The quarter's results reveal a troubling paradox: whilst net sales surged 23.01% quarter-on-quarter to ₹150.41 crores—the highest quarterly revenue on record—the company's operating losses continued to mount. Operating profit before depreciation, interest, and tax (excluding other income) stood at a loss of ₹61.44 crores, translating to a deeply negative operating margin of -40.85%. This represents a marginal deterioration from the -46.51% margin in Q2 FY26, though an improvement from the -31.18% recorded in the year-ago quarter.
The December 2025 quarter results underscore a fundamental challenge facing NDTV: the company's ability to generate revenue has improved markedly, yet its cost structure remains stubbornly elevated, preventing any meaningful path to profitability. With the stock trading near its 52-week low of ₹77.20 and down 41.64% from its 52-week high of ₹140.50, investor confidence has evaporated. The company's proprietary Mojo score stands at a dismal 9 out of 100, with a "Strong Sell" advisory reflecting the severe fundamental deterioration.
| Quarter | Dec'25 | Sep'25 | Jun'25 | Mar'25 | Dec'24 | Sep'24 | Jun'24 |
|---|---|---|---|---|---|---|---|
| Net Sales (₹ Cr) | 150.41 | 122.27 | 107.65 | 127.05 | 132.74 | 111.32 | 93.92 |
| QoQ Growth | +23.01% | +13.58% | -15.27% | -4.29% | +19.24% | +18.53% | — |
| Net Profit (₹ Cr) | -80.25 | -74.11 | -70.38 | -60.88 | -55.69 | -52.77 | -46.75 |
| Operating Margin % | -40.85% | -46.51% | -53.53% | -38.20% | -31.18% | -38.91% | -48.46% |
| PAT Margin % | -53.35% | -60.53% | -65.31% | -48.78% | -41.80% | -48.01% | -50.16% |
Financial Performance: Revenue Growth Masks Operational Distress
NDTV's Q3 FY26 revenue performance represents the sole bright spot in an otherwise bleak financial picture. Net sales of ₹150.41 crores marked a 13.31% year-on-year increase from ₹132.74 crores in Q3 FY25, and a robust 23.01% sequential jump from ₹122.27 crores in Q2 FY26. This represents the company's highest quarterly revenue since at least June 2024, suggesting some success in monetising its news platforms and digital properties.
However, this revenue growth has been entirely negated by ballooning costs. The operating profit before depreciation, interest, and tax (excluding other income) registered a loss of ₹61.44 crores in Q3 FY26, compared to a loss of ₹41.39 crores in the year-ago quarter—a deterioration of 48.43%. Sequentially, the operating loss widened from ₹56.87 crores, indicating continued pressure on cost management. The operating margin excluding other income stood at -40.85% in Q3 FY26, compared to -31.18% in Q3 FY25, reflecting the company's inability to convert revenue growth into operational efficiency.
Employee costs, a significant component of the media industry's expense structure, rose to ₹47.42 crores in Q3 FY26 from ₹42.87 crores in Q3 FY25, marking a 10.61% year-on-year increase. Whilst this growth rate is lower than the revenue growth rate, the absolute quantum of employee expenses relative to revenue remains concerning. Interest costs surged to ₹6.16 crores in Q3 FY26 from ₹5.57 crores in the year-ago quarter, reflecting increased borrowing costs. Depreciation stood at ₹8.97 crores, up from ₹8.02 crores year-on-year.
The profit before tax deteriorated sharply to a loss of ₹80.11 crores in Q3 FY26 from ₹53.89 crores in Q3 FY25, representing a 48.67% widening of losses. After minimal tax adjustments of ₹0.14 crores, the net profit after tax stood at a loss of ₹80.20 crores, compared to ₹55.16 crores in the year-ago period. The PAT margin collapsed to -53.35% from -41.80%, underscoring the severe profitability crisis.
