Basilic Fly Studio LimitedQ1 FY27 Results & Financial Update

The Middle East is emerging as a strategic growth market driven by heavy regional investments in entertainment assets, IP ownership, and regional VFX infrastructure (such as Abu Dhabi and Saudi Arabia initiatives).

Integrated ComfyUI into proprietary toolsets including de-aging, age conditioning, asset creation, and 4K texture generation to reduce manual workloads and enhance operational volume.

The active bid pipeline stands at an all-time high of INR 700 crores, with 40% at an advanced stage of conversion and typical ticket sizes shifting upwards into the range of $4 million to $5 million.

Undelivered order book for execution within FY27 stands at INR 250 crores to INR 260 crores (approximately INR 255 crores as of end-July), bolstered by INR 105 crores of new international wins year-to-date.

Planning to operationalize a new physical facility in Bengaluru from October, scaling up seat capacity toward 150 (starting with an immediate 80 to 100 seats) to absorb migrated high-end roles from Europe.

Completed transition to owned NetApp infrastructure to replace cloud dependence. Project Hybrid and USD pipeline integration are in pre-rollout testing, scheduled for completion between late August and September.

The India-led delivery model provides a structural cost advantage of 30% to 40% over traditional delivery locations abroad, where average resource costs in London or France are 7 to 8 times higher than in India.

Migrated 30 to 40 high-end roles from the UK and Europe to India over the last two quarters, with full structural margin expansion impacts expected to materialize progressively through March 2027.

Maintains unutilized proceeds of approximately INR 37 crores from the QIP and close to INR 21 crores from the IPO, held largely in fixed deposits.

Collections from March to June were reported to be almost 2x of normal historical run-rates, reflecting improved realization from the large trade receivables base.

Management expects H2 FY27 to be significantly heavier than H1 due to Christmas seasonality and scheduled project deliveries, keeping the company on track to comfortably surpass last year's revenue levels and align with historical ~30% top-line growth trends.

The company is evaluating advanced-stage M&A proposals in North America (focusing on complementary capabilities and positive-margin operations) and intends to fund acquisitions primarily through existing cash on books without taking on debt.

Management clarified that consolidated margin compression was driven by non-recurring unrealized forex losses, severance outlays, and transition expenses rather than structural business deterioration, and agreed to provide clearer EBITDA bridges and sales funnel updates in future investor presentations.

Management noted that severance expenses (INR 2.9 crores for Q1 FY27) reflect active headcount rationalization in high-cost European units to build out lower-cost capacity in Bengaluru, with cost benefits scaling up towards the end of FY27.

Management confirmed that INR 37 crores of QIP funds remain unutilized in fixed deposits while they actively evaluate profitable North American acquisition targets to expand geographic reach and capabilities.

Management reiterated that the undelivered order book of ~INR 255 crores and an all-time high bid pipeline of INR 700 crores support strong organic growth acceleration going into the second half of the fiscal year.