Sun TV Network Q2 FY27 Results Analysis: Revenue Plunges 31%, Margin Compresses 1,210 bps (SUNTV)
Sun TV Network Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 801.76 Cr (-31.41% YoY) and PAT growth of +3.66% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 30, 2026 |
|---|---|
| Revenue (Q2) | Rs. 801.76 Cr (-31.41% YoY) |
| PAT (Q2) | Rs. 341.87 Cr (+3.66% YoY) |
| EBITDA margin | 52.05% (-1210 bps YoY) |
| EPS (Q2) | Rs. 8.68 (+3.70% YoY) |
Quarter Snapshot
Standalone revenue fell 31.41% YoY and EBITDA margin compressed ~1,210 bps to 52.05%, driven by a steepening ad decline (-13.48% YoY) and a collapse in the residual content bucket. Reported PAT growth of 3.66% is attributable to the D&A base effect and a deferred-tax credit; normalized PAT declined 2.21% YoY. Offsets include stable subscription revenue, 93% cash conversion, a zero-borrowing balance sheet with Rs.7,675.57 Cr treasury, and a 36.15% H1 dividend payout.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Advertising | "behind" — in-window TV ad activity −8.6% YoY | Ad −13.48% YoY, worse than Q1 | Played out |
| Cricket | "ahead on the calendar" — full Hundred season in-quarter | Income +6.21% YoY, but net contribution −6.69% | Partially |
| Subscription | "broadly stable" | +2.34% YoY | Played out |
| Margins | "flat-to-compressing mix shift" | 52.05% vs 64.15% YoY; flat vs Q1 51.50% | Played out |
| GBP tailwind | "mild tailwind" on other income/translation | Other income +1.26%; OCI +16.25 — mild | Played out |
| Watch: ad-cap monetization, related-party billing, COO succession, demerger denial | flagged for the call | Not addressed in the filing — remain open | Not observable |
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Management Guidance vs Delivery
| What management said | What happened | Verdict |
|---|---|---|
| "Half year PAT up ~11.11% @ Rs. 953.84 crs" | Locked: +11.11% reported (+8.51% normalized) | Confirmed |
| "YoY Sept PAT up ~3.66% @ Rs. 341.87 crs" | Locked: +3.66% reported, but (2.21)% vs normalized base | Confirmed on the reported number; misleading on underlying |
| "Revenues @ Rs. 801.76 crs" (no YoY given) | −31.41% YoY; EBITDA −44.36% — selective emphasis | Contradicted by omission |
| "Domestic Subscription revenues up ~2.34% @ Rs. 487.23 crs" | Consistent with the stable-subscription trend | Confirmed |
| "SunRisers Leeds records Revenues of Rs. 98.61 crs & PBT of Rs. 18.50 crs" | Ties exactly to consol-minus-standalone cricket income (100.39 − 1.78) | Confirmed |
Key Numbers, Quarter by Quarter
| Metric | Q1 FY26 | Q2 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|
| Advertisement (Rs. Cr) | 289.94 | 292.15 | 282.51 | 252.76 |
| Ad YoY % | — | — | (2.56) | (13.48) |
| Domestic subscription (Rs. Cr) | 470.12 | ~476.07 (implied) | 485.46 | 487.23 |
| Sub YoY % | — | — | +3.26 | +2.34 |
| Cricket franchises, consol (Rs. Cr) | 473.03 | 94.52 | 629.83 | 100.39 |
| Cricket YoY % | — | — | +33.15 | +6.21 |
Key Investment Insights
Key Positives
- Domestic subscription revenue grew 2.34% YoY to Rs.487.23 Cr, remaining stable
- Reported standalone PAT grew 3.66% YoY to Rs.341.87 Cr; consolidated owners' PAT grew 2.82% to Rs.364.31 Cr
- H1 standalone PAT grew 11.11% reported (+8.51% normalized) to Rs.953.84 Cr
- EBITDA margin was sequentially stable at 52.05% vs 51.50% in Q1
- H1 consolidated CFO of Rs.914.21 Cr was 92.94% of PAT; trade receivables fell Rs.132.78 Cr
- Zero-borrowing balance sheet with Rs.7,675.57 Cr treasury corpus; H1 dividend payout of 36.15% of standalone PAT (Rs.8.75/share declared)
- SunRisers Leeds recorded Rs.98.61 Cr revenue and Rs.18.50 Cr PBT in its first full in-window period
Risk Factors
- Standalone revenue fell 31.41% YoY to Rs.801.76 Cr; EBITDA fell 44.36% YoY to Rs.417.30 Cr
- Advertisement revenue declined 13.48% YoY, steeper than Q1's 2.56% decline
- Standalone EBITDA margin compressed ~1,210 bps YoY to 52.05% from 64.15%
- Normalized Q2 PAT declined 2.21% YoY; reported growth was driven by D&A base effect and deferred-tax credit
- Cricket franchise net contribution fell 6.69% YoY in Q2 (costs +10.08% vs income +6.21%)
- H1 FCF was negative at Rs.(270.97) Cr consolidated on capex of Rs.1,185.18 Cr
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.