Critical Profitability Warning
Operating losses have widened significantly despite record revenue. The company's operating profit (excluding other income) deteriorated by 48.43% year-on-year to a loss of ₹61.44 crores. The operating margin of -40.85% indicates that for every rupee earned, the company loses 41 paise before accounting for interest, depreciation, and taxes. This unsustainable cost structure raises serious questions about the viability of the business model without significant operational restructuring.
Balance Sheet Concerns: Debt Surge and Negative Book Value
NDTV's balance sheet reveals structural vulnerabilities that compound the operational challenges. As of March 2025, shareholder funds stood at just ₹58.73 crores, a dramatic collapse from ₹258.30 crores in March 2024. This precipitous decline reflects the accumulated losses eating into the company's equity base. The reserves and surplus plummeted to ₹32.94 crores from ₹232.51 crores, indicating severe erosion of retained earnings.
More alarmingly, long-term debt surged to ₹243.05 crores in March 2025 from just ₹30.61 crores in March 2024—a staggering 693.92% increase. This dramatic escalation in borrowings suggests the company has been forced to rely on debt financing to sustain operations in the face of mounting losses. Trade payables increased to ₹140.44 crores from ₹92.28 crores, whilst other current liabilities declined marginally. Total current liabilities stood at ₹250.31 crores, up from ₹190.37 crores.
On the asset side, fixed assets increased substantially to ₹119.61 crores from ₹29.28 crores, likely reflecting capital expenditure or asset revaluation. Investments decreased to ₹34.09 crores from ₹51.78 crores. Current assets stood at ₹242.50 crores, marginally higher than ₹232.69 crores in the previous year. The company's book value per share stands at ₹7.23, but with a price-to-book value ratio of -10.63x, the market is essentially pricing in a negative book value scenario—a reflection of the deep scepticism about the company's ability to recover.
Cash Flow Crisis: Persistent Operating Outflows
The cash flow statement for FY25 paints a grim picture of NDTV's liquidity position. Cash flow from operations was deeply negative at ₹144.00 crores, compared to ₹67.00 crores in FY24. This deterioration reflects the widening losses and adverse working capital movements. Changes in working capital contributed a positive ₹17.00 crores, but this was insufficient to offset the negative operating profit before tax of ₹217.00 crores.
Cash flow from investing activities was negative at ₹73.00 crores in FY25, compared to a positive ₹49.00 crores in FY24, suggesting the company made significant capital investments or acquisitions during the year. Cash flow from financing activities was strongly positive at ₹213.00 crores, up from ₹21.00 crores in FY24, reflecting the substantial debt infusion mentioned earlier. The net cash position declined marginally, with closing cash of ₹9.00 crores versus ₹14.00 crores in the previous year.
This cash flow profile—negative operating cash flows, negative investing cash flows, and reliance on financing activities—is characteristic of a company in financial distress. Without a turnaround in operating profitability, NDTV will continue to depend on external financing to meet its obligations, further straining its already precarious balance sheet.
| Company | P/E (TTM) | P/BV | Div Yield | Debt/Equity |
|---|---|---|---|---|
| NDTV | NA (Loss Making) | -10.63x | NA | -5.09x |
| Den Networks | 7.04x | 0.36x | NA | -0.87x |
| Signpost India | 29.83x | 4.47x | 0.24% | 0.57x |
| Balaji Telefilms | 14.56x | 1.60x | NA | -0.19x |
| Panorama Studios | 25.78x | 4.79x | 0.15% | 0.37x |
| Media Matrix | 287.27x | 7.27x | NA | 0.11x |
Peer Comparison: NDTV Lags Across All Metrics
A comparison with industry peers highlights NDTV's outlier status in the media and entertainment sector. Whilst most peers are profitable and trade at positive P/E multiples, NDTV's loss-making status renders traditional valuation metrics meaningless. The company's negative book value, reflected in the -10.63x price-to-book ratio, contrasts sharply with peers like Media Matrix (7.27x), Panorama Studios (4.79x), and Signpost India (4.47x).
