Sun TV Network shares delivered their sharpest intraday rally in over nine years, zooming 20% to ₹663.90 on Wednesday amid speculation of a potential IPL business separation. According to The Hindu BusinessLine, the stock opened with an upside gap at ₹555 on NSE and witnessed strong buying pressure, hitting an intraday high of ₹663.90, which turned out to be a new 52-week high for the media stock. The stock has surged 45% in just seven trading days, marking its biggest intraday surge since February 3, 2017, when it skyrocketed 27%. The average trading volume jumped over nine-fold with a combined 20.39 million shares changing hands on NSE and BSE, reflecting intense investor interest in the potential demerger. As per Live Mint, experts note that the stock is rising due to rumours around the IPL franchise business demerger, with the BSE exchange having sought clarification from the company.
In a clarification to stock exchanges, Sun TV Network dismissed the reports suggesting a possible demerger of its sports division as rumours, stating it could not comment on market speculation. According to The Hindu BusinessLine, the company confirmed there was no impending material price-sensitive information or announcement that could affect the price or trading volume of its shares. The company also said it had made all necessary disclosures under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The stock was trading at ₹610, up 10.26%, at 2:46 pm on Wednesday, reflecting the market's response to the company's clarification.
The biggest boost in Q1 FY27 came from cricket operations, with Sun TV's cricket franchise revenue rising approximately 33% year-on-year, reaching nearly ₹630 crore. As reported by CNBC Awaaz, IPL-related revenue accounted for 33% of Sun TV's revenue in the first quarter, highlighting the significant contribution of cricket operations to overall performance. This strong performance in cricket operations has been a key factor in the stock's recent rally, with the potential demerger of cricket assets expected to unlock significant value for shareholders according to brokerage reports.
According to brokerage reports cited by CNBC Awaaz, the IPL franchise could be valued between $1.4 billion - 1.5 billion, or approximately ₹13,000 crore - 14,000 crore. Sun TV owns three cricket franchises: SunRisers Hyderabad in the Indian Premier League (IPL), SunRisers Eastern Cape in Cricket South Africa's T20 League, and SunRisers Leeds Ltd. in The Hundred in the UK. The company's market capitalisation currently stands at around ₹24,000 crore, while its free cash position is estimated at around ₹8,000 crore. The valuation of IPL franchises has risen sharply following major deals this year, with Royal Challengers Bengaluru (RCB) valued at around $1.78 billion and Rajasthan Royals (RR) at around $1.63 billion.
While cricket drove growth, other segments showed mixed results. According to NDTV Profit reports, advertising revenue declined 2.6%, highlighting the need for recovery in the core television advertising business. However, domestic subscription revenue grew 3.3%, providing some stability to the revenue mix. Looking ahead, several potential catalysts could drive further momentum. According to NDTV Profit reports, Jailer 2, the Rajinikanth-starrer expected to contribute to Sun TV's content and movie-related revenue in Q3FY27, represents another key driver. The company's continued investments in content creation, digital platforms, movie production and distribution, together with the addition of its international cricket franchise business, are expected to support long-term growth and strengthen revenue diversification.
