Revenue rose 23.82% YoY, but Prime Focus swung to a Rs 45.78 cr loss
Costs rose faster than revenue sequentially, while negative other income, depreciation and interest kept pre-tax profit negative.
Filed 06 Aug 2026, 22:57 IST · after market close · Prime Focus Ltd (PFOCUS)
Key takeaways
- Consolidated revenue grew +23.82% YoY, but Prime Focus reported a Rs 45.78 cr net loss against a Rs 110.46 cr profit a year earlier.
- Sequentially, revenue fell -8.50% while expenses rose +7.74%, cutting operating margin by 11.48 percentage points.
- Operating margin at 23.80% remained 10.69 percentage points above the 13.11% median of 122 reported Consumer Discretionary peers.
Price around the results
Year-on-year growth did not reach net profit
Consolidated revenue increased +23.82% YoY, with operating profit growing +23.42%, but expenses also rose +23.94%. The operating profit was more than offset by interest and depreciation, alongside negative other income of Rs 28.77 cr, leaving profit before tax at a loss and EPS at negative Rs 0.53.
Sequential margin reversal was the main deterioration
Revenue declined -8.50% QoQ while expenses increased +7.74%, so costs grew faster and operating margin fell 11.48 percentage points. This reversed the margin expansion seen through Q3FY26 and Q4FY26, after operating margin had risen from 23.94% to 32.68% and then 35.28%. Interest declined -14.67% QoQ, but depreciation remained a significant charge at Rs 179.12 cr.
Profit quality was weakened by non-operating items
Other income accounted for 87.90% of pre-tax profit on the reported measure, but it was negative rather than a source of earnings support. The -39.85% tax rate also did not flatter profit: Prime Focus booked Rs 13.04 cr of tax despite a pre-tax loss, versus a 32.69% tax rate a year earlier.
The stock's fall was smaller than its usual results reaction
The stock fell -1.11% on the results reaction and opened with a -2.72% gap. In the last eight results reactions, it declined six times and rose twice, while the median absolute move was 3.56%, making this fall smaller than its typical move.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,267 cr | ₹1,384 cr | -8.50% | +23.82% |
| Other income | ₹-29 cr | ₹-41 cr | +29.80% | — |
| Expenses | ₹965 cr | ₹896 cr | +7.74% | +23.94% |
| Operating profit | ₹302 cr | ₹488 cr | -38.28% | +23.42% |
| Operating margin (%) | 23.80% | 35.28% | — | — |
| Interest | ₹126 cr | ₹148 cr | -14.67% | +10.97% |
| Depreciation | ₹179 cr | ₹218 cr | -17.73% | +34.37% |
| Profit before tax | ₹-33 cr | ₹82 cr | — | — |
| Tax | ₹13 cr | ₹-36 cr | — | -75.69% |
| Net profit | ₹-46 cr | ₹118 cr | — | — |
| EPS (₹) | ₹-0.53 | ₹1.06 | — | — |
Operating margin of 23.80% compares with a Consumer Discretionary sector median of 13.11% across 122 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.11% | -0.85% |
Volume on the results session was 1.24× its 20-day average.
What to watch
- Whether operating margin recovers from 23.80% after the 11.48-percentage-point QoQ decline.
- Whether revenue growth turns positive from the -8.50% QoQ contraction.
- Whether interest and depreciation continue to offset operating profit, which was Rs 301.50 cr this quarter.