UFO Moviez India Limited (NSE: UFO) Q3 2025 Earnings Call dated Jan. 31, 2025
Corporate Participants:
Tanuj Khiyani — Analyst
Rajesh Mishra — Executive Director and Group Chief Executive Officer
Ashish Malushte — Chief Financial Officer
Siddharth Bhardwaj — Chief Executive Officer, Digital Cinema Business
Analysts:
Ankit Kanodia — Analyst
Aditya Sen — Analyst
Vaibhav Badjatya — Analyst
Rahil Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the UFO Moviez Limited Q3 and Nine Months FY ’25 Earnings Conference Call hosted by Ventra Securities Limited. As a reminder, all participant lines will be 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 an operator by pressing star and 0 on your touchstone phone. Please note that this conference is being recorded.
Before we begin, I would like to point out that 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 do not guarantee the future performance of the company and it may involve risks and uncertainties that are difficult to predict.
I would now like to hand over the call to Tanuj from Ventura Securities. Thank you, and over to you, Tanuj.
Tanuj Khiyani — Analyst
Thank you. Good day, ladies and gentlemen. On behalf of Ventura Securities Limited, I welcome you all to UFO Moviez India Limited’s Q3 and nine months FY ’25 Earnings Conference Call.
The company is represented by Mr. Rajesh Mishra, Executive Director and Group CEO; Mr. Ashish Malushte, Chief Financial Officer; and Mr. Siddharth, CEO, Digital Cinema Network Business of the company.
I would now like to hand over the call to Mr. Rajesh Mistra for his opening remarks, post which we can start the Q&A session. Thank you, and over to you, sir.
Rajesh Mishra — Executive Director and Group Chief Executive Officer
Thank you, Tanuj. Greetings, everyone, and thank you all for joining our Q3 and nine months FY ’25 earnings call.
The 3rd-quarter of the financial year started on a subdued note with release of films like, Jigra, Yagawala video, etc. The end of October 2024 also saw the releases of films like Lucky Baskar and Amaran which were made on a modest budget, but resonated well with audiences, demonstrating the power of engaging storytelling. November 2024, however, began strongly with the release of Singham Again and 3, both films achieving significant box office success, contributing to a robust start for the month.
Despite this, anticipated films like Tangua, report and I Want to Talk fell short of expectations. At the same time, the highly-anticipated pushpart to the rule, which released on December 5, set new benchmarks at the box office. The film grossed more than INR1,000 crores worldwide within six days, becoming the fastest film to reach this milestone. In contrast, Baby John, a high budget film starring Dhawan, struggled significantly at the box office. In total, 404 movies were released, including versions and languages during the quarter compared to 502 in Q3 FY ’24 and 470 in Q2 FY ’25. The decline in number of releases contributed to decrease in both and digitization revenues.
Riding on the success of in November and Pushpa 2 in December, Q3 FY ’25 experienced robust advertisement revenue growth driven by the exceptional performance of standout films that captivated audiences and attracted advertisers. This success resulted in a 20% year-over-year increase and an 88% improvement on a quarter-over-quarter basis. Additionally, product sales grew by 54% year-over-year and 91% quarter-over-quarter. Overall, our total revenue for the quarter saw a healthy 17% year-over-year increase and a 43% increase on quarter-over-quarter basis. On the screen network front, our advertisement screen network grew to 3,863 screens, marking a 13% year-over-year increase. This includes 2,246 multiplex screens and 1,617 single screens, with the addition of 456 advertisement screens over the past year and a 3% increase on a quarter-on-quarter basis.
Turning to the key figures for the quarter and nine months ended December 2024. The consolidated revenue for Q3 FY ’25 stood at INR1387 million compared to INR1,184 million in Q3 FY ’24, showing a 17% increase on year-on-year basis, primarily driven by advertisement revenue and product sales. EBITDA Q3 FY ’25 stands out as the best quarter in the current financial year with EBITDA reaching INR305 million and that is 199% quarter-on-quarter and 65% year-on-year increase.
