Balaji Telefilms Limited (NSE: BALAJITELE) Q4 2025 Earnings Call dated Jul. 04, 2025
Corporate Participants:
Sanjay Dwivedi — Group Chief Operating Officer, Group Chief Financial Officer
Analysts:
Nimesh Pandya — Analyst
Hrithik Shah — Investor
Unidentified Participant
Mamta Shah — Analyst
Ansal — Analyst
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to The Balaji Telefilms Limited Q4 and FY25 earnings conference call hosted by Add Factors PR. This conference call may contain forward looking statements about the Company which are based on the beliefs, opinions and expectations of the Company as on date of this call.
These statements are not the guarantee of future performance of the company and it may involve risk and uncertainties that are difficult to predict. As a reminder, all participant lines will remain in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Sanjay Deveri, Group CEO and Group CFO of Balaji Telefilms Ltd. For opening remarks. Thank you. And over to you sir.
Sanjay Dwivedi — Group Chief Operating Officer, Group Chief Financial Officer
Good afternoon everyone. I would like to extend a warm welcome to everyone to Balaji Telefilms earnings conference call for the quarter and financial year ended 31st March 2025. On call with me today are Mr. Viren Trivedi, our Finance Controller and AD Factors, our Investor relationship team. I hope you all would have had the chance to go through our financial results, press release and presentation published on the Stock Exchange and our website. I am very pleased to address you all today as the company stands at the cusp of a major turning point in its growth journey.
Balaji Telefilms needs no introduction. It stands as a stalwart in the entertainment industry with a legacy of over three decades. Driven by creative geniuses, Balaji has delivered numerous super hit titles across all formats with a dominating presence especially in TV and now in movies. Over the years, our films has not only enthralled Indian audience but also captured the interest of viewers worldwide. Speaking of the key developments over recent past, it has been an eventful year for us marked with several milestones.
As you all might be aware, we recently successfully completed the amalgamation of our subsidiary companies into one entity. As a result, ALT and Marinating Films Private Limited have been merged into Balaji Telefilms Ltd. Consequently, content production operations will be consolidated leading to better efficiency and utilization of pool resources. We aim to reduce redundancy and cost and overall get better synergies as a whole, marking a new chapter in our growth trajectory. The merger will also result in significant tax benefits.
More recently in June 2005 we entered into a long term creative collaboration with Netflix for a range of exciting projects across different formats of storytelling. This association of two industry giants will usher in new era of delivering distinctive high quality entertainment across formats, genres and audiences. We have in the past collaborated with Netflix wherein we worked with them on popular titles such as Kathal Puglit, Jane Jayant Dolikiti Ko Chamakte Sitare.
Earlier this year we successfully completed a fundraise activity to fuel our future business growth plans. We raised 130.7 crores through these issues in which our promoters also participated. The proceeds from this are being utilized towards scaling up our movie and movie distribution business, our digital platform and content business and enhance our intellectual property portfolio. Our business at present can be structured into three broad categories Digital movies and television. Digital which comprise of. Our entire gamut of online streaming channels including all YouTube and other platform which we partner with movies is our production house where we have and continue to offer blockbuster films. Television is of course our oldest line of business where we have dominated the primetime since years and delivered numerous popular shows. Starting with an update on our digital business, the pandemic expedited the shift to online digital platforms of content consumption and we at Balaji have been well prepared for this paradigm shift. This quarter we saw the highest ever subscription being sold standing at 3.29 lakh subscription. This includes 1,73,000 renewals. I am thrilled to report that we have over 2 million active subscribers on the ALT platform. This strong growth in subscriber addition is on the back of our continuous efforts to improve and widen our content library coupled with unique marketing strategy and user friendly subscription plan. This quarter we added 11 new shows taking the total number of original live on the platform to 170. More importantly, the uptick in subscription and even renewal numbers which we saw reflect both strong acquisition and retention. Content engagement also improved further with the viewing minutes rising to 17.49 billion and total views growing to 1.79 billion. We believe that Alt Balaji today offers one of the most diverse content choices for its consumer. One of our unique advantages that our TV and movie business and access to the wider content ecosystem. We have leverage of producing great content at lower cost when compared to market rates. For example, we can harness talent from our movies and TV business to create a differentiated content offering as compared to the shows Balaji Telephilim produces on tv. Looking