Cable TV
DEN Networks to de-merge broadband biz; consolidate cable TV enterprises
NEW DELHI: With an aim of creating a distinct identity for each of its enterprises, major multi-satellite operator Den Networks Ltd to merge 23 subsidiaries in the cable business and to de-merge its broadband business into a wholly owned subsidiary.
The Board of Directors has granted in-principle approval for the changes following corporate action subject to regulatory and shareholder approval.
The aim is to strengthen the single brand leading to a stronger market presence, providing customers with a seamless on-board experience, and removing any other brand perceptions and distinctions in customers’ minds.
The structure will result in economies of scale and reduce administrative and regulatory compliances and a more focused operational effort, realising synergies in terms of compliance, governance, administration and cost synergies.
The de-merger of broadband will enable a focused attention on the Internet Service Provider business and achieve structural and operational efficiency, enhanced competitiveness and greater accountability besides accelerating value creation for shareholders, the company said.
Furthermore, the separation will allow DEN to aggressively focus on the significant growth potential for high speed data and related services in India.
DEN also intends to take the lead in driving wire line broadband penetration in India.
DEN Networks CEO Pradeep Parameswaran said, “We are focused on creation of a distinct identity for each of our businesses and the recent in-principle board approval is a step in this direction. This corporate structure will strengthen the brand while also giving us an opportunity for shareholder value creation.”
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.
