GECs
Zee non-committal to BSE on RBNL acquisition report
MUMBAI: During a period when big-time mergers and acquisitions are popping out of the cupboard while others are being fine-tuned, Zee Entertainment Enterprises Ltd (ZEEL) is not willing to confirm or deny that it’s buying Reliance Broadcast’s businesses. At least, for now.
In response to a news report appearing in a business daily on 13 October, ZEEL gave a non-committal response to Bombay Stock Exchange (BSE) yesterday. The company statement said, “We, Zee Entertainment Enterprises Limited, wish to clarify that the said report/article is only a media speculation. As a company, we keep exploring options from time to time and will inform the Exchanges, media and shareholders, if, and as and when, any such decision(s) are reached.”
The clarification given to BSE is purely non-committal corporate-speak as Zee neither denied the news report, nor confirmed it.
However, the business daily report on 13 October, 2016 emphasised that “it was done deal” and went ahead to even state that the deal was worth around Rs 18,720 million for the radio and television business owned by Reliance.
The ZEEL share, which closed on the BSE at Rs. 546.55 on Oct 13, opened the next day at Rs.550.75 to close lower at R. 528.50 on 14 October, 2016.
Speculation about the Subhash Chandra-led ZEEL buying Anil Ambani-owned Reliance Broadcast Networks Ltd (RBNL) has been making rounds of financial markets and journalistic circles for some time now. Media reports had earlier stated that the ZEEL-RBNL deal has been a case of on-now-off-tomorrow.
Indiantelevision.com, while reporting on the issue on 5 October, 2016, had sought clarification from ZEEL spokesperson who had then stated, “From time to time, we keep exploring strategic opportunities for entering new businesses or in our existing businesses. However, as a matter of policy, we do not comment on media speculation.”
The corporate response to media queries from Zee has been similar even when deals — TEN Sports sale to Sony Pictures Network India, for example — were confirmed later and formally announced. When speculation about Siti Cable buying DEN Networks gathered steam, a similar line was thrown. Ditto was the response with Dish TV’s ongoing discussions to acquire Videocon d2h from the debt-laden-and struggling Videocon group.
Acquiring RBNL businesses, which include Bhojpuri language channel BIG Ganga, a comedy-centric BIG Magic and a successful FM radio business, can certainly add to Zee’s portfolio of entertainment verticals.
Overall, the media industry may be ripe for consolidation; especially at a time when the regulator too is trying to bring about more order and transparency in the Indian broadcast sector via its draft guidelines.
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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.
