Roongta Entertainment Limited IPO

01At a glance

What the company does: operates cinema theatres under the brand "ROONGTA CINEMAS", earning from ticket sales, food and beverages, advertising, convenience fees, events and other services at the theatres (DRHP p.99). It runs 5 theatres with 15 screens (DRHP p.105).

Who pays it: moviegoers paying for tickets and snacks, and advertisers paying for screen and lobby space; advertising was 26% of FY26 revenue (DRHP p.102, DRHP p.103). The document marks revenue concentration among the top five customers "Not Applicable" (AP p.3).

Why it is raising money: ₹14.0 crore to invest in Fizzyfox Entertainment Private Limited, a company 95% owned by the promoter Ankur Roongta that holds 51% of an entertainment centre in Nashik; ₹7.0 crore to repay Kotak Mahindra Bank; ₹4.4 crore to fit out a new cinema in Gurugram (DRHP p.72, DRHP p.76).

How fast it has grown: revenue from ₹8.5 crore in FY24 to ₹25.6 crore in FY26, about 73.7% a year, and profit after tax from ₹0.53 crore to ₹5.6 crore, about 225.1% a year (our arithmetic, DRHP p.47). Most of the jump came in FY25, when revenue rose 167.38%; in FY26 it rose 12.89% (DRHP p.198).

The one thing to understand: more than half of the named uses of the issue go to a company the promoter owns. Fizzyfox Entertainment Private Limited is held 95% by Ankur Roongta and 5% by the director Sanjay Pareek, and ₹13.95 crore would go to it as a nine per cent unsecured inter-corporate deposit so that it can repay its own lenders (DRHP p.74, DRHP p.76).

02The business, in plain words

What Roongta Entertainment does

Roongta Entertainment designs, operates and manages cinema theatres, shows films and sells food and beverages under the brand "ROONGTA CINEMAS" (DRHP p.99). The first multiplex opened in Surat in Fiscal 2023; theatres in Ghaziabad, Adipur, Muzaffarnagar and Hyderabad followed in Fiscal 2024 and Fiscal 2025 (DRHP p.101).

• Screens: Surat 4, Adipur 3, Muzaffarnagar 3, Ghaziabad 3 and Hyderabad 2 at March 31, 2026 (DRHP p.104, DRHP p.105).
• Films: August Entertainment has the exclusive right to programme films on all ROONGTA CINEMAS screens, under agreements running to February 24, 2027, and to December 19, 2027 for Hyderabad (DRHP p.100).
• Content delivery: Qube Cinema Technologies Private Limited supplies digital cinema content, including advertising content, under an agreement dated March 28, 2025 (DRHP p.101).
• Premises: every theatre is leased or licensed; Adipur and Hyderabad rents are tied to ticket sales or net collections (DRHP p.119, DRHP p.120).
• Film rights: the company bought rights to the Hindi film "NAAM" on February 25, 2021 and released it through Cinepolis India Private Limited on November 22, 2024 (DRHP p.100).

A family books seats online or at the counter → watches a film programmed by August Entertainment → pays for popcorn and drinks → the company keeps the ticket money after the distributor's share and earns separately from advertisers who pay for screen time (DRHP p.100, DRHP p.184).

The company had 65 permanent employees at August 31, 2026, and staff below Deputy Manager are supplied by manpower agencies (DRHP p.114, DRHP p.115). It owns 16 projectors and rents point-of-sale and card machines (DRHP p.113). The company screened 164 films in Fiscal 2024, 322 in Fiscal 2025 and 382 in Fiscal 2026 (DRHP p.102). The document says the business is not seasonal (DRHP p.203), while the risk factors say footfalls depend on holidays, festivals and examination periods (DRHP p.30).

Earnings equation: Revenue = seats filled × (average ticket price + food and drink spend per head) + advertising sold + fees. The document gives seats used by theatre but no average ticket price and no spend per head, so the equation cannot be filled in from the filing (DRHP p.117).

03Where the money comes from

By stream (₹ crore):

Source: DRHP p.102, DRHP p.103, DRHP p.183, converted from ₹ lakh. Box office was 54% of FY26 revenue, advertising 26% and food and beverages 17% (DRHP p.102, DRHP p.103).

By state: Gujarat brought ₹16.1 crore, 62.93% of FY26 revenue, against 93.35% in FY24; Uttar Pradesh ₹8.6 crore, 33.62%; Telangana ₹0.88 crore, 3.45% (DRHP p.103).

Roongta Entertainment customers: how concentrated the revenue is

Ticket holders are members of the public, and the document marks concentration among the top five customers "Not Applicable" (AP p.3). It says the company is not materially dependent on any single customer or supplier (DRHP p.203). No customer table is given.