The debt-to-equity ratio of -5.09x (indicating negative equity) further distinguishes NDTV from its peers. Most comparable companies maintain healthier balance sheets with manageable debt levels or net cash positions. Den Networks, for instance, has a debt-to-equity ratio of -0.87x, whilst Balaji Telefilms stands at -0.19x. NDTV's inability to generate profits has resulted in a complete erosion of shareholder value, leaving the company in a precarious financial position.
From a market capitalisation perspective, NDTV ranks sixth amongst its peer group with a market cap of ₹942.00 crores. This valuation reflects the market's deep pessimism about the company's prospects, with investors essentially pricing in a scenario of continued losses and potential distress.
Valuation Analysis: Risky Classification Reflects Fundamental Distress
NDTV's valuation metrics tell a story of a company in severe financial distress. The stock's current valuation grade is classified as "Risky," a designation that accurately reflects the fundamental challenges. With a negative book value, traditional price-to-book analysis becomes meaningless. The EV/EBITDA multiple of -6.81x and EV/EBIT of -5.86x underscore the company's inability to generate positive operating profits.
The stock trades at an EV/Sales multiple of 2.84x, which might appear reasonable in isolation but becomes concerning when juxtaposed with the company's massive operating losses. The EV to capital employed ratio of 3.85x suggests the market is valuing the company at a premium to its capital base, likely reflecting the value of intangible assets such as brand equity and broadcasting licences rather than operational performance.
The valuation grade history reveals a steady deterioration. The stock was classified as "Attractive" as recently as October 2023 before sliding to "Fair," then "Expensive," and finally settling into the "Risky" category by February 2024. This progression mirrors the fundamental deterioration in the company's financial performance over the past year.
Shareholding Pattern: Promoter Stake Increases Amidst Crisis
The shareholding pattern reveals interesting dynamics during NDTV's period of financial distress. Promoter holding stood at 69.02% as of December 2025, up from 64.71% in March 2025. A significant 4.31 percentage point increase occurred in the October 2025 quarter, suggesting promoters increased their stake during this period—possibly reflecting confidence in a turnaround or strategic repositioning.
Foreign institutional investor (FII) holding remains minimal at 0.05% in December 2025, down from 0.14% in March 2025. This negligible FII presence indicates a complete lack of interest from international institutional investors, who typically avoid loss-making companies with uncertain turnaround prospects. Mutual fund and insurance company holdings are virtually non-existent at 0.00%, whilst other domestic institutional investor (DII) holdings also stand at 0.00%.
| Shareholder Type | Dec'25 | Oct'25 | Sep'25 | Jun'25 | Mar'25 |
|---|---|---|---|---|---|
| Promoter | 69.02% | 69.02% | 64.71% | 64.71% | 64.71% |
| FII | 0.05% | 0.13% | 0.11% | 0.12% | 0.14% |
| Mutual Funds | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Insurance | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Other DII | 0.00% | 0.03% | 0.00% | 0.00% | 0.00% |
| Non-Institutional | 30.93% | 30.82% | 35.17% | 35.16% | 35.15% |
Non-institutional shareholders account for 30.93% of the shareholding, down from 35.15% in March 2025. The decline in non-institutional holding coincides with the increase in promoter stake, suggesting that promoters may have acquired shares from retail investors during the recent price decline. The absence of institutional interest—with total institutional holding at a mere 0.05%—reflects the investment community's view that NDTV presents unacceptable risk-reward dynamics.
Stock Performance: Severe Underperformance Across All Timeframes
NDTV's stock performance has been nothing short of catastrophic across nearly all timeframes. Trading at ₹82.00 as of January 29, 2026, the stock has declined 1.82% in the most recent session and is down 3.81% over the past week. The one-month return stands at -15.54%, significantly underperforming the Sensex's -3.49% decline by 12.05 percentage points.