ahead, our digital thrust strategy is well positioned to unlock significant value and drive future growth. We are transitioning from a pure SVOD model to a hybrid SVOD plus VOD framework enabling us to expand our B2C subscriber base while diversifying revenue streams. A key initiative on this front is the launch of cutting a new platform focused on short vertical episode based content that caters to the evolving consumption habits. At the same time, we are strengthening our B2B partnership with our multiple with multiple platforms allowing us to reach newer demographics and geographies. Our strategy focus is on YouTube, particularly our content where we retain IP rights through a mix of repurposed material and exclusive new productions. Regional contents remains a core pillar of our expansion with targeted programming for platforms like ETV and AHA to engage diverse language specific audiences. Additionally, we are scaling our advertiser funded program asp producing branded contents on behalf of corporate client thereby adding another robust. Revenue system. With this multifaceted and forward looking content strategy coupled with expanding platform footprint, we are confident in achieving multi fold top line growth from our digital channels in the quarters ahead. Coming to the TV business, production has returned closer to the pre Covid level with almost 133 hours of content produced this quarter. We had four TV shows running throughout the quarter. While overall demand for content remains strong, there is some softness in the rates from the broadcasters which reflect the shift in consumer trends away from traditional tv. Having said that, hit shows continue to command premium and as you are aware, Balaji has a strong record of creating hits. We have a healthy content pipeline from the coming quarters and TV remains a strong backbone from our other line of business. Finally touching upon our movie business, we expect to see some rush by the producers to target the windows for release and feel the movie business would see some elements of nudity. For the next eight to 12 months we are able to complete the sale of existing ready movies to digital platform and cycle the capital well. We have number of exciting projects and we expect these to get released over next 12 to 18 months and hence believe it will be necessary to continue to follow a de risk strategy using pre sales and co production agreements. In fact, we have been able to de risk our film business by recovering about 85 to 90% of the production costs even before the movie is released. This de risk model is designed to ensure greater revenue stability among our upcoming projects. Some of the notable ones are Burshuba, which is currently in post production and is shaping up to be a significant release in our upcoming slate at Diwali, both Bangla starring Akshay Kumar and directed by Pri Darshan. We have successfully completed the shoot in May 2025 and is now moving into post production phase and finally one a collaboration with TVF starring Siddharth Malocha shooting which began at the end of June 2025. These projects alongside other parts already in the pipeline reflect the depth and diversity of our content slate as seen in the previous fiscal. We continue to benefit from the healthy mix of pre sales and co production agreement which helped rediscover investment while allowing us to capitalize on the upside potential. Overall, our growth strategy going forward is centered around a focus on the movie business strategically supported by the enduring strength of our TV operations. In the movie segment, we are building a robust pipeline that spans diverse genres and targets both domestic and international markets. On the television front, we will continue leveraging our established presence in prime time slots through a mix of new and existing shows. Our trust towards Digital includes initiatives mentioned earlier, such as Hybrid model on alt, utilizing our YouTube channel on new content, and diversifying our content for a wider audience. Demography with the leading OTT platforms. Additionally, the amalgamation of ALT and MSPL with biology telefilms is a key move aimed at consolidating content production operation, enhancing operational efficiency and reinforcing our leadership position in the market. Now coming to the financial performance of the quarter and full year, the revenue for the quarter stood at 66.25 crores. Reserves 135.11 crores in the previous corresponding quarter. Loss before the Tax is at 10.7 crores. PAT for the quarter stood at 94 crores. Visa vis with a loss of 2.6 crore in quarter four while PAT margin came in at 142%. EPS for the quarter is 9.07. Coming to the full year number. Operational revenues for FY25 stood at rupees four hundred and fifty three crores. Visa vis six hundred and twenty five crore in the previous fiscal year. Loss before tax for the year stood at 10.2 crores. However the PAT stood at 84.6 crore. Visa is 19.4 crore for previous year while PAT margin was 18.67%. EPS for the year stands at 8.41. The group has a robust cash reserves at rupees one hundred and seventy two crores in bank and mutual funds thus being adequately funded. Moreover, our order book for digital B2B business for the leading OTT platform is over 300 crores. That is all from our side. We can now take any questions you may have. Thank you.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Nimesh Pandya, an investor. Please go ahead.
