Sunshine Pictures Ltd. IPO

Indian media and entertainment (M&E) sector demonstrated substantial growth in CY 2025, increasing by INR 230 billion from INR 2.55 trillion in CY 2024 to INR 2.78 trillion in CY 2025, representing approximately 9.1% YoY growth. Between CY 2022 and CY 2026, the sector has expanded at a ... compound annual growth rate (CAGR) of approximately 6.3%, rising from INR 2.24 trillion to a projected INR 2.86 trillion. The M&E sector contributes around 0.8% of India’s GDP, provides direct employment to around 2.75 million people, and indirect employment to over 10 million people. While television has reached the second largest segment position, digital media has surpassed it in CY 2025 with 40% market share. The overall M&E sector is expected to grow at a rate of 2.8%, increasing from INR 2.78 trillion in CY 2025 to INR 2.86 trillion in CY 2026, and further expand to INR 3.30 trillion by CY 20283. A key contributor to this expansion is the rising demand for visual effects (VFX), driven by the increasing popularity of Indian films, television shows, and web series. VFX has become an integral component for filmmakers aiming to create visually compelling content, reshaping the industry's landscape. This growth signals significant opportunities for India in the global VFX market. With rapid digital transformation, fuelled by a growing number of internet users and affordable smartphones, India is well-positioned to emerge as a major player in VFX. The share of new media, including digital platforms and online gaming, grew from 20% in 2019 to 47% in 2025. Conversely, traditional media segments such as linear television, print, film, music, radio and OOH saw their combined share 44% during the same period. Consumer preferences have shifted toward on-demand and personalized content through streaming platforms, which has driven increased demand for VFX. This shift has resulted in more original content being commissioned, with Indian studios gaining global recognition. International production houses are increasingly outsourcing VFX work to India due to its cost-effectiveness and high-quality services, presenting an opportunity for the country to capture a larger share of the global VFX market. Despite challenges such as piracy, low broadband penetration in rural areas, and rising competition from digital platforms, the Indian broadcasting and entertainment sector is expected to continue its expansion. With growing demand for high-quality visual content, technological advancements, and a supportive market environment, India is on a path to becoming a key player in the global VFX industry. Read more