News Broadcasting
Fitch downgrades TV18
MUMBAI: Credit ratings agency Fitch has downgraded TV18, raising concerns over the company’s financial profile over the nine-month period of the current fiscal and deployment of large cash balances to support subsidiaries and group companies.
TV18’s operating loss in FY’09 on a consolidated basis has been primarily due to the significant launch expenses and development costs of Web 18, and to some extent due to expenses related to its print media businesses including one time charges.
Also disturbing is the pressure on profitability on TV18’s core news operations business due to a significant slowdown in the renewal of advertising contracts.
“The company has utilised a substantial portion of its liquid balances (around Rs 6.76 billion as of FY’08 and Rs 2.6 billion as of 9-month period of FY’09) in investments in group companies, primarily in Infomedia18 and direct investments into other group companies,” Fitch said.
Fitch has downgraded the rating to ‘BBB’ from ‘A.’ It has also lowered its rating outlook to negative from stable.
Fitch ratings on the following instruments
Rs 1.25 billion long-term loan – Downgraded to BBB (from A)
Rs 670.1 million term-loan – Downgraded to BBB (from A)
Rs 850 million fund-based working capital limits – Downgraded to BBB/F2 (from A/F1)
Rs 70 million non fund-based working capital limits – Downgraded to F2 (from F1)
Rs 250 million commercial paper/short-term debt programme – Downgraded to F2 (from F1)
TV18 has raised fresh debt to meet the increased requirement of working capital and support its investments. “Net debt levels increased substantially to Rs 6.6 billion at the 9-month period of FY’09 compared to negative net debt levels at FY’08,” Fitch said.
On the positive note, however, is the possible gain of advertising revenues from the upcoming elections and the budget coverage after the new government is formed.
“TV18 has also been actively undertaking cost cutting measures across its businesses, which along with the one-time nature of some of Web18’s losses due to initial launch expenses and charging off development costs, could help stem operating losses. In addition, TV18 has put on hold its earlier investment/expansion plans into new businesses such as print media, which could reduce the extent of negative free cash flows to be funded through FY’10,” Fitch said.
“Realisation of benefits from the company’s ongoing operational initiatives, coupled with a revival in advertising revenues materially benefiting credit metrics could lead to the outlook being revised back to stable, as could material reductions in net debt levels through equity infusions and/or monetisation of equity stakes in subsidiaries/group companies,” the ratings agency added.
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.