Nimesh Pandya
Hello. Am I audible?
Sanjay Dwivedi
Yeah, yeah.
Nimesh Pandya
Thank you for giving me this opportunity. So my question
Sanjay Dwivedi
A little louder would help. Yes. Closer to the phone.
Nimesh Pandya
My question is how will the strategic shift from a pure subscription with on demand to. A hybrid SVOD plus AVOD advertising with demand model of for alt impact, subscriber acquisition, retention and overall revenue collection. Just your view on this strategic shift.
Sanjay Dwivedi
Yeah. So if you see. If you just go back two years before when we were having a cash burn of around 125 to 145 here that time our original proposition was original exclusive, not available elsewhere and binge viewing. So it was pure SVOD platform. Last two years we have realized to kind of be dependent only on the SVOD model is actually a huge drag onto the financials. Hence we wanted to derive this total dependence on SVOD and move to our other revenue streams. Hence SVOD model got little diluted with AVOD model. So it is shaping up well. Now our app is supported by ad led as well as pure subscription led model. That is both and two.
What we have started doing is we have started building digital Strategy which is YouTube for the shows which we have IP and third is focusing on commissioned shows for the leading OTT platform for which we have over 300 crore of order book as we speak. Three shows got delivered in the last fiscal and out of which to have a very successful run at the JIO Hotstar. And we are in talk for the second season too. That is power of Patch and kul.
So we see a paradigm shift in that sense moving from what we call as TV model which we seemingly look like a model which is on the decline. But there is life ahead of TV also but a gradual shift into an offtake for the digital content. And since we have been very successful in creating stories, we are the largest beneficiary of this uptake on the Indian content which gets played out on Netflix or Amazon or Sony or hotstar.
So we will spread across all this leading OTT platform. And what is happening also is the model of shows or the format of shows which historically has been 8 to 10 to 12 episodes we are seeing for Indian content. Now it is becoming a 50 episoder coming with the second season or 100 episoder coming with the second season. So this kind of storytelling formats is where Balaji excels which is drama long running episodes. And that is where we see a huge interest from the leading OTT platform. So that’s the way it will be. So it will not be. When we say digital it does not mean only altogether. It will be having various things which will become a digital business. So alt will be a smaller piece in the overall digital strategy.
Nimesh Pandya
Okay. Understood. Got it. Sir, I have another question.
Sanjay Dwivedi
And currently I will just say the cash burn which was close to 120 245 crores till say two years back. Now the cash burn is around 35 lakhs each month. Though the P and L will also have a non cash item and all those stuff. But our cash bond currently on the App itself is 35 lakhs per month.
Nimesh Pandya
Right? Right. Right. Right sir. Got it. Sir, I have another question. Like considering the transition which has happened. So what would be the key performance indicators? Right. To increase the subscriber base and the renewal rates also would like to have your view on this.
Sanjay Dwivedi
Yeah. So the way it will be see TV yield will continue to be under stress. So I don’t see TV yield improving in coming quarters or coming years. So we are still down by over 25% to the pre Covid level.
Nimesh Pandya
Understood. So TV will continue to be under stress in terms of margins. However the shift will happen for the commissioned OTT platform for the leading channels like Netflix or Amazon.
Sanjay Dwivedi
So that there is a huge upside into the business. That’s where we have this 300 crore of order book which we are talking about. Having said that whether the margin which we used to get on TV say at 25 30% also whether it will be there in digital business it will not be in the same range. But more business is seemingly coming from this digital side. So we should be suppose if there is 300 quarter. Our endeavor is to get at least 100 quarter revenue in each year at least. And that’s the way to go.
Nimesh Pandya
Agreed sir. Got it sir. Thank you. That’s information. Thank you.
