The quarter's results represent a dramatic deterioration in an already struggling business. The company's negative book value of ₹-37.11 per share and accumulated losses exceeding ₹182 crores paint a picture of fundamental insolvency. With operating losses now exceeding revenues, TV Vision faces an existential crisis in India's competitive media and entertainment landscape.
Financial Performance: A Business in Free Fall
TV Vision's Q2 FY26 financial performance can only be described as catastrophic. Net sales plummeted to ₹5.94 crores, down 52.86% from ₹12.60 crores in Q2 FY25 and down 21.53% sequentially from Q1 FY26's ₹7.57 crores. This marks the lowest quarterly revenue in the company's recent history, representing a near-total collapse in business operations.
The operating metrics are equally alarming. Operating profit before depreciation, interest, tax, and other income (PBDIT excluding OI) stood at negative ₹6.26 crores, translating to an operating margin of negative 105.39%. This means the company is spending more than double its revenue just on operational expenses before accounting for depreciation and interest. The sequential deterioration from Q1 FY26's negative 17.97% margin demonstrates accelerating operational distress.
| Quarter | Revenue (₹ Cr) | QoQ % | YoY % | Net Profit (₹ Cr) | Operating Margin % |
|---|---|---|---|---|---|
| Sep'25 | 5.94 | -21.53% | -52.86% | -9.99 | -105.39% |
| Jun'25 | 7.57 | -16.63% | -65.32% | -5.19 | -17.97% |
| Mar'25 | 9.08 | -6.58% | -36.59% | -7.86 | -47.58% |
| Dec'24 | 9.72 | -22.86% | — | -6.60 | -42.08% |
| Sep'24 | 12.60 | -42.28% | — | -5.27 | -11.90% |
| Jun'24 | 21.83 | +52.44% | — | -7.01 | -14.70% |
| Mar'24 | 14.32 | — | — | -5.51 | -10.13% |
Net losses for Q2 FY26 reached ₹9.99 crores, representing a PAT margin of negative 168.18%. The loss nearly doubled from ₹5.27 crores in Q2 FY25 and worsened dramatically from Q1 FY26's loss of ₹5.19 crores. With negligible tax provisions due to accumulated losses, the company derives no benefit from its loss-making status. Employee costs remained relatively stable at ₹0.83 crores, but depreciation of ₹3.72 crores continues to burden the income statement despite declining asset values.
Critical Warning: Operational Insolvency
TV Vision's operating losses now exceed its revenues by 5.39%, indicating the company cannot sustain operations without external funding. With shareholder funds at negative ₹143.77 crores and current liabilities of ₹198.07 crores against current assets of just ₹21.72 crores, the company faces severe liquidity constraints and potential insolvency.
Balance Sheet Crisis: Negative Net Worth and Mounting Liabilities
The balance sheet reveals the depth of TV Vision's financial distress. As of March 2025, the company reported shareholder funds of negative ₹143.77 crores, comprising share capital of ₹38.74 crores offset by reserves and surplus of negative ₹182.51 crores. This negative net worth indicates technical insolvency, where liabilities exceed assets by a substantial margin.
Current liabilities stood at ₹198.07 crores, including trade payables of ₹59.40 crores and other current liabilities of ₹110.85 crores. Against this, current assets totalled only ₹21.72 crores, creating a massive working capital deficit of ₹176.35 crores. Fixed assets have declined from ₹42.06 crores in March 2024 to ₹27.26 crores in March 2025, reflecting ongoing depreciation without corresponding capital investment.
The company operates with minimal debt, which paradoxically reflects its inability to access credit markets rather than financial prudence. With zero long-term debt and negligible interest costs of ₹0.04 crores in Q2 FY26, TV Vision's problems stem from operational failure rather than over-leverage. Cash flow from operations was flat at zero for FY25, whilst the company managed to generate ₹11 crores from changes in working capital, likely through delayed payments to creditors.
Industry Context: Struggling in a Consolidating Media Landscape
TV Vision operates in India's highly competitive media and entertainment sector, which has undergone significant consolidation and digital transformation. The company's traditional television broadcasting business faces headwinds from multiple directions: the shift to digital streaming platforms, intense competition for advertising revenues, and rising content production costs. Unlike larger peers with diversified revenue streams and digital platforms, TV Vision remains dependent on conventional broadcasting, a declining segment of the media ecosystem.
