Cable TV
Cable TV operators go on two day strike to protest against entertainment tax
Cable TV operators in the metro city of Mumbai are on a two day strike to protest against a hike of 100 per cent in the Entertainment Tax levied by the government.
This move by the cable operators was after they failed to constitutionally bar the Government of Maharashtra from increasing the entertainment tax levied on them. The cable operators had earlier petitioned in the Bombay High Court that the Maharashtra government which had promulgated the tax through an ordinance and later legislated it trough the state legislature was unfair to them as the tax on entertainment should be charged on TV set owners and that they were only being made the government collection agents.
The government is charging the cable operators per TV set at the rate of Rs 30 in municipal limits and cantonments, Rs20 in all ‘A’ and ‘B’ class municipal councils and Rs 10 in other areas, an increase of 100 per cent from the earlier rates of Rs 15, Rs 10 and Rs 5. However the High Court citing past Supreme Court judgements said that the state legislature had legislative competence to enact the duty as entertainment was a taxable event. The court also dismissed the cable operator’s petition saying that all businesses are subject to taxation and Cable TV operators are no exception.
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.