Sanjay Dwivedi
Thanks Nimish.
Nimesh Pandya
Thank you.
Operator
Thank you. We take the next question from the line of Hrithik Shah an investor. Please go ahead.
Hrithik Shah
So sir, I wanted to know whether what is the target irr that you are actually targeting whenever you are pre. When you. Whenever you enter into pre production or acquiring any movie after the release or your OTT platform.
Sanjay Dwivedi
So the way it is we don’t acquire flim so that we don’t trade in motion pictures business or we don’t trade in content. The typically the whole thing is homegrown. We greenlit the concept. We kind of work on the concepts. We go ahead and kind of fund those movies. The the way we do is we totally de risk is because the moment we think this movie has a potential we kind of try to get the feel from the rights holder which where we monetize and see their interest. And also we get a fair indication of what will be the potential sales to on these platforms. And once we see a commercial feasibility we greenlit the show for the production. Otherwise till such time there is no visibility, there is no definitive agreement in place for the digital rights. We don’t greenlit any of the movies and we don’t trade in content. So it’s not that fully made movie comes to us with and we pay premium for those things that we don’t do it. So on a IRR basis or a return on capital employed. So if you see movie typically gets distorted when you look at the financial statement because in one year if you get two movies then the revenue goes kind of substantially higher in and quarterly releases is still that none of the listed companies and also the unlisted ones have figured out how to do it each quarter because there are a handful of windows open for you to come on the theatrical side. But having said that, what we are trying to do is we clearly see what is for a period. So if we just see Balaji motion pictures over a period of six years we have generated 22% return taking all movies together. Whether it is profit movies or profitable movies or a loss making projects overall we have generated 22% return on the capital.
Operator
So the participant Hrithik Shah has left the call. We’ll move on to the next question. But before that ladies and gentlemen, if you wish to ask a question please press star and 1. The next question comes from the line of Mayuresh Rao from Invest or tdu. Please. Please go ahead.
Unidentified Participant
Hello, I’m od. Hello, Good afternoon. Thank you. For the first question is how does the company plan to effectively deploy strong cash reservoir around 172 crore to generate further growth and return beyond just scaling the movie business and IP creation as stated?
Sanjay Dwivedi
Yeah. So basically when we did this fundraise we clearly outlined the utilization for the segment itself in the fundraise document. Which movie business will take another 65 crores out of 131 crores digital and music expansions and exploring more rights there it will be around 33 crores. And general corporate purposes we have kept aside for any opportunities or anything which we think we should be doing it that is around 32 and half crores.
Unidentified Participant
Okay.
Sanjay Dwivedi
Largely the fund deployment will be into IP led businesses whether it is movie or digital. And. On the motion picture side, we clearly see a trend where the sequels are outperforming box office numbers if done it in a nicer way. So I think we will continue to do that. We had Dream Girl 1, Dream Girl 2, we have Ragini, we have LSD, we have crew, we have Shootout series, we have Once Upon a Time series, we have Dirty pictures. So most of this will also get used into this. Developing this IP and this format. Three years. I think movie will be the main source of business followed with digital and TV will become the the third line of business. So the pyramid will just turn upside down.
Unidentified Participant
Could you throw some color on your Netflix?
Sanjay Dwivedi
Yeah. So we we announced Netflix deal on Ekta’s birthday 50th birthday. And there are still some definitive agreements, spending and the discussion we will sign it out. But the basic thing is it’s not a one show deal, one movie deal or one format shows. It’s a long term deal. So it, it covers 3, 5, 7 years types zone and it is across the format. We will do direct to OTT movies, we will do reality based shows, we will do telenovela and we will also do binge viewing format shows.
So that way it is a long term and enduring relationship which we have entered into details will come in the following quarters the moment we crystallize the numbers and the way to go ahead. But in principle this relationship is sealed.
Unidentified Participant
Thank you. That’s all from my side.
Operator
Thank you. The next question comes from the line of Mamta Shah from Fresh Capital Advisors. Please go ahead.
