Cable TV
MSOs move Madras HC seeking relief on inter-connect pacts
MUMBAI: The All India Digital Cable Federation (AIDCF) had filed a petition in the Madras High Court few days back pleading a directive to broadcasters to maintain a status quo on renegotiating agreements between TV channels and MSOs till a final judicial call was taken on TRAI’s new tariff regime announced in 2016.
The tariff order, along with guidelines on quality of services, was stayed by the Supreme Court pending a final directive from the Madras High Court.
Pleading that renegotiating inter-connect agreements on expiry at this point of time could lead to losses to the MSOs and subscribers, in general, the apex body of digital MSOs in India has sought judicial relief.
Telecoms and broadcast regulator TRAI, Star India and its affiliate Vijay TV have been made respondents in the case that, according to industry sources, has not yet been listed for an initial hearing at Tamil Nadu’s top court.
Madras HC, which was hearing a case pertaining to TRAI’s validity to have jurisdiction over matters relating to copyrights, is yet to announce its final verdict. The petition was filed by Star India and Vijay TV in late 2016, which effectively put a stop to the implementation of a new tariff regime announced by TRAI in October 2016 for the broadcast sector and distribution platforms.
Apart from the tariff order, originally issued on 10 October 2016, the regulator had also issued the DAS interconnect regulations and the standards of quality of service and consumer protection regulations. These guidelines, after being debated and allowed by Chennai and Delhi courts initially were finally stayed by the Supreme Court earlier this year till Madras High Court disposed off the Star India-Vijay TV case questioning TRAI’s jurisdiction over certain matters relating to copyrights and freedom to carry on business.
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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.