The company reported a net profit of INR153 million in Q3 FY ’25 compared to a net profit of INR46 million in Q3 FY ’24 and a net loss of INR9 million in Q2 FY ’25. Regarding the nine-month performance, consolidated revenues amounted to INR3,300 million compared to INR2,909 million in nine months FY ’24. EBITDA for nine months FY ’25 was INR473 million compared to INR524 million in nine months FY ’24, mainly due to lower exhibitor revenue.
On the PAT front, the company reported a net profit of INR103 million in both nine months FY ’25 and nine months FY ’24. The consolidated cash at the beginning of the quarter was INR917 million and the net cash was INR259 million after considering the outstanding debt. I would also like to inform you that we have commenced the organization level restructuring exercise and the benefits of restructuring exercise will start occurring from middle of next financial year.
Looking ahead, though the quarter began on a quarter note with the release of films like Game Changer, Emergency and, Azaad, the upcoming release pipeline looks promising with releases such as Sky Force, Deva, Ya, Suns, Chawa, English films; Captain America, Brave New World and the Salman Khan Star which is expected to release on 28 March, 2025. With this lineup, we are optimistic about building momentum in the upcoming quarter.
With this, I conclude my opening remarks and throw the floor open for questions, which will be answered by myself, my colleagues, Mr. Ashish Malushte, CFO; and Mr. Siddharth Bhardwaj, our CEO. Thank you.
Questions and Answers:
Operator
Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. If you have a question please press star and 1 on your telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and 1 again. Ladies and gentlemen, if you have any question please press tar and one on your telephone keypad.
First question comes from Ankit Kanodia from Smart Sync Services. Please go ahead.
Ankit Kanodia
So, thank you so much for taking my question and congratulations on very good set of numbers, specifically on the advertisement revenue.
So sir, my first question — yeah. So sir, my first question is related to advertisement revenue only. The thing over here is that, see, advertisement revenue is that portion of the business, which I think, correct me if I’m wrong, adds the biggest kicker to our margins and overall when we talk about operational leverage, operating leverage, right? But again, on the other hand, advertisement revenue is also an area where we have very little control because we need the movies to release, if there are no good releases, we’ll not be having good advertisement revenue there. So — and when I see the advertisement revenue today, when the breakup of three major segments which we have, exhibitors, distributors and advertisements. Still the exhibitor revenue forms bulk of our revenue.
So my question to you is a slightly longer-term. How do we see the advertisement revenue do we see in the subsequent, say, four to six-quarter advertisement revenue are becoming the bulk of our total revenue and go past exhibitor. Do you see something like — I’m not asking for a definite guidance, but directionally, do we see that is possible? If yes then how? That’s my first question, sir.
Ashish Malushte
So hi. Thanks. So I know it’s a very longish kind of a question but very pertinent and important. With the set of results that we have declared for this quarter, I think one of the thesis that we wanted to convincingly establish is that when there is a content, there is a footfall and if there is a footfall as a cinema industry, digital cinema industry, we are in a position to get a better pie from the overall advertisement spend. So that has been resulted in our number. But that again throws the same question that you have asked that how do we move forward from here? And you have two questions. One about the linkage of the ad revenue to content and second question about the total proportion of advertisement revenue in the total income.
So the second question being easier, let me first take that. In my own opinion, the better way to look at our numbers is not really what proportion advertisement income draws. And the reason being my theatrical business revenue is more or less stable from what I generate from rental or the service that I delivered to distributors. It’s more like a contractual revenue, but my advertisement, as you rightly said, has a lot of upside — possible upside. So, instead of looking at it what proportion advertisement is of total revenue, we should try and focus on the advertisement revenue and the contos of that. So currently, you will see that the total minutes that we have is close to 5.67 and that has also significantly grown from last year’s number. So that is the first lever that we have.
Second lever is pricing. And both these levers we are slowly, you know and cashing and on both these lines are there is an uptick and therefore it translates into revenue. As regards content is concerned, it’s a — currently it’s a concern, which is true. Unless there is a content, you can’t see a significant growth in ad revenue. But to be more specific, what we all really need, I mean, from the industry side is the confidence amongst the is to come back to the cinema, which is slowly happening and for that you don’t really need back-to-back hits. We just need a steady supply of content, which generally is there. We hope that in last six months, the non-Hindi speaking market is also changing its consumption pattern.
