News Broadcasting
Excise duty cut on STBs bring little cheer to local manufacturers
MUMBAI: The finance ministry’s decision to notify a reduction in customs duty from 25 per cent to 5 per cent on key components of a set-top box — tuners, remote control units and RF-modulators – in addition to abolishing excise duty on set-top boxes (STBs) has upset local manufacturers. There is a feeling that locals who make these items for television and perhaps telecom equipment will be hit because imports of these components will be cheaper than local manufacture, in the absence of countervailing duty on the import.
Broadband Pacenet (India) CEO S Ravindran reacts by saying: “Considering the estimated demand of 40 million boxes, the only way the government can give a boost to the local Indian industry is if the IPR for the design of the box and CAS is held in India. Otherwise, import is cheaper and the government will only play into the hands of foreign manufacturers. The moot point is that the box and CAS are integral units – that is why STBs can be rented (avoiding sales tax) because the box is part of the plant controlled by CAS.”
Experts are also critical of the fact that the ministry has not exempted the key components from excise duty. Sanjiv Narayan, president, Electronics Component Industry Association (Elcina), was quoted in a leading business daily as saying that if the components manufactured locally carry a 16 per cent excise duty but there is no excise duty on a finished STB, there is no set off for the manufacturer and the value-addition chain is broken.
HTMT group director and CTO KV Seshasayee says that the situation will not be clear until notiifcation comes through. “There is no excise duty if these items are imported – the components are not sold to customers. Presently these componenets are not made in India. ELCINA should be able to get clarification from the Ministry that if they supply these items locally, the STB manufacturer should be able to claim drawback on this, or the tuner manufacturer should be excise exempt when delivering to STB vendor. The remote control units are already made in India, and costs are comparable,” he adds.
Seshasayee also adds: “These are operational matters which component manufacturers have to work out with government. We as MSOs can help in the process.”
Broadband’s Ravindran also feels that the government’s strategy is anti-consumer. “The royalty on CAS can be calculated at $10/box and smart cards are replaced every year and cost $4. These will be continuous outflows and the subscriber will have to bear this cost. Certainly the government is not endeavouring to make it consumer friendly as other countries have done. In China, the government has made Chinacrypt as standard–so consumer gets flexibility and the government gets security. “
According to industry sources, manufacturers in China are able to supply globally because domestic policy allows them to manufacture locally for exports as well as domestic consumption.
Asked to comment on the government’s latest effort to get STBs moving in the market and the reaction of local manufacturers, HTMT group director and CTO KV Seshasayee said the situation would only be clear after the government notification came through.
He however made two points. The first being that there is no excise duty if these items are imported (the components are not sold to customers).
And referring specifically to the complaints made by local manufactuerers, Seshasayee said, “Presently these componenets are not made in India. Elcina should be able to get a clarification from the ministry that if they supply these items locally, the STB manufacturer should be able to claim a drawback on this, or the tuner manufacturer should be excise exempt when delivering to STB vendor. Remote control units are already made in India, and costs are comparable.”
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.
