The results paint a grim picture of a company in freefall. Net sales plummeted 52.86% year-on-year to ₹5.94 crores in Q2 FY26, down from ₹12.60 crores in the corresponding quarter last year. Sequentially, revenue declined 21.53% from Q1 FY26's ₹7.57 crores, marking the seventh consecutive quarter of declining sales. The company's operating profit before depreciation, interest, tax and other income stood at a shocking negative ₹6.26 crores, translating to an operating margin of negative 105.39%—meaning the company is burning more than one rupee for every rupee of revenue generated.
What makes this situation particularly alarming is the company's complete inability to control costs even as revenues evaporate. The PAT margin deteriorated to negative 168.18% in Q2 FY26 from negative 41.83% in Q2 FY25, indicating that operational inefficiencies are compounding faster than management can address them. The stock, trading at ₹6.75, has declined 44.67% from its 52-week high of ₹12.20, though it remains 77.63% above its 52-week low of ₹3.80—a range that reflects extreme volatility and uncertainty.
Financial Performance: A Catastrophic Collapse
The quarterly trend reveals a business in systematic decline with no apparent recovery trajectory. Over the past seven quarters, TV Vision has witnessed relentless revenue erosion, with sales falling from ₹21.83 crores in Q2 FY24 to just ₹5.94 crores in Q2 FY26—a staggering 72.79% decline over eight quarters. The company's inability to arrest this decline suggests fundamental structural problems in its business model rather than temporary market headwinds.
| Quarter | Net Sales (₹ Cr) | QoQ Change | Net Profit (₹ Cr) | QoQ Change | PAT Margin % |
|---|---|---|---|---|---|
| Sep'25 | 5.94 | -21.53% | -9.99 | +92.49% | -168.18% |
| Jun'25 | 7.57 | -16.63% | -5.19 | -33.97% | -68.56% |
| Mar'25 | 9.08 | -6.58% | -7.86 | +19.09% | -86.56% |
| Dec'24 | 9.72 | -22.86% | -6.60 | +25.24% | -67.90% |
| Sep'24 | 12.60 | -42.28% | -5.27 | -24.82% | -41.83% |
| Jun'24 | 21.83 | +52.44% | -7.01 | +27.22% | -32.11% |
| Mar'24 | 14.32 | — | -5.51 | — | -38.48% |
On a half-yearly basis, the situation is equally dire. For H1 FY26 (April-September 2025), the company reported combined net sales of ₹13.51 crores, representing a precipitous 71.24% decline from the corresponding period. The cumulative net loss for the first half stood at ₹15.18 crores, compared to ₹12.28 crores in H1 FY25. The company's gross profit margin deteriorated to negative 105.56% in Q2 FY26 from negative 12.22% in Q2 FY25, highlighting severe operational distress.
The company's cost structure remains stubbornly high despite revenue collapse. Employee costs, whilst declining in absolute terms to ₹0.83 crores in Q2 FY26 from ₹1.04 crores in Q2 FY25, still represent a disproportionate burden on the shrinking revenue base. Depreciation charges of ₹3.72 crores per quarter remain largely unchanged, reflecting fixed asset commitments that the company cannot monetise effectively. Interest costs, though minimal at ₹0.04 crores, indicate the company has minimal debt—one of the few silver linings in an otherwise disastrous financial profile.
Critical Warning: Negative Shareholder Equity
TV Vision's balance sheet reveals complete erosion of shareholder value. As of March 2025, the company reported shareholder funds of negative ₹143.77 crores against share capital of ₹38.74 crores, meaning accumulated losses of ₹182.51 crores have completely wiped out equity. The book value per share stands at negative ₹37.11, making any traditional valuation framework meaningless. Current liabilities of ₹198.07 crores dwarf current assets of ₹21.72 crores, raising serious going concern questions.
Operational Breakdown: When the Business Model Fails
The company's operational metrics reveal a business that has lost its competitive moorings in the highly competitive Indian media and entertainment landscape. The five-year sales growth stands at negative 15.07%, whilst the broader media sector has witnessed consolidation and selective growth amongst well-capitalised players. TV Vision's inability to compete effectively for advertising revenues and audience share has resulted in a death spiral where declining viewership leads to lower ad rates, which further reduces content investment capacity, leading to more viewership losses.
The company's return on capital employed (ROCE) averaged 36.90% over the assessment period, which appears strong on paper but is rendered meaningless by the negative capital employed situation. The latest ROCE is marked as "Negative Capital Employed," accurately reflecting the company's complete destruction of invested capital. Return on equity (ROE) stands at 0.0%, with the latest reading showing "Negative BV"—a stark reminder that there is no equity left to generate returns on.