Advertising has a concentration of its own. Related-party firms, Roongta Industrial Estate LLP, Yashvi Infracon LLP, Skytower Enterprises LLP and RMIX Concrete LLP, paid ₹2.9 crore of advertising income in FY25 and ₹1.3 crore in FY26 (DRHP p.188, DRHP p.189). That is about 47.7% of FY25 advertising income and about 19.6% of FY26 advertising income (our arithmetic, DRHP p.188, DRHP p.183).

On the supply side, one programmer, August Entertainment, programmes all screens and the company has no similar arrangement with other distributors for the films it covers (DRHP p.20). Revenue share paid to distributors on box office sales was ₹4.9 crore in FY26 (DRHP p.184).

04The growth record

Roongta Entertainment financials: revenue, profit and margins

Source: DRHP p.46, DRHP p.47, DRHP p.48, DRHP p.85, converted from ₹ lakh. Revenue went from ₹8.5 crore in FY24 to ₹25.6 crore in FY26 and profit after tax from ₹0.53 crore to ₹5.6 crore (DRHP p.47).

Our arithmetic over FY24 to FY26: revenue grew about 73.7% a year and profit after tax about 225.1% a year (our arithmetic, DRHP p.47); EBITDA grew about 116.0% a year (our arithmetic, DRHP p.85). EBITDA margin moved from 19.51% to 30.17%, up 1,066 basis points, so from 19.5% to 30.2% rounded (DRHP p.85). FY26 alone: revenue up 12.89% and profit after tax up 7.28% (DRHP p.198).

The year ends on March 31 throughout. Net worth was negative at March 2024, so the FY24 RoE and RoCE are negative (DRHP p.46, DRHP p.85). The document defines RoCE as profit before tax plus finance costs over total equity, not over equity plus debt (DRHP p.85).

What sits around the record:

• Tax: profit before tax was ₹5.4 crore in FY26, and a deferred tax credit of ₹0.16 crore with no current tax made profit after tax ₹5.6 crore (DRHP p.47). The tax shelter statement shows a MAT liability of ₹0.90 crore for FY26 and ₹0.83 crore for FY25 against a tax expense recognised of nil in FY26 and under ₹0.01 crore in FY25 (DRHP p.196).
• Cash: operating cash flow was ₹9.8 crore in FY26 after ₹0.45 crore in FY25 and −₹3.2 crore in FY24 (DRHP p.48). In FY26 a fall in receivables released ₹1.9 crore (DRHP p.48).
• Other income was ₹0.06 crore in FY26, mostly fixed deposit interest, about 1.1% of profit before tax (our arithmetic, DRHP p.47, DRHP p.183).
• Debt: borrowings were ₹16.7 crore at March 31, 2026, of which ₹8.7 crore were interest-free loans from Anil Roongta, Ankit Roongta and Ankur Roongta repayable on demand (DRHP p.46, DRHP p.205). Net of ₹1.4 crore of cash, borrowings were about 2.0× FY26 EBITDA (our arithmetic, DRHP p.46, DRHP p.47). Debt to equity was 1.65 times, about 1.7× (DRHP p.85). Return on capital employed was 42.27%, so 42.3% rounded (DRHP p.85).
• Film rights: movie rights of ₹8.8 crore sit in other current assets at March 2026 (DRHP p.183).
• Related parties: advertising income from related-party firms was ₹1.3 crore in FY26 (DRHP p.188); rent paid to Shree Krishna Corporation was ₹0.48 crore (DRHP p.188).
• Geography: Gujarat was 62.93% of FY26 revenue, so 62.9% rounded (DRHP p.103).
• Receivables: about 27 days of FY26 revenue at March 2026, against about 2 days at March 2024 (our arithmetic, DRHP p.46, DRHP p.47).
• Contingent liabilities: none (DRHP p.49).
• Capacity: about 13.1% of housefull capacity was used across the five theatres in FY26 (our arithmetic, DRHP p.117).
• Use of the issue: ₹14.0 crore for Fizzyfox, ₹7.0 crore for loan repayment and ₹4.4 crore for the Gurugram fit-out (DRHP p.72).
• Cases: one civil suit and one direct tax matter against the promoter (DRHP p.33).

05What the growth is made of

Revenue rose ₹17.1 crore from FY24 to FY26 (our arithmetic, DRHP p.47). By stream (our arithmetic, DRHP p.183):

• Box office: up ₹8.4 crore, from ₹5.3 crore to ₹13.7 crore.
• Advertising: up ₹6.3 crore, from ₹0.40 crore to ₹6.7 crore, as new screens were offered to advertisers (DRHP p.200).
• Food and beverages: up ₹1.8 crore, from ₹2.6 crore to ₹4.4 crore; FY26 food sales fell 2.17% (DRHP p.199).

Screens: 10 screens in three cities in FY24, 13 in four cities in FY25 and 15 in five cities in FY26 (DRHP p.199, DRHP p.200).