Like in South, people have again gone back to movies the way they used to go in the past. In North, we are still seeing some challenge. Hopefully, this quarter — last quarter can be a starting point when people will again start coming back to the theaters. So once that happens, the content doesn’t really make a very significant difference to ad revenue. It does, but not to an extent which it’s currently making. So we need content and of course, cinema industry will work only if there is a content, but we want the habits to come back slowly. This is one.
Second, to an extent that the advertisement revenue is dependent on content is true when we look at national or regional advertisers. In the new reorganization that we have access that we have started, what we are doing is we are having a regional focus on the retail advertisements. And in our opinion, retail advertisements are not really content specific. Those are there to you know encash the footfalls which are there, which are most relevant footfalls for the retail advertisers. So that’s one of our major strategy that how do we further deepen the retail advertisement pie, which is currently near insignificant in our 5.68 minutes. So this is how we want to look at it. If both these things work well, people start coming back to our — once that happens, we’ll be able to deepen our minutes. And obviously, when the penetration of inventory happens, then the rates would naturally start going up, which we are seeing for last two quarters at least.
Ankit Kanodia
Got it, sir. So — that was very helpful. So two couple of follow-ups on what you just said. So one thing which I wanted to understand much more is what do you mean by initial advertisement fund? If you can throw some more light, that would be very.
Ashish Malushte
Very simple, very simple. When we go to a theater in the vicinity of theater, so generally people come from, say, two or three kilometers radius in cities like Mumbai, right? So radius whoever is having a retail business, it can be in that be a retail shop, it can be a shop, it’s, it can be a gym, it can be classes anybody. For them, this is the most relevant medium, so to say.
Ankit Kanodia
Right, right, right, right, right. So — and the second point was related to the number of minutes sold, which you touched upon. So even if you look at the last year, so is it a some sort of a seasonal thing because last year also Q3 numbers were about 5.3 and this time it is 5.67. But when we look at the nine-month run-rate for us in this year, it is 3.62% only. And when we compare that with the average of total of last year, that is 4.28. So what do you make of this?
Ashish Malushte
Yeah. To answer your question, yes, there is a seasonal — seasonality and seasonality is in our favor in Q3, which is generally the festive season until Christmas. And in the past, Q4 also used to be so-called seasonal because in those days, the government spend used to be high, which currently is not. But yes, to answer your question, there is seasonality. However, the jump that you see, okay, is not on account of seasonality alone. That is where the ad sales team have really been able to penetrate deeper and get the — got the business back to this extent.
Ankit Kanodia
Got it. Got it. And sir, the Caravan advertise revenue has dropped significantly. Of course, it forms a very small insignificant proportion of our total advertisement and total revenue of the company. But still what explains this trash fall from INR4 crores to, I think…
Ashish Malushte
Yeah, near-zero. So the answer, yeah. So actually the caravan business is very, very event specific. There could be a corporate or there could be a government agency who wants to run a campaign where they want to reach deeper into the rural segment and that is where they make use of these caravans to carry their message and messaging. So if there are — so there is no certain business as such. It is it — as we have been explaining, we are trying to create this opportunity in the country. It more or less remains very, very specific to the requirements of these two sets of customers that we mentioned.
Last year, there was some from corporates and also some of the central government agencies and therefore, there was a business. This quarter also we were hoping that one of the regions we will be through state government, we will be able to get it. It has got pushed forward. But nevertheless, as you rightly said, Caravan is not a major move for us. Even if there is a revenue, the margins are maybe around 15% to 20%, sometimes 25%, but not a major pickup. But in a way, it adds to the overall bouquet of offering that my ad sales team can take it to advertisers. So to that extent, it has an advantage, but a drop there hurts my profitability to the extent of 20%, but we are not really very, very optimistic thickly looking at that segment to add to our overall pipe, the way we are focusing on our core offering of in-cinema advertising.
Ankit Kanodia
Got it. Got it. Got it. So is it fair to say that in this?
Operator
Hello, sir.
Ankit Kanodia
Hello.
Operator
Sir, can you join back the queue, please?
Ankit Kanodia
Sure. No problem.
Operator
I request the participants to restrict with two questions in the initial round and join back the queue for more questions.
Next question comes from Aditya Sen from RoboCapital. Please go-ahead.
