Sunshine Pictures (SPL), founded in 2007, is a production-house engaged in the business of originating, creating, developing, producing, marketing, and distributing films, TV serials, and web series. SPL is a technology-driven content creator involved in making commercial films, covering script development, production, intellectual property creation, rights monetization, and distribution. Force, Commando, Holiday, Force 2, Commando 2, and The Kerala Story are some of the highly popular movies that were made by the company.

SPL has made 13 commercial films (7 of them co-produced and 6 were self produced), 2 web series, 3 TV serials, and 1 short film. Also, currently, it is co-producing 1 film“Hisaab” with Jio Studios, which is under post production stage and scheduled for release in Fiscal 2027 and solely producing 1 commercial film tentatively titled “Samuk”, and producing a web series tentatively titled “Nanavati vs Nanavati” which are both scheduled to release in Fiscal 2027. Additionally, the company also has 6 films and 2 web series in the pipeline for production.

The company is live on YouTube channel with 36 original music videos and maiden digital web series "Bawra Mann" as well as "Ankahee”.

SPL also has presence on social media platforms such as YouTube, Instagram and Facebook. As of date the company has a subscriber base of 1,96,000 subscribers on YouTube with over 19,39,49,128 million views in total. On Instagram the company has a follower base of 1,32,000 and 1,06,000 on Facebook. The streaming of short forms of its content on such platforms also adds to its revenue.

Object of the offer

The offer consists of both a fresh issue and an offer for sale component (OFS). The fresh issue will include 48,00,034 shares aggregating up to Rs 172.80 crore at the upper price band of Rs 360. OFS includes 30,37,157 shares of Rs 10 aggregating up to Rs 109.3 crore at upper price band of Rs 360. The total number of shares and aggregate amount are 78,37,191 shares aggregating up to Rs 282.14 crore at upper price band of Rs 360.

Promoters Vipul Amrutlal Shah and Shefali Shah will offload a part of their stake in the OFS.

SPL plans to utilize Rs 112.5 crore towards working capital requirements and the balance towards general corporate purposes.

Strengths

SPL has built strong partnerships with leading studios and broadcasters, and maintains a significant digital presence, enhancing its content reach and monetisation potential.

Distinct and resilient business model that maximizes the monetization potential of an individual film while keeping the costs under control across the film production value chain, thereby reducing the commercial risk and optimizing its profit.

Adherence to high production and content quality standards.

Led by industry veterans Vipul Amrutlal Shah and Shefali Shah, who have extensive experience in the industry.

Weaknesses

Revenue depends on unpredictable audience acceptance of each film or series, so a run of poorly received titles could sharply reduce income.

The company is dependent on the Indian box office success of its films from which a significant portion of its revenues are derived and its ability to exploit and monetize its project is limited to the rights that it retains or own.

The top five customers contributed 74.81% of Fiscal 2026 revenue from operations, creating heavy dependence on a small group of studios and distributors.

Reliance on maintaining good relationships with creative talent and industry participants.

Films require Central Board of Film Certification (CBFC) certification and may face public or legal objection, which can delay or block a release and reduce expected revenue.

Operations of the company are working capital intensive. Further, working capital requirements have increased in recent years because the company has undertaken a growing number of projects within a similar time frame. Also,had negative cash flow from operation including Rs 33.20 crore in FY2026.

The company faces intense competition from established players like Yash Raj Films, Dharma Productions, and Maddock Films Private Limited who maintain their competitive edge through expansive portfolios, significant budgets, and advanced production capabilities. These players continue to dominate the box office with large-scale cinematic productions and have expanded into digital platforms to cater to evolving viewer preferences.

Contingent liabilities as on March 31 2026 stood at Rs 31.72 crore.

Valuation

Sales were down by 28% to Rs 74.44 crore in FY2026. The decrease in revenues was due to the exceptional performance and monetization of Bhed Bharam in FY 2025, which contributed significantly to that year’s results. Fiscal 2026 reflects a normalized base, as fewer projects reached revenue-recognition milestones. OPM expanded from 46.72% to 76.61%, leading to an 18.1% increase in OP to Rs 57.03 crore.OI declined 25.7% to Rs 1.84 crore. Interest costs remained flat at Rs 1.76 crore and depreciation declined 2.0% to Rs 2.72 crore.PBT stood at Rs 54.06 crore, up 17.0%. PAT stood at Rs 40.02 crore as against Rs 34.46 crore in FY25,up 16.1%.

At the higher price band of Rs 360, the offer is made at a P/E of 28 times FY26 EPS (of Rs 12.9).

Listed industry peers are Panorama Studios International, Baweja Studios, and Balaji Telefilms. Panorama Studios International trades at 75.9 times its P/ FY2026 EPS, Baweja Studios trades at 7.4 times its P/FY26EPS. However, Balaji Telefilms is incurring losses as such P/E could not be calculated.