MAM
Expected economic recovery to benefit media and entertainment industry: Ind-Ra report
MUMBAI: Future seems to be optimistic for the Indian media and entertainment sector, at least that is what the India Ratings & Research (Ind-Ra) report says. The agency has revised the outlook on the media and entertainment sector for FY15 and it expects improvements in advertisement spending (ad spending) by corporates with a gradual economic recovery, eventually making the industry stable from negative.
The upcoming elections will also contribute to the increase in ad-spending in the Q4-FY14 and Q1-FY15. The agency maintains a “stable outlook” for most of Ind-Ra rated entities for FY15.
High newsprint prices due to currency movements along with limited capacity to pass on cost increases to end-consumers could continue to impact the profitability of print media players dependent on imported newsprint in FY15. However, some comfort is drawn from the expected improvement in ad revenue.
Increasing digitisation of cable TV distribution in FY15 will increase subscription revenue for broadcasters and multi system operators (MSO), which would positively impact their business profile with reduced dependence on cyclical ad revenue. However, the agency believes timely completion of the digitisation regime remains the key as the capex undertaken by cable operators and direct-to-home operators towards distribution of set-top boxes will be monetised fully once the digitisation drive is complete.
Telecom Regulatory Authority of India’s (TRAI) proposal for increasing foreign direct investment limits in the broadcasting sector, if implemented, could lead to increased investor interest in the sector. Investor interest would also be boosted by the digitisation impact.
Ind-Ra expects print and TV media will continue to dominate the industry, commanding a major chunk of the ad spend over the medium term. However, online ad spend would be the fastest growing segment on the back of increasing penetration of Internet and Internet-enabled hand-held devices coupled with changing lifestyles.
Ind-Ra does not envisage a positive outlook for the industry, given the industry’s continued strong dependence on ad revenue and only a moderate economic recovery expected in FY15. However, timely implementation of digitisation coupled with deleveraging of MSOs could result in a positive outlook as also a fall in newsprint prices.
Lower economic growth unable to give a boost to corporate ad spending could result in a negative outlook. Furthermore, an increase in newsprint cost further straining profitability and impacting credit profiles could also result in a negative outlook.
Brands
Lotus Chocolate FY26 profit drops sharply, Q4 slips into loss
Revenue steady at Rs 579.55 crore, Q4 loss at Rs 4.47 crore
MUMBAI: Sweet on the top line, slightly bitter on the bottom Lotus Chocolate’s FY26 numbers tell a story that’s more dark cocoa than milk. The company managed to hold its revenue steady for the year, but profitability took a visible hit, capped by a loss-making fourth quarter. Lotus Chocolate Company Limited reported revenue from operations of Rs 579.55 crore for the year ended March 31, 2026, marginally up from Rs 573.75 crore in FY25. Total income rose to Rs 615.61 crore, compared with Rs 574.56 crore in the previous year, supported by a sharp jump in other income to Rs 36.06 crore from just Rs 0.81 crore.
However, the gains at the top did little to cushion profitability. Net profit for FY26 fell dramatically to Rs 0.10 crore, down from Rs 17.23 crore in FY25, reflecting significant cost pressures across the business.
The March quarter proved particularly challenging. The company reported a net loss of Rs 4.47 crore in Q4 FY26, compared with a profit of Rs 0.14 crore in the previous quarter and Rs 1.42 crore in the same quarter last year. Total income for the quarter stood at Rs 138.01 crore, down from Rs 150.21 crore in Q3 FY26 and Rs 157.52 crore in Q4 FY25.
Expenses remained elevated throughout the year. Total expenses rose to Rs 614.44 crore in FY26 from Rs 551.50 crore in FY25, eating into margins. A key swing factor was the cost of materials consumed, which stood at Rs 304.44 crore, while changes in inventories also reflected volatility, with a negative impact of Rs 62.44 crore in the previous year reversing to a positive Rs 52.93 crore this year.
Employee benefit expenses nearly doubled to Rs 34.00 crore from Rs 17.98 crore, while finance costs surged to Rs 16.31 crore from Rs 7.11 crore, indicating higher borrowing and funding costs. Depreciation and amortisation expenses also increased to Rs 3.92 crore from Rs 1.81 crore, reflecting ongoing investments.
On the balance sheet front, total assets stood at Rs 275.96 crore as of March 31, 2026, slightly higher than Rs 270.34 crore a year earlier. Borrowings remained significant, with current borrowings at Rs 89.00 crore, highlighting continued reliance on external funding.
Cash flow dynamics showed improvement in operations, with net cash generated from operating activities at Rs 93.23 crore, compared with a negative Rs 129.60 crore in FY25. However, financing outflows remained high at Rs 74.90 crore, driven largely by repayment of borrowings and interest costs.
Despite stable revenue, the sharp drop in profitability underscores the pressure of rising input costs, higher finance expenses and operational adjustments. The contrast between steady sales and squeezed margins leaves Lotus Chocolate at a crossroads proving that in business, as in confectionery, the real test isn’t just in the sweetness of sales, but in the richness of returns.