Aditya Sen
Hi, thank you for the opportunity. Sir, we see that the revenue from scale of products have gone up from 28cr to 48 — 43 CR in Q2. So is this any sort of one-off or we can analyze the 43 CR revenue to roughly INR120 crore, INR30 crores for full-year?
Ashish Malushte
So can you repeat the last line please?
Aditya Sen
So can we analyze the INR43 crores revenue from the sale of products that will make INR120 crore INR130 crores from this segment?
Ashish Malushte
You — okay, no, no, you shouldn’t do that. And there is nothing like one-off onetime here. Let me explain you our Middle-East operations where DCI is quite prevalent is where we have an opportunity of doing integrated offerings to cinema — new cinemas that come up and that is where we do product sales. And in the first two quarters, if you go back and see, our performance was below the target or the budget in the international market, that’s because some of the business was shifted. That business came in Q3. And to that extent, Q3 has been in a way of phenomenal quarter-four are international operations. But this is not a normal annualized turnover that you can see.
So what you have seen last year sale of product being in the range of INR28 crore. So anywhere between INR30 crores to 35 — INR25 crore to INR35 crore could be the run-rate that we generally take at our end. But we look at it differently, international and India, international is more certain. India is depending upon which screens want to go on their own procurement mode. The important point there is in the business, though the sale has gone up, the margins have remained intact. And we still have in excess of 22%, in fact, higher-margin in this quarter. Those margins are also slightly higher, what we see 25% should ideally in a normal scenario be between 21% to 23%.
Aditya Sen
All right. And the second question is that we see that the exhibitors are now participating in the re-releases. So in the re-releases also, will we be able to deliver content? And if yes, then will it help us with the advertisement revenue?
Ashish Malushte
Yes. I mean re-release is in fact, good you raise this point because this has — I mean it has a very deep meaning, re-release happening and people going back watching re-releases, including the Gen Z guys still lining up and watching some of the releases which were released even before they were born. What it tells us, honestly, is the fact that there is an urge for a citizen or a normal consumer to go back and go back to theaters and watch movies. It’s not that OTT has scaled this medium, which has been one of the beliefs and that probably is hitting the way the market and the analysts look at the exhibition industry players like us and some other players. And that could have been true if people were not coming to the theaters, but the fact that for re-releases, they are coming back and obviously for regular releases, they will certainly come back.
Now re-release give us an opportunity that normally in any year, you don’t have a good content week-on-week. You have some dry periods. Now if the re-release are doing good, then people can keep offering re-releases in the market. Coming to our role, when the re-release comes, we are very much in a position to release it on our network. In fact, many of these movies could be on our library straightaway. So, we continue to get benefited. In fact, re-releases are targeted in dry weeks and in those weeks, we will be able to get advertisement revenue.
Aditya Sen
All right, understood. I’ve got two more questions. I’ll fall back in the queue.
Ashish Malushte
Yeah. Thanks.
Operator
Thank you. Next question comes from Vaibhav Badjatya from Honesty and Integrity Investments. Please go-ahead.
Vaibhav Badjatya
Yeah, hi, sir. Thanks for taking the opportunity. So any update that you have on the central government advertising and expected revival? Do you see that it is reviving and do you — are you getting any indications from the government that this can come back?
Rajesh Mishra
So central government advertising is still a challenge for us as we have been pointing out. This is something, which is really driven by the DAVP and the Ministry of I&B. So one has very little control over something like this. But our team continues to keep engaging with the ministries and I&B ministries and we hope it comes back, but there’s really no guarantee about it. So as we said, it’s a concern area and it will come when it comes.
Ashish Malushte
But while it’s a concern area, I must tell you that few quarters back, we said that we are moving slowly and changing our strategy to have dependency — reduce the dependency on government. To that effect, this quarter has been largest gross in corporate advertisement quarter in the history of UFO when we have done INR35 crores. Previous to this, the net best was in Q3 FY ’19 when we had done INR31 crores. More importantly, the volumes have grown for corporate segment from 3.48 to 4.61 in this period. And this is where we are trying to reduce our dependency on government advertisement.
Rajesh Mishra
However, state revenue continues to keep advertising and growing with us.