Seats used: the capacity table shows about 2,25,793 seats used in FY24, 4,48,627 in FY25 and 5,78,150 in FY26 across all theatres (our arithmetic, DRHP p.117). Box office income per seat used was about ₹236, ₹240 and ₹238 in those years (our arithmetic, DRHP p.117, DRHP p.183). Read from the filing: on these figures the ticket growth is almost entirely more seats, not higher prices. The document does not define "utilized capacity", so this split rests on reading it as seats sold.

The company itself says increases in revenue are "by and large linked to increases in volume of business" (DRHP p.203), and that FY26 box office rose 27.50% on "higher occupancy" (DRHP p.199).

06Earnings quality

Film rights: other current assets hold "Movie Rights" of ₹8.8 crore at March 2026 and March 2025, up from ₹6.5 crore at March 2024 (DRHP p.183). The risk factors say the film was released, its theatrical revenues were below what was expected, and the carrying value of the rights is "approximately ₹600.00 lakhs", that is ₹6.0 crore (DRHP p.23). The two figures do not agree, and no impairment is shown (DRHP p.47).

Tax: the profit and loss shows current tax of nil in FY26 and a deferred tax credit, so profit after tax exceeds profit before tax (DRHP p.47). The accounting policy says the company paid tax under MAT and recognised a MAT credit (DRHP p.172), and the tax shelter statement puts MAT payable at ₹0.90 crore for FY26 while the tax expense recognised is nil (DRHP p.196). The document does not reconcile these.

The FY24 cash outflow came from a ₹4.5 crore rise in other current assets, which include the film rights (DRHP p.48, DRHP p.183). Advertising income rose from ₹0.40 crore in FY24 to ₹6.1 crore in FY25, and trade receivables from ₹0.05 crore to ₹3.8 crore; at March 2025 the related-party firms owed ₹2.9 crore of that, and at March 2026 nothing (DRHP p.46, DRHP p.189).

07The balance sheet

At March 31, 2026 total assets were ₹29.2 crore: other current assets ₹9.5 crore (₹8.8 crore of it film rights), tangible fixed assets ₹6.9 crore, security deposits ₹4.6 crore, short-term loans and advances ₹2.8 crore, trade receivables ₹1.9 crore, cash ₹1.4 crore and a fixed deposit of ₹1.05 crore (DRHP p.46, DRHP p.180, DRHP p.181, DRHP p.183).

Borrowings of ₹16.7 crore at March 31, 2026 were (DRHP p.177, DRHP p.204, DRHP p.205):

• Kotak Mahindra Bank term loan: ₹4.96 crore, at repo rate plus 2.75%.
• Kotak Mahindra Bank overdraft: ₹2.1 crore.
• ICICI Bank overdraft: ₹0.94 crore, secured on a fixed deposit.
• Unsecured, interest-free, on demand: ₹7.2 crore from Anil Roongta, ₹0.75 crore from Ankit Roongta and ₹0.69 crore from Ankur Roongta.

The Kotak facilities are secured on the company's current and movable assets and on property of Damodar Enterprises LLP, Anil Roongta, Ankit Roongta and Ankur Roongta, with personal guarantees from those three and a corporate guarantee from Damodar Enterprises LLP (DRHP p.176, DRHP p.177). The term loan was originally ₹7.5 crore over 84 months (DRHP p.176).

There are no contingent liabilities and no capital commitments (DRHP p.173).

Source: DRHP p.46, DRHP p.72, DRHP p.194. The after-issue borrowing figure is our arithmetic on the March 2026 balance; the capitalisation statement says post-issue figures "are not determinable at this stage" (DRHP p.194).

08What the money is for

Roongta Entertainment IPO objects: what the money is for

Source: DRHP p.72, percentages our arithmetic. The rupee size of the fresh issue depends on a price not yet set, so each object's share of the issue cannot be worked out (DRHP p.72). All three are to be spent in FY 2026-27 (DRHP p.73).

Fizzyfox, ₹14.0 crore: ₹0.01 crore for its equity and ₹13.95 crore as an unsecured inter-corporate deposit at 9% a year, repayment starting after three years, making Fizzyfox a wholly owned subsidiary (DRHP p.73, DRHP p.74). Fizzyfox is held 95% by Ankur Roongta and 5% by Sanjay Pareek (DRHP p.76), and ₹95,000 goes to Ankur Roongta and ₹5,000 to Sanjay Pareek for those shares (DRHP p.81).

Fizzyfox holds 51% of Playthopia Entertainment LLP, which runs a 70,000 sq. ft. trampoline, bowling, laser tag and arcade centre in Nashik, Maharashtra (DRHP p.75). Fizzyfox paid ₹13.96 crore for that 51%, funded by unsecured loans of ₹4.0 crore from Equilateral Enterprises Limited, ₹2.9 crore from Jeet Jatan Creation Private Limited and ₹6.1 crore from Jeet Jatan Services Private Limited, and will repay them from the deposit (DRHP p.73, DRHP p.74).

