Cable TV
CODA to push ahead with Maharashtra ent tax issue this week
MUMBAI: The ongoing struggle, regarding the entertainment tax, between the Cable Operators & Distributors Association (CODA) and the Maharashtra State government has reached the next level. After postponing the decision to blackout all Hindi, English and Marathi news channels on state revenue minister Balasaheb Thorat’s request a couple of weeks ago, the organisation met with him last week.
“He has asked us to give a detailed presentation about the current cable TV scenario in the state, the revenue generation in the current tax regime and also compare it with what will happen when entertainment tax on subscribers and set top boxes will be brought down,” confesses Anil Parab.
The Maharashtra regime currently levies entertainment tax on cable TV subscribers at the rate of Rs 45 per sub; CODA has been imploring and lobbying with the government to scale this down to Rs 15 or Rs 20 as is the practice in many other states and cities.
According to Parab, the current rate is too high considering that transparency in the cable TV sector has really gone up and leakages have reduced with the introduction of set top boxes and digitisation. “The only only reason we had agreed to a hike to Rs 45 per sub was because there was under-declaration in the ecosystem and hence a perceived loss to the state exchequer. But with declarations of cable TV subs by cable operators and MSOs more than doubling, rate needs to be brought down as the burden on the industry is crippling us and really hurting our viability,” he reveals.
CODA is slated to meet the minister this week and make its presentation. As of now, Delhi’s rate is Rs 20 while in other cities it is less than five per cent. “The current rate is too much. We would be happy with anything between Rs 15 and Rs 20,” says Parab.
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.
