Bodhi Tree's core shrank. Its acquisition masked the decline.
Standalone revenue fell **15.5%** in FY26. A new acquisition drove **30%** consolidated growth, hiding the decline. The company also breached a loan limit.
What's new
- Consolidated FY26 revenue grew ~30% YoY, but standalone revenue shrank ~15.5%.
- Consolidated net profit grew ~30.7% while standalone profit fell ~36%.
- The company disclosed an inter-corporate loan that exceeded the ₹60 cr Section 186 limit.
Why this matters
The acquisition of Moving Image Studios has single-handedly masked a decline in the core business. The divergence between standalone and consolidated numbers is stark and raises questions about organic performance. The Section 186 breach is a governance flag for a company of this size.
What we're watching
- Whether Moving Image Studios can sustain its contribution to offset standalone weakness.
- Any SEBI or audit committee response to the Section 186 limit breach.
- The path to standalone revenue stabilisation in FY27.
The full read
Bodhi Tree Multimedia's annual results are a study in contrasts. Its standalone business contracted, with FY26 revenue down 15.5% and net profit down 36%. But the consolidated picture, which now includes the recently acquired Moving Image Studios, tells the opposite story: revenue up 30% and profit up 30.7%. The acquisition is doing all the heavy lifting. For a nano-cap with a ₹110 crore market capitalisation, the standalone weakness is a red flag. So is the disclosure that an inter-corporate loan breached the ₹60 crore limit under Section 186 of the Companies Act. The auditors signed off on the accounts. The loan breach is a governance issue that requires scrutiny. The core question is whether Moving Image Studios can continue to offset the shrinking core business.
Questions answered
- Why are the standalone and consolidated results so different?
- The standalone business shrank, with revenue down 15.5% for FY26. But the recent acquisition of Moving Image Studios was added to the consolidated accounts, growing that top-line by 30% and masking the organic decline.
- What is the Section 186 loan issue?
- The company made an inter-corporate loan that exceeded the ₹60 crore limit set by Section 186 of the Companies Act. For a nano-cap with a ₹110 crore market capitalisation, this represents a material governance lapse.
- How did profitability change between the two segments?
- Standalone net profit fell sharply by ~36% in FY26. Consolidated net profit grew ~30.7%, again due to the Moving Image Studios consolidation.
- What did the auditors say?
- The auditors gave an unmodified opinion on the financial statements. This is a positive signal that the numbers are fairly presented, even as they highlight the Section 186 issue.