Cable TV
Maharashtra government doubles cable TV tax rate
The government in the western Indian state of Maharashtra has doubled the entertainment taxes that cable TV operators have to fork out to its coffers. Taxes were levied at the rate of Rs 5,10, and 15 per subscriber, depending on the subscriber’s location. These have been doubled. The purpose to enhance the state’s revenues. The government made these announcements in the state budget for 2000-2001 announced yesterday.
Maharashtra is amongst the leading cable TV viewing states in India. And there is alarm that other state governments may also make similar moves in their budgets.
Fears have also risen that the imposition will actually lead to a rise in subscriber fees because cable TV operators will not be interested in forking out the higher duty from their pockets. Currently, cable TV subscriber rates in Maharashtra range between Rs 75 and Rs 125 a month. These are expected to go up by about 25 per cent at least with the average cable TV fees rising to Rs 125, unlike Rs 100 that is the average currently.
Says Siticable western region head D.K. Pandey: “We do not have to pay entertainment tax, it’s the cable TV operator who has to do so. We are not really impacted by the hike.”
The other MSO in Maharashtra InCableNet is expected to voice a protest against the government’s impost later today. It has been lobbying with the government on this issue. But will the higher entertainment tax result in substantially higher revenues to the exchequer?
Marginally, probably. Normally, cable TV operators tend to under-declare their subscriber base to the tune of 70 per cent to subscription channels and to government as they want to stem the outflow of money from their end. Since there are no audits or subscriber declaration compulsions to a cable TV authority, they fudge their numbers to reduce their burden. That will likely continue here too. If the tax authorities insist on tax payments based on last year’s entertainment tax disclosures, the cable operator can easily turn around and say that he has lost subscribers to rival or smaller operators or they have not renewed their subscription.
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.
