Film Production
Balaji eyes revival as digital losses narrow and OTT comeback planned
MUMBAI: The drama at Balaji Telefilms has taken a sharp turn and this time, it’s playing out on the balance sheet. The content powerhouse slipped into the red for the quarter ended 30 June 2025, posting a consolidated net loss of Rs 594.6 lakh, a far cry from the Rs 94.0 crore profit it clocked in the preceding March quarter.
Revenue from operations fell 51 per cent year-on-year to Rs 72.8 crore, down from Rs 149.2 crore in Q1 FY24, as all three segments took a hit. Commissioned programmes brought in Rs 49.9 crore (down from Rs 75.4 crore), films collapsed to Rs 1.4 crore from a blockbuster Rs 73.2 crore, and digital revenue rose to Rs 29.1 crore from Rs 9.8 crore but still bore the shadow of the OTT platform’s regulatory shutdown in July.
Production and acquisition costs surged to Rs 95.8 crore, while marketing expenses stood at Rs 5.38 crore and employee costs at Rs 8.53 crore. Depreciation came in at Rs 1.76 crore, and finance costs eased to Rs 21.8 lakh. Other expenses, at Rs 11.2 crore, added to the squeeze.
Segment-wise, commissioned programmes swung to a Rs 5.45 crore loss, films lost Rs 2.27 crore, and digital narrowed losses to Rs 92 lakh from Rs 2.08 crore a year ago. Assets in the digital segment have shrunk to Rs 99.9 crore from Rs 246.8 crore last year, reflecting the OTT disruption.
Despite the setback, Balaji says it is “taking active steps” to comply with regulations and re-enter the digital fray. Until then, investors may have to wait for the next season to see if the plot delivers a turnaround.
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