Vaibhav Badjatya
Right. Got it. That’s it from my side. Thank you.
Rajesh Mishra
Thank you.
Operator
Thank you. Ladies and gentlemen, if you have any question, please press R&1 on your telephone keypad. The next question comes from Rahil Shah from Crown Capital. Please go-ahead.
Rahil Shah
Hi, sir. Good afternoon. Sir, a very direct question with regards to Q4. Now in Q3, I think your performance has been good on many fronts. Can this continue in the next quarter, given that you see a good pipeline of releases and you’re trying to push the ad revenue as well. So, can this performance continue in for the next two quarters?
Ashish Malushte
So, my humble request is we should look at more in a slightly long-ish period. Quarter-on-quarter can be different. It’s too difficult to predict that we advertise is. As Rajesh mentioned, the films have not been very good in Jan and therefore, the momentum becomes little weaker. But looking at quarter-on-quarter doesn’t really help. Some strategic — I mean we have been hurt because of the expectations around cinema industry, whether it’s survival existence growth. And I think to that extent, there are some positive indications which are very, very clear. And therefore, my request will be you should look at least a year, year and a half horizon, which looks quite promising.
Rajesh Mishra
But I just want to add over here would be that we have two films– big films coming up, Deva and Shawa shortly in the next couple of weeks too. And however, one big film, Salman Khan startup is releasing on 28 March. So the impact of that would largely spillover into the Q1 of next year. So this is the way it plays out. It’s largely a content-driven marketing scenario and it will depend upon the how the films fare in the cinemas. Good part that we are seeing which are increasing trend across-the-board is regional cinemas having playing a greater and greater role. And Pushpa 2 has really put the Hindi-speaking market as a huge potential market for the South films. And we see more-and-more of such crossover films coming up and releasing in the North market also, which increases the content pie for the Hindi market. So earlier it was either Hindi films or it was some Hollywood films that would come in. Now we have South films coming in, regional films are catching-up. Hollywood films continue to play their role and Hindi films are also there in the pipelines. So we remain optimistic about it.
Rahil Shah
Okay. So overall — overall, if I say a general strategy for you is completely the business is dependent on constant and consistent content creation, correct, which you get. And the same applies for the ad revenue as well. Only if there is a great amount of footfalls, will you see the business grow.
Ashish Malushte
This is not — so it’s not fully true. It’s not that we need constant supply of content. As I said, I mean, this very company between 2017 and ’20 never had this challenge. It’s only post-COVID, the habits of people change and now the views of investors and analysts have probably slightly moved thinking that to what extent OTD will damage this industry of in viewing. I think over there, there is what we — I was trying to say that if there is a content which was there last quarter where people are slowly coming back-in theaters, we need average 5,000 to 6,0000 views, I mean per cinegoer in a year, there are only close to 13,000 crores in the industry size. So if that is coming back, then there is no challenge in terms of perception. But we don’t need consistently back-to-back and only then this industry will be able to deliver revenue. Currently, this is how it is. Soon, there is a process of changing, which you can see in last two quarters.
Rajesh Mishra
In fact, the smaller budget levels have fared well. I mean, if you see traditionally, the — there have been many, you know films which have been made-for small niche markets with low budgets and they have performed really well. So the footfall will keep coming. It’s not going to be either or situation.
Rahil Shah
Okay. So this restructuring that you mentioned in the opening remarks and then this behavioral change of cinema goers coming back to those historical levels with the — so in a year and a half, you can expect the game change for the business. Is that a fair?
Ashish Malushte
Yes, very much.
Rajesh Mishra
So the restructuring was more at our corporate level and internal thing, nothing to do with the film patterns or anything like that. This is an endeavor to bring in fresh pair of eyes and mines into the business. Lot of our senior members have got super annuated and lot of our second level people have been elevated to the higher post like my colleague, Siddharth Bhardwaj, who’s joined me on the call today, he has been alluded as CEO. Siddharth was handling advertising sales and now he is the CEO of the entire business. And as I said, this structure is more from internal purposes to optimize the areas of revenues and costs. So from that perspective, so this was just sharing with you.
Rahil Shah
Yeah, that’s what I meant only for the better for the business. Okay. All right. Thank you. Thank you for answering and I wish you all the best. Thank you.
