Financial Performance Highlights

Operating Revenue: ₹2,658 million for Q1 FY27, representing a 19.3% decrease from ₹3,294 million in Q1 FY26.

Subscription Revenue: ₹1,613 million for Q1 FY27, showing a 40.9% decline from ₹2,731 million in Q1 FY26.

EBITDA: Negative ₹1,087 million for Q1 FY27, compared to positive ₹728 million in Q1 FY26, representing a 249.2% decline year-over-year.

EBITDA Margin: (40.9)% for Q1 FY27.

Net Loss: ₹2,863 million for Q1 FY27, compared to a net loss of ₹945 million in Q1 FY26.

Revenue Breakdown

Subscription Revenues: ₹1,613 million (60.7% of total revenues)

Marketing and Promotional Fees: ₹261 million (9.8% of total revenues)

Advertisement Income: ₹46 million (1.7% of total revenues)

Other Operating Income: ₹739 million (27.8% of total revenues)

Expense Analysis

Cost of Goods & Services: ₹2,387 million (89.8% of operating revenues)

Personnel Cost: ₹439 million (16.5% of operating revenues)

Other Expenses (Including S&D exp.): ₹920 million (34.6% of operating revenues)

Total Expenses: ₹3,745 million (140.9% of operating revenues)

Depreciation & Amortization Expenses: ₹1,156 million

Finance Costs: ₹676 million

Other Income: ₹56 million

Strategic Developments

The company is executing its long-term strategy to transform from a traditional DTH operator into a connected entertainment platform through its VZY ecosystem:

VZY Smart TV Ecosystem: Includes TV installation at consumer homes, call center for grievance redressal, bundled content including OTT, content of choice at nominal charges, and all smart TV features as per latest trends.

Always On Feature: Introduced to engage customers with pay-as-you-watch concept to minimize churn and ensure long-term association.

South Market Expansion: Introductory pack of ₹149 offered in all regional languages of South India.

Management Commentary

Manoj Dobhal, CEO & Executive Director: "Our priority continues to be creating long-term value by strengthening our core DTH business while building the connected entertainment platform of the future. During the quarter, we focused on enhancing customer experience through initiatives such as 'Always-On', expanding our regional offerings and reinforcing subscriber engagement, while simultaneously scaling the VZY ecosystem to address the evolving entertainment preferences of consumers."

Outlook and Priorities

The company outlined key priorities for coming quarters:

  • Scaling the VZY Smart TV ecosystem across priority markets
  • Strengthening integration of DTH, OTT aggregation and connected device capabilities
  • Expanding regional entertainment propositions and sports-led offerings
  • Enhancing content discovery and accessibility through technology-led innovations
  • Building strategic partnerships to strengthen the connected entertainment ecosystem
  • Driving operational efficiencies while maintaining financial discipline
  • Creating new growth opportunities across emerging entertainment segments

Comparative Performance

Year-over-year comparative figures show:

  • Subscription revenues declined 40.9% from ₹2,731 million to ₹1,613 million
  • Marketing and promotional fees declined 19.6% from ₹324 million to ₹261 million
  • Advertisement income increased 4.8% from ₹44 million to ₹46 million
  • Other operating income increased 279.2% from ₹195 million to ₹739 million
  • Cost of goods & services increased 55.8% from ₹1,532 million to ₹2,387 million
  • Personnel cost increased 4.0% from ₹422 million to ₹439 million
  • Other expenses increased 50.4% from ₹612 million to ₹920 million

Tax Impact

Current Tax - Prior Years: ₹27 million recorded in Q1 FY26 (no current tax in Q1 FY27)

Deferred Tax: No impact in either period

Notes

  • Numbers in tables may not add up due to rounding off
  • Previous year figures have been regrouped wherever necessary
  • Results are unaudited consolidated financial results