Sunshine Pictures IPO (18-20 August) Analysis

IPO Analysis | BSE and NSE Main Board | 100% Book Built Offer (Fresh Issue and Offer for Sale) | Regulation 6(1)

Based on Red Herring Prospectus dated August 10, 2026 | Film, Web Series and Television Content Production | Mumbai, Maharashtra

STATUS: LIVE RHP, ANCHOR BID AUGUST 17, BIDDING OPENS AUGUST 18 AND CLOSES AUGUST 20, 2026

Fresh Issue: up to 48,00,034 Equity Shares | Offer for Sale: up to 30,37,157 Equity Shares by Promoters Vipul Amrutlal Shah and Shefali Vipul Shah | Main Board Listing on BSE and NSE

Production House Behind 'The Kerala Story', 'Force' and 'Commando' Franchise | RoNW Well Above Sole Listed Peer Panorama Studios in Every Year | Revenue Declined for 2 Consecutive Years

 Sunshine Pictures Limited was originally incorporated as Energetic Films Private Limited on July 14, 2007, renamed Sunshine Pictures Private Limited in March 2010, and converted to a public limited company in September 2024. Its CIN is U55100MH2007PLC172341, with its registered office in Andheri West, Mumbai, Maharashtra.

The Promoters are Vipul Amrutlal Shah, Shefali Vipul Shah, Aryaman Vipul Shah and Maurya Vipul Shah. Vipul Amrutlal Shah is a well-known Indian film director and producer.

The Company is engaged in film production and also creates content for third-party broadcast channels, spanning films, web series and television serials.

Its production credits include commercially significant titles such as 'The Kerala Story', 'Force', the 'Commando' franchise, 'Holiday: A Soldier Never Dies' and 'Namastey London' era productions, among others, typically involving co-production arrangements with studios such as Zee Studios and Jio Studios.

The Company does not own the hardware or equipment required for its content production, relying instead on third parties, and its projects are inherently subject to budget overrun, delay and completion risk typical of the film and television industry.

Unlike most companies in this report series, the Company's revenue actually declined for 2 consecutive years, from Rs.13,379.80 Lakhs in Fiscal 2024 to Rs.10,333.01 Lakhs in Fiscal 2025 (down 22.77%) to Rs.7,443.67 Lakhs in Fiscal 2026 (down a further 27.96%), a pattern the Company attributes to the inherently lumpy, project-based nature of film production revenue recognition rather than a decline in underlying business activity; notably, the Company's high-profile film 'Hisaab', originally scheduled for release in the first quarter of calendar year 2025, has been delayed to Fiscal 2027.

Despite this revenue decline, PAT margin has remained very high throughout (33.35% to 53.77% across the 3 disclosed years), discussed further in Section 4.

Key Basics

Particulars	Details
Document Type	Red Herring Prospectus (RHP) dated August 10, 2026. This is a live offer: Anchor Investor Bid August 17, 2026, Bid or Offer opens August 18, 2026 and closes August 20, 2026.
Issue Structure	100% Book Built Offer comprising a Fresh Issue of up to 48,00,034 Equity Shares and an Offer for Sale of up to 30,37,157 Equity Shares by 2 Promoter Selling Shareholders, aggregating to up to 78,37,191 Equity Shares (25.16% of post-Offer paid-up capital). Face value Rs.10 per share.
Face Value	Rs.10 per Equity Share.
Promoters and Selling Shareholders	Vipul Amrutlal Shah (holding 29.05% pre-Offer) is offering up to 20,31,388 shares at a WACA of Rs.0.87; Shefali Vipul Shah (holding 25.00% pre-Offer) is offering up to 10,05,769 shares at a WACA of Rs.0.44, both a tiny fraction of the likely Offer Price.
Eligibility Route	Regulation 6(1) of the SEBI ICDR Regulations, 2018, the standard main board profitability-based eligibility route.
Listing Exchange	Main board listing on both BSE Limited and the National Stock Exchange of India (NSE); NSE is the Designated Stock Exchange.
BRLM	GYR Capital Advisors Private Limited (single BRLM, notable for a main board offer of this scale).
Registrar	Bigshare Services Private Limited.
Bid or Offer Dates	Anchor Bid: August 17, 2026 (may or may not proceed, at Company discretion). Opens: August 18, 2026. Closes: August 20, 2026.
Listed Peers, One Line	1 listed peer, Panorama Studios International Limited, larger by revenue but with materially lower RoNW than the Company in every disclosed year.

