1. At a Glance
Balaji Telefilms is the original content factory of Indian television — the reason your mom, aunties, and grandmothers argued over “Kyunki Saas Bhi Kabhi Bahu Thi” plotlines. From TV serials to Bollywood films and now the ALTT OTT platform, they’ve been in every entertainment vertical possible. Q1 FY26, however, wasn’t a blockbuster — sales dropped 51% YoY to ₹72.8 Cr, losses reappeared, but they raised ₹130.7 Cr, bagged a Netflix long-term content deal, and completed their subsidiary mergers. Essentially, it’s like an episode where everyone’s crying, but a new character walks in at the end and promises to fix everything.
2. Introduction
Founded in 1994 by Ekta Kapoor and Shobha Kapoor, Balaji Telefilms has been the content czar of India’s TV industry. They dominated the 2000s with daily soaps, produced critically acclaimed movies, and then dove into OTT with ALTT (earlier ALTBalaji) — an experiment that’s yet to mint the kind of money Netflix and Amazon brag about.
They’ve built a portfolio across:
- Television:Current hits likeKumkum Bhagya,Kundali Bhagya,Naagin, andBhagya Lakshmistill pull TRPs.
- Films:FromThe Dirty PicturetoDream Girl, they’ve delivered both box office and award wins.
- Digital:ALTT has over 90 shows, 1.11M subs in FY23, and now a fresh Netflix deal for long-term collaboration.
The problem? Sales are erratic, margins are mood swings, and the OTT space is a money pit. But the recent fundraise and global tie-ups hint they’re rewriting the script.
3. Business Model (WTF Do They Even Do?)
Balaji Telefilms monetises content through:
- TV Content (61% of FY23 revenue)– Commissioned shows for broadcasters. The money is steady, the audiences are loyal, and syndication can bring in years of repeat income.
- Films (30%)– Theatrical, digital rights, and satellite sales. High risk, but occasional jackpot (
- Ek Villain,Dream Girl).
- Digital (9%)– ALTT subscription and content licensing. Growth potential is high, but competition is brutal.
Geography-wise,95% revenue is domestic, 5% overseas. In other words, they know exactly where their TRP gods live.
4. Financials Overview
| Metric | Q1 FY26 | Q1 FY25 | Q4 FY25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 72.8 | 149.2 | 66.25 | -51.2% | 9.9% |
| EBITDA (₹ Cr) | -9.82 | 4.41 | -19.09 | -322.7% | 48.5% |
| PAT (₹ Cr) | -5.95 | -2.22 | 94.03 | -168% | -106.3% |
| EPS (₹) | -0.48 | -0.07 | 7.85 | N/A | N/A |
Commentary:Sales halved YoY, EBITDA slipped back into red, and net profit flipped to a loss after last quarter’s Dream Girl 2-driven spike. This is seasonal volatility at its finest — TV revenues stay stable, but films can make or break a quarter.
5. Valuation (Fair Value RANGE only)
- P/E Method:
- EPS (TTM): ₹6.77
- Industry P/E: 32.8
- FV Range (P/E 15–20 to be conservative): ₹101 – ₹135
- EV/EBITDA Method:
- TTM EBITDA: negative (film release timing distortion) → this method not meaningful.
- DCF:Assuming mid-single-digit revenue CAGR, occasional film windfalls, and moderate OTT growth → ₹95 – ₹120
📌 FV Range:₹95 – ₹130
