Founded in 2007 by filmmaker Vipul Amrutlal Shah, Sunshine Pictures is a leading Indian production house engaged in the creation and distribution of films, TV serials, and web series. The company made its debut with the hit film Force and has since delivered 10 commercial films (including six co-productions), two web series, two television serials, and one short film.
Its portfolio includes titles like Holiday, Force 2, Commando, and the 2023 blockbuster The Kerala Story, which became the highest ROI film of the year. On the digital front, the acclaimed web series Human further strengthened its creative credibility.
The company’s social media presence is also noteworthy, with over 1,62,960 YouTube subscribers and 918 million views—a platform that not only supports marketing but also generates incremental advertising revenue. As of December 2024, Sunshine Pictures had 28 full-time employees.
2. Sunshine Pictures IPO Snapshot
The company is now entering the capital markets with its IPO. The key details are as follows:
- Fresh Issue: 50,00,000 shares
- Offer for Sale (OFS): 33,75,000 shares
- Total IPO Size: 83,75,000 shares
- Face Value: INR 10 per share
- Retail Allocation: 35%
- Listing: NSE and BSE
- Lead Manager: GYR Capital Advisors
- Registrar: Bigshare Services
Important details such as the IPO price band, opening and closing dates, and lot size are yet to be announced.
3. Promoters & Management
Sunshine Pictures is a promoter-driven company led by industry veterans and supported by the second generation of promoters.
- Vipul Amrutlal Shah – Founder, director, and producer with over 25 years of experience in the Indian film industry (Aankhen, Waqt, Holiday).
- Shefali Vipul Shah – Promoter and Director.
- Aryaman Vipul Shah & Maurya Vipul Shah – Next-generation promoters supporting the company’s future growth.
The management team’s experience and strong industry network provide Sunshine Pictures with a clear edge in project execution and content distribution.
4. Business Overview & Strengths
The company operates on a hybrid production model, which balances sole productions with strategic co-productions. This approach enables Sunshine Pictures to mitigate financial risks while participating in potential box-office and digital revenue upsides.
Currently, the company has eight films and two web series in its production pipeline, expected to release across theatrical, OTT, and television platforms. Sunshine Pictures has already partnered with established players such as Jio Studios and Prasar Bharati, strengthening its distribution reach.
One of the company’s biggest strengths is the success of The Kerala Story, which not only delivered exceptional returns but also elevated the brand’s visibility. The ability to deliver both critically acclaimed and commercially successful content positions Sunshine Pictures well in a competitive industry.
5. Business Model & Revenue Streams
Revenue in the film industry is inherently cyclical, but Sunshine Pictures has built a multi-channel revenue model to diversify and stabilise its income streams.
- Theatrical Releases – Box office revenues from domestic and international markets.
- OTT Licensing – Sale of digital streaming rights to platforms.
- Satellite Rights – Licensing content to television broadcasters.
- Music Rights – Monetisation of songs and soundtracks.
- Co-Production Revenue – Shared costs and profits with partner studios.
- Digital/YouTube Monetisation – Advertising revenue and online engagement from its growing digital footprint.
This diversified revenue base not only cushions the company against box-office volatility but also provides recurring cash flows through licensing deals and digital monetisation.
6. Financial Performance Analysis
A clear look at Sunshine Pictures’ last three years of numbers shows the company’s volatile but improving financial trajectory — something quite common in the film production business.
| (INR Cr.) | FY 2022 | FY 2023 | FY 2024 | H1 FY 2025 |
|---|---|---|---|---|
| Revenue | 87.13 | 26.51 | 133.80 | 39.02 |
| Expenses | 72.47 | 23.79 | 69.29 | 37.35 |
| Net Income | 11.20 | 2.31 | 52.45 | 4.56 |
| Margin (%) | 12.85% | 8.71% | 39.20% | 11.69% |
Key Takeaways:
- Revenue swings: FY 2023 was a weak year with revenue dropping sharply to INR 26.5 Cr, but FY 2024 rebounded strongly to INR 133.8 Cr, thanks largely to The Kerala Story.
- Profitability turnaround: Net profit in FY 2024 surged to INR 52.45 Cr, with margins expanding to 39.2%, signalling efficient cost management.