Playthopia's first operating year, FY26, showed revenue of ₹6.6 crore, EBITDA of ₹1.9 crore and a loss of ₹0.22 crore (DRHP p.75). The other partners prefer that the listed company not invest in Playthopia directly (DRHP p.73).

Loan repayment, ₹7.0 crore: full prepayment of the Kotak Mahindra Bank term loan and working capital facility, ₹6.94 crore outstanding at August 31, 2026 (DRHP p.76, DRHP p.77).

Gurugram, ₹4.4 crore: fit-out of a 5 screen cinema of about 551 seats, including a Qube projector quoted at ₹1.73 crore at ₹93 to the US dollar, a sound system at ₹1.60 crore and seats at ₹0.49 crore; no orders have been placed (DRHP p.77, DRHP p.78).

General corporate purposes are capped at 15% of the gross proceeds or ₹10 crore, whichever is less (DRHP p.79). The objects have not been appraised and no monitoring agency is required (DRHP p.80).

Into the business the fresh issue of up to 18,00,000 shares, at a price not yet set (DRHP p.44). To selling shareholders nothing: there is no offer for sale (AP p.1).

09Who is selling

Roongta Entertainment IPO offer for sale: who is selling

Nobody. The whole issue is a fresh issue of up to 18,00,000 shares of ₹10, and the offer for sale is marked "Not Applicable" (AP p.1, DRHP p.44). The promoter and promoter group will not take part in the issue (DRHP p.71).

10Promoters

The promoter is Ankur Roongta, aged 34 (DRHP p.155). Ankur Roongta holds 44,17,996 shares, 97.96% of the company (DRHP p.155). Ankur Roongta is a commerce graduate and a Chartered Accountant (ICAI, 2018), a director since incorporation in 2018, and Non-Executive Chairman since April 20, 2026 (DRHP p.143, DRHP p.146). The promoter group table lists Anil Roongta as father, Sudha Roongta as mother, Nikita Roongta as spouse and Ankit Roongta as brother (DRHP p.157). Ankit Roongta is a Non-Executive Director (DRHP p.146).

Pay: the company has no managing or whole-time director and paid no remuneration to one (DRHP p.147); the related-party note shows no remuneration to Ankur Roongta in FY24 to FY26 (DRHP p.188). The CEO, Sanjay Kumar, was paid ₹0.29 crore in FY26 (DRHP p.188).

Loans: Ankur Roongta lent the company ₹4.1 crore and was repaid ₹8.0 crore in FY26; ₹0.69 crore was owed at March 2026 (DRHP p.188, DRHP p.189). Anil Roongta was owed ₹7.2 crore and Ankit Roongta ₹0.75 crore, all interest-free and on demand (DRHP p.205).

Other businesses: Ankur Roongta is a director of Fizzyfox Entertainment Private Limited, Roongta Playworld Private Limited and Novafun World Entertainment Private Limited, and a partner in Skytower Enterprises LLP, Roongta Industrial Estate LLP, Damodar Enterprises LLP, Yashvi Infracon LLP, Rmix Concrete LLP, Level Up Entertainment LLP and others (DRHP p.143). The promoter group lists more than thirty companies, LLPs, firms and HUFs, including Shree Krishna Corporation and Playthopia Entertainment LLP (DRHP p.158). The document says there are no group companies for disclosure (DRHP p.222). Ankur Roongta left Shree Shyam Dredging & Infra LLP on May 24, 2025 (DRHP p.157).

Property and guarantees: the registered office is leased from Ankur Anil Roongta at ₹5,000 a month (DRHP p.118). The Surat cinema is leased from Shree Krishna Corporation, a promoter group firm, at ₹4,00,000 a month (DRHP p.119, DRHP p.158). Ankur Roongta guarantees the Kotak loans and pledges a shop as collateral (DRHP p.177). No promoter shares are pledged (DRHP p.68).

Cases and record: one civil property suit and one direct tax matter (DRHP p.33). The risk factors say Ankur Roongta and Ankit Roongta have had delays and delinquency in repaying personal borrowings, as shown in their credit reports (DRHP p.29). A SEBI order of December 2, 2020 in the matter of Mishka Finance and Trading Limited restrained Anil Satyanarayan Roongta, Sudha Anil Roongta and A. K. Roongta HUF from the securities market; the document says the debarment periods are over (DRHP p.155).

Promoter economics: Ankur Roongta subscribed 3,000 shares at ₹10 on incorporation, transferred 1,900 to Anil Roongta and 100 to Sanjay Pareek at ₹10 on October 5, 2020, received 8,796 shares as a gift from Anil Roongta on December 11, 2025, and 44,08,200 bonus shares on June 17, 2026 (DRHP p.68). The average cost of acquisition is nil (DRHP p.69, AP p.8). On May 25, 2026 Sanjay Pareek transferred 99 shares to Ankit Roongta at ₹4,511 each, before the bonus (DRHP p.69, DRHP p.86).

