Sea TV widens Q1 loss as company secretary exits and auditors flag loan interest issue

MUMBAI: Sea TV Network appears to be navigating choppy waters, with widening losses, an audit qualification and a senior executive exit adding to the broadcaster’s growing list of challenges.

Agra-based Sea TV Network Limited reported a weaker financial performance for the quarter ended June 30, 2026, while also announcing the resignation of its company secretary and compliance officer. The developments were approved at a board meeting held via video conferencing on July 25.

The board accepted the resignation of Karishma Jain, who stepped down from her role as company secretary and compliance officer, designated as a key managerial personnel, citing personal reasons. Her resignation will take effect from the close of business on July 28.

In her resignation letter dated July 18, Jain said there were no material reasons behind her decision apart from personal circumstances. The company also confirmed that she does not hold any equity shares in Sea TV Network and has begun the process of identifying a replacement in line with Section 203 of the Companies Act, 2013.

On the financial front, the broadcaster’s standalone revenue from operations stood at Rs 169.71 lakh during the first quarter of FY27, improving from Rs 84.96 lakh in the March quarter but declining from Rs 184.33 lakh in the corresponding quarter last year. Including other income of Rs 1.50 lakh, total standalone income came in at Rs 171.21 lakh.

Expenses, however, continued to outpace revenue. Total standalone expenditure rose to Rs 222 lakh, led by material costs of Rs 111.21 lakh and other operating expenses of Rs 104.14 lakh.

As a result, the company reported a standalone net loss of Rs 50.78 lakh, wider than the Rs 48.24 lakh loss posted in the previous quarter and significantly higher than the Rs 1.75 lakh loss reported a year earlier. Standalone basic and diluted loss per share stood at Rs 0.42.

On a consolidated basis, total income reached Rs 244.27 lakh, comprising operational revenue of Rs 240.62 lakh and other income of Rs 3.65 lakh. Total consolidated expenses stood at Rs 288.57 lakh, resulting in a consolidated net loss of Rs 44.30 lakh for the quarter. Consolidated basic and diluted earnings per share came in at a negative Rs 0.37.

The company’s paid-up equity share capital remained unchanged at Rs 1,202 lakh, with a face value of Rs 10 per share.

Sea TV Network operates as a single reportable business segment under cable operations. Its consolidated financial statements include the performance of subsidiaries Jain Telemedia Services Limited and Sea News Network Limited. Together, the two subsidiaries generated revenue of Rs 194.55 lakh during the quarter and recorded a combined net profit of Rs 6.48 lakh based on unaudited management-certified accounts.

The results were accompanied by a qualified review from statutory auditor Doogar & Associates, led by partner Udit Bansal.

The auditors highlighted that the company had not recognised interest expenses on unsecured borrowings amounting to Rs 3,382.81 lakh, despite the loans carrying an agreed interest rate of 8 per cent per annum. According to the audit report, no provision was made for quarterly interest of Rs 66.49 lakh, resulting in non-compliance with Indian Accounting Standard (Ind AS) 109 relating to financial instruments.

The auditors noted that if the interest expense had been recognised, both the standalone and consolidated losses for the quarter would have increased by Rs 66.49 lakh.

The unsecured borrowings have been sourced from directors, related parties and corporate entities, making the accounting treatment a key issue for investors monitoring the company’s financial position.

The board’s decisions and quarterly financial results were digitally signed by Neeraj Jain. As Sea TV looks to appoint a new compliance head and address accounting concerns, investors are likely to watch closely for signs of operational improvement in the coming quarters.