Why did margins fall when revenue grew 34%?

The company incurred upfront costs from hiring 14 senior employees and faced project rescheduling. These expenses grew faster than revenue, compressing the EBITDA margin by 260 bps.

What is the concrete financial target for FY27?

Management is targeting at least 30% organic revenue growth and a profit after tax of ₹65-70 crore. It did not provide a margin guidance.

How material are the old receivables?

Receivables older than six months are ₹44-45 crore, roughly 11% of the ₹408 crore annual revenue. Management expects a substantial clearance in the first half of FY27.

What does the hiring spree signal about strategy?

It is a bet on moving up the value chain to land larger, more complex projects. The near-term margin hit is the cost of that transition.

Media & Entertainment · Micro cap

Basilic Fly's growth is costing it profit for now

A 34% revenue jump to ₹408 crore masks a margin squeeze. The VFX studio spent to hire up and is waiting on ₹44-45 crore in old bills.

BASILIC By Tipsheet Editorial 2 Jun 2026 · 1:50 PM IST Verify on NSE

Mkt cap₹532 cr

P/E14.22×

ROE18.51%

Debt / eq.0.25

20.9% FY26 EBITDA margin, down 260 bps from prior year.

What's new

Full-year revenue rose 34% to ₹408 crore, but EBITDA margins fell 260 bps to 20.9%.
The margin drop came from project rescheduling and the cost of 14 new senior hires.
Management guided for at least 30% organic revenue growth in FY27, with PAT of ₹65-70 crore.

Why this matters

Basilic is in a classic scale-up bind: costs arrived ahead of the revenue they are meant to generate. The ₹44-45 crore in aged receivables, more than 10% of annual sales, adds a liquidity risk to the near-term execution challenge. The studio's bets must pay off quickly.

What we're watching

Whether the senior hires land larger, higher-margin projects in FY27.
Execution of the ₹65-70 crore PAT target without further margin erosion.
Clearance of the ₹44-45 crore aged receivables balance in H1 FY27.

The full read

Basilic Fly Studio grew fast. Revenue hit ₹408 crore, up 34%. Profitability did not keep pace. EBITDA margins slid 260 bps to 20.9%. The studio blames project rescheduling and the cost of 14 senior hires. This is the core tension for a micro-cap: front-loading costs before the revenue from those new people arrives. The receivables book does not help. ₹44-45 crore is more than six months old. That is 11% of annual revenue sitting unpaid. Management promises a cleanup in the first half of FY27. The forward view is aggressive: 30% organic growth and ₹65-70 crore in PAT. Whether the studio can hit those targets without bleeding more margin is the test. Hiring is easy. Delivering higher-value projects is not.

Questions answered

Why did margins fall when revenue grew 34%?: The company incurred upfront costs from hiring 14 senior employees and faced project rescheduling. These expenses grew faster than revenue, compressing the EBITDA margin by 260 bps.
What is the concrete financial target for FY27?: Management is targeting at least 30% organic revenue growth and a profit after tax of ₹65-70 crore. It did not provide a margin guidance.
How material are the old receivables?: Receivables older than six months are ₹44-45 crore, roughly 11% of the ₹408 crore annual revenue. Management expects a substantial clearance in the first half of FY27.
What does the hiring spree signal about strategy?: It is a bet on moving up the value chain to land larger, more complex projects. The near-term margin hit is the cost of that transition.

Mentioned: ₹408 cr revenue · 20.9% EBITDA margin · ₹44-45 cr aged receivables

Primary source NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.