- Caution on H1 FY 2025: Revenue at INR 39 Cr with thin margins (11.69%) indicates lumpy earnings tied to film release cycles — a reminder that quarterly performance can be misleading in this sector.
In summary, while Sunshine’s numbers are not stable quarter-to-quarter, the long-term trajectory shows that a single hit film can dramatically swing profitability.
7. Sunshine Pictures IPO Review: Valuations & Ratios
Here’s how Sunshine stacks up on key valuation metrics (pre and post-issue):
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| EPS (INR) | 4.25 | 0.88 | 19.90 |
| RONW (%) | 44.81 | 8.46 | 75.26 |
| NAV (INR) | 8.31 | 9.07 | 26.45 |
| Operating EBITDA Margin (%) | 17.34 | 15.34 | 50.39 |
| Debt/Equity | — | 0.24 | 0.24 |
Note:
- The EPS spike in FY 2024 (INR 19.90) is flattering but largely driven by one blockbuster release; investors should not assume this as a recurring baseline.
- Return on Net Worth (RONW) at 75.26% in FY 2024 is exceptional but again cyclical. Still, it shows Sunshine’s ability to extract high returns when films succeed.
- Low leverage (Debt/Equity 0.24) suggests financial prudence — a positive for investors wary of high-debt media companies.
Valuations like the P/E ratio will only be clear once the IPO price band is announced, but based on EPS trends, Sunshine’s multiples may look stretched if priced aggressively.
8. Peer Comparison
To judge Sunshine Pictures’ IPO, it’s essential to compare it with listed peers in the entertainment space.
| Company | PE Ratio | EPS (INR) | RONW (%) | NAV (INR) | Revenue (INR Cr) |
|---|---|---|---|---|---|
| Sunshine Pictures | — | 19.90 | 75.26 | 26.45 | 139.46 |
| Panorama Studios | 7.09 | 30.32 | 28.43 | 100.71 | 444.23 |
| Baweja Studios | 12.42 | 5.44 | 8.59 | 51.94 | 65.13 |
Insights:
- Size: Sunshine is significantly smaller than Panorama (INR 139 Cr revenue vs. INR 444 Cr), but larger than Baweja Studios (INR 65 Cr).
- Profitability: Sunshine’s FY 2024 RONW (75.26%) far exceeds peers, showing its ability to scale profits with hits.
- Valuations: If priced reasonably close to Baweja’s 12x P/E, Sunshine could look attractive. However, if valuation is stretched beyond industry peers, upside may be limited.
9. IPO Objectives & Fund Utilisation
The company has clearly earmarked the IPO proceeds:
- Working Capital – INR 94 Cr
- Film production is cash-intensive, requiring upfront investments months before revenue realisation.
- Additional liquidity ensures Sunshine can greenlight more projects without over-reliance on debt or external financing.
- General Corporate Purposes
- Strengthening the balance sheet, expanding marketing capabilities, and digital outreach.
Essentially, the IPO is more about fueling growth and project pipeline rather than debt repayment — a positive signal for expansion-focused investors.
10. Risks & Challenges
While Sunshine Pictures looks promising, investors must weigh these risks:
- Cyclicality of Revenues: Performance depends heavily on the success of a few films/web series; misses can hurt margins.
- Concentration Risk: A blockbuster like The Kerala Story contributed disproportionately; sustainability of such hits is uncertain.
- Competitive Industry: Competes with larger players (Panorama, T-Series, Dharma, etc.) that have deeper pockets and stronger distribution.
- OTT Dynamics: While OTT revenues are growing, platforms have become selective and negotiate aggressively, which may cap margins.
- Limited Workforce: Only 28 full-time employees, which means dependency on external creative and production talent.
Conclusion
Sunshine Pictures IPO comes at a time when India’s film and digital content industry is witnessing strong demand and audience expansion. The company has built a reputation with both blockbuster films and OTT/web series, and its hybrid production model helps balance risks.
In conclusion, the IPO offers investors a look into one of India’s emerging content creators with proven hits and ambitious plans for the future. How the company sustains growth and manages volatility will ultimately determine its long-term performance in the public markets.