NETWORK18 - Netwrk.18 Media
📢 Recent Corporate Announcements
Network18 reported a 5% YoY growth in news business revenue to ₹500.4 crore for Q3 FY26, despite a 10% industry-wide decline in TV news advertising demand. The news segment's EBITDA grew 2.2% YoY to ₹11.8 crore, though the standalone entity reported a net loss of ₹107.6 crore due to exceptional items. These items included a ₹32.25 crore impairment on IBN Lokmat and ₹19.55 crore for new Labour Code obligations. The company continues to dominate the digital space with ~300 million monthly users and over 1 million paid subscribers on Moneycontrol Pro.
- News business operating revenue grew 5% YoY to ₹500.4 crore, outperforming the broader market's advertising weakness.
- Network18 maintained its #1 position with a 14.2% TV viewership share and reached 72% of India's digital news population.
- Moneycontrol Pro reached a milestone of 1 million paid subscribers, while YouTube video views grew 100%+ YoY.
- Exceptional charges of ₹51.8 crore impacted the bottom line, primarily due to investment impairments and labor code adjustments.
- Renewed a 10-year strategic partnership with CNN International to expand its digital and international footprint.
Network18 Media & Investments reported a sharp decline in consolidated revenue to ₹539.37 crore for Q3 FY26, down from ₹1,360.50 crore in the same quarter last year. Despite the revenue drop, the consolidated net loss narrowed significantly to ₹5.29 crore compared to a loss of ₹1,399.91 crore in Q3 FY25. The standalone results were weighed down by an exceptional loss of ₹51.80 crore, primarily due to an impairment of ₹32.25 crore in IBN Lokmat and ₹19.55 crore in additional labor code obligations.
- Consolidated revenue from operations decreased by 60.3% YoY to ₹539.37 crore.
- Consolidated net loss narrowed to ₹5.29 crore from ₹1,399.91 crore in the previous year's corresponding quarter.
- Standalone revenue showed modest growth of 5% YoY, reaching ₹500.42 crore.
- Exceptional standalone loss of ₹51.80 crore recorded due to IBN Lokmat impairment and new Labour Code valuations.
- IBN Lokmat became a wholly-owned subsidiary on October 29, 2025, following a ₹25 crore stake acquisition.
Network18 Media & Investments Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI Insider Trading regulations. This closure is ahead of the announcement of the unaudited financial results for the quarter and nine months ending December 31, 2025. The window will remain closed for all designated persons and their immediate relatives until 48 hours after the results are made public. The specific date for the board meeting to approve these results will be announced at a later time.
- Trading window closure effective from Thursday, January 1, 2026
- Closure pertains to the review of Q3 and nine-month financial results ending December 31, 2025
- Window to reopen 48 hours after the official declaration of financial results
- Compliance maintained under SEBI (Prohibition of Insider Trading) Regulations, 2015
Financial Performance
Revenue Growth by Segment
News Business operating revenue grew 7.2% YoY to INR 477.2 Cr in Q2 FY26, despite a 7% YoY decline in industry-wide TV News inventory demand. H1 FY26 News revenue was flattish at INR 907.6 Cr (up 1.1% YoY) due to the high base of election-linked advertising in the previous year. Consolidated operating income for FY24 was INR 9,297 Cr, while H1 FY25 income stood at INR 4,966 Cr.
Geographic Revenue Split
The company operates an all-India network with leadership in key regional markets including Marathi, Bengali, and Kannada. It maintains a dominant national position in Hindi and English news segments, reaching over 250 million people monthly across the country.
Profitability Margins
Operating EBITDA margin for the News Business was 1.5% in Q2 FY26 compared to 1.6% in Q2 FY25. H1 FY26 margin improved to 1.3% from 1.1% YoY. Consolidated net loss for H1 FY25 was INR 348 Cr, primarily due to losses in digital and print segments offsetting healthy TV news profits.
EBITDA Margin
News Business Operating EBITDA grew 5.1% YoY to INR 7.4 Cr in Q2 FY26 and 21.7% YoY to INR 11.5 Cr in H1 FY26. Consolidated PBILDT for FY24 was negative INR 658 Cr, reflecting significant investments in digital initiatives.
Capital Expenditure
Significant capital investments are directed toward content development and technology infrastructure to strengthen digital news platforms. While specific future INR Cr values are not disclosed, ICRA notes that free cash flows are expected to remain muted due to these ongoing medium-term investments.
Credit Rating & Borrowing
Short-term bank facilities and Commercial Paper are rated [ICRA]A1+ (reaffirmed in Dec 2024). The rated amount for Commercial Paper was enhanced from INR 2,250 Cr to INR 2,750 Cr. Borrowing costs are competitive due to strong parentage and a track record of refinancing short-term debt.