TV Vision operates with virtually no debt, maintaining a debt-to-equity ratio of negative 0.02 (reflecting net cash position). Whilst this might typically be viewed as a strength, in this context it simply means the company has exhausted all avenues for external financing and is surviving on whatever residual cash it can generate or preserve. The average debt-to-EBITDA ratio is classified as "Negative Net Debt," which is technically accurate but masks the reality that the company generates negative EBITDA consistently.
The Broadcasting Business Challenge
TV Vision's core business of television broadcasting faces structural headwinds that management appears unable to navigate. The Indian media landscape has witnessed a dramatic shift towards digital streaming platforms, with traditional television broadcasting losing both viewership and advertising share. The company's sales-to-capital-employed ratio of negative 0.82 times indicates that even the capital that remains deployed is generating negative returns. With fixed assets declining from ₹128.42 crores in FY20 to ₹27.26 crores in FY25, the company has been liquidating assets—likely to fund operating losses—without arresting the revenue decline.
Industry Context: Drowning in a Rising Tide
The media and entertainment sector in India has witnessed significant transformation over the past five years, with digital platforms capturing increasing share of both viewership and advertising revenues. Whilst established broadcasters with diversified content portfolios and strong digital presence have managed to adapt, smaller players like TV Vision have struggled to remain relevant. The company's 52.86% year-on-year revenue decline in Q2 FY26 occurred during a period when the broader market was relatively stable, suggesting company-specific execution failures rather than sector-wide challenges.
TV Vision's market capitalisation of ₹26.00 crores positions it as a micro-cap company with extremely limited resources to invest in content creation, technology upgrades, or marketing—all essential elements for survival in today's media landscape. The company's institutional holding stands at a paltry 5.95%, indicating complete lack of confidence from sophisticated investors. With 50.82% of promoter shares pledged, the ownership structure raises additional concerns about the promoters' ability or willingness to inject fresh capital.
| Company | Market Cap (₹ Cr) | P/E Ratio | P/BV Ratio | ROE % | Debt/Equity |
|---|---|---|---|---|---|
| TV Vision | 26.00 | NA (Loss Making) | -0.16 | 0.0% | -0.02 |
| Esha Media | — | NA (Loss Making) | -2.47 | 0.0% | -0.79 |
| Cyber Media Industries | — | 10.34 | -2.08 | 0.0% | -0.49 |
| Winpro Industries | — | 123.29 | — | — | — |
| Colorchips New Media | — | NA (Loss Making) | 1.14 | 0.0% | -0.01 |
| Crystal Business | — | NA (Loss Making) | 1.38 | 3.72% | 0.00 |
Comparing TV Vision to its peer group reveals a sector struggling with profitability challenges, but TV Vision's negative book value of ₹-37.11 per share stands out as particularly severe. Whilst several peers also report losses, TV Vision's combination of negative equity, collapsing revenues, and complete absence of institutional support places it in the most precarious position within an already challenged peer set.
Valuation Analysis: When Traditional Metrics Become Irrelevant
Traditional valuation metrics offer little guidance for TV Vision, as the company's financial distress renders standard multiples meaningless. The P/E ratio is listed as "NA (Loss Making)," accurately reflecting the company's persistent losses. The price-to-book value of negative 0.16 times indicates the market values the company at approximately ₹26.00 crores despite negative book value—essentially pricing in either liquidation value of remaining assets or speculative hope for an unlikely turnaround.
The enterprise value to EBITDA multiple of negative 1.80 times and EV to EBIT of negative 0.94 times reflect the company's negative operating profits. The EV to sales ratio of 0.89 times suggests the market values the entire business at less than one year's current run-rate revenues—a clear signal that investors expect further deterioration. The company's overall valuation assessment is classified as "RISKY," which understates the severity of the situation given the negative equity and persistent cash burn.
The stock's 52-week range of ₹3.80 to ₹12.20 represents extreme volatility, with the current price of ₹6.75 sitting 44.67% below the high and 77.63% above the low. This wide range reflects speculative trading rather than fundamental investment, with sharp moves in both directions driven more by liquidity constraints and technical factors than business fundamentals. The dividend yield is listed as "NA" with no dividend history, as the company lacks both the profitability and cash flow to support any shareholder distributions.
