Phantom Digital Effects Ltd. (PHANTOMFX)
SME CapIT stocks · SME cap · NSE
Phantom Digital Effects Limited (PhantomFX) is a leading visual effects (VFX) studio providing end-to-end services for films, web series, and commercials. Headquartered in Chennai, India, with offices in Mumbai, Hyderabad, US, Canada, UK, and Dubai. A Certified Trusted Partner Network (TPN) member, it recently unified studios under Phantom Media Group (PMG).
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Sept 2025
Average · 30/100YoY data unavailable — classification deferred
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹85 Cr | NDF | +26.9% |
| EBITDA | ₹25 Cr | NDF | +13.6% |
| Operating margin | 30.0% | NDF | -300 bps |
| PAT | ₹21 Cr | NDF | +75.0% |
| PAT margin | 24.7% | NDF | +680 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
PhantomFX reports strong H1 FY26 consolidated performance with Total Income up 140.91% YoY to ₹8,829.50 Lakhs, PAT up 149.99% YoY to ₹2,068.55 Lakhs, and EPS at ₹13.87, up 127.75% YoY. EBITDA grew 75.39% YoY to ₹2,862.27 Lakhs, though EBITDA margin compressed to 32.42% from 44.53% YoY.
The company delivered robust H1 FY26 financial growth, driven by sustained demand and strategic acquisitions like Milk VFX and Tippett Studio. Expansion into China and Europe, coupled with a QIP fundraise, positions PhantomFX for continued global scaling, despite some margin compression.
Strategic Acquisitions
Acquisition of Milk VFX and Tippett Studio significantly elevates creative depth and strengthens integration across global content hubs, leveraging award-winning credibility.
Global Market Expansion
Establishment of Phantom China and expanded UK & EU market presence via acquired studios (Milk VFX, Lola Post) provides access to new clientele and tax incentives.
Streaming & Immersive Storytelling Demand
Management views streaming growth and immersive storytelling as vast opportunities, driving demand for high-quality VFX content.
Diversified Portfolio & New Verticals
Adds high-end genres (commercials, sci-fi, fantasy) and explores gaming, 3D ride animations, and original IP creation, enhancing bidding influence and resource synergies.
Artist Base Expansion
PhantomFX now has 650+ artists (permanent and contracted), with Milk adding 150+ skilled professionals across France, Spain, Ireland, and the UK.
New Global Facilities
Established Phantom China facility in Hangzhou and expanded Bengaluru operations through Spectre Post, enhancing post-production capabilities.
Rising Global VFX Demand
Growing need for high-quality VFX in films, TV series, and video games, driven by global entertainment industry expansion.
Streaming Platform Investment
OTT players like Netflix, Disney+, and Amazon Prime Video are heavily investing in VFX-rich original content.
India as a Global VFX Hub
India is emerging as a cost-effective outsourcing destination, with government support boosting the AVGC sector.
Tax Incentives
Acquisitions unlock UK Film & TV Tax Relief and European co-production subsidies, enabling optimal project structuring.
Integration Risk of Acquisitions
Successful integration of acquired studios like Milk VFX and Tippett Studio is crucial for realizing synergies and maintaining creative depth and operational efficiency.
Competition in Global VFX Market
The VFX industry is highly competitive, requiring continuous innovation and strategic positioning to maintain market share and attract top talent.
Technological Advancements & AI Adoption
Rapid technological changes and advancements, including AI integration, require continuous R&D investment to maintain a competitive edge and efficient workflows.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The investor presentation explicitly highlights year-on-year growth percentages for all key financial metrics for H1 FY26, indicating that this comparison best reflects the company's performance trajectory and strategic impact over a longer period.
EBITDA Margin
Consolidated EBITDA Margin for H1 FY26 was 32.42%, down from 44.53% in H1 FY25.
PAT Margin
Consolidated PAT Margin for H1 FY26 was 23.43%, up from 22.58% in H1 FY25.
EPS
Consolidated EPS for H1 FY26 was ₹13.87, a 127.75% YoY increase.
Transition to Diversified Global Organization
These achievements highlight PhantomFX’s transition into a more diversified, capability-rich, and internationally aligned organisation.
Focus on Client Outcomes & Tech Edge
Our focus remains on elevating client outcomes, advancing our technological edge, and contributing meaningfully to the evolving landscape of global visual effects.
Building Global Brand & India as Creative Powerhouse
PhantomFX remains committed to scaling talent, adopting cutting-edge technologies, and delivering world-class content as we continue building PhantomFX as a global brand and India as a creative powerhouse.
Unified Global Pipeline
Operating across eight countries and five major brands, PhantomFX leverages AI, real-time production, and tax-efficient structures to deliver world-class content with unmatched creative agility.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | 32.42% (H1 FY26) | Trend in consolidated EBITDA margin, especially post-acquisition integration, given the H1 FY26 compression from H1 FY25's 44.53%. |
| Acquisition Integration Progress | Milk VFX and Tippett Studio acquisitions completed. | Evidence of successful integration, synergy realization, and contribution to financial results from acquired entities in future reports. |
| China Operations Ramp-up | Phantom China established in Hangzhou, engaged in large-scale projects. | Specific project wins, revenue contribution, and operational metrics from the newly established Chinese facility. |
| New Verticals Contribution | Exploring gaming, 3D ride animations, and original IP creation. | Updates on progress in new verticals and their contribution to overall revenue and profitability. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
37Bearishfull bear SMA stack · SMA20 -28.1% / mo · MACD + · near 52W low
Technical chart
PHANTOMFXdaily · 1Y · AUTO-42.8%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 35. Wait for confirmation.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~39.1% over last month) — short-term momentum negative.
- RSI(14) at 35 — sideways, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 37 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 37 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Valuation contributes 22/30 to the score.
- Balance sheet contributes 8/15 to the score.
- Growth contributes 7/25 to the score.
Main drags
- Penalty bucket subtracts 7 points.
- Fair-value margin of safety is negative at -184.4%.
- Cash flow is weaker at 0/10; verify the latest quarterly trend.
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -5 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 35th percentile of the scored universe and 32nd percentile within IT. Main check: cash conversion is weak at 28/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-19 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · IT: 32nd pctile, median 69 · SME: 41st pctile, median 64
14 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸4/4 latest quarters had positive YoY PAT growth.
- ▸Latest 3 quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-19 Cr.
- ▸Promoter holding is only 3%.
- ▸Only 0 years of positive FCF.
- ▸OPM spread across recent quarters is 16.4%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 5.70
- P/B
- 0.53
- EV/EBITDA
- 4.96
- Market Cap
- 186.00Cr
Profitability
- ROE
- 13.00%
- ROCE
- 17.60%
- ROA
- 8.77%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 14.61%
- EPS 5Y
- -16.67%
- Revenue 3Y
- -39.00%
- EPS 3Y
- -39.00%
Balance Sheet
- Debt/Equity
- 0.25
- Interest Coverage
- 7.60×
- Altman Z
- 3.96
- Book Value
- 221.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- -19.00 Cr
- EPS TTM
- 14.88
Shareholding
- Promoter Hold
- 3.00%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 3%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.