Rajesh Mishra
Yeah. Thank you.
Operator
Thank you. Thank you. Ladies and gentlemen, if you have any question, please press star and one on your telephone keypad. We have a follow-up question from Ankit Kanodia from Smart Sync Services. Please go-ahead.
Ankit Kanodia
Yeah. Thank you for allowing me a follow-up. Sir, my next question is related to the Nova Cinema new initiative. Last-time we mentioned, I think in the last call or maybe the call before that, that there’s just one I think in UP somewhere, we are trying to do that. So any update on that, how it is progressing and any feedback you don’t want to share?
Rajesh Mishra
Yeah. So we have started another property in UP in a area near Meerut and another properties in the pipeline over there. There is one property that we are targeting in Maharashtra. So still early days. Right now, there are only two properties operational and they have just seen two months of operations. So as I said, it is, we remain hopeful about this endeavor.
Ankit Kanodia
Got it. Sir, the reason I’m asking question about Nova and Caravan is that my understanding is that, again, you are a better person to know how things work out. But what I was thinking is that if there is any scope of scaling up these initiatives that in one-way we get ourselves ready to get ourselves prepared to or maybe bear the shock of volatility of the content flow or the footfalls which we see in the theaters, right. So don’t you think if we can scale this up and make this part of the business, which is not too much into what it is happening in the other part of the country, that could help us in stabilizing our revenues and profits. Any color on that, sir?
Ashish Malushte
Yeah. So very good point. If you see these two businesses, Nova, which is targeted to do the penetration of theaters in semi-urban or maybe high rural areas, that would still have a dependency on whatever dependency you mentioned on content. So it will not be insulated in any manner but caravan could have been and can be you know sort of an opportunity where you can you have the content would not really affect that caravan business because it’s not a theatrical business so we are.
Ankit Kanodia
But the way you answered my previous question earlier when I asked so it felt as if you are waiting for the corporates and the government to give you projects there rather than you going to them and pitching your thing.
Ashish Malushte
Of course, there is an extensive marketing effort that happened. I’m saying that to that extent that market is not really arrived and people are not really both in these segments are not really making use of this avenue. And therefore, we said that this is not my primary focus. My primary focus still continues to be cinema. And sooner we will see that, there is to some extent decoupling with you know, the best of the content has to be there for advertisement to come. It could be another couple of quarters and then it should to meaningfully get decoupled.
Ankit Kanodia
Sir, my last question is, so recently I went to a PVR Cinema to watch a movie with family and there I see a advertisement done by a lady who is actually an advertisement, someone from my ag media company and she highlights the importance of doing advertisement in cinema and what kind of advantage you have. So do we enter into these kind of initiatives where we make all these retailers aware of the prospect of doing advertisement on because that can also lead to a lot of growth on our advertisement revenue. Do we have any such plans in place where we reach out to soon? Because there are so many retail public — retail small companies, which can actually benefit from this. So what is our advertisement or our campaigns? Do we involve them in this? That is what I wanted to understand.
Siddharth Bhardwaj
Ankit, this is Siddharth. So these testimonials, what advertisers actually run are part of the trade campaign that any media platform you know plans. Now every media platform chooses different ways of disseminating this information yes since we are the owners of cinema screens it’s a good idea to run it on a cinema screen but you know we may also want to do it, but I think more effective is you know direct to our clients and prospects and we do all these testimonial campaigns also, which may not be visible to advertisers on in our screens, but trade marketing is an integral part of any marketing efforts or sales efforts that we do.
And we also do the same using Europe best-case studies and taking them to potential advertisers, whether they are many times they are part of our pitch tech and many times we create customized mailers and share the same information with the — more effectively with our direct prospects you know just running it on cinema screens where you know some of our potential advertisers may be there is Europe is also an option which we have done we have used this resorted to this option in the past. But you know, we have maintained to focus our efforts because we know who our prospects are and they are part of our database. So, we can do it more effectively by going direct. Yes, this is an option. When — as and when the need arises and when we have a campaign of that size, we’ll definitely use our own cinema screens. So we may use other video platforms also.