Mamta Shah
Good afternoon sir. Thank you for the opportunity. So my question is your revenue per hour seems relatively stable if you see year on year. So do you expect any meaningful improvement here that will, you know because of the shift to digital and branded content?
Sanjay Dwivedi
Yeah. So if you act when you see year on year round, quarter on quarter, you will see a stability in the revenue per or revenue per episode. But what is to be noticed is this is still down by 25% over pre Covid levels. So to say this though it has got stabilized but we have not got even in. Inflationary price rise to improve upon the yield on the television sites. I believe this trend will continue and we will not reach the level which we had before COVID in terms of relation per hour. So TV business will continue to be volume led rather than revenue per episode. And what is happening on the commissioning side of course because there is a huge upside which is there on the digital content. And we as a storytelling company, we are one of the biggest beneficiaries. So whatever drop you see on the television side will be adequately and more than that it will be compensated by the digital B2B business which we will have for which we have over 300 crore of order book as we speak.
Mamta Shah
Okay. And sir, do you have any volume target for movies and digital content or the year end?
Sanjay Dwivedi
So when you say volume you said volume–
Mamta Shah
Target for movies and digital.
Sanjay Dwivedi
So typically we have always tried to do three to four movies in a year. We intend to up to six movies in a year. That’s our target. In the year, year and half we will be there. And we’ll continue to build movie slits like that.
Mamta Shah
Okay, yeah that’s.
Sanjay Dwivedi
And every quarter we are adding 50 crores of B2B digital content into our order book. But just to kind of convey this that it takes a bit of time before the contract gets signed and then finally the show gets green lit to a production level. So the longitude, whereas TV is far more predictable. Every day you deliver an episode, you book a revenue. Whereas for digital business the gestation period is little longer than what you see on tv.
Mamta Shah
Okay, so can you throw light on the period for digital like how long it takes.
Sanjay Dwivedi
So typically if it is a eight episode or say 12 episode, it takes a year, year and half from the discussion stage to completion of the shoot and then when digital channel finds the window it gets released. But if it is a big budget movie called 90 crores, 100 crores then it takes two years, two and a half years also to make.
Mamta Shah
Okay, yeah, understood. Okay, thank you sir. That’s all from myself.
Sanjay Dwivedi
Yeah.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question please Press Star and 1. The next question comes from the line of Kritik Shah, an investor. Please go ahead sir.
Unidentified Participant
I wanted to know if you are entering into ultra short view content that is like YouTube shorts or real. And another question would be like are you going to towards other regional languages like other Gujaratis, Tamil, Telugu. So currently what we are seeing on the regional side.
Sanjay Dwivedi
Is we’ll go into Tamil and Telugu to start with because we see there is an interest there and the market is sizable for one more player to enter and take a cream of it. So that’s the way to go. We are only targeting Tamil and Telugu right now. And second is on the platform side the, the micro drama or you call it reels or whatever you call is cutting which is there is one of the features of the app itself. So and it is showing a strong traction, it is showing some strong interest.
And then we see we, we have just launched it, we have to see a quarter and then we’ll probably go all out on that.
Unidentified Participant
Thank you sir.
Operator
Thank you. We take the next question from the line of Anshal from Des Valado Advisory. Please go ahead.
Ansal
Hello.
Sanjay Dwivedi
Yeah.
Ansal
Thank you for the opportunity. Hello. Am I audible?
Sanjay Dwivedi
Yeah, yeah sir, we can hear you.
Ansal
So in financial year 2025, 30% of revenue came from movies and 11% from digital. Do you expect digital to reach 20 to 25% over the next two years? And what are your key years to get there?
Sanjay Dwivedi
So I will give you a horizon of two and half to three years where movie will be the key driver to the group followed with digital and third segment will be television. So the way we will see is the content business, whether it is TV or it is digital. Then we have motion pictures business and then we have digital business which is purely B2C which we do on our own, whether it is on the YouTube side, on the meta side or we do through app.
And there are some exciting innovations which we are working upon. And hopefully by September, when we do a September investor call, we will be able to present it to you. So focus will be on Motion Pictures, IP LED Business and Digital. Historically if you see TV the prime time has always remained 7 to 11. The prime time has not increased and there are four key broadcast.
