Cable TV
Case by MSOs challenging Entertainment Tax to be heard on 27 May by DHC
NEW DELHI: Three multi-system operators were given interim relief in January in the entertainment case issue. In January, the case was adjourned to 13 March and today has further been adjourned to 27 May by the Delhi High Court. However, the HC said that the stay order issued earlier in January to multi-system operators in entertainment tax issue will continue.
DEN Networks, Hathway Cable & Datacom, and Siticable had moved the court seeking protection against the Entertainment Tax Officer’s order to pay entertainment tax.
Acting Chief Justice B D Ahmed and Mr Justice Siddharth Mridul gave the order on a plea by counsel for the petitioners.
DEN Networks, Hathway Cable & Datacom, Siti Cable and InCable were ordered to pay entertainment tax due since April 2013.
Orders were issued directing the four MSOs to file returns and deposit the pending tax amount with interest under the Delhi Entertainment and Betting Tax Act and Rules, 1996.
The MSOs argued that it was the local cable operator who should pay the entertainment tax. They had moved the Court to prevent any coercive action.
DEN and Hathway argued in the last hearing that they are not liable to pay entertainment tax from April since they have started consumer billing only from November. DEN also argued that the entertainment tax must be collected only on actual collections. The MSO also sought clarity from the tax department whether entertainment tax is paid on per subscriber or per set-top box (STB) basis. While Siti Cable adhered to pay entertainment tax, it challenged the quantum of the tax. IMCL
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.
