Cable TV
Cable TV lobby urges tax cut to 5 per cent as sector reels under strain
NEW DELHI:The All India Digital Cable Federation (AIDCF), the apex body of cable operators, has petitioned information and broadcasting minister Ashwini Vaishnaw and finance minister Ashwini Vaishnaw to slash goods and services tax on cable television from 18 per cent to 5 per cent.
The appeal rides on prime minister Narendra Modi’s push for “next-generation GST reforms” and a two-rate structure. The federation argues that cable remains the cheapest mass medium, reaching 64 million households and sustaining 10–12 lakh jobs, yet is under siege from rising costs and unregulated OTT rivals.
Powered by 852 multi-system operators and 1.6 lakh local cable operators—mostly small entrepreneurs—the sector was even recognised as an “essential service” during the pandemic. But the economics are dire. Broadcaster fees have surged nearly 600 per cent, pushing up subscription costs by 35–40 per cent. With consumers balking at higher tariffs, margins are collapsing.
“Market dynamics have become unfair for MSMEs in cable TV, as they are bound by tariff regulations while OTTs operate without comparable oversight,” AIDCF wrote.
The lobby claims a GST cut would restore affordability for households, ease working capital pressures, enable fresh broadband investment under Digital India, and protect lakhs of jobs.
AIDCF secretary general Manoj P Chhangani urged the government to table the matter at the next GST Council meet: “A reduction will safeguard the viability of MSOs and LCOs and preserve cable’s role in inclusive connectivity.”
Industry watchers caution that while OTT is growing fast, cable still dominates in small towns and villages. A tax reprieve, they say, could decide whether it remains India’s broadcast backbone—or fades into obsolescence.
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.