Over a three-month horizon, the stock has fallen 13.64% whilst the Sensex declined 3.83%, resulting in a negative alpha of 9.81 percentage points. The six-month performance is even more dire, with NDTV down 27.71% compared to the Sensex's marginal 0.49% gain—a staggering 28.20 percentage point underperformance. Year-to-date, the stock has declined 14.57% versus the Sensex's 4.08% fall.
| Period | NDTV Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | -3.81% | -0.69% | -3.12% |
| 1 Month | -15.54% | -3.49% | -12.05% |
| 3 Month | -13.64% | -3.83% | -9.81% |
| 6 Month | -27.71% | +0.49% | -28.20% |
| YTD | -14.57% | -4.08% | -10.49% |
| 1 Year | -26.53% | +6.80% | -33.33% |
| 2 Years | -62.83% | +13.62% | -76.45% |
| 3 Years | -59.70% | +37.77% | -97.47% |
The one-year return of -26.53% compares unfavourably to the Sensex's 6.80% gain, resulting in a negative alpha of 33.33 percentage points. The two-year performance is even more alarming: NDTV has declined 62.83% whilst the Sensex gained 13.62%, an underperformance of 76.45 percentage points. Over three years, the stock is down 59.70% against the Sensex's 37.77% gain—a 97.47 percentage point deficit.
The only positive timeframe is the five-year return, where NDTV has gained 172.56% compared to the Sensex's 76.60% rise, delivering a positive alpha of 95.96 percentage points. However, this long-term gain reflects the stock's performance during its profitable years (FY21-FY23) and offers little comfort to investors who entered positions more recently.
From a technical perspective, NDTV trades below all key moving averages—5-day (₹83.00), 20-day (₹91.40), 50-day (₹88.40), 100-day (₹99.71), and 200-day (₹121.41)—indicating a firmly established downtrend. The stock's beta of 1.50 suggests it is significantly more volatile than the market, amplifying both gains and losses. With a volatility of 46.59% versus the Sensex's 11.23%, NDTV falls into the "High Risk Low Return" category—a devastating combination for investors.
Investment Thesis: Multiple Red Flags Across All Parameters
NDTV's investment thesis is undermined by severe weaknesses across all critical parameters. The company's quality grade stands at "Below Average," reflecting its poor long-term financial performance. Key quality metrics paint a troubling picture: five-year sales growth of 6.74% is modest, whilst five-year EBIT growth of -230.87% indicates a catastrophic deterioration in profitability. The average EBIT to interest coverage ratio of 0.82x is deeply inadequate, signalling the company's inability to service its interest obligations from operating profits.
The financial trend for Q3 FY26 is classified as "Negative," with multiple adverse factors identified. Interest expenses for the nine-month period grew 44.92% to ₹25.10 crores, reflecting the impact of increased borrowings. The operating profit to interest ratio in Q3 FY26 stood at a deeply negative -9.97 times, indicating that operating losses are nearly ten times the interest expense. Profit before tax less other income hit a low of ₹76.62 crores in losses, whilst PAT reached a quarterly low of ₹74.95 crores in losses.
From a technical standpoint, the trend is classified as "Mildly Bearish," with the stock trading below all major moving averages. The MACD indicator shows mildly bullish signals on the weekly chart but remains bearish on the monthly timeframe. Bollinger Bands indicate mildly bearish to bearish conditions, whilst moving averages across all timeframes signal a bearish trend. The stock's distance from its 52-week high of ₹140.50 stands at 41.64%, whilst it trades just 6.22% above the 52-week low of ₹77.20.
"With operating losses exceeding ₹60 crores quarterly despite record revenues, NDTV's business model appears fundamentally broken, requiring radical restructuring to achieve sustainability."
Key Strengths and Risk Factors
KEY STRENGTHS
- Revenue Growth Momentum: Q3 FY26 revenue of ₹150.41 crores represents highest quarterly sales, with 13.31% YoY growth indicating some commercial traction.
- Brand Equity: NDTV remains one of India's most recognised news brands with 38 years of heritage and credibility in journalism.
- Zero Promoter Pledging: No pledged shares indicates promoters are not leveraging their stake for personal borrowings.
- Increased Promoter Stake: Promoter holding increased from 64.71% to 69.02%, suggesting confidence or strategic consolidation.
- Multi-Platform Presence: Operations across television (NDTV 24x7, NDTV India, regional channels) and digital platforms provide diversified revenue streams.
