Phantom Digital Effects Ltd – H1 FY26 Results: The VFX Magician That’s Now Buying Other Magicians (₹8,829.5 Lakh Revenue, ₹2,068.5 Lakh PAT, Milk & Tippett Acquisitions Go Global)

1. At a Glance

Lights. Camera.Profit.Phantom Digital Effects Ltd (NSE: PHANTOMFX) isn’t your usual desi smallcap. It’s the CGI wizard behind your favourite explosions, dragons, and heroes that mysteriously turn into VFX smoke when budgets run out. With amarket cap of ₹461 crore,current price ₹290, and astock P/E of 14.1x, the studio has been busy creating digital worlds—and real profits.

The company reported a jaw-droppingH1 FY26 total income of ₹8,829.5 lakhandPAT of ₹2,068.5 lakh, marking a140% revenue surgeand150% profit growth YoY. Their half-year report literally reads like an Avengers post-credit scene—acquisitions everywhere, international studios joining the party, and a CFO exit just for extra drama.

Oh, and thepromoter holding? It’s down to44.83%, probably because they’re swapping equity for global studios instead of popcorn. WithROCE at 17.6%,ROE at 13%, and a debt-to-equity of just0.10, PhantomFX looks like the slickest magician in town—except this time, the magic is audited.

2. Introduction

Welcome to the multiverse of Indian post-production—where visual effects studios double as capital allocators and half their clients wear capes. Phantom Digital Effects Ltd (PDEL) began in 2016, quietly compositing explosions and hero entries for Bollywood, Tollywood, and Hollywood before deciding: “Why render for others when you can own the whole damn studio?”

FromAvengerstoRRR, fromBirdboxtoSalaar, PhantomFX has gone from freelancing on foreign pixels to acquiring the very studios that made them. In 2024, they bought80% of Tippett Studio (USA & Canada)—the same Tippett that createdJurassic Park’s dinosaurs. In 2025, they decided that wasn’t enough and snapped upMilk VFX (UK)—known forDoctor WhoandGood Omens. It’s like a desi VFX company going on a Pokémon quest for Hollywood houses.

So, what happens when a Chennai-based company starts buying London and LA studios? A fascinating mix of creative chaos and corporate ambition—served with a healthy sprinkle of debt and glamour.

But as our detective nose twitches, the question emerges: are these global acquisitions real game-changers or just shiny illusions in high definition?

3. Business Model – WTF Do They Even Do?

Imagine a mix of nerdy engineers, caffeine-addicted artists, and a few thousand terabytes of creative chaos—that’s PhantomFX. The company is aTPN-certified(Trusted Partner Network) VFX studio offeringend-to-end services: frompre-production(storyboarding, concept art, previs) topost-production(rigging, compositing, animation, cleanup).

They handle everything Hollywood or Bollywood needs when the green screen goes up:

• 3D element creation, photoreal creatures, and environments
• Rig/wire removals, cleanups, rotoscopy, matchmoving
• 3D animation & previsualization
• Game cinematics, fire/water FX, and final compositing

Their clients? Everyone fromNetflixtoRajkamal Films,Eros International,KJR Studios, andZoic Inc.

They operate acrossChennai, Mumbai, and Hyderabadwith a global team of600+ members. Offices inLA, Vancouver, Montreal, Dubai, and the UKensure they can invoice in multiple currencies—because creativity is good, but dollar billing is divine.

In FY23,Movies made up 83% of revenue,Series 16%, andCommercials just 1%. Clearly, Phantom prefers blockbuster explosions to 30-second ads.

4. Financials Overview

Let’s crack open the H1 FY26 case file.(All figures in ₹ crores)

Annualised EPS = ₹12.99 × 4 = ₹51.96 per share.

At CMP ₹290, that’s aP/E of ~5.6xon annualised EPS—cheap for a studio doing Hollywood-level work. But remember: VFX cash flows can vanish faster than a Thanos snap if receivables pile up (and yes, Phantom’s debtor days are 307).

Still, a 140% YoY revenue rise with expanding margins means their international acquisitions are already delivering sequels with better box office numbers.

5. Valuation Discussion – Fair Value Range Only

Let’s