Balaji Telefilms Limited (BALAJITELE) AI Stock Analysis

• Market Cap: ₹10.86B
• Dividend Yield: N/A
• Average Volume (3M): 25.42K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.10
• Revenue Growth: -50.42%
• EPS Growth: 2921.37%
• Country: IN
• Employees: 103
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): -0.41
• Shares Outstanding: 121,734,840
• 10 Day Avg. Volume: 15,488
• 30 Day Avg. Volume: 25,421
• PEG Ratio: 0.02
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 1.45
• P/FCF Ratio: 13.82
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ₹92.00 ▼(-10.07% Downside)

The overall stock score of 59 reflects a balanced view of Balaji Telefilms Limited. The company's financial performance is mixed, with strong cash flow generation but declining revenue and operational inefficiencies. Technical analysis shows a positive trend, while valuation is reasonable. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong free cash flow generation

A high free cash flow to net income ratio (~0.92) signals the company converts earnings into cash effectively. This durable cash generation supports content investment, platform development, debt servicing or shareholder returns and provides a buffer through cyclical ad and box-office cycles.

Very low financial leverage

Extremely low debt-to-equity provides financial flexibility for strategic investment in content, digital expansion or M&A without meaningful financing strain. Low leverage reduces bankruptcy risk and supports sustained investment through industry cyclicality.

Diversified revenue mix with OTT platform

Owning an OTT platform and operating across TV, film, ad sales and subscriptions diversifies revenue streams. Structural shift to digital consumption makes recurring subscription income strategic, lowering dependence on linear TV ad cycles and enhancing long-term monetization options.

Negative Factors

Severe revenue decline

A very large reported revenue decline (~-50% in the metric) is a durable concern: it undermines scale economics, pressures margin sustainability and questions content demand or distribution effectiveness. Reversing this trend is essential to sustain long-term profitability and reinvestment.

Operational inefficiencies (negative EBIT margin)

Negative EBIT despite a healthy net profit margin suggests reliance on non-operating gains or accounting items and points to structural cost or production inefficiencies. Persistent negative operating profitability threatens core earnings resilience and scalability of the business model.

Volatile cash flow conversion

Moderate OCF-to-net-income (~0.36) combined with historical cash flow volatility reduces predictability for multi-year content budgets and platform investments. Even with strong FCF ratios, inconsistent conversion complicates planning and increases execution risk for long-term strategies.

Balaji Telefilms Limited Business Overview & Revenue Model

Company Description

Balaji Telefilms Limited engages in the entertainment business in India and internationally. The company operates through Commissioned Programmes, Films, and Digital segments. It produces and distributes television content and films primarily in Hindi under the Balaji Telefilms brand name; and produces reality shows and events. The company offers B2C and B2B digital content business under the brand name of ALT Balaji; creates intellectual property rights; operates Hoonur, a platform for media professionals and entertainment consumers; and operates a subscription-based video on demand over the top platform. The company was incorporated in 1994 and is headquartered in Mumbai, India.

How the Company Makes Money

Balaji Telefilms generates revenue through multiple streams. Primarily, the company earns from television content production, which includes the creation and distribution of serials and shows that are broadcasted on leading Indian television networks. Advertising revenue is a significant contributor, as popular shows attract high viewership and consequently, premium ad rates. Additionally, the company produces feature films, which generate income through box office collections, satellite rights, and digital streaming rights. In recent years, BALAJITELE has expanded its digital footprint with the launch of its own OTT platform, ALTBalaji, which operates on a subscription-based model, providing a steady flow of recurring revenue. Strategic partnerships with various distribution channels and collaborations with other production houses further enhance its revenue-generating capabilities. Overall, the combination of traditional media production and digital content distribution positions Balaji Telefilms as a multifaceted revenue generator in the entertainment sector.

Balaji Telefilms Limited Financial Statement Overview

Summary

Balaji Telefilms Limited demonstrates a mixed financial performance. While the company has a strong net profit margin and low leverage, revenue decline and operational inefficiencies are concerning. Cash flow generation is robust, but historical volatility suggests potential risks. Overall, the company needs to focus on stabilizing revenue and improving operational efficiency to enhance financial health.

Income Statement

The company has shown a significant decline in revenue growth, with a negative growth rate of -13.19% in the latest year. Despite a strong net profit margin of 19.22%, the EBIT margin is negative, indicating operational inefficiencies. The gross profit margin has decreased slightly, reflecting pressure on cost management.

