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Historically, television has been the company’s core business, with Balaji dominating primetime for years and delivering a string of popular shows.
During the company’s Q4 and FY25 earnings call on July 4, Group CEO and CFO Sanjay Dwivedi said the company is at the cusp of a turning point, driven by internal consolidation, strategic partnerships, and a redefined content distribution strategy.
“Over the next 2.5 to 3 years, movies will become the group’s primary growth driver, followed by digital, with television as the third focus area,” Dwivedi told investors. “We look at the content business broadly—whether TV or digital—alongside our motion pictures division and our B2C digital operations, including platforms like YouTube, Meta, and our proprietary app.”
A key initiative during the year was the merger of ALT Balaji and Marinating Films into Balaji Telefilms, streamlining operations, reducing cost redundancies, and enabling significant tax benefits. This consolidation is expected to improve resource allocation across its core verticals, movies, television, and digital content.
Among the notable developments was a long-term content partnership with Netflix. Described by Dwivedi as “not a one-show, one-movie, or single-format deal,” the multi-year agreement spans various formats including direct-to-OTT films, telenovelas, binge-watch series, and reality shows. The collaboration builds on Balaji’s earlier Netflix projects such as Kathal, Pagglait, and Jaane Jaan.Balaji also revamped its digital strategy, moving away from a purely subscription video-on-demand (SVOD) model to a hybrid framework that incorporates both SVOD and ad-supported video-on-demand (AVOD). “Relying solely on SVOD has been a financial drag,” said Dwivedi. “Our app now operates on both ad-supported and subscription-based models.”This shift helped reduce ALT Balaji’s cash burn from over ₹120-145 crore annually to just ₹35 lakh per month. The platform currently has over two million active users and added 3.29 lakh subscriptions in Q4, including 1.73 lakh renewals. Still, Dwivedi emphasized that ALT Balaji would now form a “smaller piece” of the broader digital strategy, as the company expands its presence across platforms.
Balaji Telefilms, he said, is keeping production costs for its app-based content low, with shows costing around ₹2.5–3 lakh each. This means the app will not significantly burden the company’s balance sheet.
The platform is still a small part of the overall business, but the company plans to diversify its offerings and launch a cleaner, more refined version of the app in the future, he noted.
On the B2B front, Balaji has built a digital content order book worth over ₹300 crore, with projects commissioned by platforms such as JioHotstar. “Three shows were delivered in the last fiscal, two of which—Power of Paanch and Kull—performed strongly on JioHotstar. We are also in talks for second seasons,” said Dwivedi.
To further broaden its digital reach, Balaji launched Kutting, a short-form vertical video platform similar to Instagram Reels and is developing regional content in Tamil and Telugu. The company’s new YouTube channel crossed one million subscribers within a month of its launch.
The film division, which Balaji expects to be its main growth engine over the next three years, is gaining momentum. Using a pre-sale and co-production model, the company recovers 85-90% of production costs before release. “We don’t greenlight any movie until digital rights are secured,” Dwivedi noted. “Across our film portfolio, we’ve delivered a 22% return on capital over six years.”
The upcoming movie slate includes Vrushabha starring Mohanlal, set for a Diwali 2025 release; Bhoot Bangla featuring Akshay Kumar and directed by Priyadarshan; and Vvan, a collaboration with The Viral Fever starring Sidharth Malhotra. Balaji plans to double its annual movie output from three to six films.
Despite its legacy in television, the segment is facing yield and margin pressures. “TV yields remain under stress, still down by more than 25% compared to pre-COVID levels,” Dwivedi said. Flagship shows like Bade Achhe Lagte Hain Phir Se and Kyunki Saas Bhi Kabhi Bahu Thi are ongoing, while discussions are underway with Colors for new titles, including a fresh season of Naagin.
For FY25, Balaji reported revenue of ₹453 crore, down from ₹625 crore the previous year. However, net profit surged to ₹84.6 crore from ₹19.4 crore.
The company also raised ₹130.7 crore in new capital during the year, with participation from promoters. The funds are being allocated across movies (₹65 crore), digital and music content (₹33 crore), and general corporate purposes (₹32.5 crore). “In three years, we expect movies to be our primary business, followed by digital, with television becoming the third revenue stream,” Dwivedi reiterated.
Looking ahead, Balaji is optimistic about rising content demand and platform growth. The company recently launched Kalnagri, an AI-generated show, as part of its push into tech-driven content creation.
However, Dwivedi ruled out a digital business spin-off for now. “Once the business scales and there’s enough investor interest to unlock value, we can consider evaluating that option,” he said.