11Who already owns it

Roongta Entertainment promoter holding before and after the IPO

Source: DRHP p.67. There are 45,10,000 shares of ₹10 before the issue and seven shareholders (DRHP p.63, DRHP p.71). If all 18,00,000 new shares are issued the total becomes 63,10,000 shares and Ankur Roongta's 97.96% becomes about 70.0%, so 98.0% → 70.0% (our arithmetic, DRHP p.67). Promoter and promoter group together go from 99.98% to about 71.5% (our arithmetic, DRHP p.67). The document leaves the after-issue percentages blank (DRHP p.67).

No fund or company holds shares. Sanjay Pareek, a director and 5% holder of Fizzyfox, is classed as a public shareholder (DRHP p.67, DRHP p.76). The bonus allotment list spells a promoter group holder "Nitika Roongta" while the shareholding table says "Nikita Roongta" (DRHP p.64, DRHP p.67). Shares equal to 20% of the post-issue capital are to be locked in for three years as the minimum promoters' contribution (DRHP p.69).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹8.5 crore in FY24 to ₹25.6 crore in FY26 and profit after tax from ₹0.53 crore to ₹5.6 crore (DRHP p.47).
• Receivables: about 2 days of revenue at March 2024 and about 27 days at March 2026 (our arithmetic, DRHP p.46, DRHP p.47).
• Promoter pay: none paid in FY24 to FY26 (DRHP p.188).
• Conversion: the company became a public company with a fresh certificate dated February 28, 2025 (DRHP p.52).
• Bonus issue: 450:1, allotted June 17, 2026, 45,00,000 shares (DRHP p.64).
• Share split: none; the share capital history shows only the 2018 subscription and the 2026 bonus, all at ₹10 face value (DRHP p.64).
• Pre-IPO placement: none; no shares other than the bonus were issued in the 18 months before filing (DRHP p.86).
• Last priced allotment: 10,000 shares at ₹10 on incorporation, November 27, 2018; the only later allotment is the June 2026 bonus (DRHP p.64).
• Share transfers: a gift of 8,796 shares from Anil Roongta to Ankur Roongta on December 11, 2025, and 99 shares from Sanjay Pareek to Ankit Roongta at ₹4,511 on May 25, 2026 (DRHP p.68, DRHP p.69).
• Authorised capital: raised from ₹0.10 crore to ₹7.5 crore on April 27, 2026 (DRHP p.64).
• Auditor: no change in the last three years; H T K S & Co. was reappointed as statutory auditor on September 30, 2024 for five years (DRHP p.55).
• Debt: Kotak Mahindra Bank facilities were sanctioned on January 27, 2025, and an ICICI Bank overdraft on June 27, 2025 (DRHP p.204, DRHP p.205). In FY26 the company repaid ₹17.0 crore of loans to Ankur Roongta, Anil Roongta and Ankit Roongta (DRHP p.188).
• New cinemas: Ghaziabad lease from January 2, 2024 and Hyderabad from May 21, 2024, with Hyderabad's film agreement from December 2025 (DRHP p.120, DRHP p.100).
• Board and officers: Ankit Roongta joined the board on November 25, 2024; independent directors were appointed on February 13, 2026; Ankur Roongta became non-executive on April 20, 2026; Kashyap Pandya resigned and Bhavik Bajaj joined on August 12, 2026 (DRHP p.148). The CFO joined on January 16, 2026, the CEO was appointed on April 20, 2026 and the company secretary on July 2, 2026 (DRHP p.154).
• Dividend: none declared since incorporation (DRHP p.159).

13Capacity and expansion

Source: DRHP p.104, DRHP p.105, DRHP p.117. "Utilized capacity" is the seats used against "housefull capacity", which the document defines as screen capacity actually used for shows (DRHP p.117). Across all five theatres about 13.1% of housefull capacity was used in FY26 (our arithmetic, DRHP p.117).

The seat counts in the capacity table add to 2,693 (our arithmetic, DRHP p.117), while the business chapter gives 3,250 seats at March 31, 2026 (DRHP p.106). The document does not explain the difference.

Under construction: Ranchi (4 screens, 18 year term), Gurugram (15 year term from February 13, 2024) and Ludhiana (8 screens, 18 year term) are under construction and fit-out (DRHP p.104, DRHP p.121). The issue pays ₹4.4 crore to fit out Gurugram, planned at 5 screens and about 551 seats (DRHP p.77). The Gurugram lease carries a minimum guarantee of ₹11,00,000 a month from its third year (DRHP p.121).

For Ranchi, an application for permission to apply for licences was made on May 1, 2026 (DRHP p.221). The document does not give opening dates. The chain is seats → seats filled → tickets and snacks → revenue, and each step needs its own evidence.

