Cable TV
Den Network gets board nod to include primary market route for foreign investment
MUMBAI: Den Network’s board of directors has given its nod for filing of application to Foreign Investment Promotion Board (FIPB) for modification of the approval to include the primary market route as well.
The primary market route could include issuance of long term securities including equity, quasi equity, GDR, QIP, FCCB, preferential allotment, bonds or any other appropriate securities, subject to the approval of the shareholders and all other applicable laws and statutory approvals as may be required.
The board considered that the company has already got the approval from FIPB, Ministry of Finance on 14 August, 2015 to increase foreign investment limit in the company beyond 49 per cent and up-to 74 per cent by FIIs, NRIs, FPls and other eligible foreign investors through the route of secondary market and open market purchase.
It may be recalled that late last month, the Reserve Bank of India (RBI) too gave the company its approval for foreign investors to raise their stake in the company up to 74 per cent.
At the end of the September quarter (Q2-2016), foreign portfolio investors (FPIs) held a 22.79 per cent stake in the company, whereas the promoters’ stake in the cable operator was 40.05 per cent.
The company’s Board of Directors, at its meeting held on 3 November, also approved the resignation of nominee director of the company Shahzaad S Dalal.
Den also approved the appointment of Krishna Kumar as non executive nominee director of the company.
Den Network will also seek approval from the Ministry of Information and Broadcasting (MIB) and statutory authorities for the appointment of Archana Hingorani as non-executive nominee director.
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.