Shareholding Pattern: Eroding Confidence
The shareholding pattern reveals a concerning exodus of institutional investors and a promoter group that appears stretched. Promoter holding declined sharply from 36.59% in December 2024 to 32.20% in March 2025, a reduction of 4.39 percentage points, and has remained static since then. This decline, combined with the 50.82% pledge of promoter shares, suggests the promoters may have been forced to reduce their stake or use shares as collateral for personal borrowings.
| Category | Dec'25 | Sep'25 | Jun'25 | Mar'25 | QoQ Change |
|---|---|---|---|---|---|
| Promoter Holding | 32.20% | 32.20% | 32.20% | 32.20% | 0.00% |
| FII Holding | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Mutual Fund | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Insurance | 0.05% | 0.05% | 0.05% | 0.17% | -0.12% |
| Other DII | 5.90% | 5.90% | 5.90% | 5.90% | 0.00% |
| Non-Institutional | 61.84% | 61.84% | 61.84% | 61.73% | +0.11% |
Foreign institutional investors and mutual funds have zero exposure to TV Vision, whilst insurance holdings declined from 0.52% in December 2024 to just 0.05% currently. Other domestic institutional investors maintain a 5.90% stake, down dramatically from 16.42% in December 2024. The non-institutional shareholding of 61.84% consists primarily of retail investors and likely includes distressed holders unable to exit due to poor liquidity. The complete absence of sophisticated institutional investors speaks volumes about the company's prospects.
Stock Performance: Volatility Without Direction
TV Vision's stock performance reflects extreme volatility characteristic of micro-cap distressed situations. Over the past year, the stock has delivered a 19.05% return, outperforming the Sensex's 6.69% gain by 12.36 percentage points. However, this outperformance is misleading, as it reflects recovery from severely depressed levels rather than fundamental improvement. The three-year return of 170.00% significantly outpaces the Sensex's 37.80%, but again reflects the stock's journey from near-zero levels rather than sustainable value creation.
| Period | TV Vision Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Day | +4.49% | +0.12% | +4.37% |
| 1 Week | +2.27% | +1.82% | +0.45% |
| 1 Month | -16.15% | -2.24% | -13.91% |
| 3 Months | +7.66% | +0.46% | +7.20% |
| 6 Months | -7.91% | +3.48% | -11.39% |
| YTD | -24.24% | -1.62% | -22.62% |
| 1 Year | +19.05% | +6.69% | +12.36% |
| 3 Years | +170.00% | +37.80% | +132.20% |
| 5 Years | +249.74% | +65.65% | +184.09% |
The year-to-date performance of negative 24.24% underperforms the Sensex by 22.62 percentage points, reflecting the market's growing recognition of the company's deteriorating fundamentals. The one-month decline of 16.15% came despite a relatively stable broader market (Sensex down 2.24%), indicating company-specific selling pressure. The stock's beta of 1.50 classifies it as "High Beta," meaning it amplifies market movements—but in this case, the volatility stems from distress rather than growth potential.
Technical indicators paint a mixed picture, with the overall trend classified as "SIDEWAYS" after turning from "Mildly Bullish" on February 1, 2026. The stock trades below all key moving averages—5-day (₹6.44), 20-day (₹6.90), 50-day (₹7.51), 100-day (₹6.99), and 200-day (₹7.13)—indicating persistent downward pressure. MACD signals are bearish on both weekly and monthly timeframes, whilst RSI shows "No Signal" weekly but "Bullish" monthly, reflecting the stock's erratic price action rather than any fundamental strength.
Investment Thesis: Multiple Red Flags, Zero Green Lights
TV Vision's investment thesis, if one can call it that, rests entirely on speculative hope for either asset liquidation value or an unlikely white knight acquisition. The company's Mojo Score of 14 out of 100 places it firmly in "STRONG SELL" territory, with the rating unchanged since January 30, 2025. The quality grade is assessed as "BELOW AVERAGE," though this charitable classification understates the severity of the situation given the negative equity and persistent losses.
The financial trend is classified as "NEGATIVE," with the latest assessment highlighting that net sales for the latest six months at ₹13.51 crores have declined 71.24% whilst PAT losses have deepened proportionately. The technical trend of "SIDEWAYS" offers no comfort, as it simply reflects the stock bouncing between extremely depressed levels without any clear direction. The valuation grade of "RISKY" is perhaps the most accurate assessment, though it fails to capture that traditional valuation frameworks are essentially meaningless for a company with negative equity.