Operational Drivers
Raw Materials
Primary operational costs consist of content development (editorial coverage) and technology infrastructure, which represent approximately 98% of the News Business operating revenue (INR 469.8 Cr expense against INR 477.2 Cr revenue in Q2 FY26).
Import Sources
Not applicable as the company is a service-based media entity; content is primarily generated domestically across India.
Key Suppliers
Not specifically disclosed; however, the company relies on technology infrastructure providers and content creators for its 20-channel portfolio.
Capacity Expansion
Current capacity includes 20 TV channels (14 regional) and multiple digital platforms. Expansion is focused on increasing digital reach and strengthening regional market positions in Bengali and Kannada.
Raw Material Costs
Operating expenses for the News Business grew 7.2% YoY to INR 469.8 Cr in Q2 FY26, matching revenue growth. Prudent expense control resulted in flat operating costs for H1 FY26 despite inflationary pressures.
Manufacturing Efficiency
Viewership share increased by 220 bps YoY in Q2 FY26, reaching a 13.5% all-India share. Reach efficiency is marked by over 250 million monthly viewers.
Logistics & Distribution
Distribution reach is a critical driver; investments continue to ensure the network remains the largest in India by reach and viewership.
Strategic Growth
Expected Growth Rate
8-10%
Growth Strategy
Growth will be driven by scaling digital news platforms (Moneycontrol, News18.com), strengthening regional TV market leadership, and improving pricing yields. The company is also transitioning Viacom18 into a direct subsidiary of RIL to streamline the media portfolio while retaining a 13.54% stake to benefit from entertainment segment upside.
Products & Services
TV News broadcasting (20 channels), Digital News platforms (Moneycontrol, Firstpost), Print media (Forbes India, Overdrive), and digital commerce/ticketing (BookMyShow).
Brand Portfolio
CNBC TV18, CNN News18, News18 India, Moneycontrol, Firstpost, Forbes India, Overdrive, BookMyShow, Viacom18.
New Products/Services
Continued expansion of multi-lingual digital platforms and strengthening the YouTube presence, where it is currently the biggest digital news network.
Market Expansion
Targeting deeper penetration in regional markets like West Bengal and Karnataka to capitalize on growing regional language consumption.
Market Share & Ranking
Ranked #1 TV news network in India with a 13.5% all-India viewership share.
Strategic Alliances
Joint Venture for News18 Lokmat; strategic stakes in Viacom18 (13.54% post-dilution), BookMyShow (~39%), and ETPL (24.5% economic interest).
External Factors
Industry Trends
The industry is seeing a 7% decline in TV news ad inventory demand as consumption shifts toward digital and OTT. Network18 is positioning itself as a digital-first news network to capture this 15-20% annual growth in digital news consumption.
Competitive Landscape
Stiff competition from other national news networks and rapidly growing digital-only news platforms.
Competitive Moat
The primary moat is the strong parentage of Reliance Industries Limited (RIL), which holds a 56.89% stake. This provides superior financial flexibility and a 100% refinancing track record for short-term debt. The network's reach (250mn monthly) creates a significant barrier to entry for new competitors.
Macro Economic Sensitivity
High sensitivity to GDP growth and corporate profitability as they dictate advertising budgets. Soft revenue conditions were noted in H1 FY26 due to the macro environment.
Consumer Behavior
Shift toward digital news consumption on YouTube and mobile apps; Network18 has adapted by becoming the largest news network on YouTube.
Geopolitical Risks
Low direct impact, though global economic shifts can influence domestic corporate ad spending.
Regulatory & Governance
Industry Regulations
Operations are governed by MIB and TRAI regulations regarding broadcasting standards, pricing controls, and service rendering.
Environmental Compliance
Low exposure to environmental risk; adheres to Ministry of Information and Broadcasting (MIB) and TRAI guidelines.
Taxation Policy Impact
Consolidated Profit Before Tax for H1 FY26 was INR 190.10 Cr, including a share of profit from associates of INR 190.94 Cr.
Legal Contingencies
Not disclosed in available documents; no major pending court case values provided.
Risk Analysis
Key Uncertainties
Refinancing risk is a key concern as 100% of the INR 3,032.93 Cr debt is short-term. Modest operating profitability due to digital/print losses (H1 FY25 net loss of INR 348 Cr) remains a monitorable risk.
Geographic Concentration Risk
Revenue is concentrated in India, though diversified across multiple regional languages and states.
Third Party Dependencies
High dependency on BARC for viewership metrics which determine ad rates, and on corporate advertisers for revenue.
Technology Obsolescence Risk
Risk of traditional TV becoming obsolete; mitigated by aggressive digital transformation and leadership in digital news reach.
Credit & Counterparty Risk
Liquidity is adequate with INR 761 Cr in unutilised bank lines; credit profile is heavily linked to the credit strength of the parent, RIL.