good · 55/100Rev +41% YoY · margin expansion · +15% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,384 Cr | +41.4% | +14.7% |
| EBITDA | ₹488 Cr | +110.3% | +23.9% |
| Operating margin | 35.0% | +1100 bps | +200 bps |
| PAT | ₹118 Cr | NDF | +71.0% |
| PAT margin | 8.5% | +3427 bps | +281 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Prime Focus reports strong FY26 revenue growth of 30% YoY and EBITDA margin expansion to 30%, driven by tentpole projects. Q4 FY26 saw 41% YoY revenue growth and 110% YoY EBITDA growth, but net debt increased due to FX impact.
While FY26 performance shows robust revenue and EBITDA growth, driven by strong VFX demand and initial traction in Brahma AI, the increase in net debt and significant working capital absorption are concerning. Management's ability to execute on its debt reduction and working capital monetization plans will be critical to validate the improved profitability.
VFX and Animation Services
World’s No. 1 independent VFX and animation services provider, with key creative partnerships with the world’s biggest studios.
Brahma AI Platform
Continued commercial growth, winning new multi-year deals, renewing key contracts, and converting POCs into enterprise engagements.
Expansion into New Verticals for Brahma AI
Successfully entered new verticals, with early traction in Healthcare, and deepening contractual engagements in Sports.
Strategic Co-productions
Selective strategic co-productions with top tier studios and film makers, leveraging relationships for tentpole projects.
Compute, Render, Memory & Equipment
Capex was ramped up towards procurement of compute, render, memory and other equipment. This capex build-up will enable scaling up tech capabilities of BRAHMA AI.
Industry Tailwinds
Benefiting from industry tailwinds and well-positioned for growth.
Global Footprint Advantage
Global footprint provides a massive competitive advantage, allowing the company to provide services worldwide at a significantly lower cost due to a large India-based workforce.
FX Impact on Debt
Non-cash loss of INR 38cr in Q4 FY26 due to debt translation accounting, contributing to increased gross debt.
Working Capital Management
Change in working capital of (INR 684cr) in FY26, primarily towards content investments, absorbed significant operating cash flow.
Increased Net Debt
Total Gross Debt increased from INR 4,234cr in FY25 to INR 5,062cr in FY26, with Net Debt at INR 4,138cr.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY is primary for assessing overall annual performance and Q4 growth against the previous year, reflecting the project-based nature of VFX. QoQ is relevant for tracking sequential momentum and operational efficiencies within the quarter.
FY26 Revenue Growth
30% FY 2026 YoY Revenue Growth
FY26 EBITDA Margin
30% FY 2026 EBITDA Margin
Q4 FY26 Revenue Growth
Revenue growth of 41% YoY driven by tentpole projects
Q4 FY26 EBITDA Margin
EBITDA Margin 35%
Debt Reduction Target
Endeavour to reduce debt by $150-$200m over the next twelve months, supported by monetization of content assets, working capital improvement, and capital markets fundraise.
Working Capital Release
Amount attributed towards change in working capital is expected to significantly come down over the next twelve months driven by the release and monetisation of such key projects.
Strong Cash Generation
Continuing with the growth momentum and expected release of working capital will further lead to strong cash generation.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Debt | INR 4,138cr (FY26) | Reduction by $150-$200m over the next twelve months, as per management's stated plan. |
| Working Capital | (INR 684cr) change in FY26 | Significant reduction over the next twelve months driven by project monetization and operational efficiencies. |
| Brahma AI Commercial Growth | New multi-year deals, renewals, POC conversions, new verticals/regions. | Continued conversion of POCs to enterprise engagements and sustained expansion into new verticals and regional markets. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
52NeutralSMA20 +7.3% / mo
Technical chart
PFOCUSweekly · 1Y+91.5%Technical trend read
Bullish setupTrend is constructive — long-term trend unclear. RSI 47.
- SMA20 rising (~6.8% over last month) — short-term momentum positive.
- RSI(14) at 47 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 36% off 52W high · 106% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Cash flow contributes 6/10 to the score.
- Growth contributes 13/25 to the score.
- Quality contributes 9/20 to the score.
Main drags
- Fair-value margin of safety is negative at -101.2%.
- Balance sheet is weaker at 0/15; verify the latest quarterly trend.
- Valuation is weaker at 1/30; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Claim history is still being built. It ranks around the 5th percentile of the scored universe and 8th percentile within Media. Main check: financial discipline is weak at 30/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: Debt/equity is 3.02.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Media: 8th pctile, median 64 · Micro: 3rd pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Weak Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸4 years of positive FCF.
Trust risks
- ▸Debt/equity is 3.02.
- ▸2 recent quarters had PAT decline worse than 25% YoY.
- ▸Promoter holding is only 3%.
- ▸ROCE is low at 8%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 81.80
- P/B
- 9.22
- EV/EBITDA
- 11.98
- Market Cap
- 19215.00Cr
Profitability
- ROE
- 16.50%
- ROCE
- 11.50%
- ROA
- 2.83%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 13.00%
- EPS 5Y
- 54.00%
- Revenue 3Y
- 0.23%
- EPS 3Y
- 10.00%
Balance Sheet
- Debt/Equity
- 7.08
- Interest Coverage
- 2.76×
- Altman Z
- 2.17
- Book Value
- 26.90
Cash Flow
- FCF Yield
- 2.26%
- FCF Positive Y
- 5/5
- OCF
- 1024.00 Cr
- EPS TTM
- 2.82
Shareholding
- Promoter Hold
- 3.00%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 54%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Media — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.