Cable TV
Kolkata based MSOs, LCOs receive summons from service tax department
KOLKATA: The Kolkata based Multi System Operators (MSOs) and local cable TV operators (LCOs) had uninvited guests last week. They were taken by surprise when the service tax officials conducted two raids to probe into their alleged financial irregularities. And, this in a digital addressable system (DAS) cable TV ecosystem which reveals the business and operations of these players at length.
Apart from service tax, the income tax department also searched the premises of one of the big MSOs. And if sources are to be believed, the MSO made an upfront payment of around Rs 50 lakh – Rs 75 lakh to the income tax authorities.
More than 350 cable operators have been issued summons for evading service tax payments for the past five years, sources said. “As per market reports two MSOs were raided last week, who then had to cough up huge amounts to the service tax authorities. The officials questioned the accountant of the MSOs on the financial details,” said a cable TV industry insider.
It is also learnt that another MSO who had evaded service tax amounting to Rs 15 crore – Rs 20 crore spanning over four years, had to cover up the case by paying a huge amount to the authorities. “It is learnt that the company deposited a huge amount, though I am unsure of the exact amount,” the source added.
Though the second MSO, whose office was raided on Thursday paid Rs 2.5 crore (approximately) to the service tax department officials. “Another Rs 50 lakh – Rs 75 lakh was given to the income tax department,” he informed.
“The raid was part of a probe into financial transactions for suspected alleged tax evasion by the cable TV operators in Kolkata,” he said.
A cable operator under Gujarat Telelink, an MSO, informed that as per the summons, the operator has to furnish details of the number of set top boxes installed and also the account details for the past five years. “If we don’t furnish it, we might be in trouble,” he said.
Cable industry sources inform that cable TV operators are liable to pay 12.36 per cent as service tax to the authorities from the subscription amount collected every month from the customers.
Kolkata based operators are treading in troubled waters. First it was the Telecom Regulatory Authority of India (TRAI) which planned to take strict action against the MSOs and LCOs for not collecting and feeding the CAF details into the system for DAS implementation and now they face the wrath of tax inspectors.
Seems like it is time for operators to buck up and clear all past payments to avert any embarrassing situation in the DAS environment.
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.