Ankit Kanodia
Thank you so much, sir. That was very, very, very helpful for the detailed answer. And I was not asking specifically for the cinema screens only. What I was asking for, I got your answer actually. So thank you so much for that.
Siddharth Bhardwaj
Yeah. Thanks.
Ankit Kanodia
Thank you, and all the best.
Siddharth Bhardwaj
Thank you so much.
Operator
Thank you. Ladies and gentlemen, if you have any question, please press tar and one on your telephone keypad. Thank you. We have a follow-up question from Aditya Sen from RoboCapital. Please go-ahead.
Aditya Sen
Hi, thanks again. Sir, you shared the content pipeline for Q4, but what are your views regarding the content pipeline for FY ’26 compared to FY ’25?
Rajesh Mishra
Yeah. So as I said, it seems like a very healthy pipeline because the compared to this, there are Hollywood films which are lined-up, big budgets are cast links on the Hollywood side like and all those things. South flims, lot of them will be migrating into the north riding on the success of Pushpa and earlier films like Bahubali and everything. The regional films also are picking-up in the market, especially Punjabi, Gujarati, Marathi films. These films carry a lot of footfall with them because they are released on a very, very focused markets. And of course, the Hindi films are also lined-up. The biggest one that we are seeing up is up close is Sikander, which is starting Salman Khan. But the FY ’26 lineup is expected to be one of the best lineups that we have seen in the last three, four years. So it is a very healthy lineup.
Aditya Sen
Sure. All right. Understood. And one last question. Yeah.
Siddharth Bhardwaj
Aditya, this is Siddharth. So I think what is different this year is for the first two quarters, we have a good visibility right of content and which is very, very important for at this part having a visibility in-quarter four of the next years, subsequent two quarters, because this lineup actually helps advertisers build conviction about integrating cinema in the part of their annual budgets, right? Last year, though quarter-four was strong pipeline, it delivered well, but quarter one and quarter two pipeline was weak, so which did not give too much confidence to advertisers to commit to the medium, right? So what drives confidence in the industry is that as of now, we can see a good pipeline, not only language content, but also Hindi content, right? We have Jud which is Sonny movie which got pushed into quarter one, Johnny LLB. We have Raid 2. Even…
Rajesh Mishra
Houseful 5.
Ashish Malushte
Houseful 5.
Rajesh Mishra
War 2. Many films are in — Wanted 2.
Ashish Malushte
Yeah. Karate Kid, Houseful 5 is in-quarter one, quarter two, lot of movies and good visibility of Hindi content. So this year has been not-so-good for Hindi. It got compensated by regional content, right? So it gives us confidence if Hindi comes in and you know the habit of Hindi audiences lapping up sudden dub content also. So it will give up a really good kick to the footfalls because it will be two things working together, right? So that is actually helping build confidence on our side and more importantly on the advertising side. So, I hope that answers your question.
Aditya Sen
Give that answer. Thank you for that. And one last question. Regarding the leverage, do we get the same realization in also when compared to the first new movies?
Ashish Malushte
Can you repeat the question? Some part of it.
Aditya Sen
I’m asking that in the re-releases, do we get the same realization as the newly released movies in terms of advertisement revenue?
Ashish Malushte
Aditya, we hope they do. However, re-releases currently form a very small percentage of the overall number of shows and the movies that release. There is no clear trend visible as of now, right, as and when they start contributing, there is newness to this phenomenon of re-releases. But if you look at the overall contribution to the number of shows they contribute to the cinema industry, it is still very, very small. But there is no clear trend visible. As and when some trend is visible, we’ll be in a position to respond to this.
Aditya Sen
All right. Thank you. That was my question.
Ashish Malushte
Thank you.
Operator
Thank you. Ladies and gentlemen, if you have any question, please press star and one on a telephone keypad. I repeat, ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad.
There are no further questions. Now, I hand over the floor to Mr. Rajesh Mishra for closing comments.
Rajesh Mishra
We thank you. We thank everyone for joining this call and you are welcome anytime to reach out to our teams for any further clarification information that you may need. Thank you very much, everyone.
Operator
Thank you, sir. Ladies and gentlemen, this concludes the conference call for today. Thank you for your participation. You may now disconnect your lines. Thank you and have a good day.