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DEN to get foreign investment by way of shares but within limit approved in August
NEW DELHI: DEN Networks Limited has been permitted to get foreign investment in the company by way of issue of shares or underlying securities like QIIs/ADRs/GDRs/FCCBs and other permitted securities for its telecom business.
However, the Foreign Investments Promotion Board (FIPB) has said that DEN had been granted approval on 14 August last year for investment from FIIs/NRIs/FPIs upto 74 per cent in the company and this fresh application would be within the same approved foreign investment limit and thus involve no extra foreign investment.
At the same time, the Ministry approved the proposal by the telecom player Atria Convergence Technologies seeking approval for transfer of its shares from existing non-resident shareholders to Argan (Mauritius) Limited and TA FVCI Investors Limited. This will not involve any foreign investment.
The Ministry forwarded to the Cabinet Committee on Economic Affairs the proposal of ATC Asia Pacific Pte. Ltd seeking approval has been sought for acquisition of 51 per cent of the shareholding of Viom Networks Limited by ATC Asia Pacific Pte. Ltd. (ATC Singapore) by way of transfer from existing shareholders as it involved a huge foreign direct investment of Rs 5856.51 crore.
On the other hand, the Finance Ministry on the advice of FIPB deferred the proposal by Jasper Infotech for making downstream investment in Macro Commerce by purchasing 50 per cent stake in the company from DEN Networks, which is its existing holding company.
MUMBAI: When margins wobble, liquidity talks and in Q3 FY25-26, cash did most of the talking. Den Networks Limited closed the December quarter with consolidated revenue of Rs.251 crore, marginally higher than the previous quarter but down 4 per cent year-on-year, even as profitability stayed resilient on the back of strong cash reserves and disciplined cost control.
Subscription income softened to Rs.98 crore, slipping 3 per cent sequentially and 14 per cent from last year, while placement and marketing income offered some cheer, rising 15 per cent quarter-on-quarter to Rs.148 crore. Total costs climbed faster than revenue, up 7 per cent QoQ to Rs.238 crore, driven largely by higher content costs and operating expenses. As a result, EBITDA dropped sharply to Rs.13 crore from Rs.19 crore in Q2 and Rs.28 crore a year ago, pulling margins down to 5 per cent.
Yet, the bottom line refused to blink. Profit after tax stood at Rs.40 crore, up 15 per cent sequentially and only marginally lower than last year’s Rs.42 crore. A healthy Rs.57 crore in other income helped cushion operating pressure, keeping profit before tax at Rs.48 crore, broadly stable quarter-on-quarter despite the tougher cost environment.
The real headline-grabber, however, sits on the balance sheet. The company remains debt-free, with cash and cash equivalents swelling to Rs.3,279 crore as of December 31, 2025. Net worth rose to Rs.3,748 crore, while online collections accounted for 97 per cent of total receipts, underscoring strong cash discipline across operations, including subsidiaries.
In short, while Q3 showed signs of operating strain, the financial backbone remains solid. With zero gross debt, steady profits and a formidable cash war chest, the company enters the next quarter with flexibility firmly on its side proving that in uncertain markets, balance sheet strength can be the best growth strategy.