Key Strengths (Limited)
- Zero Debt Position: Debt-to-equity ratio of negative 0.02 indicates no external borrowings, eliminating default risk
- Asset Liquidation Potential: Fixed assets of ₹27.26 crores and current assets of ₹21.72 crores may offer residual value
- Established Brand: Part of Sri Adhikari Brothers group with legacy in media industry
- Minimal Interest Burden: Quarterly interest cost of just ₹0.04 crores provides slight operational flexibility
- High Volatility for Traders: 59.06% volatility offers opportunities for speculative short-term trading
Key Concerns (Overwhelming)
- Negative Shareholder Equity: Book value of negative ₹143.77 crores indicates complete capital erosion
- Revenue Collapse: Sales down 52.86% YoY in Q2 FY26, with seven consecutive quarters of decline
- Massive Operating Losses: Operating margin of negative 105.39% shows unsustainable cost structure
- Zero Institutional Support: No FII or MF holdings; insurance and DII holdings declining sharply
- Pledged Promoter Shares: 50.82% of promoter holdings pledged, raising governance concerns
- Negative Cash Flow: Operating cash flow of zero in FY25 indicates inability to generate cash
- Going Concern Risk: Current liabilities of ₹198.07 crores far exceed current assets of ₹21.72 crores
Outlook: What to Watch (Though Recovery Seems Unlikely)
For investors still monitoring TV Vision, the key question is not whether the company can return to profitability, but whether it can survive at all. The company's negative equity position, combined with persistent cash burn and lack of access to capital markets, creates a precarious situation where even modest additional losses could trigger insolvency proceedings. The absence of any credible turnaround plan from management, coupled with the promoters' apparent inability to inject fresh capital (evidenced by pledged shares), suggests time is running out.
Positive Catalysts (Highly Unlikely)
- Strategic acquisition by larger media group seeking content library or broadcasting licenses
- Drastic cost restructuring including asset sales and workforce reduction
- Pivot to digital-only model with significantly lower fixed costs
- Capital infusion from promoters or external investors (seems improbable given pledged shares)
Red Flags (Immediate Concerns)
- Further sequential revenue decline in Q3/Q4 FY26 below ₹5 crores quarterly run-rate
- Inability to meet current liabilities leading to insolvency proceedings
- Additional promoter stake reduction or increase in pledged shares
- Complete exit by remaining institutional investors (insurance, DII)
- Failure to file quarterly results on time indicating administrative breakdown
- Stock price decline toward 52-week low of ₹3.80 or below
The media and entertainment sector's structural shift toward digital platforms shows no signs of reversing, meaning TV Vision's traditional broadcasting model faces permanent headwinds rather than cyclical challenges. Without a credible strategy to either pivot to digital or monetise existing assets, the company appears to be in a managed wind-down phase, whether explicitly acknowledged or not. Investors should closely monitor quarterly cash burn rates, any further promoter share pledging or reduction, and most critically, the company's ability to file timely financial statements—often the first sign of terminal distress.
The Verdict: Terminal Decline With No Recovery Path
Score: 14/100
For Fresh Investors: Avoid completely. TV Vision represents a classic value trap where apparent cheapness (trading below book value) masks the reality that book value itself is deeply negative. With negative equity of ₹143.77 crores, collapsing revenues, and no credible turnaround plan, any investment would be purely speculative with extremely high probability of total capital loss. The company faces existential going concern risks that make even speculative positioning unjustifiable.
For Existing Holders: Exit at any available price. Whilst the stock has shown volatility that might tempt holders to wait for a bounce, the fundamental trajectory is unambiguously negative. The 52.86% year-on-year revenue decline in Q2 FY26, combined with operating margins of negative 105.39%, indicates a business in terminal decline. With current liabilities nearly ten times current assets and zero institutional support, the risk of complete capital erosion far outweighs any potential for recovery. Use any near-term price strength to exit positions.
Fair Value Estimate: Not applicable. Traditional valuation frameworks are meaningless for a company with negative equity. Liquidation value of assets (₹48.98 crores in total assets) minus liabilities (₹198.07 crores in current liabilities alone) suggests negative enterprise value. Current market cap of ₹26.00 crores may represent speculative value or residual hope for asset sales, but fundamentally the company is worth less than zero on a going concern basis.
Note: ROCE = (EBIT - Other income)/(Capital Employed - Cash - Current Investments)
⚠️ 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. TV Vision Ltd. exhibits significant financial distress including negative equity, persistent losses, and going concern risks. Investment in such securities carries extreme risk of total capital loss.