This is a main board film and content production IPO led by a well-known industry Promoter, structurally distinctive for being serviced by a single BRLM despite its main board listing, and for including a meaningful Offer for Sale by both key Promoters at nominal cost bases.

The Company's revenue pattern, 2 consecutive years of decline, is a genuine outlier relative to most other companies in this report series and deserves particular attention in Section 4.

How Will the IPO Money Be Used?

Object	Estimated Amount (Rs. Lakhs)	Substantiation
Funding working capital requirements	11,250.00	The entire specifically itemised Object; based on internal management estimates, not independently appraised by any bank or financial institution, and scheduled for full deployment within Fiscal 2027.
General corporate purposes	[TBD]	Capped at 25% of Gross Proceeds. No further breakdown provided, as is standard.

This Issue has no capital expenditure Object: the entire identified use of Net Proceeds is working capital, consistent with the Company's asset-light production model (it does not own filming hardware or equipment) and the inherently cash-intensive nature of funding productions ahead of revenue recognition upon completion or delivery.

As with all RHPs at this stage, the fund requirements have not been independently appraised, and the Gross Proceeds, Net Proceeds and General Corporate Purposes figures remain undetermined until the Offer Price is fixed.

Financial Performance

P&L and Key Metrics (Rs. Lakhs unless stated)

Particulars	FY 2026	FY 2025	FY 2024
Revenue from Operations	7,443.67	10,333.01	13,379.80
Revenue growth (%)	(27.96)	(22.77)	404.72
EBITDA	5,854.81	5,075.78	7,397.29
EBITDA margin (%)	78.65	49.12	55.29
Profit after tax	4,002.24	3,446.46	5,334.90
PAT margin (%)	53.77	33.35	39.87
Return on equity (%)	31.99	39.24	108.99
Return on capital employed (%)	36.20	41.23	82.08
Return on net worth / RoNW (%)	27.58	32.80	75.57
Net worth	14,513.46	10,506.88	7,059.63
NAV per equity share, post-bonus (Rs.)	55.08	39.88	26.79
Debt to equity ratio (times)	0.06	0.11	0.24

The headline revenue trend, a decline of 22.77% in FY25 followed by a further 27.96% decline in FY26 (independently recomputed and reconciling with the RHP's own disclosure), is the single most important number to understand correctly in this report.

Film and content production revenue is recognised on a project completion or delivery basis rather than smoothly over time, so year-to-year swings driven by which specific projects were completed or delivered in a given fiscal are normal for this industry and do not necessarily indicate a declining underlying business; the FY24 figure itself reflects a 404.72% jump the prior year, evidencing how lumpy this revenue pattern has been across the full disclosed history.

The delay of the Company's 'Hisaab' project from an original Q1 CY2025 release to Fiscal 2027 is a specific, disclosed example of this timing dynamic.

Despite declining revenue, profitability has remained strikingly high throughout: EBITDA margin ranged from 49.12% to 78.65% and PAT margin from 33.35% to 53.77% across the 3 disclosed years, reflecting the high-margin nature of successful film and content production once costs are covered. RoE, RoCE and RoNW have all declined from very high FY24 levels (108.99%, 82.08% and 75.57% respectively) as the Company's net worth has grown steadily (Rs.7,059.63 Lakhs to Rs.14,513.46 Lakhs) on the back of retained profit, a moderation driven by a genuinely expanding equity base rather than declining absolute profitability.

The Company's Debt-Equity ratio has also improved consistently (0.24 to 0.06 times), and the Company's own Risk Factors separately disclose negative operating cash flows in the past, consistent with the working capital intensive, pre-funded nature of production financing.

How Does It Compare to Peers?

Company	Revenue (Rs. Lakhs)	RoNW (%)	Prior Year Revenue (Rs. Lakhs)	Prior Year RoNW (%)
Sunshine Pictures Limited	7,443.67 (FY26)	27.58 (FY26)	10,333.01 (FY25)	32.80 (FY25)
Panorama Studios International Ltd	36,415.26 (FY26)	10.50 (FY26)	43,959.83 (FY25)	17.44 (FY25)

The RHP discloses only 1 listed peer, Panorama Studios International Limited, which is substantially larger than Sunshine Pictures by revenue (roughly 4 to 5 times, depending on the year) but also experienced its own revenue decline in the same periods (down 17.16% in FY26 and 15.28% in FY25), suggesting the broader film production and distribution segment may share some of this lumpiness rather than it being unique to Sunshine Pictures.

