UFO Moviez India Limited stands as a pioneering force in India's digital cinema landscape, being the first to introduce satellite-based technology for movie distribution. This innovation fundamentally transformed the film industry by enabling "First Day - First Show" releases nationwide, eliminating the delays associated with physical print distribution. The company operates at the intersection of technology, media, and entertainment, providing end-to-end solutions for the entire cinema value chain, serving producers, distributors, and exhibitors. Its core business is twofold: digital content delivery and in-cinema advertising.

As of March 31, 2026, UFO has established itself as the country's largest in-cinema advertising platform. Its network consists of 4,049 screens, strategically split between 2,597 multiplex screens and 1,452 single screens, spanning 1,370 cities and towns across India. This extensive reach gives UFO the potential to impact up to 1.8 billion viewers annually, offering advertisers a high-impact channel to connect with audiences in India's urban heartland. The company's business model involves securing long-term advertising rights and sharing a portion of the revenue with theatre owners. Beyond its primary operations, UFO also caters to rural markets through its "Caravan Talkies" initiative, which brings brands to media-dark regions. UFO’s mission is to provide an unbiased, uninterrupted cinema experience for all, positioning itself as a key influencer in the national cinema ecosystem.

Official Website: http://www.ufomoviez.com/

• Annual Performance (FY26 vs FY25)

• Total Revenue: Grew by 15% to ₹4,864 million in FY26 from ₹4,240 million in FY25.

• EBITDA: Increased significantly by 36% to ₹803 million, compared to ₹591 million in the previous year.

• Profit Before Tax (PBT): More than doubled, growing 114% to ₹358 million from ₹167 million in FY25.

• Profit After Tax (PAT): Showcased exceptional growth of 172%, reaching ₹249 million in FY26, up from ₹92 million in FY25.

• Basic Earnings Per Share (EPS): Grew 160% to ₹6.42 in FY26 from ₹2.47 in FY25, reflecting strong bottom-line performance.

• Quarterly Performance (Q4FY26 vs Q4FY25)

• Total Revenue: Recorded a robust 43% year-over-year (YoY) growth to ₹1,342 million.

• EBITDA: Grew 55% YoY to ₹182 million.

• Profit Before Tax (PBT): Increased by an impressive 442% to ₹66 million from ₹12 million.

• Profit After Tax (PAT): Achieved a significant turnaround, posting a profit of ₹45 million compared to a loss of ₹(7) million in Q4FY25.

• Revenue Mix Breakdown (FY26)

• The company's revenue from operations of ₹4,820 million is diversified across three main segments:

• Exhibitor Revenue: The largest contributor at ₹2,255 million (47% of total), driven primarily by the sale of products and lease rental income.

• Advertisement Revenue: Contributed ₹1,316 million (27% of total), with in-cinema advertising being the dominant component.

• Distributor Revenue: Accounted for ₹1,249 million (26% of total), generated from content delivery charges, Virtual Print Fee (VPF) services, and digitization income.

• Expenditure Analysis (FY26)

• Total Operating Direct Costs: Stood at ₹2,377 million, with advertisement revenue share (₹765 million) and VPF service revenue share (₹137 million) being key components.

• Employee Benefit Expenses: Amounted to ₹947 million, inclusive of ₹97 million in incentives and variable pay.

• Other Expenses (SG&A): Decreased to ₹738 million from ₹773 million in FY25, indicating operational efficiency and cost control.

The company delivered a strong financial performance in FY26, marked by double-digit revenue growth and triple-digit profit growth, driven by broad-based improvement across all business segments and effective cost management.

• Pioneering Satellite Technology: UFO was the first to deploy satellite-based digital distribution in India, creating a significant cost and time advantage over traditional physical print methods and enabling simultaneous nationwide movie releases.

• Integrated Value Chain Presence: The company is deeply embedded in the cinema ecosystem, providing services to producers (content digitization), distributors (content delivery, VPF), and exhibitors (cinema equipment, advertising revenue share). This integrated model creates multiple, synergistic revenue streams.