14Market size and industry structure

Roongta Entertainment industry: market size and growth

As claimed: the company did not commission an industry report. The chapter draws on IBEF web pages and a Press Information Bureau release, and the company says neither it nor the lead manager has verified the data (DRHP p.92, DRHP p.95, DRHP p.98).

At the broadest level, IBEF says the Indian media and entertainment sector grew to ₹2,78,500 crore in 2025, up 9.1%, and projects about 2.8% growth to ₹2,86,500 crore in 2026 and a 5.8% compound rate to ₹3,30,000 crore by 2028 (DRHP p.95). A second set of figures on the next page puts the 2026 sector at ₹2,86,200 crore and 2028 at ₹3,30,100 crore (DRHP p.96).

The same page quotes a minister saying the industry is the fifth largest in the world and growing 20% a year, which does not agree with the other growth figures (DRHP p.95).

The part that is addressable: the company sells cinema tickets, food and screen advertising in five cities (DRHP p.99, DRHP p.105). The chapter's nearest segment is "filmed entertainment", put at 7.83% of the 2026 sector and 7.66% of 2028 (DRHP p.96). On those shares filmed entertainment is about ₹22,409 crore in 2026 and about ₹25,286 crore in 2028 (our arithmetic, DRHP p.96). The chapter does not size cinema exhibition, box office, cinema advertising or any regional market.

What the company is today: FY26 revenue of ₹25.6 crore (DRHP p.47), about 0.11% of the 2026 filmed entertainment figure (our arithmetic, DRHP p.96, DRHP p.47). That figure mixes a calendar year with a financial year and a wider segment with the company's own, so it is a rough scale only.

Size over time: the chapter's figures are for the whole sector, given above, and for the economy: real GDP is estimated at ₹201.90 lakh crore for FY 2025-26, up 7.4% (DRHP p.92). It projects India's OTT video industry at ₹21,032 crore by 2026 (DRHP p.95). A Crisil analysis of 20 media companies is quoted projecting 8% revenue growth to ₹60,000 crore by FY27 (DRHP p.96). These projections are the sources', not newboard's.

Segments: the chapter splits the sector into ten segments; for 2026 digital media is 45.46%, television 20.51%, print 9.22%, filmed entertainment 7.83%, live events 4.89%, animation and VFX 3.95%, gaming 2.59%, out-of-home media 2.59%, music 2.24% and radio 0.80% (DRHP p.96). The company sits in filmed entertainment, and its advertising income touches out-of-home media. By 2028 the chapter projects digital media rising to 49.68% and filmed entertainment easing to 7.66% (DRHP p.96).

What drives demand: the chapter names government steps rather than demand data: an AVGC task force and a National Centre of Excellence for AVGC-XR in Mumbai approved in September 2024 (DRHP p.96); the merger of four government film units into NFDC (DRHP p.96); and a Ministry of Information and Broadcasting study group on Indian cinema and model State Cinema Rules sent to the states to speed up cinema building in smaller towns (DRHP p.97, DRHP p.98). The company's own drivers are footfalls and film releases (DRHP p.29).

Structure: the chapter itself names no competitors. It says the largest multiplex operator proposed to close 70 low-performing screens in FY25 (DRHP p.97). The business chapter says the industry has national multiplex chains, regional chains, independent multiplexes and single screens (DRHP p.117). The peers the company names are Connplex Cinemas Limited and UFO Movies India Limited (DRHP p.83).

Inputs and trade: the main inputs are films, supplied through distributors on revenue share, electricity, rent and food stock (DRHP p.184, DRHP p.114). Electricity cost ₹1.7 crore in FY26 and rent ₹3.0 crore (DRHP p.184). The Gurugram projector quote is in US dollars (DRHP p.78). The chapter says nothing on imports or exports for cinemas.

Rules: films need CBFC certification under the Cinematograph Act, 1952, and storage needs a licence under the Cinematograph Film Rules, 1948 (DRHP p.124). Each cinema needs a state licence: the Gujarat Cinemas (Regulation) Act, 2004, the Uttar Pradesh Cinemas (Regulation) Act, 1955 and the Telangana Cinemas (Regulation) Act, 1955 (DRHP p.125, DRHP p.126, DRHP p.127). Food sales need FSSAI licences (DRHP p.128). The Surat cinema licence runs to January 31, 2027 (DRHP p.215).

What the chapter says can go wrong: the chapter itself names screen closures by the largest operator (DRHP p.97) and the different state rules that slow cinema building (DRHP p.97). The risk factors add a fall in film releases or their performance, competition from streaming, and fixed costs that stay when footfalls fall (DRHP p.27, DRHP p.28, DRHP p.30). The chapter does not discuss ticket pricing, film rental rates or cinema advertising rates.

