Basilic Fly Studio Limited

Sector n/a · NSE

₹567.60−₹10.30 (−1.78%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

The 60-second version of Basilic Fly Studio Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

How does it make money?

Turns over ₹408 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹23 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 18.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +418% while net margin moved -66% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+418%

Margin effect-66%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

63/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

35/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

15.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 87.6% to 14.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 104.5% to 18.7% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 2394% over 3 years, from ₹4 Cr to ₹107 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 25.9 points, from 49.3% to 23.4%.
🔴Receivables growing faster than salesFinancial
Receivables up 794% against revenue up 418% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 49.3% to 23.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 794% against revenue up 418%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 87.6% to 14.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 55% a year✓ 73.1% CAGR
Latest reported year was 34.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 21%✓ 23.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹50 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 18.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹1,434 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

14.6%

Moderate

Moderate capital efficiency

ROCE

18.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

34.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

30.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹50 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Net Margin

12.0%

Good

Strong bottom-line conversion

Current Ratio

2.49

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

189.5 / 189.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

67.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹79 Cr	₹103 Cr	₹304 Cr	₹408 Cr	+73.1%
EBITDA	₹39 Cr	₹52 Cr	₹74 Cr	₹96 Cr	+35.0%
EBITDA Margin	49.3%	50.8%	24.2%	23.4%	—
PAT (Net Profit)	₹28 Cr	₹37 Cr	₹37 Cr	₹49 Cr	+20.7%
EPS	₹11.94	₹17.86	₹19.2	—	—
ROE	87.6%	30.0%	18.6%	14.6%	—
ROCE	104.5%	37.0%	20.8%	18.7%	—
Total Debt	₹4 Cr	₹19 Cr	₹82 Cr	₹107 Cr	+192.2%
Free Cash Flow	₹10 Cr	-₹29 Cr	-₹80 Cr	-₹50 Cr	—

🟢 Revenue has grown at 73.1% a year over 3 years.

🟢 EBITDA has grown at 35.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 49.3% to 23.4% over 3 years (-25.9 pts).

🟢 PAT (Net Profit) has grown at 20.7% a year over 3 years.

🔴 ROE has fallen from 87.6% to 14.6% over 3 years (-73.0 pts).

🔴 ROCE has fallen from 104.5% to 18.7% over 3 years (-85.8 pts).

🔴 Total Debt has grown at 192.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹10 Cr to -₹50 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹537 Cr

Total Liabilities

₹193 Cr

Cash & Equivalents

₹45 Cr

Operating Cash Flow

₹23 Cr

Capex

-₹73 Cr

Recent News

3 mixed1 negative2 general

We Think You Should Be Aware Of Some Concerning Factors In Basilic Fly Studio's (NSE:BASILIC) Earnings

Simply Wall Street, 08 JunResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Basilic Fly Studio consolidated net profit declines 36.27% in the June 2026 quarter

Business Standard, 15 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Basilic Fly Studio Ltd. (BASILIC) Share Price Rise Streak: Second Straight Session Gains 17.52%

Univest, 07 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Basilic Fly Studio promoter confirms no share encumbrance in FY26

scanx.trade, 30 Jun

Basilic Fly Studio Ltd. Share Price Update and Analysis

Univest, 06 Oct

Basilic Fly Studio Share Price Soars 368% Since IPO | Netflix Deal Boosts Growth

Samco, 21 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingGrowth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