At a Glance
After years of playing the villain in its own financial drama, UFO Moviez delivered a surprise plot twist in Q1 FY26. Revenue jumped 15% YoY to ₹106.6 Cr, EBITDA rocketed 194%, and net profit clocked ₹6.5 Cr versus a loss last year. But before you roll out the red carpet, remember—promoter pledges, low ROE, and a fragile industry backdrop lurk like post-credit jump scares.
Introduction
Remember when UFO Moviez digitized India’s cinema screens and was hailed as the next blockbuster in the making? Fast-forward to now—it’s been more like a Netflix drama with mixed reviews. The company went from losses to modest profits, and investors are hoping this isn’t just a one-season wonder.
Business Model (WTF Do They Even Do?)
UFO Moviez beams films to cinemas via satellite-based digital distribution. Think of it as the “Swiggy for movies,” delivering flicks to 3,400+ screens across 1,200+ cities. Revenue comes from:
- Prime & Popular Screens: subscription and service fees
- In-cinema advertising: brand placements on the big screen
- Content delivery: digital movie distribution
Margins swing wildly depending on movie releases, ad demand, and exhibitor payments.
Financials Overview
Q1 FY26:
- Revenue: ₹106.6 Cr (+15% YoY)
- EBITDA: ₹16.9 Cr (+194% YoY)
- PAT: ₹6.5 Cr (vs loss of ₹0.7 Cr)
- EPS: ₹1.68
FY25:
- Revenue: ₹422 Cr
- PAT: ₹10 Cr
- ROE: 3%
- ROCE: 7%
Comment: Revenue growth and cost control saved the day, but debt and pledges still haunt the sequel.
Valuation
- P/E: 14.3
- P/B: 0.95
- ROE: 3%
Fair Value Estimate:
- P/E Method: EPS FY26E ₹5.5; fair P/E 12 → ₹66
- P/B Method: BV ₹76.7; fair P/B 1.1 → ₹84
- DCF: Weak cash flows, fair value ≈ ₹70
Fair Value Range: ₹65–₹85 (CMP ₹73—fairly priced).
What’s Cooking – News, Triggers, Drama
- Q1 profit turnaround—first strong quarter in a while.
- Ad revenue recovery helping margins.
- Trigger: Any growth in ad spends and screen additions could boost earnings.
- Drama: Promoter pledges (26% of their stake) keep the stock risky.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 551 |
| Liabilities | 165 |
| Net Worth | 298 |
| Borrowings | 88 |
Roast: Balance sheet looks like a B-grade thriller—small budget, lots of suspense.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Ops | 6 | 77 | 50 |
| Investing | 15 | -22 | -62 |
| Financing | -22 | -42 | -0 |
Roast: Cash from operations dipped, while capex and investments sucked liquidity dry.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 3.0% |
| ROCE | 7.4% |
| P/E | 14.3 |
| PAT Margin | 16% |
| D/E | 0.3 |
Verdict: ROE is an insult to equity; debt manageable but pledges scream “Drama incoming.”
P&L Breakdown – Show Me the Money
| (₹ Cr) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 396 | 408 | 422 |
| EBITDA | 32 | 66 | 58 |
| PAT | -13 | 16 | 10 |
Roast: Profit margins have more mood swings than a telenovela.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| PVR Inox | 5,780 | -280 | NA |
| Panorama Studios | 364 | 40 | 32 |
| Cineline India | 211 | 13 | 39 |
| UFO Moviez | 435 | 20 | 14 |
Roast: Cheaper than peers, but also delivers fewer thrills.
Miscellaneous – Shareholding, Promoters
- Promoters: 22.3% (low, and 26% pledged)
- FIIs: <1% (don’t care)
- DIIs: 24.2% (steady)
- Public: 52.7% (bag-holding bravely)
EduInvesting Verdict™
UFO Moviez finally posted a profitable quarter—applause! However, the fundamentals still have holes: low ROE, high pledges, and an industry that lives and dies by Bollywood’s mood swings.
SWOT
- Strengths: Strong digital footprint, asset-light model.
- Weaknesses: Low promoter stake, pledged shares, inconsistent profits.
- Opportunities: OTT partnerships, ad revenue revival.
- Threats: Rising competition, cinema attendance volatility.
Final Take: At ₹73, UFO Moviez isn’t a blockbuster, but it might just be that sleeper hit—if the sequels deliver.
Written by EduInvesting Team | 31 July 2025SEO Tags: UFO Moviez, Digital Cinema, Q1 FY26 Results
