Eros International Media reports Rs 10.43 crore Q1 loss

MUMBAI: Eros is finding that keeping the show on the road is becoming a costly act. Eros International Media reported a consolidated loss before tax of Rs 10.43 crore for the quarter ended 30 June 2026, as liquidity constraints, overdue group receivables and regulatory proceedings continue to weigh on the media company.

The company’s auditor, Haribhakti & Co. LLP, flagged a material uncertainty relating to going concern, saying the group’s ability to continue operations depends on raising funds through monetisation of its film and music library rights, non-core assets and other strategic measures.

The board approved the unaudited standalone and consolidated results on 14 August 2026. Despite the auditor’s warning, the group has prepared its financial statements on a going-concern basis.

Liquidity remains the pressure point

Eros said it has taken measures to strengthen liquidity, including restructuring borrowing facilities, conserving cash through cost reductions and seeking to maximise revenue from its film and music library.

The company is also pursuing overdue trade receivables from group entities. At the standalone level, Eros reported a pre-tax loss of Rs 7.43 crore, while its filing said its net worth has been fully eroded.

The auditor also noted that the company had defaulted on payment of statutory dues on certain occasions.

Eros has net trade receivables of Rs 166.58 crore from Eros Worldwide FZE, after setting off trade payables of Rs 321.55 crore. It also has receivables of Rs 81.84 crore from Eros International Limited UK and Rs 35.66 crore from Eros International USA Inc.

The company has made an overall provision of Rs 286.46 crore towards expected credit losses on net trade receivables as of 30 June 2026.

Eros has approached the Reserve Bank of India (RBI) through its authorised dealers seeking permission to condone delays in realising outstanding export invoices, set off trade payables against receivables and allow net remittance of Rs 166.58 crore due from Eros Worldwide FZE. The financial impact of the pending approvals remains unascertainable.

Film library becomes key to turnaround

Monetising its content library has emerged as a central plank of Eros’ efforts to shore up its finances. The company plans to pursue long-term contracts for its film and music library, alongside recovering overdue receivables and exploring other strategic initiatives.

The auditor said the group’s ability to remain a going concern is dependent on successfully raising funds through the monetisation of film and music library rights and non-core assets, as well as recovering dues from group entities.

Rs 1,016 crore content advances under scrutiny

The company’s financial challenges are accompanied by a regulatory overhang. According to the auditor, content advances of Rs 1,016.01 crore as of 31 March 2026 had been given to certain parties and are subject to scrutiny and investigation by the Securities and Exchange Board of India (SEBI).

The auditor said it could not comment on the possible consequential effects of the proceedings on the June-quarter financial statements until the investigation is completed.

Eros continues to seek information, clarifications and documents from SEBI concerning the show-cause notice issued to the company. The matter is listed for further hearing before the Securities Appellate Tribunal on 17 August 2026.

Separately, a dispute involving Colour Yellow Production Private Limited, a subsidiary whose financial information was unavailable, meant the entity was not included in the consolidated results for the quarter. The dispute concerns the management and control of the subsidiary and is before the NCLAT, with the next hearing also scheduled for 17 August 2026.

The auditor said it was unable to obtain sufficient appropriate evidence on certain matters and therefore did not express a conclusion on the consolidated financial results.

For the standalone company, the combination of the Rs 7.43 crore pre-tax loss, complete erosion of net worth and instances of statutory-dues defaults creates material uncertainty over its ability to continue operations. Management’s financial forecasts are based on cost savings, restrictions on borrowing, content-library monetisation and recovery of overdue receivables.

The filing also records that an Enforcement Directorate search at Eros International Media’s registered office under the Foreign Exchange Management Act concluded on 6 February 2025.

For now, Eros’ financial roadmap rests heavily on turning its biggest intangible asset — its content library — into cash, while it works through receivables, regulatory scrutiny and the funding challenge highlighted by its auditor.