News Broadcasting
Entertainment sector seeks tax sops
NEW DELHI: The entertainment industry, comprising various segments, today collectively made a representation to the finance ministry seeking tax sops, including exemption from service tax for film distribution.
The industry’s pre-budget memorandum was given at a meeting with the revenue secretary today. The industry was led by joint secretary (broadcasting) in the information and broadcasting ministry, the nodal ministry for the entertainment industry.
Those who participated in today’s meeting included representatives from Film Federation of India, Film Producers Guild of India, Indian Music Industry, Confederation of Indian Industry and Federation of Indian Chambers of Commerce and Industry.
The delegation put forth the following key issues for consideration of the finance ministry in the forthcoming Union Budget.
The representatives from the music industry requested for a more pragmatic approach to tackle the menace of piracy from the ministry of finance. Taking the example of the steps taken by the Central Government to curb the gray market for gold and cellular phones (through a more rational levy structure), representatives of the music industry suggested lower rates of tax for music cassettes and CD’s under VAT regime. In the absence of this, the industry fears that the price difference between the legitimate product and the pirated product will become substantial, thus fuelling piracy even more.
The broadcast sector has demanded that duties, including the countervailing duties, be rationalized, so that the difference between the cost of import and production could be removed. The industry feels that this could help the local industry and would help in the digitization of the industry. Another request of the sector is that the duty structure on the cable and broadcasting should be rationalized and lowered to match those levied on telecom equipment.
The issue of countervailing duty in respect of raw stock was the main point raised by the representative in the Film Federation of India and the Film Producers Guild of India.
The delegation drew the attention of the finance ministry officials to the service tax levied on distribution business, contending that film distribution is not a service sector activity and, therefore, should not be liable for service tax.
The delegation has sought exemption of export duty on the equipment needed for providing education in the field of film and television.
It was also highlighted that the film industry should get similar treatment as the tea and coffee industry. A specific request was concessions similar to Section 33 AD of the Income Tax Act.
News Broadcasting
Network18 Q4 revenue grows 9.7 per cent, EBITDA at Rs 30 crore
PAT improves to Rs 306.6 crore, margins steady amid cost pressures.
MUMBAI: Not all news is breaking, some of it is quietly improving. Network18 Media & Investments Limited appears to be doing just that, tightening losses and stabilising margins even as costs continue to weigh on the business. For FY26, the company reported revenue from operations of Rs 1,955.1 crore, up from Rs 1,896.2 crore in FY25, signalling modest top-line growth in a challenging media environment. Total income stood at Rs 1,978.2 crore, compared to Rs 1,913 crore a year earlier.
Profit after tax came in at Rs 306.6 crore for the year, a sharp turnaround from Rs 3,225.4 crore in FY25, largely reflecting the absence of large exceptional items that had inflated the previous year’s numbers. On a more comparable basis, the company’s operating performance showed signs of gradual stabilisation.
However, the quarterly picture remained under pressure. For the March quarter, Network18 reported a loss of Rs 53.1 crore, narrower than the Rs 98.1 crore loss in the same period last year, but still indicative of ongoing cost challenges.
Expenses continued to track high. Total expenses for FY26 stood at Rs 2,235.7 crore, up from Rs 2,197.8 crore in FY25. Key cost heads included operational expenses of Rs 765.9 crore, employee benefits of Rs 475.9 crore, and marketing, distribution and promotional spends of Rs 427.1 crore, underlining the continued investment required to sustain reach and engagement.
At an operating level, margins remained under strain. Operating margin stood at 2.33 per cent for FY26, marginally higher than 1.77 per cent in FY25, while net profit margin remained negative at -13.02 per cent, though improved from -14.89 per cent.
On the balance sheet, total assets rose to Rs 8,957.6 crore as of 31 March 2026, from Rs 8,317.5 crore a year earlier. Equity strengthened to Rs 4,958.7 crore, while borrowings increased to Rs 3,112.8 crore, reflecting a higher reliance on debt to support operations.
Cash flows told a mixed story. While financing activities generated Rs 83.9 crore, operating cash flow remained negative at Rs -24 crore, highlighting ongoing pressure on core cash generation. Cash and cash equivalents, however, improved to Rs 33.9 crore from Rs 1.8 crore.
The numbers point to a company in transition growing revenues, trimming losses, but still grappling with structural cost pressures. In a sector where scale often comes at a price, Network18 seems to be inching towards balance, one quarter at a time.