15Competitive position

Roongta Entertainment competitors

Source: DRHP p.85, DRHP p.86, converted from ₹ lakh. The company says the peers are not strictly comparable in nature or size (DRHP p.84). The document does not describe the peers' businesses. Connplex's revenue is about 5.8 times the company's and UFO's about 18.9 times (our arithmetic, DRHP p.85).

What the company puts forward: theatres in three regions, several revenue streams, online and counter ticketing, the ROONGTA CINEMAS brand, a CEO with 16 years in cinema operations, and awards including IMAX BIG Cine Awards for "Fastest Growing cinema chain of the Year 2023" (DRHP p.104, DRHP p.106, DRHP p.101). Against that: one film programmer for all screens, five leased sites, about 13.1% of housefull capacity used, and directors with no listed-company experience (DRHP p.20, DRHP p.119, DRHP p.37).

16Peers the company named

Peers named in the offer document: Connplex Cinemas Limited and UFO Movies India Limited (DRHP p.83).

Connplex is about 5.8 times the company's FY26 revenue, UFO about 18.9 times (our arithmetic, DRHP p.85). The document gives their P/E as 17.34 and 411.33 on September 24, 2026, with an "industry average" of 214.33 (DRHP p.83). The peer table on p.83 prints UFO's revenue as ₹150.1 crore and Connplex's RoNW as 19.42%, while the KPI table gives UFO's FY26 revenue as ₹482.0 crore and Connplex's return on equity as 32.85% (DRHP p.83, DRHP p.85, DRHP p.86). The company's FY26 EPS is ₹12.32 after the bonus (DRHP p.82). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Roongta Entertainment IPO risks

Issue-specific: the Fizzyfox object: ₹14.0 crore of the issue goes to Fizzyfox, which is 95% owned by the promoter, and ₹13.95 crore of it as an unsecured loan to repay Fizzyfox's lenders (DRHP p.74, DRHP p.76) → the money pays for an indirect 51% share in a business the company calls new to it, and the promoter is on both sides → Playthopia made a loss of ₹0.22 crore in its first year (DRHP p.24, DRHP p.75).

Financial: family loans: ₹8.7 crore of borrowings are interest-free loans from Anil Roongta, Ankit Roongta and Ankur Roongta, repayable on demand (DRHP p.40) → a demand would have to be met from cash or new borrowing, and any replacement would carry interest → that is about 51.9% of March 2026 borrowings (our arithmetic, DRHP p.40, DRHP p.46).

Financial: film rights: other current assets carry ₹8.8 crore of movie rights for a film whose theatrical revenue fell short of expectations (DRHP p.183, DRHP p.23) → a write-down would cut profit and net worth → the balance is about 87.4% of March 2026 net worth (our arithmetic, DRHP p.183, DRHP p.46).

Suppliers: one film programmer: August Entertainment programmes all screens and the company has no similar arrangement with other distributors; the agreement is not on stamp paper (DRHP p.20, DRHP p.21) → if the arrangement ends, films could be delayed → the Adipur, Surat, Ghaziabad and Muzaffarnagar agreements run to February 24, 2027 (DRHP p.100).

Business: seats and leases: about 13.1% of housefull capacity was used in FY26, and every cinema is on a lease, some on revenue share (our arithmetic, DRHP p.117, DRHP p.119) → rent, staff and power costs stay when attendance falls → rent and electricity were ₹4.7 crore in FY26 (our arithmetic, DRHP p.184).

Customers: related-party advertising: firms linked to the promoter paid ₹2.9 crore of FY25 advertising income (DRHP p.188) → that income depends on the family's own businesses → about 47.7% of FY25 and 19.6% of FY26 advertising income (our arithmetic, DRHP p.188, DRHP p.183).

Regulation: licences in others' names: certificates for Adipur and Muzaffarnagar are held by the developers, and the company relies on their NOCs (DRHP p.27) → a withdrawn NOC could stop a cinema → those two theatres have 6 of the 15 screens (DRHP p.105).

Promoters: credit and record: Ankur Roongta and Ankit Roongta have had delays and delinquency on personal borrowings, and a 2020 SEBI order restrained members of the promoter group (DRHP p.29, DRHP p.155) → this can affect lenders and partners → the SEBI restraint ran from April 17, 2015 to December 2, 2020 for two of the parties (DRHP p.155).

Legal: compliance: the company lists 23 company law filings that were late or whose challans cannot be found, one late by 109 days, and delays in EPF, ESIC and TDS payments (DRHP p.31, DRHP p.32, DRHP p.34) → penalties may follow → no show cause notice has been received (DRHP p.32).

18Litigation and regulatory matters

Cases against Roongta Entertainment and its promoters

Criminal: none by or against the company, promoter, directors or key managers (DRHP p.207, DRHP p.208, DRHP p.209). Regulatory: no actions by statutory or regulatory authorities against the company, promoter or directors (DRHP p.208, DRHP p.209). The suit at Bhimrad seeks a declaration that the plaintiffs own a one-eighth share and challenges certain sale deeds (DRHP p.208).

