Cable TV
Den receives Law Tribunal nod for restructuring
BENGALURU: Indian multi system operator (MSO) Den Network Limited (Den) and wired broadband internet services provider has informed the bourses today (Friday) that the National Company Law Tribunal has approved a composite a composite scheme of arrangement for merger of 23 subsidiaries and demerger of one subsidiary.
On 16 February 2017, the board of directors of Den had informed the stock exchanges that its board had mooted merger of 23 of its subsidiaries in the cable business into one wholly owned subsidiary. The merger would lead to the strengthening of the single brand leading to a stronger market presence, providing customers with a seamless on-board experience and remove any other brand perceptions/distinctions in the consumers’ minds. The merger would also result in economics of scale and reduce administrative and regulatory compliances; would help in more focused operational efforts, realizing synergies in terms of compliance, governance, administrative and cost synergies explained the company.
Den said that the broadband demerger would enable a focused attention on the ISP business and achieve structural and operational efficiency, enhanced competitiveness and greater accountability besides accelerating value creation for shareholders. The company felt that the separation would allow the company to aggressively focus on significant growth potential for high speed data and related services in India; and that Den intended in taking the lead in driving wireline broadband penetration in India.
This was followed up with further details about the merger / demerger that were submitted to the stock exchanges on 5 September 2016.
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.
