Sun TV Network Ltd. delivered robust first-quarter results with consolidated net profit rising 17% year-on-year to ₹619.07 crore from ₹529.21 crore in the corresponding quarter last year. According to the company's results, consolidated revenue from operations increased 13% to ₹1,457.88 crore from ₹1,290.28 crore in the previous year. The strong performance was supported by total consolidated income reaching ₹1,634.40 crore and consolidated earnings per share increasing to ₹15.71 from ₹13.43 in the year-ago period. As reported by CNBC TV18, total consolidated expenses increased to ₹819.78 crore compared to ₹782.01 crore during the previous year's quarter, while operational costs remained relatively stable at ₹237.73 crore. The company also reported consolidated EBITDA rising 18.6% to ₹735 crore from ₹620 crore, with EBITDA margin improving to 50.4% from 48% year-on-year.
Sun TV Network shares rose up to 6% in intra-day trade on Thursday following the strong quarterly results announcement. The shares reached ₹511.80 apiece on the NSE, up 7% during the session, though they later pared gains and were quoting at ₹490.95, up 2.67%. As per NDTV Profit, Sun TV shares rallied as much as 6.89% to ₹511.40 apiece on the BSE during the session. The positive market reaction reflects investor confidence in the company's diversified revenue streams and strong operational performance across its television, radio, movie production, and cricket franchise segments. However, the stock has shown mixed longer-term performance, falling 3% in one month, declining 9% in three months, dropping 17% in one year, and plunging more than 40% over the past two years.
A significant driver of the quarter's performance was income from the company's cricket franchises — Sunrisers Hyderabad, Sunrisers Eastern Cape, and Sunrisers Leeds Limited — which totalled ₹629.83 crore in Q1FY27, compared to ₹473.03 crore in Q1FY26. Revenue from the IPL franchise jumped 33% year-on-year and nearly eight times quarter-on-quarter to ₹630 crore, accounting for around 44% of the company's total revenue. Corresponding costs for the franchises were ₹321.17 crore (standalone) and ₹324.31 crore (consolidated), up from ₹256.09 crore in both cases during the previous year's quarter. The surge in profitability is heavily influenced by non-media core operations, with cricket franchise income accounting for a substantial portion of the total revenue. Cricket franchise fees increased sharply to ₹123.32 crore from ₹17.98 crore in the preceding quarter, reflecting the seasonal nature of these sports-related expenses. The company's diversified portfolio across television channels, FM radio, movie production, and cricket franchises positions it well for continued growth opportunities.
Advertising revenue stood at ₹282.51 crore for the quarter, compared with ₹289.94 crore in the year-ago period, showing a marginal decline. However, domestic subscription revenue increased around 3% to ₹485.46 crore from ₹470.12 crore in the corresponding quarter last year. The subscription revenue growth demonstrates the company's ability to monetize its content portfolio effectively across its southern and northern language channels. Total income reached ₹1,590.23 crore, supported by other income of ₹166.84 crore, while the company's diversified portfolio across television channels, FM radio, movie production, and cricket franchises positions it well for continued growth opportunities.
CLSA has retained its 'Outperform' rating on Sun TV for a target price of ₹615, implying an upside of nearly 29% from the current price of ₹476.50. The brokerage noted that more than 80% of Sun TV's market capitalisation is attributable to its IPL franchise and highlighted the company's dividend yield of around 3%. CLSA expects the company to post a 12% CAGR over FY26-29 and retained its earnings forecasts despite the soft advertising environment. The company has declared an interim dividend of ₹5 per share for the quarter, representing 100% of the ₹5 face value of each share, with the dividend record date fixed as August 18, 2026. This dividend declaration underscores the company's strong cash generation capabilities and reflects management's positive outlook for the business going forward.
