Den Networks Q2 FY27 Results (NSE: DEN)
Signal: Revenue declined
The read
The operating trajectory remains negative: consolidated segment loss widened to ₹86.78 million and gross margin compressed 671bps YoY as content cost reached 69.8% of revenue, while PAT growth of 4.6% was entirely supported by ₹607.29 million of other income; this is the ninth consecutive quarter of margin contraction in the recent series.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹232.56 Cr | -3.7% | -4.2% |
| EBIT | ₹-8.98 Cr | -89.9% | |
| Net profit | ₹36.77 Cr | +4.6% | |
| EPS | ₹0.76 | +2.7% | |
| EBIT margin | -3.7% |
P&L walk
Revenue fell 3.7% YoY and the operating result deteriorated to a ₹89.76 million loss as content cost rose to 69.8% of revenue; PAT still rose 4.6% because other income increased 17.4% to ₹607.29 million.
Segments
Cable distribution remained the main drag, with revenue down 2.7% YoY and segment loss widening to ₹80.07 million; broadband revenue fell 20.9% and its result turned to a ₹6.71 million loss from a ₹4.57 million profit.
Key positives
- Other income rose 17.4% YoY to ₹607.29 million, supporting consolidated PAT of ₹367.74 million despite an operating loss.
- Consolidated finance costs fell 35.2% YoY to ₹2.98 million and depreciation fell 19.4% to ₹187.32 million.
- The group retained substantial liquidity, including ₹30,490.05 million of bank balances and ₹3,570.84 million of current investments at 30 September 2026.
Key concerns
- Content cost rose to 69.8% of consolidated revenue from 63.2% a year ago, compressing gross margin by 671bps; the filing does not disclose a driver.
- Both operating segments were loss-making: cable distribution lost ₹80.07 million and broadband lost ₹6.71 million.
- Revenue declined 3.7% YoY to ₹2,325.57 million, while broadband revenue contracted 20.9% to ₹94.72 million.
- PAT quality remains weak because ₹607.29 million of other income exceeded the ₹89.76 million operating loss; H1 consolidated CFO was only ₹31.35 million versus PAT of ₹713.63 million.
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