Are NDTV latest results good or bad?

NDTV's latest financial results for Q2 FY26 reveal a complex picture of the company's performance. The company reported net sales of ₹122.27 crores, which reflects a year-on-year growth of 9.84%. However, this revenue growth is overshadowed by significant operational challenges, as evidenced by a consolidated net loss of ₹74.11 crores, which represents a deterioration of 40.44% compared to the previous year.
The operating profit before depreciation, interest, and tax (PBDIT) stood at a loss of ₹56.87 crores, translating to an operating margin of -46.51%, which is worse than the -38.91% recorded in the same quarter last year. This indicates escalating operational inefficiencies, as costs continue to rise without corresponding improvements in profitability. Notably, employee costs increased to ₹46.47 crores, outpacing revenue growth and reflecting ongoing operational challenges.

Interest expenses have surged dramatically, reaching ₹9.93 crores, more than doubling from the previous year, highlighting the company's increasing debt burden. The debt-to-equity ratio has risen to 5.58 times, indicating a high level of leverage that raises concerns about financial sustainability.

Despite the revenue growth, NDTV's financial position is precarious, with negative cash flows from operations and a significant decline in shareholder funds. The company's valuation metrics, including a Price-to-Book ratio of 18.23 times, suggest a disconnect between market valuation and operational performance.

Overall, NDTV's results underscore a company grappling with severe financial distress, characterized by accelerating losses and high leverage, while the recent adjustment in its evaluation reflects the market's recognition of these challenges. The outlook remains uncertain, with the need for substantial operational restructuring and a viable turnaround strategy to address these fundamental issues.