Film Production
Tax adjustments bring Balaji Telefilms’ Q3 numbers back in the black
BENGALURU: Tax adjustments of Rs 31.38 crore returned consolidated profit after tax (PAT) of Rs 24.82 crore for Balaji Telefilms Ltd (Balaji Telefilms) for the quarter ended 31 December 2017 (Q3 2018, the quarter under review). The company had reported consolidated net loss after tax of Rs 1.86 crore for the corresponding year ago quarter (Q3 2017) and net loss of Rs 13.84 crore for the immediate trailing quarter (Q2 2018). The company reported operating loss (negative EBITDA) of Rs 7.08 crore in Q3 2018 as compared with operating loss of Rs 10.58 crore in Q3 2017.
Overall, the company reported higher realisation per programming hour of Rs 0.33 crore for Q3 2017 as against Rs 0.32 crore in Q2 2018. However, due to a 32 per cent year-on-year (yoy) decline and a 25 per cent quarter-on-quarter (qoq) decline in commissioned programmes, the company’s segment revenue decreased. Along with declines in its films and digital segments, Balaji’s consolidated revenue for the quarter under review declined to half yoy to Rs 65.15 crore as against Rs 130.37 crore.
Segment Revenue
Balaji Telefilms has three segments–commissioned programmes (CP), films and digital.
Revenue from CP declined by 17 per cent yoy in Q3 2018 to Rs 69.47 crore from Rs 83.74 crore. CP reported 44.7 per cent higher yoy operating profit of Rs 16.59 crore for Q3 2018 as compared with Rs 11.47 crore. The film segment revenue in the quarter under review declined by 95.6 per cent yoy to Rs 0.85 crore from Rs 19.20 crore. The segment reported lower operating yoy loss of Rs 0.28 crore in Q3 2018 as against Rs 0.51 crore in Q3 2017. Balaji Telefilms’ digital segment (aka ALTBalaji) reported revenue of Rs 1.14 crore for Q3 2018 as against nil in Q3 2017. The segment’s operating loss more than doubled yoy to Rs 8.15 crore in Q3 2018 to Rs 8.76 crore from operating loss of Rs 4.35 crore.
Let us look at the other numbers reported by Balaji Telefilms
Balaji Telefilms’ total expenditure for Q3 2018 reduced by 25.8 per cent yoy to Rs 76.40 crore from Rs 102.98 crore. Cost of production/acquisition and telecast fees in the current quarter reduced by 2.16 per cent yoy to Rs 75.77 crore from Rs 77.37 crore. Employee benefits expense in Q3 2018 increased by 3.7 per cent yoy to Rs 6.87 crore from Rs 6.63 crore. Marketing and distribution expense in the quarter under review increased by yoy to Rs 7 crore from Rs 0.2 crore. Other expenses grew by 27.8 per cent yoy to Rs 12.08 crore from Rs 9.46 crore.
Film Production
Arka Mediaworks onboards 88 Pictures as animation studio partner on ‘The Eternal War – Part 1’
Arka Mediaworks announces that 88 Pictures, the acclaimed animation and visual storytelling studio known for its cutting-edge CGI and cinematic artistry, is on board as the animation partner for the highly anticipated Baahubali: The Eternal War, a groundbreaking two-part 3D animated feature film set in the globally beloved Baahubali universe.
Baahubali: The Eternal War represents a bold new chapter in the Baahubali saga envisioned for national and international audiences and crafted with the ambition of delivering one of India’s most ambitious and globally benchmarked animation projects to date.
88 Pictures will execute the animation production, bringing to life the film’s richly detailed worlds, epic battle sequences, and larger-than-life characters with its signature blend of artistic vision, performance-driven animation, and advanced production pipelines. Working closely with the film’s creative leadership and technical partners, the studio aims to set new benchmarks in animation quality, cinematic storytelling, and global scalability.
This animated epic follows the successful re-release of Baahubali: The Epic (the combined theatrical version of the original live-action films) on 31 October 2025 across India and the USA. During the film’s interval, legendary creator and director S.S. Rajamouli (Baahubali 1 & 2, RRR) stunned audiences with a surprise teaser for The Eternal War – Part 1. The video immediately went viral, garnering widespread national and international acclaim across LinkedIn, Instagram, and YouTube for its ambitious visual style and scale.
Produced by Arka Mediaworks and led by co-founder and CEO Shobu Yarlagadda – producer of the iconic Baahubali duology, The Eternal War brings together fantastic storytelling and cutting-edge animation.. The film is directed and written by acclaimed animation filmmaker Ishan Shukla (Schirkoa: In Lies We Trust, Star Wars: Visions – “The Bandits of Golak”) and screenplay by Scott Mosier (The Grinch). Mihira Visual Labs, the studio co-founded by Yarlagadda anchors the film’s animation, visual development, and execution.
The partnership with 88 Pictures brings significant pedigree to the project; the studio is well-regarded for its work on high-profile international titles including DreamWorks’ series Trollhunters, the HBO Max original series Gremlins: Secrets of the Mogwai, Disney’s animated short An Almost Christmas Story to name a few.
Yarlagadda shared, “We are happy to onboard 88 Pictures as the animation studio partner for our prestigious and most expensive animated film from India. We believe that their expertise and capabilities will allow us to produce a first-of-its-kind, world-class animated feature film from India.”
88 Pictures founder & CEO Milind D. Shinde said, “Baahubali changed the way cinema is perceived and became a defining milestone that turned the tide for Indian live-action filmmaking. Expanding the franchise into an entirely new universe—at a never-seen, never-done scale—through an animated feature created in India for a global audience is set to redefine how the world views Indian animation. We are truly thrilled to be part of this landmark project and to bring it to life under the visionary direction of Ishan Shukla, guided by the experience and leadership of acclaimed producer Shobu Yarlagadda.”
Shukla expressed, “Eternal War requires a level of visual and emotional precision that can only come from teams who truly understand both craft and intent. Working with 88 Pictures, alongside Mihira Visual Labs, has been a deeply collaborative experience. This association brings together technical excellence and creative sensitivity, enabling us to translate an ambitious vision into a compelling cinematic reality.”
Baahubali: The Eternal War – Part 1 is scheduled for release in 2027