The High Court petitions concern an auction of trust land won by Roongta Industrial Park, a firm in which Ankit Roongta is a partner (DRHP p.209). Creditors: material creditors were owed ₹1.0 crore at March 31, 2026 (DRHP p.211). SEBI: the 2020 order on Anil Satyanarayan Roongta, Sudha Anil Roongta and A. K.

Roongta HUF is described as completed (DRHP p.155). Compliance: late company law filings and statutory payment delays are listed in the risk factors (DRHP p.31, DRHP p.33).

19Related-party transactions

Source: DRHP p.188, DRHP p.189, converted from ₹ lakh. Skytower Enterprises LLP paid ₹0.51 crore and RMIX Concrete LLP ₹0.45 crore of advertising income in FY25 only (DRHP p.188, DRHP p.189). At March 2025 Roongta Industrial Estate LLP, Yashvi Infracon LLP and Skytower Enterprises LLP owed ₹2.9 crore; at March 2026 nothing (DRHP p.189). Balances owed to the family were ₹17.9 crore at March 2024, ₹20.6 crore at March 2025 and ₹8.7 crore at March 2026 (DRHP p.189).

What appeared or changed in the two years before filing: advertising sales to the four related firms began in FY25; loans from Anil Roongta and Ankit Roongta rose in FY25 and were largely repaid in FY26; and the proposed purchase of Fizzyfox from Ankur Roongta and Sanjay Pareek is new (DRHP p.188, DRHP p.81). The risk factors say related-party loans, rent, remuneration and advertising may give rise to conflicts of interest (DRHP p.36).

20What the offer document does not say

Average ticket price, spend per head on food, and occupancy measured as tickets sold are not given. Revenue, cost and profit by theatre are not given, and neither is the margin on advertising. Who the outside advertisers are, and how much of advertising income is barter, is not stated; a barter arrangement of January 5, 2026 runs to March 31, 2027 (DRHP p.24).

The terms of the August Entertainment agreement, including what it is paid, are not disclosed (DRHP p.100). The two direct tax proceedings against the company are counted but not described (DRHP p.210). The issue size in rupees, the price band, general corporate purposes and issue expenses are blank (DRHP p.72, DRHP p.79). The after-issue shareholding is blank (DRHP p.67). Opening dates for Ranchi, Gurugram and Ludhiana are not given (DRHP p.104).

Fizzyfox's own financial statements are not given beyond its share capital and borrowings (DRHP p.75, DRHP p.73).

Some inconsistencies are recorded as document matters, not business ones: film rights are ₹8.8 crore in the notes and about ₹6.0 crore in the risk factors (DRHP p.183, DRHP p.23); the tax statement shows MAT payable that the profit and loss does not charge (DRHP p.196, DRHP p.47); seats add to 2,693 in the capacity table against 3,250 in the business chapter (DRHP p.117, DRHP p.106);

the share capital note shows Anil Roongta with 8,896 shares at March 31, 2026, after the December 2025 gift to Ankur Roongta (DRHP p.175, DRHP p.68); Fizzyfox's loans are ₹12.95 crore in one sentence, ₹13.0 crore in the table total and the next page (DRHP p.73, DRHP p.74); the Kotak renewal is dated March 3, 2026 on one page and March 16, 2026 on another (DRHP p.77, DRHP p.204);

the peer table and KPI table give different revenue and return figures for the peers (DRHP p.83, DRHP p.85); the online booking agreement covers three screens at Surat while the screen table shows four (DRHP p.116, DRHP p.104); the business is called not seasonal in the MD&A while the risk factors list holidays, festivals and examinations (DRHP p.203, DRHP p.30);

and the eligibility section cites the rule for issuers whose post-issue paid-up capital is more than ₹10 crore while 63,10,000 shares of ₹10 come to about ₹6.3 crore (DRHP p.224, our arithmetic, DRHP p.67).

21Five questions for management

1. What were the tickets sold, average ticket price and food spend per head at each theatre in FY24, FY25 and FY26?
2. Why are the film rights carried at ₹8.8 crore in the notes but about ₹6.0 crore in the risk factors, and what has the film earned since release?
3. On what basis was ₹14.0 crore set as the price for Fizzyfox and its 51% of Playthopia, and who values the 49% held by the other partners?
4. How much of FY25 and FY26 advertising income came from barter, from related parties and from unrelated advertisers, and at what rates?
5. What does August Entertainment charge, and what happens to programming at the four theatres whose agreements end on February 24, 2027?

2Sources and cited facts

This study was read from 2 documents the company filed. The 170 figures it cites are listed under the document each came from, with the page and the sentence as printed.