Network18 cash falls to Rs 4.65 crore after financing outflows

Network18 Media & Investments Limited ended 30 September 2026 with cash and cash equivalents of Rs 4.65 crore, down from Rs 38.51 crore on 31 March 2026. Its Rs 119.52 crore operating cash inflow was outweighed principally by Rs 148.92 crore used in financing activities, including Rs 114.30 crore of finance costs paid.

Why did Network18's cash balance fall in the first half?

Network18's cash balance fell by Rs 33.86 crore during the half year ended 30 September 2026 because its financing outflow exceeded cash generated from operations. The group began the period with Rs 38.51 crore of cash and cash equivalents, recorded an investing outflow of Rs 4.46 crore as well, and closed with Rs 4.65 crore.

The direction of cash movement differed sharply from the corresponding half year ended 30 September 2025, when cash and cash equivalents increased by Rs 2.50 crore to Rs 5.22 crore. In the latest half year, operating cash flow improved by Rs 200.99 crore year on year, but financing moved from an inflow of Rs 116.59 crore to an outflow of Rs 148.92 crore.

What generated Network18's operating cash inflow?

Network18 generated Rs 119.52 crore from operating activities in the half year ended 30 September 2026, compared with cash used of Rs 81.47 crore a year earlier. The immediate cash-flow improvement came from Rs 66.27 crore of cash generated from operations and a Rs 53.25 crore net tax refund, versus Rs 64.89 crore used in operations and Rs 16.58 crore of net tax paid in the prior-year half.

Working-capital movements supported the latest result. Trade and other receivables contributed Rs 55.05 crore of cash in the 2026 half year, reversing a Rs 37.32 crore outflow in the 2025 period, while trade and other payables used Rs 33.81 crore compared with Rs 43.56 crore previously. Inventories used Rs 26 lakh, against a Rs 1.94 crore source of cash a year before.

The operating cash figure also followed a lower reported profit before tax of Rs 14.72 crore, compared with Rs 190.10 crore in the prior-year half. The cash-flow reconciliation deducted Rs 144.93 crore for the share of profit of associates and joint ventures, against Rs 190.94 crore a year earlier, and added back Rs 113.34 crore of finance costs and Rs 62.01 crore of depreciation and amortisation.

How did financing activities use Network18's cash?

Network18 used Rs 148.92 crore in financing activities in the half year ended 30 September 2026, compared with a Rs 116.59 crore financing inflow in the corresponding 2025 period. Finance costs paid were the largest item at Rs 114.30 crore, while net current borrowings declined by Rs 24.80 crore and lease-liability payments were Rs 9.82 crore.

The year-on-year swing in borrowings was substantial: current borrowings generated Rs 245.55 crore in the 2025 half year but absorbed Rs 24.80 crore in the 2026 half year. Finance costs paid also rose by Rs 14.33 crore from Rs 99.97 crore, while lease payments increased by Rs 67 lakh from Rs 9.15 crore. The earlier period additionally included Rs 19.84 crore of share-issue expense.

Finance costs recognised in the consolidated statement of profit and loss were Rs 113.34 crore for the latest half year, up from Rs 100.61 crore a year earlier. Current borrowings on the balance sheet declined to Rs 3,088.04 crore at 30 September 2026 from Rs 3,112.84 crore at 31 March 2026, a reduction of Rs 24.80 crore.

What did investing activity contribute to Network18's cash movement?

Network18 used Rs 4.46 crore in investing activities during the half year ended 30 September 2026, a smaller outflow than Rs 32.62 crore in the corresponding prior-year period. Purchases of current investments were Rs 129.07 crore and redemptions or sales were Rs 145.03 crore, producing a net Rs 15.96 crore cash contribution from those investment transactions.

Capital spending absorbed Rs 20.87 crore in the latest half year, down from Rs 36.41 crore in the prior-year period. The group also received Rs 13 lakh from disposal of property, plant and equipment and other intangible assets, compared with Rs 62 lakh a year earlier, while dividend income received was Rs 27 lakh in both periods.

Current investments on the consolidated balance sheet stood at Rs 112.26 crore on 30 September 2026, down from Rs 124.81 crore at 31 March 2026. Bank balances other than cash and cash equivalents were Rs 1.22 crore, versus Rs 1.17 crore at the March year end, and the cash-flow statement recorded a Rs 5 lakh increase in those other bank balances.

What does Network18's balance sheet show about liquidity?

Network18 reported Rs 875.97 crore of current assets and Rs 3,668.42 crore of current liabilities at 30 September 2026, producing the disclosed current ratio of 0.24. At 31 March 2026, current assets were Rs 980.56 crore and current liabilities were Rs 3,737.12 crore, with the disclosed current ratio then at 0.26.

The reduction in current assets included the Rs 33.86 crore fall in cash and cash equivalents, a Rs 48.51 crore reduction in trade receivables to Rs 641.91 crore, and a Rs 12.55 crore decline in current investments. Current borrowings of Rs 3,088.04 crore remained the largest current-liability line, followed by Rs 309.27 crore of trade payables other than those due to micro and small enterprises.

Total liabilities decreased by Rs 85.04 crore to Rs 3,923.64 crore at 30 September 2026, while total equity increased by Rs 44.84 crore to Rs 5,031.86 crore. Network18 disclosed a debt-equity ratio of 0.62 at 30 September 2026, compared with 0.63 at 31 March 2026, and an interest service coverage ratio of 1.14 for the latest half year, compared with 1.42 in the prior-year half.

Conclusion

Network18's Rs 4.65 crore closing cash balance reflects a cash-flow mix in which Rs 119.52 crore generated from operations did not cover Rs 148.92 crore used in financing and Rs 4.46 crore used in investing. The operating result improved from a Rs 81.47 crore outflow a year earlier, but net lower current borrowings and Rs 114.30 crore of finance costs paid drove the Rs 33.86 crore decline in cash.

The disclosed next matter is the proposed amalgamation of News18 Marathi Private Limited with Network18. The National Company Law Tribunal, Mumbai Bench, sanctioned the scheme on 22 October 2026, but the company said it will become effective only once all conditions precedent set out in the scheme are fulfilled.