Financial Performance Overview

Sun TV Network Limited reported mixed FY26 results with standalone revenue growth of 5.8% to ₹4,102.13 crores from operations, but net profit declined 15.8% to ₹1,393.52 crores. The profitability decline was primarily driven by increased operating expenditure (₹2,658.80 crores vs ₹2,315.99 crores previous year) and higher depreciation & amortization costs (₹703.68 crores vs ₹521.72 crores).

Key Financial Metrics

  • Profit Before Tax: ₹1,876.24 crores (decline of 12.9% YoY)
  • Earnings Per Share: ₹35.36 (down from ₹41.98 in FY25)
  • Return Ratios: ROCE declined to 14.5% from 17.18%, ROE reduced to 12% from 15%
  • Liquidity Position: Strong with zero debt, ₹209.6 crore cash, and ₹5,913.3 crore in current investments
  • Current Ratio: 7.75 (down from 9.25 in FY25)

Dividend Distribution & Capital Structure

The company declared a total dividend of 250% (₹12.50 per share) for FY26, reduced from 300% in the previous year, resulting in total dividend outgo of ₹492.61 crores. The paid-up share capital remained unchanged at ₹197.04 crores divided into 39,40,84,620 equity shares, with promoter Kalanithi Maran holding 75% stake.

Significant Business Developments

Acquisition of SunRisers Leeds Limited: The company acquired 100% equity in Northern Superchargers Limited, UK (renamed SunRisers Leeds Limited) for GBP 100.5 million (₹1,190.88 crores), expanding its international cricket franchise portfolio.

Impairment Charges: Recorded exceptional impairment of ₹98.43 crores on investment in joint venture South Asia FM Limited, with recoverable amount determined at ₹277.39 crores.

Labour Code Provision: Provided ₹4.23 crores for incremental impact of new labour codes effective from November 21, 2025.

Regulatory Compliance & Governance

The company obtained SEBI waiver for fines related to delayed compliance with Listing Regulations for quarters ended September and December 2024. CSR expenditure of ₹42.67 crores exceeded the mandated 2% requirement. The 41st AGM is scheduled for September 18, 2026 via video conference.

Contingent Liabilities & Risk Management

Outstanding tax disputes total ₹94.24 crores across income tax (₹63.05 crores), service tax (₹29.09 crores), and GST (₹2.10 crores) under various appeals. The company maintains adequate internal financial controls and comprehensive risk management policies.

Subsidiaries & Investments

Subsidiaries: Kal Radio Limited (96.57% holding), SunRisers Leeds Limited (100% acquired)

Joint Venture: South Asia FM Limited (58.68% holding)

Investments include ₹5,221.16 crore in Level 1 quoted instruments and ₹1,748.16 crore in Level 2 taxable bonds.

Management & Auditors

Key management includes Executive Chairman Kalanithi Maran and Managing Director Mahesh Kumar Rajaraman. Statutory auditors S.R. Batliboi & Associates issued unqualified opinion, highlighting credit loss allowances and impairment assessments as key audit matters.