MUMBAI: Balaji Telefilms is flipping its script. In a year marked by a strategic overhaul, the Ekta Kapoor-backed entertainment house has declared a decisive pivot from television towards high-growth verticals: movies, digital streaming, and branded content.
Addressing analysts on its FY25 earnings call, group chief executive and CFO Sanjay Dwivedi outlined a transformation roadmap: “Movies will be our growth engine, digital will scale next, and television—once our mainstay—will become the third line of business.”
The studio reported consolidated revenue of Rs 453 crore in FY25, down from Rs 625 crore the previous year. Yet net profit surged to Rs 84.6 crore from Rs 19.4 crore, largely due to a rights-heavy strategy in film and digital. The PAT margin stood at 18.7 per cent, and the company ended the year with Rs 172 crore in cash and mutual funds.
Balaji’s OTT platform ALT Balaji saw a turnaround. Once burning Rs 120–145 crore a year, its cash burn has now dropped to just Rs 35 lakh a month. The platform added 3.29 lakh subscriptions in Q4 FY25, with total active subscribers crossing the 2 million mark.
The company is also phasing out its pure SVOD model in favour of a hybrid SVOD–AVOD play, supported by a short-form vertical content app called Kutting. YouTube strategy and advertiser-funded content (AFP) are set to bolster revenue.
Crucially, Balaji sealed a long-term content partnership with Netflix, spanning original films, binge series, telenovelas, and reality formats over 3 to 7 years. “This is not a one-off deal—it’s a foundational alliance for the future,” said Dwivedi.
Balaji is betting on movies to power future growth. It has de-risked the vertical by recouping up to 90 per cent of production costs via pre-sales and co-production deals. In FY25, films contributed 30 per cent to revenue.
Its upcoming slate includes Vrushabha (starring Mohanlal), the Priyadarshan-directed Bhoot Bangla with Akshay Kumar, and Vvan, a collaboration with TVF featuring Sidharth Malhotra.
The studio targets 6 theatrical releases per year and is building on a franchise playbook with sequels like Dream Girl, LSD, and Shootout.
TV content production touched 133 hours in Q4, with four shows on air. However, broadcaster yields remain 25 per cent below pre-Covid levels, and Balaji is cautious about further TV expansion.
“TV is a volume game now. Rates aren’t recovering. We’ll stick to 6–8 shows a year, with a cap around Rs 350 crore,” said Dwivedi.
New shows include Bade Achhe Lagte Hain – Phir Se and a reboot of Kyunki Saas Bhi Kabhi Bahu Thi.
The company is also experimenting with AI-led production, launching a series titled Kalnagri on its platform. Regional expansion is on the cards, starting with Tamil and Telugu.
On YouTube, Balaji hit 1 million subscribers in a month, banking on a mix of new shows and IP-retained repurposed content—especially as Indian viewers seek alternatives to banned Pakistani serials.
Balaji has a Rs 300 crore B2B order book from leading OTT platforms. It expects digital to contribute 20–25 per cent of revenue in two years. The company is not planning a spin-off of the digital business for now, but hints at unlocking value once scale justifies it.
“We are storytellers, not just platform owners,” Dwivedi said. “Our job is to find the next big content wave—whatever the screen.”
