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 a market cap of ₹461 crore, current price ₹290, and a stock P/E of 14.1x, the studio has been busy creating digital worlds—and real profits.
The company reported a jaw-dropping H1 FY26 total income of ₹8,829.5 lakh and PAT of ₹2,068.5 lakh, marking a 140% revenue surge and 150% 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 the promoter holding? It’s down to 44.83%, probably because they’re swapping equity for global studios instead of popcorn. With ROCE at 17.6%, ROE at 13%, and a debt-to-equity of just 0.10, 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?”
From Avengers to RRR, from Birdbox to Salaar, PhantomFX has gone from freelancing on foreign pixels to acquiring the very studios that made them. In 2024, they bought 80% of Tippett Studio (USA & Canada)—the same Tippett that created Jurassic Park’s dinosaurs. In 2025, they decided that wasn’t enough and snapped up Milk VFX (UK)—known for Doctor Who and Good 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 a TPN-certified (Trusted Partner Network) VFX studio offering end-to-end services: from pre-production (storyboarding, concept art, previs) to post-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
Game cinematics, fire/water FX, and final compositing
Their clients? Everyone from Netflix to Rajkamal Films, Eros International, KJR Studios, and Zoic Inc.
They operate across Chennai, Mumbai, and Hyderabad with a global team of 600+ members. Offices in LA, Vancouver, Montreal, Dubai, and the UK ensure 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%, and Commercials 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)
Metric
Latest Qtr (Sep 25)
YoY Qtr (Sep 24)
Prev Qtr (Mar 25)
YoY %
QoQ %
Revenue
85.0
36.0
67.0
139%
26.9%
EBITDA
25.0
15.0
22.0
66.7%
13.6%
PAT
20.7
8.0
12.0
158.8%
72.5%
EPS (₹)
12.99
6.09
8.79
113%
47.8%
Annualised EPS = ₹12.99 × 4 = ₹51.96 per share.
At CMP ₹290, that’s a P/E of ~5.6x on 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 do some quick back-of-the-envelope detective math.
Method 1: P/E Based
Annualised EPS = ₹51.96
Industry P/E = 39.1x
Apply 10–18x (since smallcap + creative risk) → Fair Value Range = ₹520 – ₹935 per share
Method 2: EV/EBITDA
EV = ₹461 Cr
EBITDA (FY25) = ₹48 Cr → EV/EBITDA = 9.6x If rerated to 12–15x (post-acquisition integration), → Implied Fair Value = ₹580 – ₹725
Method 3: Simplified DCF Assume 15% annual growth, discount rate 12%, terminal value at 8x EBITDA. → DCF Range = ₹500 – ₹700
🎬 Fair Value Educational Range: ₹500 – ₹900 (For learning purposes only; not investment advice. Don’t blame your broker if you end up buying popcorn instead.)
6. What’s Cooking – News, Triggers, Drama
Where do we start? PhantomFX’s last 12 months read like a Hollywood screenplay with sequels:
Acquisition Spree: First Tippett Studio (80% stake in the US/Canada), then Milk VFX (100% UK buyout worth USD 1.63 million).
Netflix Deal: Signed a Resource Planning Agreement with Netflix Inc. to supply VFX services—basically Netflix’s digital muscle in India.
Big Orders Incoming: New ₹17 crore worth of projects landed in April 2024, and an international project deal worth ₹6.25 crore, with ₹4 crore already confirmed for an overseas film.
QIP Raised ₹80 crore in FY23, then another ₹59.99 crore in 2025 for these global acquisitions.
CFO Switcheroo: The company swapped its CFO in April 2024 (because what’s a financial thriller without a resignation scene?).
Independent Director Exit (Nov 2025): Mr. Suryaraj Kumar left, likely exhausted from all those board meetings about buying half the Western VFX market.
If you’re wondering whether PhantomFX is overextending—well, that’s the kind of suspense that keeps analysts awake.
7. Balance Sheet – The VFX Toolkit
(Consolidated, ₹ crore)
Item
Mar 2024
Mar 2025
Sep 2025
Total Assets
180
228
414
Net Worth (Equity + Reserves)
145
165
352
Borrowings
21
42
35
Other Liabilities
14
21
27
Total Liabilities
180
228
414
🔍 Detective notes:
Assets more than doubled in 18 months—courtesy acquisitions.
Net worth tripled, proving they’re either profitable or great at raising money.
Borrowings stable—no sign of financial VFX (fake leverage).
Phantom’s balance sheet looks like a growing movie set—expanding fast, but we’ll see if all
