Sources said the Income Tax searches are also being conducted at the premises of certain individuals linked to Prime Focus.
The searches are underway in connection with foreign remittances, sources said. Further details on the nature of the transactions under scrutiny were not immediately available.
The company later confirmed that the search was initiated today at certain offices and was still underway as of 1.30 pm.
Prime Focus is a Mumbai-based media and entertainment services company with businesses spanning visual effects, animation and post-production.
The company has significant overseas operations and says that 92% of its revenue came from markets outside India, based on the financial information available on its investor centre.
The Income Tax searches at Prime Focus are currently underway. More details are awaited.
Prime Focus has faced regulatory and insolvency-related developments this year.
In June, the Securities and Exchange Board of India (SEBI) closed adjudication proceedings against the company and its directors, concluding that the accounting treatment and financial disclosures under scrutiny did not amount to misleading financial statements or accounting irregularities.
Separately, Prime Focus was involved in insolvency proceedings after the National Company Law Tribunal (NCLT) admitted an insolvency petition against the company over a ₹353.79 crore claim filed by Reliance Alpha Services Pvt Ltd.
The company challenged the order before the National Company Law Appellate Tribunal (NCLAT). In July, the NCLAT set aside the NCLT admission order and approved a settlement, following which Prime Focus disclosed the closure of the Corporate Insolvency Resolution Process (CIRP).
There is no immediate indication that the tax action is connected to either matter.
Shares of Prime Focus are trading 8.1% lower on Wednesday at 10:11 am. The stock has risen 17% so far this year, but gave up all of Tuesday’s gains, when it had snapped a three-day losing streak.
Also Read: HSBC upgrades Kotak Mahindra Bank, raises target on CEO clarity, stronger loan growth
First Published: Oct 7, 2026 10:23 AM IST