News Broadcasting
Ad revenues to sustain despite of hike in excise rates
The ad industry seems to have no qualms about the recent budget. Industry professionals believe that the recent excise hike that the budget imposed on several categories of goods, among which figure FMCGs, automotive and consumer durables, is unlikely to prove a dampener to advertising fortunes in the coming year.
In the past a rapid rampup of prices courtesy government levies has led to slow offtake of goods which in turn has led to a reduction in ad spend by advertisers. Ad agencies have in the process seen their billings dry up.
Industry professionals however don’t think the scenario will be replicated this time around. Says Saatchi & Saatchi media head T.V. Shivkumar: “The hike in excise rates won’t in anyway have an effect on the ad spend of companies. There is no blanket increase in the price of commodities. The ad spend has got more to do with the bottomline of the company, whether it is able to keep its commitment with its shareholders.”
Euro RSCG’s Gautam echoed the same sentiments: “The ad budget of a company depends more on the state of the economy as a whole. Price rise is a common feature. I don’t think there should be any change in the ad spends.”
The excise rates, which have gone up to 16%, seem to have raised no alarms as far as the advertising and promotional expenditure of the companies is concerned. If at all, ad pros maintain that this may go up so as to cheer the slackening markets.
What needs to be seen is whether consumers will react similarly to the situation. Will they cut back or postpone consumption like they did in the early nineties which led to reduced ad expenditures? If they do react negatively, the ad industry will be caught unawares like in the nineties when they overstaffed and overcommitted resources in the hope of good economic growth.
News Broadcasting
Network18 Q4 revenue grows 9.7 per cent, EBITDA at Rs 30 crore
PAT improves to Rs 306.6 crore, margins steady amid cost pressures.
MUMBAI: Not all news is breaking, some of it is quietly improving. Network18 Media & Investments Limited appears to be doing just that, tightening losses and stabilising margins even as costs continue to weigh on the business. For FY26, the company reported revenue from operations of Rs 1,955.1 crore, up from Rs 1,896.2 crore in FY25, signalling modest top-line growth in a challenging media environment. Total income stood at Rs 1,978.2 crore, compared to Rs 1,913 crore a year earlier.
Profit after tax came in at Rs 306.6 crore for the year, a sharp turnaround from Rs 3,225.4 crore in FY25, largely reflecting the absence of large exceptional items that had inflated the previous year’s numbers. On a more comparable basis, the company’s operating performance showed signs of gradual stabilisation.
However, the quarterly picture remained under pressure. For the March quarter, Network18 reported a loss of Rs 53.1 crore, narrower than the Rs 98.1 crore loss in the same period last year, but still indicative of ongoing cost challenges.
Expenses continued to track high. Total expenses for FY26 stood at Rs 2,235.7 crore, up from Rs 2,197.8 crore in FY25. Key cost heads included operational expenses of Rs 765.9 crore, employee benefits of Rs 475.9 crore, and marketing, distribution and promotional spends of Rs 427.1 crore, underlining the continued investment required to sustain reach and engagement.
At an operating level, margins remained under strain. Operating margin stood at 2.33 per cent for FY26, marginally higher than 1.77 per cent in FY25, while net profit margin remained negative at -13.02 per cent, though improved from -14.89 per cent.
On the balance sheet, total assets rose to Rs 8,957.6 crore as of 31 March 2026, from Rs 8,317.5 crore a year earlier. Equity strengthened to Rs 4,958.7 crore, while borrowings increased to Rs 3,112.8 crore, reflecting a higher reliance on debt to support operations.
Cash flows told a mixed story. While financing activities generated Rs 83.9 crore, operating cash flow remained negative at Rs -24 crore, highlighting ongoing pressure on core cash generation. Cash and cash equivalents, however, improved to Rs 33.9 crore from Rs 1.8 crore.
The numbers point to a company in transition growing revenues, trimming losses, but still grappling with structural cost pressures. In a sector where scale often comes at a price, Network18 seems to be inching towards balance, one quarter at a time.
