UFO Moviez India Limited (BSE: 539141 / NSE: UFO) reported a decline in revenue and profitability in the quarter ended December 2025, driven primarily by lower in-cinema advertising income, according to its Q3 FY26 disclosures.
The company reported consolidated revenue of ₹1,319 million in Q3 FY26, down 5% year-on-year. EBITDA declined 31% to ₹210 million, while profit after tax fell 58% to ₹64 million.
Business overview
UFO Moviez operates a digital cinema services and in-cinema advertising platform across India. Its business model includes three primary revenue streams: advertising, distributor services (content delivery and VPF), and exhibitor-related income such as equipment rental and product sales.
As of December 2025, the company had advertising rights over 3,783 screens across 1,347 cities and towns, with an annual viewing capacity of around 1.8 billion viewers.
Financial performance
In Q3 FY26, consolidated revenue declined to ₹1,319 million from ₹1,387 million in Q3 FY25. EBITDA fell to ₹210 million from ₹305 million, while PAT declined to ₹64 million from ₹153 million.
For the nine months ended December 2025, revenue increased 7% to ₹3,522 million, while EBITDA rose 31% to ₹620 million and PAT increased 99% to ₹204 million.
Revenue mix and operating drivers
Advertising revenue declined 30% year-on-year to ₹323 million in Q3 FY26, reflecting lower advertiser traction during the festive season.
Distributor revenue increased 11% to ₹325 million, driven by growth in content delivery charges and digitisation income. Exhibitor revenue rose 5% to ₹667 million, supported by lease rentals and product sales.
In the nine-month period, distributor and exhibitor revenues recorded double-digit growth, while advertising revenue remained broadly flat.
Operating metrics
The company reported 3,783 advertising screens, including 2,304 multiplex screens and 1,479 single screens. Average advertisement revenue per screen declined to ₹84,406 from ₹120,461 a year earlier, while average advertising minutes sold per show declined to 4.41 from 5.67. Corporate and hyperlocal advertisers accounted for a majority share of advertising revenue, while government and PSU advertising declined during the quarter.
Key developments
Management attributed the decline in advertising revenue to the absence of major blockbuster releases during the festive period, which affected audience turnout and advertiser demand.
Risks and constraints
Disclosures indicate that performance remains sensitive to film release cycles, advertising demand, content pipeline strength, and broader macroeconomic conditions affecting marketing budgets.
Outlook and commentary
Management stated that a positive content pipeline and improving advertiser sentiment could support future performance, alongside continued focus on operational efficiency.