Cable TV
Government not to levy service tax on cable MSOs
MUMBAI: The government has reversed its decision to levy service tax on cable Multi-System Operators (MSOs). As per a notification issued on Friday; the decision was taken in the public interest.
The government’s decision has been welcomed by the MSOs. In-cable Network head-corporate communications Sharmila Banerjee described the decision as a great one.
“The service tax has been taking its toll on MSOs and it was going to affect the broadcasters as well. The issue has been amicably settled now. The government has taken the right decision,” Banerjee said.
All-India Cable TV Forum has also greeted this decision. The forum had given a strike call on 17 August, protesting against the government’s proposal to bring the MSOs under the service tax net. The strike was called off later.
Hathway CEO and MD Jayaraman refused to offer comments saying he is yet to get a complete picture on the government’s decision.
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.
