The recently-launched Ramayana teaser has taken the internet by storm, with the small clip giving us the first look at Ranbir Kapoor as Lord Rama. However, the Barfi actor is not only delivering on-screen epics. His off-screen investments in Prime Focus are also delivering epic gains on the stock market.
The Namit Malhotra-owned company's shares have surged a staggering 320% in the last year, recently hitting a fresh 52-week high of Rs 359 amid fervour over the 'Ramayana' movie franchise, with the teaser of the movie already amassing 18 million views since its release five days ago.
Kapoor had acquired around 12.5 lakh shares in the company at Rs 120 per equity share in July 2025, an investment that has nearly tripled in value as Prime Focus - the production house - gears up a massive two-part release starting Diwali 2026.
A Closer Look at the Business of VFX
While most will keep an eye on Ramayana's box office numbers, the business mechanics of Prime Focus operate very differently. It is rooted in a risk-hedged co-production model.
Unlike a pure box-office punt, the company earns high-margin VFX and animation revenue, which is often two or three times the multiple of the initial content investment. Prime Focus are entitled to this payment regardless of theatrical performance.
In addition, this revenue is milestone-based, meaning much of the cash flow from the Ramayana movie will be recognised during the production cycle and well before audiences hit theatres.
The Rs 1,000 Crore OTT Narrative
What's more enticing about the entire fervour around the Ramayana movie is that producer Namit Malhotra has rejected a Rs 700 crore OTT deal, and is currently eyeing a Rs 1,000 crore deal, according to media reports.
READ MORE: Ramayana Producer Rejects Rs 700 Crore OTT Deal, Eyes Rs 1,000 Crore For Digital Rights
To put that into perspective, a Rs 1,000 crore deal would represent approximately 28% of Prime Focus' FY25 consolidated revenue of Rs 3,538 crore, though these proceeds would be distributed among various stakeholders over several years.
However, it is not just the hype over Ramayana which is driving the stock up. The company has been undergoing significant operational cleanup in recent times.
Although Prime Focus reported a net loss of Rs 458 crore in FY25 due to massive impairment changes, the company's adjusted Ebitda margins saw a sharp rebound to 28.5%.
Moreover, there is significant baggage that comes with the Ramayana rally. Prime Focus currently has a highly leveraged platform with a total debt stack of around Rs 10,000 crore and annual interest costs of around Rs 500 crore. The rally's longevity, therefore, depends on how the company executes in a debt-heavy environment.
ALSO READ: Did You Know: Ranbir Kapoor And His Great-Grandfather Prithviraj Kapoor Share A Ramayana Connection
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