Network18 Q2 profit depended on Rs 107.2 crore associate income

Network18 Media & Investments Limited reported a consolidated profit of Rs 53.0 crore for the quarter ended 30 September 2026, after a Rs 38.4 crore loss in the preceding quarter. The result depended on Rs 107.2 crore from associates and joint ventures, which more than offset a Rs 54.1 crore loss before that income, exceptional items and tax.

Why did Network18 report a consolidated Q2 profit?

Network18 reported Q2FY27 consolidated profit because its Rs 107.2 crore share of profit from associates and joint ventures exceeded the Rs 54.1 crore loss generated before that line item. With no exceptional item recorded, profit before tax was Rs 53.1 crore and tax expense was Rs 0.1 crore, leaving profit for the period of Rs 53.0 crore.

The accounting bridge identifies the principal source of the reported turnaround. Consolidated total income was Rs 559.5 crore and total expenses were Rs 613.6 crore, producing the Rs 54.1 crore loss before associate and joint-venture results. The Rs 107.2 crore share of those results was nearly twice the preceding loss, creating the positive pre-tax outcome.

Profit attributable to owners of Network18 was Rs 51.8 crore, while non-controlling interests received Rs 1.2 crore of the quarter's Rs 53.0 crore net profit. Total comprehensive income was Rs 53.1 crore, including Rs 0.1 crore of other comprehensive income, a measure reported separately from period profit.

How did Network18's Q2 earnings change from prior periods?

Network18's consolidated profit changed from a Rs 38.4 crore loss in the quarter ended 30 June 2026 to a Rs 53.0 crore profit in the quarter ended 30 September 2026. The shift occurred as the loss before associate and joint-venture income narrowed by Rs 22.0 crore, from Rs 76.1 crore, while the share of associate and joint-venture profit increased by Rs 69.5 crore from Rs 37.7 crore.

Compared with the quarter ended 30 September 2025, net profit increased from Rs 41.2 crore to Rs 53.0 crore, but associate and joint-venture income declined from Rs 120.6 crore to Rs 107.2 crore. The pre-associate loss nevertheless improved from Rs 79.4 crore to Rs 54.1 crore, a reduction of Rs 25.3 crore that partly offset the lower contribution from associates and joint ventures.

For the half year ended 30 September 2026, Network18 reported Rs 14.6 crore of consolidated profit, compared with Rs 190.1 crore a year earlier. The prior half year included Rs 150.6 crore of exceptional items, whereas the current half year had none; before exceptional items and tax, the current period reported Rs 14.7 crore against Rs 39.5 crore a year earlier.

What happened to Network18's operating income and costs?

Network18 increased consolidated revenue from operations to Rs 544.7 crore in Q2FY27, from Rs 516.3 crore in the preceding quarter and Rs 497.8 crore a year earlier. Total income, which includes other income, reached Rs 559.5 crore, up from Rs 520.4 crore in the June 2026 quarter, as other income rose to Rs 14.8 crore from Rs 4.1 crore.

Expenses also increased sequentially to Rs 613.6 crore from Rs 596.5 crore. Operational costs rose to Rs 128.2 crore from Rs 91.7 crore, while marketing, distribution and promotional expense fell to Rs 120.2 crore from Rs 141.0 crore; employee benefits expense was broadly stable at Rs 209.9 crore against Rs 208.3 crore.

Year on year, total expenses rose by Rs 33.4 crore from Rs 580.2 crore, while total income rose by Rs 58.7 crore from Rs 500.8 crore. Operational costs increased by Rs 28.1 crore from Rs 100.1 crore, but marketing, distribution and promotional spending declined by Rs 7.6 crore from Rs 127.8 crore and employee benefits expense declined by Rs 3.2 crore from Rs 213.1 crore.

Finance costs were Rs 56.7 crore in Q2FY27, unchanged from the immediately preceding quarter and higher than Rs 48.3 crore a year earlier. Depreciation and amortisation expenses were Rs 31.0 crore, compared with Rs 31.1 crore in June 2026 and Rs 33.6 crore in September 2025, while other expenses reached Rs 67.6 crore.

What limits comparison of Network18's results and operating indicators?

Network18 says comparisons with the corresponding previous period are not fully comparable because News18 Marathi Private Limited became a wholly owned subsidiary on 29 October 2025. Network18 acquired the equity shares, preference shares and debentures held by its joint-venture partner, Lokmat Media Private Limited, and began reporting News18 Marathi as a subsidiary from the quarter ended 31 December 2025.

The National Company Law Tribunal, Mumbai Bench, sanctioned the proposed amalgamation of News18 Marathi with Network18 on 22 October 2026. The scheme will become effective only when all stated conditions precedent are fulfilled, leaving its completion date unspecified in the investor update.

Television audience data also remains unavailable for current operating comparison. Viewership data had been suspended for more than six months for news channels and more than three months for other genres, following actions involving the Broadcast Audience Research Council's weekly data and licence renewal under the Television Ratings Policy, 2026.

Before the suspension, Network18 said its portfolio of 20 news channels had a 13.8% all-India news viewership share in weeks 01 to 08 of 2026 and reached 230 million people monthly, 35% more than the nearest competitor. It also reported leading positions in selected measures, including a 63.3% share for CNBC-TV18 and a 36.0% share for CNN-News18 in the cited periods.

Conclusion

Network18's Q2FY27 consolidated result was profitable, but the composition matters: Rs 107.2 crore of associate and joint-venture profit was larger than the Rs 54.1 crore loss from the consolidated business before that income. Revenue from operations rose to Rs 544.7 crore, and the pre-associate loss narrowed sequentially and year on year, yet the reported Rs 53.0 crore profit remained dependent on equity-accounted investee results.

The next disclosed item to watch is completion of the News18 Marathi amalgamation, sanctioned on 22 October 2026 but conditional on remaining precedent conditions. Investors will also lack current television rating comparisons until the industry data suspension is resolved; Network18's cited 13.8% network share and 230 million monthly reach relate to weeks before that suspension.