Cable TV
IL&FS acquires 26% in E-City Entertainment for Rs 1 billion
MUMBAI: Subhash Chandra-promoted E-City Entertainment has diluted 26 per cent stake to Infrastructure Leasing & Financial Services Ltd (IL&FS) for Rs 1 billion.
The funds will be used for real estate development in two new projects which will require a total investment of Rs 2 billion. “IL&FS has acquired 26 per cent stake in E-City for Rs 1 billion. We will be investing Rs 2 billion in two projects, for which we are also raising a debt of Rs 1 billion,” E-City Ventures CEO Atul Goel tells Indiantelevision.com.
E-City hived off its multiplex business into a company called Fun Multiplex Pvt Ltd last year, Goel said. The real estate business is being handled by E-City Entertainment and is setting up malls. “We decided to hive off the multiplex and real estate businesses into separate companies. We felt that the investors in real estate would not necessarily want to take exposure to the multiplex business,” Goel said.
E-City hived off its multiplex business into a company called Fun Multiplex Pvt Ltd last year, Goel said. The real estate business is being handled by E-City Entertainment and is setting up malls. “We decided to hive off the multiplex and real estate businesses into separate companies. We felt that the investors in real estate would not necessarily want to take exposure to the multiplex business,” Goel said.
The company has already invested Rs 2.17 billion in developing five projects. E-City Entertainment has put in Rs 600 million for the Andheri property (130,000 sq ft) in Mumbai, Rs 750 million in Lucknow (400,000 sq ft), Rs 550 million in Ahmedabad (160,000 sq ft) and Rs 270 million in Chandigarh (90,000 sq ft). “Three of our properties are already operational while the one at Lucknow will stand up by July. In Coimbatore we have acquired 350,000 sq ft and it should be operational by the end of next year. We are yet to identify another property but it could preferably be in the southern region,” Goel said.
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.
