Shares of Network18 climbed over 12% in early trade on Wednesday after the company posted its Q1 FY26 earnings, showing a strong bounce in profitability, even as top-line revenue saw a minor dip. As of 10:39 AM, the shares were trading 12.57% higher at Rs 62.71.
For the quarter ended June 30, 2025, the media company’s standalone news business reported operating revenue of ₹430 crore, down 5% year-on-year from ₹453 crore. The dip was largely due to a high base last year, which saw a spike in election-related advertising.
Despite the softer revenue, the company surprised the Street with a 68.5% jump in operating EBITDA, which rose to ₹4 crore from ₹2 crore a year ago. This led to a doubling of the operating margin to 1%, compared to 0.5% in the same period last year.
Network18 noted that the advertising environment remained subdued during the quarter due to muted consumer demand and increased attention on sports programming. TV news ad inventory consumption, in particular, declined over 20% YoY.
However, when adjusted for the impact of last year’s election-linked ad boost, the company highlighted that operating revenue was up 9% versus Q1 FY24, which had no major poll-related tailwinds.
The improved margins were also driven by tighter cost controls, with operating expenses falling 5% YoY—another sign of disciplined execution amid a challenging macro-ad climate.
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