Netwrk.18 Media Q1 FY27 Results (NSE: NETWORK18)
Signal: Margin expansion
The read
The operating trajectory remains a fragile recovery rather than a durable earnings inflection: consolidated revenue grew 10.3% YoY to ₹516.26 crore, but EBITDA margin of 2.3% fell 260bps QoQ as employee costs rose 12.2% YoY; the prior-year PAT comparison is also distorted by a ₹150.64 crore exceptional gain, while the reported positive EPS of ₹0.25 conflicts with the ₹38.71 crore attributable loss.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹516.26 Cr | 10.3% | -16.2% |
| EBIT | ₹-19.42 Cr | N/A | |
| Net profit | ₹-38.71 Cr | -126.0% | |
| EPS | ₹0.25 | -126.0% | |
| EBIT margin | 2.3% |
P&L walk
Revenue increased to ₹516.3 crore, +10.3% YoY but -16.2% QoQ, supported by election-led advertising; EBITDA rose to ₹11.63 crore and margin improved to 2.3% YoY but fell from 4.9% QoQ as employee costs increased 12.2% YoY; EBIT remained negative at ₹19.42 crore and PAT was a ₹38.71 crore loss after a prior-year exceptional gain.
Segments
The consolidated group materially outperformed the parent: consolidated PAT was a ₹38.71 crore loss versus standalone PAT loss of ₹77.92 crore, supported by ₹37.7 crore of associate and joint-venture profit and subsidiary contributions.
Key positives
- Consolidated revenue reached ₹516.26 crore, up 10.3% YoY, with election-led advertising and non-government inventory consumption growth of approximately 2% versus an industry decline of over 10%.
- Network18 reported 350mn+ monthly digital reach, over 6bn YouTube views in June 2026 and 32bn social-platform views in the quarter, up 31% QoQ.
- Moneycontrol Pro exceeded 1mn paid subscribers, while the fintech business benefited from improved lead quality, approval rates and click-through rates.
- Consolidated EBITDA margin improved 140bps YoY to 2.3%, although it declined 260bps QoQ because of the annual employee-increment cycle.
Key concerns
- Employee benefits expense rose 12.2% YoY to ₹208.3 crore, lifting employee cost to approximately 40.3% of operating revenue and limiting EBITDA conversion.
- Consolidated EBITDA margin fell from 4.9% in Q4FY26 to 2.3% in Q1FY27, while revenue declined 16.2% sequentially.
- Non-government advertising inventory consumption declined over 10% for the industry, and corporate advertising was affected by the West Asia conflict and weak-monsoon expectations.
- Standalone PAT was a ₹77.92 crore loss and consolidated attributable PAT was a ₹38.71 crore loss, showing that the operating recovery has not yet translated into sustainable profitability.
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