Den Networks Q1 FY27 Results (NSE: DEN)
Signal: Margin pressure
The read
Core business remains deeply loss-making; profit entirely dependent on other income from invested proceeds. PAT declined 35.5% YoY as other income fell 21.6% and segment operating losses widened. No improvement in margins; 8th consecutive quarter of contracting OPM on a YoY basis.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹242.77 Cr | 0.62% | 0.92% |
| Net profit | ₹34.59 Cr | -35.5% | |
| EPS | ₹0.77 | ||
| EBIT margin | -3.01% |
P&L walk
Revenue flat YoY at ₹2,427.74 Cr, but content cost rose 10.1% YoY, compressing gross margins. Employee cost declined 23.6% YoY, but segment operating losses widened to ₹73.16 Cr (vs ₹33.71 Cr YoY). Other income fell 21.6% YoY to ₹553.98 Cr, the primary driver of net profit. PAT attributable to owners down 32.3% YoY to ₹367.06 Cr.
Segments
Both cable (PBIT -63.49 Cr) and broadband (-9.67 Cr) segments are loss-making at operating level, with cable losses widening sharply YoY from -21.01 Cr, dragging consolidated results; profitability is entirely dependent on other income of ₹553.98 Cr.
Key positives
- Revenue stabilized with slight YoY growth (0.6%) after several quarters of decline.
- Employee cost reduced 23.6% YoY, indicating cost control measures.
- Depreciation declined 17.9% YoY, easing cash flow burden.
Key concerns
- Cable segment PBIT loss widened to -63.49 Cr from -21.01 Cr YoY.
- Broadband revenue declining YoY (-8.5%).
- Other income, the main profit driver, fell 21.6% YoY.
- Consolidated PAT attributable to owners down 32.3% YoY.
- Core operations (both segments) loss-making for multiple quarters.
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