MAM
Sports broadcasters to take home Rs 3 bn less in ad rev this year
MUMBAI: The absence of the cricket World Cup, a less heavy calendar for Dhoni and his boys and the uncertainty over the Indian team‘s future performance could result in ad revenue for the sports broadcasters trimming by around Rs 3 billion in 2012.
Sports broadcasters earned an ad revenue of Rs 20 billion in 2011 calendar year, triggered by the Indian Premier League (IPL) that fetched Rs 9 billion and the cricket World Cup that is estimated to have got Rs 4 billion. Though the IPL will still play out this year, it is unlikely to get a major hike. Efforts are being made to push hockey but the increase will be from a very low base and would not make up for the cricket World Cup. Even the Olympics is a very small revenue earner for the sports broadcasters.
The T20 World Cup, to be held this year, will provide a cushion but only to some extent.
Says Vivaki Exchange executive VP Sejal Shah, “The ODI World Cup is a miss this year. The T20 World Cup will help to some extent. But the loss from sports will move to other genres chasing similar mass and male audiences.”
Another issue is the current performance of the Indian team. “If India continues to perform badly, then yes ad spends will come down significantly. We will need to wait and watch what happens in the upcoming ODI and IPL formats,” adds Shah.
For advertisers, the return on investment (ROI) is dependent on the audience that they want to chase and the objective of their campaigns. “If cost efficiency alone is the objective, then GECs (general entertainment channels) and news will be better ROI vehicles. If mass and male audiences are the objective, then there is nothing better than a cricket platform to establish the communication,” states Shah.
Cricket still remains the best vehicle to cut across geographies and SECs for male skewed brands, she adds.
Madison Media Group CEO Punitha Arumugham agrees that cricket is no more a special programme but a part of the calendar for any major brand. However, if cricket is not performing, she cautions that there are enough opportunities on television and print. “Ratings is going to decide how much money people are going to put on it, and what cost they are going to pay for it. If cricket doesn‘t score, the money will go back to other mediums and digital,” she says.
Cricket advertising depends a lot on non FMCG companies like telecom and automobiles. “In this economic scenario, non FMCG will spend slightly lesser this year. Automobile, because of their new launches, and telecom categories may still spend well. However in the current economic climate, the financial category and consumer durables are likely to lower down their spends,” says Arumugham.
Due to their high costs, advertisers have been pressing for performance guarantee deals going forward. A media expert, however, feels that this is unlikely to happen unless there is a huge mismatch between what a channel is charging and what a client is willing to pay.
“A lot also depends on the state of the economy. If the economy turns for the better, then more brands will launch campaigns towards the latter part of the year,” the expert opines.
Brands
Sapphire Foods FY26 revenue rises to Rs 3,125 crore, posts loss
Q4 revenue at Rs 792 crore, FY26 loss at Rs 32 crore amid cost pressures.
MUMBAI: If growth is on the menu, profitability seems to have taken a brief detour. Sapphire Foods India reported a steady rise in topline for FY26, even as rising costs weighed on profitability. Revenue from operations grew to Rs 3,125 crore for the year ended March 31, 2026, up from Rs 2,882 crore in FY25. However, the company swung to a loss, reporting a net loss of Rs 32 crore for FY26, compared to a profit of Rs 17 crore in the previous year. Total income for the year stood at Rs 3,153 crore, while total expenses climbed to Rs 3,167 crore, reflecting pressure across key cost heads.
In the March quarter, revenue came in at Rs 792 crore, compared to Rs 711 crore in the same period last year. The company reported a quarterly net loss of Rs 13 crore, against a profit of Rs 2 crore a year earlier.
Cost pressures remained visible across operations. Material costs rose to Rs 995 crore for FY26, while employee expenses increased to Rs 428 crore. Other expenses, the largest component, stood at Rs 1,229 crore, underscoring the impact of store operations and expansion-related spends.
Depreciation and amortisation expenses also climbed to Rs 392 crore for the year, reflecting continued investments in store infrastructure and growth.
At the operating level, the company reported a loss before tax of Rs 37 crore for FY26, compared to a profit of Rs 23 crore in FY25. Exceptional items added Rs 24 crore to the cost burden during the year.
On the balance sheet, total assets rose to Rs 3,256 crore as of March 31, 2026, up from Rs 3,041 crore a year earlier, indicating ongoing expansion. Net worth stood at Rs 1,389 crore.
Despite profitability pressures, operating cash flow remained resilient at Rs 507 crore, highlighting underlying business strength and demand stability.
The numbers paint a familiar picture in the quick-service restaurant space, growth continues to be served hot, but margins are still finding their footing.
