GECs
Media stocks: will they tumble down further?
The fear was palpable. As trading closed on the Bombay stock exchange a chill went down the spines of media related executives as the rumour gathered pace that action was being planned against the biggest player on the Indian stock markets. The broker, who reportedly paid out advance tax of Rs 910 million sometime back, is likely to be arrested on the morning of 6 March, if the buzz is to be believed. Apparently, some documents implicating him were discovered in the locker of film financier and diamond baron Bharat Shah, who is currently in the cooler for his alleged links with the underworld.
If the gossip turns out to be true then there could be a run on the stock markets. And on media, telecom and software stocks as the broker is believed to have huge exposures to Zee Telefilms, HFCL, Global Telesystems and some say Balaji Telefilms, amongst several other stocks. That the market is wary was seen from the selling pressure on Zee, HFCL and Global Tele. Zee Telefilms crashed to a new 12 month low when it slumped to below Rs 115. HFCL and Global Tele also saw more than 16 per cent being lopped off from their share price.
Saregama India (Rs 286.95) lost 16 per, Jain Studios (down 13.75 per cent to Rs 56.90), Balaji Telefilms (Rs 205.90), Mukta Arts (Rs 171.60), Creative Eye (Rs 28.80), Padmalaya Telefilms (Rs 65.75), Cinevista Communications (Rs 68.05), Tips Industries (Rs 129.30) and Vision Tech (Rs 23.75) were media shares that went into a tizzy.
The alarm bells were ringing with the possibility of Zee TV dropping to below the Rs 100 mark should the arrest of the broker happen on 6 March. The broker has in recent times turned a seller of the Zee stock as he has got into a bit of a financial crunch on account of the take over of Global Trust Bank by the Unit Trust of India.
GECs
Sahara One reports financial results, notes director exit and business realignment
Muted revenues, steady expenses and strategic adjustments shape company’s current phase
MUMBAI: In a tale where the sands seem to be slipping faster than they can be gathered, Sahara One Media and Entertainment Limited has reported another quarter of wafer-thin income and widening losses, even as a boardroom exit adds to the unease.
The company informed the Bombay Stock Exchange that its board, in a meeting held on April 4, approved its unaudited financial results for the quarter ended September 30, 2025. The numbers paint a stark picture. Total income for the quarter stood at just Rs 0.13 lakh, unchanged sequentially and sharply down from Rs 0.26 lakh a year earlier.
Losses, meanwhile, deepened. The company posted a net loss of Rs 24.16 lakh for the quarter, compared to Rs 18.81 lakh in the June quarter and Rs 39.69 lakh in the same period last year. For the six months ended September 2025, the cumulative loss stood at Rs 39.69 lakh, while the full-year loss for FY25 was reported at Rs 60.72 lakh.
Expenses continued to outweigh income by a wide margin. Total expenses for the quarter came in at Rs 24.30 lakh, led by employee benefit costs of Rs 6.51 lakh and other expenses of Rs 17.78 lakh. Earnings per share remained in the red at Rs (0.11) for the quarter.
The balance sheet reflects a company with significant assets on paper but limited operational momentum. Total assets stood at Rs 23,065.57 lakh as of September 30, 2025, broadly unchanged from March 2025. Equity share capital remained steady at Rs 2,152.50 lakh, while total equity was reported at Rs 18,004.85 lakh.
Cash and cash equivalents saw a modest uptick to Rs 6.75 lakh from Rs 4.68 lakh earlier, supported by a positive operating cash flow of Rs 180.01 lakh for the period.
Yet, beneath these numbers lies a more complex narrative. The company’s auditors flagged their inability to obtain sufficient evidence to form a conclusion on the financial statements, citing lack of access to records. They also raised concerns over the company’s ability to continue as a going concern, pointing to insufficient funds, delayed recoveries, and stalled content investments.
Adding to the governance overhang, the company disclosed that Rana Zia has resigned as whole-time director, effective October 16, 2025, citing other professional commitments. The resignation, noted and accepted by the board, also brings an end to her role across company committees.
Regulatory pressures continue to loom large. The Securities and Exchange Board of India has already initiated penal actions for non-compliance with listing norms, with trading in the company’s shares remaining suspended. There is also a risk of promoter demat accounts being frozen.
Legacy legal issues remain unresolved. A substantial deposit of Rs 694,027.88 thousand linked to the long-running OFCD dispute involving Sahara group entities is still under the purview of the Supreme Court of India. Restrictions on asset disposal continue to weigh on the company’s financial flexibility.
Operationally, challenges persist across multiple fronts. Advances worth Rs 1,92,916 thousand given for film content remain stuck, with delays in project completion and uncertain recoverability. The company’s YouTube channel, despite being operational, has generated no revenue for over three years due to compliance lapses. In a further twist, management has indicated that revenues may have been fraudulently diverted through unauthorised changes to its AdSense account, with a police complaint in the works.
There are also missed revenue opportunities. Television content rights continue to be used by a related party despite the expiry of the licence agreement, with fresh negotiations still underway.
For now, Sahara One Media and Entertainment Limited appears caught between legacy disputes and present-day operational hurdles. As losses linger and governance questions mount, the road to recovery looks less like a sprint and more like a slow trudge through shifting sands.