KEY CONCERNS
- Massive Operating Losses: Operating loss of ₹61.44 crores in Q3 FY26 with -40.85% margin indicates fundamental business model issues.
- Deteriorating Profitability: Net loss widened 44.10% YoY to ₹80.25 crores despite revenue growth, showing inability to convert sales to profits.
- Debt Explosion: Long-term debt surged 694% to ₹243.05 crores in FY25, creating severe financial leverage with negative equity.
- Negative Book Value: Shareholder funds collapsed to ₹58.73 crores from ₹258.30 crores, with accumulated losses eroding equity base.
- Negative Cash Flows: Operating cash flow of -₹144.00 crores in FY25 indicates inability to generate cash from core business.
- Zero Institutional Interest: Total institutional holding of 0.05% reflects complete lack of confidence from professional investors.
- Severe Stock Underperformance: Stock down 26.53% in one year vs Sensex +6.80%, with 33.33 percentage point negative alpha.
Outlook: What Lies Ahead for NDTV
POSITIVE CATALYSTS
- Cost Restructuring: Aggressive cost reduction programme could narrow operating losses if management takes decisive action.
- Digital Monetisation: Improved digital advertising and subscription revenues could enhance margins if successfully executed.
- Strategic Partnership: Potential collaboration or investment from media conglomerate could provide capital and operational expertise.
- Election Cycles: Major election events typically boost news viewership and advertising revenues for news broadcasters.
RED FLAGS TO MONITOR
- Continued Loss Widening: If Q4 FY26 shows further deterioration in losses, it would signal complete loss of operational control.
- Debt Servicing Stress: Rising interest costs (up 44.92% in 9M FY26) could trigger covenant breaches or refinancing needs.
- Negative Equity Situation: Further quarterly losses could push shareholder funds into negative territory, creating existential concerns.
- Promoter Stake Dilution: Any reduction in promoter holding could signal loss of confidence or forced dilution for fundraising.
- Working Capital Pressure: Increase in trade payables to ₹140.44 crores suggests potential vendor payment delays.
The path forward for NDTV requires urgent and radical operational restructuring. Without a clear turnaround strategy that addresses the fundamental cost structure issues, the company faces an increasingly precarious financial position. The debt burden of ₹243.05 crores against minimal equity creates a highly leveraged situation that leaves little room for error. Management must demonstrate concrete progress towards profitability in the coming quarters to restore any semblance of investor confidence.
The Verdict: Avoid at All Costs
Score: 9/100
For Fresh Investors: Avoid completely. NDTV presents unacceptable risk with massive operating losses, negative book value, and no clear path to profitability. The company's fundamental business model appears broken, requiring radical restructuring that may never materialise. Even at current depressed valuations, the downside risk far exceeds any potential upside.
For Existing Holders: Exit positions immediately. The deteriorating financial metrics across profitability, cash flows, and balance sheet strength indicate a company in severe distress. With accumulated losses eroding equity and debt levels surging, there is a real risk of further value destruction. The 44.10% year-on-year widening of losses in Q3 FY26 despite record revenues demonstrates management's inability to control costs or achieve operational efficiency.
Fair Value Estimate: Not applicable given negative book value and absence of sustainable earnings. Current price of ₹82.00 may still have significant downside if losses continue at current pace.
Rationale: NDTV's Q3 FY26 results confirm a company in fundamental crisis. Operating losses of ₹61.44 crores on revenues of ₹150.41 crores translate to a -40.85% operating margin—an unsustainable position in any industry. The debt surge to ₹243.05 crores against collapsing shareholder funds of ₹58.73 crores creates severe financial leverage. With zero institutional interest, consistent underperformance versus benchmarks, and a "Negative" financial trend classification, NDTV offers no compelling investment case at any valuation.
Note: Return on Capital Employed (ROCE) = (EBIT - Other Income) / (Capital Employed - Cash - Current Investments). NDTV's latest ROCE of -65.65% reflects the severe operating losses relative to capital employed.
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Investments in equity markets carry significant risks including the potential loss of principal.