So basically even if you do any math you can’t go beyond eight shows on this because no channel will give you more than two or one shows. So you will end up with seven to eight shows or six to eight shows in a year. And the yield and the revenue per episode is there. Out with you. We have already disclosed. So that’s the number which I see. Television will continue to be. So 250 to 350 crore is the range in which TV business will operate and that’s where it is getting. Stagnated. Rather going forward I think the drive will be more on digital side and motion picture side.
Ansal
Okay sir, that’s it for myself. Thank you so much.
Operator
Thank you. The next question comes from the line of Aniket Redkar, an investor. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Sir, I have two questions. Sir, I just want to understand and provide the clarity on this EBIT margin. The biology telephone the old biology separately and how do you keep margins evolving in fy?
Sanjay Dwivedi
Okay, so on the television side I will clearly say on a 238crore of top line we generated an ebitda of around 28 crores. On the motion picture side 177 crore top line and we generated an ebitda of around 6.67 crores. Okay. On the digital side we have a top line of 51 crores. And we were. EBITDA was 28 crore negative because amortization impact also comes in. That is non cash. On the digital side we are burning 35 lakhs per month. That’s a cash burn rate for the last fiscal.
Unidentified Participant
So sir that negative number which is there, that is in the old Balaji are saying the reduction in the losses.
Sanjay Dwivedi
Yeah, yeah, yeah. That is largely coming out of all because of the earlier content amortization impact. As a we have already paid those things. So it is not a cash burn in that sense. But it’s the way you amortize your content cost over a period of three years. So we have amortization first year to 65% second year it is 35 30% and then it is the balance.
Unidentified Participant
Okay, user per user. Can you throw some light in terms of biology? I didn’t get you. Based on this biology performance we shared updated menu on this biology in terms of the paid subscriber, active users and the.
Sanjay Dwivedi
So if you want to see we have close to 3 lakh order subscribers as we speak Active subscribers at any given we add around close to 5,000 subscriber each day. The churn rate is around 45%.
Unidentified Participant
Okay. Okay.
Sanjay Dwivedi
Yeah. And what and compared to the last order, your voice actually is cracking. So not able to catch few of those words.
Unidentified Participant
In terms of content engagement, can you just share the number how it has been changed?
Unidentified Participant
From last quarter.
Sanjay Dwivedi
So. So if you see over the last three year period. If you so to see it. So we should break it all into. Before we we were doing only SVOD led business. Whereas our content spend was huge and so was the marketing spend. And we were burning cash of around 120 to 145 odd crore each year since last two years. We took a conscious call that this model doesn’t help us in long term.
We scaled it down, we did cost regeneration, we changed the tech, platform, everything and now the cash burn has come to around 35 lakhs per month. So that was first thing which we wanted to do so that on a consolidated level at least the number looks better and doesn’t this business doesn’t drag this whole TV or motion pictures initiatives. Now since we have stabilized this thing the whole effort is towards scaling up in a gradual way and making it profitable when we close this year.
Unidentified Participant
Okay. And sir, in terms of this just. I just wanted to understand.
Sanjay Dwivedi
App will continue to be a Alt will continue to be a small piece in the overall digital strategy. Whereas earlier it was 100% we were focusing on alt. Now we have diversified and dependency on the alt as a platform we have reduced.
Unidentified Participant
So sir, what does the content pipeline look like for next two to three quarters?
Sanjay Dwivedi
So are we focused for television? We have just launched on Sony. We are launching QK SaaS on Star plus rather Geo Hot Star right now. And then we also have other shows in discussion with colors. It can be Nagin and it can be one stop and this is on the TV side and the motion picture side. I just mentioned in my speech we have Mohanlal movies which is coming up in Diwali. We have completed Akshay Kumar’s production which is with directed by Priya Darshan.
The third movie is on floor is Siddharth Malhotra’s one. And there are four more movies which should be greenlit before this year end. So that’s the pipeline which we are looking at. And on the digital side for the leading OTT platform we have an order book of over 300 crores which we as we speak and on the content for the app platform it will not be a huge drag onto the balance sheet. We will be putting it show will be cost 2 and half to 3 lakh rupees kind of shows.