Balance Sheet

The balance sheet is relatively strong with a low debt-to-equity ratio of 0.012, indicating low leverage. Return on equity has improved to 13.25%, suggesting better profitability from shareholders' equity. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

The company has shown an impressive free cash flow growth, but the operating cash flow to net income ratio is moderate at 0.36. The free cash flow to net income ratio is high at 0.92, indicating efficient cash generation relative to net income. However, historical volatility in cash flows presents a risk.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.77B	4.53B	6.25B	5.93B	3.37B	2.94B
Gross Profit	934.42M	1.09B	1.10B	313.21M	92.83M	-408.50M
EBITDA	-106.50M	7.11M	519.62M	-56.59M	-186.43M	-801.20M
Net Income	820.10M	870.80M	197.88M	-371.36M	-1.32B	-1.19B
Balance Sheet
Total Assets	0.00	8.01B	7.09B	6.94B	6.79B	7.67B
Cash, Cash Equivalents and Short-Term Investments	1.79B	1.85B	615.52M	248.64M	159.48M	1.05B
Total Debt	0.00	77.86M	793.58M	1.05B	484.12M	46.37M
Total Liabilities	-6.55B	1.46B	2.77B	2.87B	2.33B	1.93B
Stockholders Equity	6.55B	6.57B	4.31B	4.07B	4.44B	5.73B
Cash Flow
Free Cash Flow	0.00	474.98M	587.12M	-523.45M	-1.22B	-119.56M
Operating Cash Flow	0.00	517.29M	658.45M	-473.01M	-1.20B	-101.33M
Investing Cash Flow	0.00	-1.37B	-177.22M	134.51M	192.69M	840.75M
Financing Cash Flow	0.00	580.08M	-319.66M	437.31M	354.75M	-162.93M

Balaji Telefilms Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 102.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BALAJITELE, the sentiment is Negative. The current price of 102.3 is above the 20-day moving average (MA) of 95.35, below the 50-day MA of 103.57, and above the 200-day MA of 100.45, indicating a bearish trend. The MACD of -5.68 indicates Positive momentum. The RSI at 40.07 is Neutral, neither overbought nor oversold. The STOCH value of 55.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BALAJITELE.

Balaji Telefilms Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFO	70 Outperform	₹2.90B	14.69	―	―	5.07%	409.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GTPL	61 Neutral	₹8.87B	21.30	―	2.00%	8.43%	-36.53%
BALAJITELE	59 Neutral	₹10.86B	12.69	―	―	-50.42%	2921.37%
SHEMAROO	51 Neutral	₹2.66B	-1.76	―	―	-2.93%	-50.62%
MUKTAARTS	43 Neutral	₹1.39B	-8.84	―	―	-3.03%	6.44%
DISHTV	38 Underperform	₹6.30B	-0.93	―	―	-22.62%	66.73%

Balaji Telefilms Limited Corporate Events

Balaji Telefilms Allots 17.5 Lakh Shares Under ESOP Scheme, Lifts Equity Capital

Balaji Telefilms Limited has approved the allotment of 1,750,000 fully paid equity shares of Rs 2 each to eligible employees under its 2023 Employee Stock Option Plan, following a resolution passed by the Nomination and Remuneration Committee on 19 January 2026. This ESOP-related issuance increases the company’s paid-up equity share capital from Rs 23.99 crore to Rs 24.35 crore, expanding the total number of equity shares outstanding from 119,984,844 to 121,734,844 and modestly diluting existing shareholdings while further aligning employee interests with long-term shareholder value.

Balaji Telefilms Inducts Industry Veteran Pankaj Chaturvedi as Independent Director

Balaji Telefilms Limited has appointed Pankaj Baikunthnath Chaturvedi as an Additional Non-Executive Independent Director for a five-year term starting December 30, 2025, following a Board resolution passed by circulation and based on the Nomination and Remuneration Committee’s recommendation, subject to shareholder approval. Chaturvedi, a seasoned food and beverage industry leader and current CEO for India, Turkey and MENA at Rich Products and Solutions, has been confirmed to meet all statutory independence criteria and is not debarred by any regulator, strengthening Balaji Telefilms’ board with cross-industry expertise and governance credentials that may enhance strategic oversight and stakeholder confidence.

Balaji Telefilms’ ‘Balaji Astro Guide’ Achieves Record Downloads

Balaji Telefilms Limited has achieved a significant milestone with the launch of its new digital product, Balaji Astro Guide, which recorded over 250,000 downloads within 24 hours, topping the iOS Lifestyle charts. This rapid success highlights the company’s strategic move to diversify beyond traditional media, positioning itself as a strong contender in the growing astrology and spiritual wellness market, and is expected to contribute significantly to its digital revenue in the coming months.