At a Glance
From ruling Indian television with saas-bahu sagas to streaming on ALT Balaji (and now Netflix), Balaji Telefilms is trying to script a financial comeback. But even after ₹453 Cr revenue and ₹85 Cr PAT in FY25, the company’s margins are messier than a serial plotline. With promoter holding falling and working capital bloating, investors are asking – is this show a reboot or a rerun?
1. 📺 Introduction with Hook
Balaji Telefilms isn’t just a media company.
It’s the reason your mom still watches reruns of Kyunki Saas Bhi Kabhi Bahu Thi.
But behind all the drama and dream sequences, lies a business that’s gone from:
- Mega hit TV serials
- To flop ALT Balaji burn
- To finally merging its digital & film wings and signing with Netflix in 2025.
So the question is: Is this a season finale or the start of Season 2?
2. 🧩 WTF Do They Even Do? (Business Model)
📺 1. Television Content
- K-serials factory: Kumkum Bhagya, Kundali Bhagya, Yeh Hai Chahatein, Bhagya Lakshmi
- One of Asia’s largest content producers
- Operates mostly on a work-for-hire / per-episode commission model
🎞️ 2. Films
- Hits: The Dirty Picture, Ek Villain, Udta Punjab, Dream Girl 1 & 2
- Latest: Freddy, Kathal, Sabarmati Report
- Some releases went direct-to-OTT
📱 3. Digital – ALT Balaji
- OTT platform with premium adult & urban youth content
- Now merged back into parent co.
- Burnt a LOT of cash over 5 years
🎭 4. Events & Branded Content
- Minor revenue stream via Marinating Films
3. 📈 Financials – Profit, Margins, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 593 | 625 | 453 |
| EBITDA (₹ Cr) | -19 | 46 | -14 |
| Net Profit (₹ Cr) | -38 | 19 | 85 |
| OPM (%) | -3% | 7% | -3% |
| ROE (%) | -9% | 5% | 16% |
| ROCE (%) | -5% | 8% | -1.1% |
🎯 FY25 profit is mostly driven by merger consolidation + other income
📉 EBITDA turned negative again in Q4 FY25
📦 Revenue dropped 28% YoY
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹89.5 |
| Market Cap | ₹1,062 Cr |
| EPS (TTM) | ₹7.28 |
| P/E | 12.6x |
| Book Value | ₹55.0 |
| P/B | 1.63x |
📌 For a media company with a 30-year legacy, a 12.6x PE looks cheap IF that ₹85 Cr PAT sustains.
💥 Fair Value Range = ₹60 – ₹95
(Assuming 8x–12x earnings on normalized ₹7–₹8 EPS)
5. 🍿 What’s Cooking – Netflix, Mergers & Mojo
✅ Netflix Deal (Jul 2025):
- Long-term creative partnership
- Balaji content to be produced for global OTT release
- Big shift from ALT Balaji’s cash-burning era
🔀 Composite Merger Scheme:
- ALT Digital + Marinating Films → Merged into parent
- NCLT approved April 2025
- Simplifies group structure, removes inter-co leakage
💰 Fund Raise (Dec 2024):
- ₹130.7 Cr via preferential allotment
- Strategic investors onboarded
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Year | Equity (₹ Cr) | Reserves (₹ Cr) | Debt (₹ Cr) | Total Assets (₹ Cr) |
|---|---|---|---|---|
| FY21 | ₹20 | ₹553 | ₹5 | ₹767 |
| FY24 | ₹20 | ₹411 | ₹79 | ₹709 |
| FY25 | ₹24 | ₹633 | ₹8 | ₹801 |
🔻 Debt reduced sharply in FY25 (from ₹79 Cr to ₹8 Cr)
📈 Reserves grew after merger + fund infusion
💸 Still asset-light: no real estate empire, just IP & contracts
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) |
|---|---|
| FY23 | ₹-47 |
| FY24 | ₹66 |
| FY25 | ₹52 |
⚠️ Most operating cash is from TV/IP sales, not subscription
🔌 ALT Balaji was a sinkhole — thankfully now closed and absorbed
8. 📊 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE (TTM) | 15.5% |
| ROCE | -1.16% |
| Working Cap Days | 316 |
| Inventory Days | 744 (!) |
| OPM | -3% |
| Promoter Holding | 31.9% ↓ |
🚨 Negative operating margin
🚨 Working capital bloat = 316 days
🚨 Inventory = mostly unreleased content (films/OTT) → cash trap
9. 🎭 P&L Breakdown – Show Me the Money
Q4 FY25:
- Revenue: ₹66 Cr
- EBITDA: ₹-19 Cr
- PAT: ₹94 Cr (due to one-time merger gain + other income)
- OPM: -29%
- EPS: ₹7.85 (but don’t trust it blindly)
So essentially, accounting gains ≠ operating strength.
10. 🧑🤝🧑 Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | ROE % | P/E | CMP (₹) |
|---|---|---|---|---|---|
| Saregama | 1,171 | 200 | 13.1 | 47x | ₹494 |
| Tips | 311 | 167 | 85.6 | 50x | ₹650 |
| Prime Focus | 3,598 | -100 | -15.8 | NA | ₹164 |
| Balaji Telefilms | 453 | 85* | 15.5* | 12.6x | ₹89.5 |
*Heavily merger-inflated. Real PAT from ops is closer to ₹20–₹30 Cr.
So even at 12.6x PE, you’re not buying a true cash gusher.
11. 🧾 Shareholding Drama
| Category | Mar ’23 | Mar ’25 |
|---|---|---|
| Promoters | 34.3% | 31.9% |
| FIIs | 18.3% | 25.1% |
| Public | 47.4% | 42.9% |
🧨 Promoters diluted 2.4% stake
✅ FIIs increased stake aggressively (Netflix optimism?)
But with public still holding 43% — it’s a volatile retail-heavy base.
12. 🧑⚖️ EduInvesting Verdict™
“From ALT Balaji flop show to Netflix deal — it’s Balaji’s Season 2 revival arc.”
✅ Cleaned-up balance sheet
✅ Consolidated ops with merger
✅ Huge IP library
✅ Global OTT access via Netflix
But…
❌ Still low OPM
❌ Unpredictable film pipeline
❌ High receivables and content inventory
Fair Value = ₹60 – ₹95
⚠️ At ₹89.5, the stock is pricing in “a Netflix miracle + zero losses” scenario.
If Ekta Kapoor’s new shows go global and margins improve → lights, camera, rerating.
If not? Back to re-runs and retail bag-holding.
✍️ Written by Prashant | 📅 08 July 2025
Tags: Balaji Telefilms, Ekta Kapoor, Netflix Deal, OTT Stocks, ALT Balaji, Smallcap Media, Film Production Stocks, Indian TV Content, EduInvesting Analysis