• Dominant In-Cinema Advertising Network: UFO operates India's largest in-cinema advertising platform, with long-term rights to 4,049 screens. This scale provides advertisers with unparalleled reach to a captive audience, making it a powerful and unique marketing channel.

• Rural Market Access: Through its "Caravan Talkies" initiative, the company has developed a unique channel to reach consumers in "media dark" rural areas, offering a distinct value proposition to brands looking to expand their reach beyond urban centers.

UFO's unique position stems from its pioneering technology, its large-scale advertising network, and its integrated role across the entire cinema value chain, from content creation to exhibition.

• Advertisement Revenue Growth:

• This segment grew 14% YoY to ₹1,316 million in FY26. Growth was primarily driven by the Corporate and Hyperlocal sub-segment, which increased by 22% to ₹1,025 million.

• The momentum was particularly strong in Q4FY26, with overall ad revenue surging 66% YoY, led by an 85% jump in the Corporate and Hyperlocal category.

• Exhibitor Revenue Growth:

• This was the fastest-growing segment, with revenue up 19% YoY to ₹2,255 million in FY26.

• The key driver was the "Sale of Products," which grew by a substantial 28% for the full year and an exceptional 122% in Q4FY26.

• Distributor Revenue Growth:

• This segment posted a steady 6% YoY growth to ₹1,249 million in FY26.

• All sub-segments showed positive growth, with Digitization Income growing the fastest at 19%, followed by VPF Service Revenue (10%) and Content Delivery Charges (6%).

• Improvement in Operational Metrics:

• Ad Revenue per Screen: Average ad revenue per screen for FY26 increased to ₹326,624 from ₹291,579 in FY25, indicating better monetization of the screen network.

• Ad Minutes Sold: The average number of advertisement minutes sold per show per screen rose to 4.14 in FY26 from 3.42 in FY25, a 21% increase that directly contributed to revenue growth.

The company's growth is broad-based, with strong performance led by the Exhibitor and Advertisement segments, underpinned by improving operational efficiency and monetization per screen.

• EBITDA Margin Expansion:

• The consolidated EBITDA margin for FY26 expanded to 16.5% (₹803 million EBITDA on ₹4,864 million total revenue), a notable improvement from 13.9% in FY25.

• This trend was also visible in the fourth quarter, where the EBITDA margin increased to 13.6% from 12.6% in the prior-year period.

• Profitability Margin Improvement:

• Net profit (PAT) margin more than doubled, rising to 5.1% in FY26 from 2.2% in FY25. This significant expansion highlights strong operating leverage and cost control.

• The turnaround to a PAT of ₹45 million in Q4FY26 from a loss in Q4FY25 further underscores the improvement in bottom-line profitability.

• Cost Efficiency Gains:

• Advertisement Sharing: The percentage of advertisement revenue shared with exhibitors decreased to 59.5% in FY26 from 60.85% in FY25, directly benefiting gross margins.

• SG&A Control: Other Expenses (SG&A) declined to ₹738 million in FY26 from ₹773 million in FY25, demonstrating effective management of overhead costs despite revenue growth.

UFO demonstrated significant margin expansion at both the operating and net profit levels in FY26, driven by a combination of strong revenue growth, favorable revenue mix, and disciplined cost management.

• Screen Network Status:

• As of March 31, 2026, the company's in-cinema advertising network comprised 4,049 screens. This includes 2,597 multiplex screens and 1,452 single screens.

• The theatrical distribution network (CDC and VPF screens) stood at 3,540 screens, showing a slight increase from 3,504 screens at the end of FY25.

• Shareholding Structure:

• As of March 31, 2026, the company has a diversified ownership structure.

• Promoters hold a 22.8% stake.

• Institutional Investors collectively hold 25.1%, indicating strong institutional confidence.

• The remaining 52.1% is held by Foreign Portfolio Investors (0.8%), Corporate Bodies (3.2%), and Others (48.1%), which includes retail investors.

The company maintains its extensive screen network and possesses a well-diversified shareholding pattern with significant participation from both institutional and retail investors.