Sun TV Network Q1 FY27 Results (NSE: SUNTV)
Signal: Margin expansion
The read
Q1FY27 marks a clear rebound from Q4FY26: consolidated revenue rose 13.0% YoY to ₹1,457.88 crore and PAT rose 17.0% to ₹619.07 crore, driven mainly by ₹629.83 crore of cricket franchise income and lower finance costs; however, advertising revenue fell 2.6% to ₹282.51 crore and other income of ₹176.52 crore accounted for 21.7% of PBT, so the quality and repeatability of the earnings recovery remain the key thesis question.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,457.88 Cr | 13.0% | +65.2% |
| EBIT | ₹816.03 Cr | 16.5% | |
| Net profit | ₹619.07 Cr | 17.0% | |
| EPS | ₹15.71 | 17.0% | |
| EBIT margin | 62.5% |
P&L walk
Revenue increased to ₹1,457.88 crore, +13.0% YoY and +65.2% QoQ, while EBITDA rose to ₹911.82 crore, +12.8% YoY; PAT increased 17.0% to ₹619.07 crore, although ₹176.52 crore of other income represented 21.7% of PBT.
Key positives
- Consolidated revenue reached ₹1,457.88 crore, up 13.0% YoY after Q4FY26 revenue of ₹882.51 crore, indicating a strong sequential recovery.
- Cricket franchise income increased to ₹629.83 crore from ₹473.03 crore YoY, providing the main disclosed growth engine.
- Domestic subscription revenue rose 3.3% YoY to ₹485.46 crore, showing modest recurring-revenue growth despite advertising revenue declining 2.6%.
- EBITDA increased 12.8% YoY to ₹911.82 crore and reported EBITDA margin was 62.5%, while finance costs fell 60.3% YoY to ₹1.41 crore.
- EPS rose 17.0% YoY to ₹15.71, tracking PAT growth without a dilution signal; the board also declared a ₹5.00 interim dividend per share.
Key concerns
- Advertising revenue declined 2.6% YoY to ₹282.51 crore, so the 13.0% revenue growth was not broad-based across the core media monetisation streams.
- Other income of ₹176.52 crore was 21.7% of consolidated PBT, making reported PAT of ₹619.07 crore partly dependent on non-operating income.
- Domestic subscription revenue grew only 3.3% YoY to ₹485.46 crore, below total revenue growth and insufficient on its own to offset pressure in advertising.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.