Cable TV
TDSAT rules in favor of DEN Networks, directs ZEE entertainment to provide channels on RIO basis
In a major victory for DEN Networks – TDSAT (Telecom Disputes Settlement and Appellate Tribunal) directed ZEE Entertainment Limited (ZEEL) to provide channels to DEN Networks on RIO basis dismissing ZEEL’s claim that SMS and CAS of DEN were not compliant with the regulations.
TDSAT has passed this order in favour of DEN Networks after taking cognizance of Broadcast Engineering Consultants India Limited (BECIL) audit report which found that DEN’s systems are fully compliant with TRAI regulations.
Earlier, DEN had filed a petition in TDSAT to go on RIO with ZEEL till the time both the parties are not able to negotiate for agreed terms of settlement and further agreement on Content Subscription. And TDSAT in its order dated 15th January 2018 had directed BECIL to hold an audit of the DEN Networks’ to find out whether it is regulation compliant or not.
Both the parties are in dispute due to outstanding dues and non-renewal of their commercial arrangement which expired on December 31, 2017.
In its order, the Tribunal had also directed both the parties to appear before CA Mediator on February 5, 2018 and asked the Mediator to submit / furnish the result of the mediation proceedings within 10 days.
Accepting the request of BECIL for additional time, the Tribunal had granted it six weeks’ time to submit the audit report of three JV companies of DEN Networks having independent DAS license alongwith independent head-end separate CAS and SMS servers.
The Tribunal also asked DEN Networks to release the pending / outstanding dues of Rs 23.50 Crore which DEN had withheld subject to resolution of the dispute.
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.