On RoNW, Sunshine Pictures has outperformed Panorama Studios in every disclosed year by a wide margin (27.58% versus 10.50% in FY26; 32.80% versus 17.44% in FY25), indicating materially more efficient capital use despite the smaller scale.

Given only a single, considerably larger peer is available, this comparison should be read as limited, directional context rather than a precise valuation benchmark.

Key Risks

l Revenue has declined for 2 consecutive fiscal years (22.77% in FY25, a further 27.96% in FY26), and the Company's success remains fundamentally dependent on audience acceptance of individual films, web series and television serials, which is inherently unpredictable; the Company's 'Hisaab' project has already been delayed from its original Q1 CY2025 release to Fiscal 2027, illustrating this timing risk directly.

l The Company carries contingent liabilities of Rs.3,172.96 Lakhs as at FY 2026 (roughly 22% of net worth), including a Rs.1,882.19 Lakhs income tax order under appeal (Assessment Year 2020-21) and a Rs.1,290.27 Lakhs service tax demand and penalty order under appeal relating to a 2011 to 2015 dispute period; both matters remain pending and unresolved, and an adverse outcome in either could materially affect the Company's financial position.

l The Company has sustained negative cash flows from operating activities in the past and cannot assure investors this will not recur, consistent with the working capital intensive nature of funding productions ahead of revenue recognition.

l Promoter Vipul Amrutlal Shah holds an interest in a Promoter Group entity, Block Buster Movie Entertainers (a proprietorship), which is authorised to undertake business activities similar to the Company's own; while a non-compete agreement was executed in December 2024 and the entity currently carries no operations, the Company cannot assure investors that conflicts of interest in future business opportunity allocation will not arise.

l The Company does not own the hardware or equipment required for its content production, and does not own the premises of its Registered Office or storage facility (leased, including from a Promoter), concentrating operational continuity risk in third-party and related-party arrangements.

l The Company's Promoters and Promoter Group will continue to jointly retain majority control post-Offer, and the Company has entered into related party transactions in the past that may continue.

l There have been certain instances where the Company has not filed certain statutory forms in the past in compliance with applicable requirements.

l The Company operates with limited global market penetration, with operations concentrated in India, and faces intensified competition for content, audiences and distribution partners.

l The Company is subject to restrictive covenants under its financing agreements, and has entered into certain credit facilities that are repayable on demand.

l Piracy of content, TRP ratings affecting television time slots, and rapid technological change in content consumption are all disclosed as standalone industry risks.

l The Company and its Promoters and Directors are involved in certain litigation proceedings beyond the tax matters described above.

l Future bonus issuances of Equity Shares are dependent on adequate availability of reserves, and there is no assurance the Company will be able to issue bonus shares in the future.

Positives to Note

l The Company has a genuine, commercially proven production track record spanning nearly 2 decades, including box office successes such as 'The Kerala Story', 'Force' and the 'Commando' franchise, led by a well-known industry Promoter.

l Despite declining revenue, profitability has remained exceptionally strong throughout the disclosed track record, with EBITDA margin never falling below 49% and PAT margin never falling below 33% in any of the last 3 fiscals.

l RoNW has outperformed the Company's sole listed peer, Panorama Studios International Limited, in every disclosed year by a wide margin, despite Sunshine Pictures being the smaller of the two companies.

l The Company's Debt-Equity ratio has improved consistently across all 3 disclosed years (0.24 to 0.06 times), and net worth has grown steadily on the back of retained profit even as revenue has been lumpy.

l The Company has proactively put in place risk management practices for its co-production arrangements, including active monitoring and real-time revenue tracking, engagement with financially sound distribution partners, and structured payment and auditing mechanisms, per its own disclosure.

l The revenue decline pattern appears to reflect industry-wide project timing dynamics rather than being unique to the Company, as its sole listed peer experienced a broadly similar directional decline over the same periods.

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