News Broadcasting
Sun TV posts weaker Q4 earnings as advertising growth slows
Weak advertising and margin pressure cloud Q4, though cash strength supports long-term optimism
MUMBAI – Not quite sunshine on the balance sheet. Sun TV Network reported a softer-than-expected fourth quarter for FY26, with weaker advertising revenue and margin pressure dragging performance below street estimates, according to a fresh report by Elara Securities.
For the quarter ended March 2026, Sun TV posted revenue of rupees 8,485 million, down 6.7% year-on-year, while EBITDA slipped 11.1% to rupees 3,795 million. EBITDA margin narrowed to 44.7%, a decline of 223 basis points from a year earlier. Adjusted PAT fell sharply 33.5% to rupees 2,896 million, missing analyst expectations.
The biggest drag came from advertising, traditionally one of Sun TV’s strongest levers. Ad revenue dropped 10.1% year-on-year to rupees 2,760 million, reflecting what analysts describe as a structural shift by FMCG advertisers towards digital platforms rather than a short-term cyclical slowdown.
There was, however, one bright spot. Subscription revenue rose 9.6% in the quarter to rupees 4,964 million, helped largely by a 7-8% tariff hike implemented during the year. That said, analysts expect this growth to moderate as the higher base kicks in.
For the full year FY26, Sun TV delivered revenue of rupees 41,021 million, up 5.8%, while adjusted PAT came in at rupees 14,962 million, down 13.4% year-on-year. EBITDA stood at rupees 21,565 million, with margin at 52.6%.
Despite the muted quarter, Elara has retained its ‘Buy’ rating on the stock and raised its target price to rupees 730 from rupees 700, implying a potential upside of 41% from the current market price of rupees 519 as on May 21, 2026.
The brokerage cited Sun TV’s robust balance sheet, including rupees 63 billion in cash and investments, as a major support, noting that this could potentially translate into stronger shareholder returns through dividends.
Looking ahead, all eyes will be on whether upcoming content releases, including Jailer 2, can provide a near-term boost, while the bigger challenge remains clear: turning down the noise from advertising headwinds and tuning back into sustainable growth.