So it’s a small business right now app and we are diversifying and we will do a cleaner version app. We will have a YouTube strategy. Especially now since the Pakistani serials is very popular. We don’t have access. There is a huge opportunity there, and we want to build. Balaji’s own channel for the YouTube we just did last month and we have reached 10 lakh subscriber in a month.
Unidentified Participant
So sir, with this increasing competition in space, so how are we differentiating with the other competitors in the market?
Sanjay Dwivedi
So. So as I told you, Alt will continue to be a small piece into my overall strategy. Okay. I am basically a storyteller. Correct. We are a content production company. So whether it is digital, whether it is traditional format of TV or it is motion pictures, I have to just create stories which resonate with the audience. So for me it doesn’t matter which platform. Correct. So what you see as a decline on the television side, you see a huge upside on the digital side. So platform will evolve. And I believe this TV as a business is not dying so soon.
I tend to believe there will be some disruption. Somebody will try to kind of come big bang and launch this TV show that has been historically done. If you recollect when Z was there, Star came up with KBC’s and Kyunkey series and they became number one. They are still number one.
Then in the brief period there was colors which was launched, they came with different strategy, they came with big properties and they dislodged Star. So I think on a cyclical basis somebody will try to revive this segment itself. However, as we speak we are little cautious. We are just thinking that this medium is continuing to be slowed business model and we are focusing on digital commissioning model.
Unidentified Participant
Okay. Okay. So related to the digital. Sir, did the management considering this spinning of digital business separately as an independent business?
Sanjay Dwivedi
Currently see, currently we merge because there is obviously there is huge advantages in terms of what we will achieve due to this merger process. Once the business scales up and there is enough interest to unlock value to the investors and everybody then we can look at that study.
Currently it is all in house and we will continue to focus as a segment into the parent company.
Unidentified Participant
And sir, as you know that more AI tools and taking are coming up. So are we using any kind of such technology or AI tools in our content production?
Sanjay Dwivedi
Yeah. So we just launched Karl Nagri, a totally AI driven shows onto our platform. It’s an in house AI team and we will continue to scale it up.
Unidentified Participant
Oh, got it, Got it. Sir, one last question. Can you just give the guidance for FY26 in terms of top line and the profit margin?
Sanjay Dwivedi
So typically we don’t give any forward looking statement. So bear with us.
Unidentified Participant
Okay? Okay. Thank you sir. This is from my. Thank you. All the best.
Operator
Thank you. Ladies and gentlemen. If you wish to ask a question, please press star and one. We do have a follow up questions from Kritik Shah, an investor. Please go ahead.
Unidentified Participant
So I wanted to ask whether we are focusing on ad led growth or subscriber led growth. I am talking about both OTT as well as the other digital platforms.
Sanjay Dwivedi
Sorry, can you just repeat?
Unidentified Participant
So are we focusing on ad revenue growth or subscriber led growth for digital platforms?
Sanjay Dwivedi
We will continue to de risk subscriber LED model with the Accelerate model and syndication revenue. SVOD model is very expensive to kind of continue. So unless we have more revenue streams to de risk this model, this model is not viable.
Unidentified Participant
All right, sir. Thank you.
Operator
Thank you. Ladies and gentlemen. As there are no further questions, I would now hand the conference over to Mr. Sanjay Deveri for his closing comments.
Sanjay Dwivedi
I wish to thank all of you for taking the time to join us today. We remain committed to deliver top quality content across all our platforms and leverage our strength to make strides in our new growth avenues. Our consolidated entity now is a milestone making a new chapter of our growth. We continue to strive to generate sustainable value for all stakeholders. For any further queries, please feel free to get in touch with AD Practus. Our investor relationship team would be happy to meet you at Balaji or on Zoom Call and we’ll be more than happy to kind of get more engagement with you guys.
Operator
Thank you.
Sanjay Dwivedi
Thank you.
Operator
On behalf of Balaji Telefilms Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.