Prime Focus lifts Q2 revenue 35% and returns to profit after June-quarter loss

what happened

Moody's reports that Prime Focus, the parent of visual effects studio DNEG, posted consolidated net profit of Rs 58.27 crore for the second quarter of FY27, up from Rs 4.06 crore a year earlier. Revenue from operations rose 35.2% to Rs 1,410.17 crore, adding Rs 367.28 crore compared with the same period last year. Total income, including other income, grew from Rs 1,071.85 crore to Rs 1,446.59 crore.

The company had lost Rs 45.78 crore in the June quarter. For the first half, operating revenue reached Rs 2,666.25 crore, while net profit fell from Rs 114.52 crore to Rs 12.49 crore, largely because of exceptional expenses. Between October 7 and 14, Income Tax Department officials searched some company offices and the homes of certain directors and took electronic records. Prime Focus said it cooperated with tax officials, had received no order, demand or show-cause notice, and saw no need to adjust its results.

why it matters

For markets, the quarter signals that demand for visual effects work remains strong and is lifting revenue. However, the tax searches and the first-half profit decline add uncertainty around the shares.

market impact

Prime Focus shares: strong revenue growth supports the stock, while the tax raids add risk.

• ↔Prime Focus shares mixed — revenue growth and return to profit offset tax raids and one-off costs

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