The company's revenue collapse of 52.86% year-on-year far exceeds typical industry challenges. Whilst the broader Media & Entertainment sector returned negative 28.59% over the past year, TV Vision's underperformance of 43.59 percentage points versus its sector suggests company-specific issues beyond industry headwinds. The micro-cap nature of the business, with market capitalisation of just ₹23.05 crores, limits its ability to invest in content, technology, or strategic initiatives necessary to compete effectively.
Sector Positioning: Bottom of the Barrel
TV Vision ranks at the bottom of its peer group across virtually all metrics. With negative book value, zero institutional interest (just 5.95% institutional holdings), and 50.82% promoter pledging, the company lacks the financial resources, market confidence, and operational capabilities to compete in India's evolving media landscape.
Peer Comparison: Worst Performer in a Weak Group
A comparison with peers in the Media & Entertainment sector highlights TV Vision's relative weakness. The company's fundamentals rank at the bottom across key metrics, with negative book value of ₹-37.11 per share translating to a Price-to-Book ratio of negative 0.17x. This compares unfavourably with peers like Winpro Industries (P/BV of 1.34x) and BGIL Films & Technologies (P/BV of 1.23x).
| Company | P/E (TTM) | P/BV | ROE % | Debt/Equity | Mkt Cap (₹ Cr) |
|---|---|---|---|---|---|
| TV Vision | NA (Loss Making) | -0.17 | 0.00% | -0.04 | 23.05 |
| Cyber Media Ind | 21.77 | -1.66 | 0.00% | -0.47 | — |
| Winpro Industries | 150.50 | 1.34 | 23.24% | 0.01 | — |
| BGIL Films & Tech | NA (Loss Making) | 1.23 | 0.00% | 0.09 | — |
| Sharpline Broadcast | 17.42 | 1.02 | 5.86% | -0.04 | — |
Return on Equity (ROE) stands at zero for TV Vision, reflecting the company's inability to generate any returns on shareholder capital. This compares poorly with Winpro Industries' ROE of 23.24% and Sharpline Broadcast's 5.86%. The company's loss-making status precludes meaningful P/E ratio comparison, but the negative book value itself signals fundamental distress not shared by most peers.
Valuation Analysis: Value Trap, Not Value Opportunity
At the current price of ₹5.95, TV Vision trades at a Price-to-Book ratio of negative 0.17x, which might appear attractive on the surface but represents a classic value trap. The negative book value means shareholders have no residual claim on assets after liabilities are settled. The company's valuation grade of "RISKY" accurately reflects its precarious financial position.
Traditional valuation metrics offer little guidance for TV Vision. The P/E ratio is not applicable due to consistent losses, whilst EV/EBITDA of negative 2.67x and EV/EBIT of negative 1.15x reflect the company's inability to generate positive operational cash flows. The EV/Sales ratio of 0.77x might suggest the stock trades below revenue, but this metric is misleading when a company destroys value at the operational level.
The stock's 52-week range of ₹3.80 to ₹29.89 illustrates extreme volatility, with the current price down 80.09% from the high. This decline reflects not temporary market pessimism but fundamental deterioration in the business. The valuation grade changed to "Risky" from "Does Not Qualify" in April 2023, and subsequent performance has validated this assessment. With no dividend yield, negative earnings, and deteriorating fundamentals, TV Vision offers no margin of safety for value investors.
Shareholding Pattern: Promoter Pledging Raises Red Flags
The shareholding pattern reveals concerning trends that compound TV Vision's operational challenges. Promoter holding stood at 50.82% as of September 2025, unchanged from June 2025 but down from 56.72% in December 2024. More alarmingly, 50.82% of promoter shares are pledged, indicating the promoters have leveraged their holdings, likely to raise funds for the struggling business or personal obligations.
| Quarter | Promoter % | QoQ Change | FII % | MF % | Insurance % | Other DII % |
|---|---|---|---|---|---|---|
| Sep'25 | 50.82% | 0.00% | 0.00% | 0.00% | 0.05% | 5.90% |
| Jun'25 | 50.82% | 0.00% | 0.00% | 0.00% | 0.05% | 5.90% |
| Mar'25 | 50.82% | -5.90% | 0.00% | 0.00% | 0.17% | 5.90% |
| Dec'24 | 56.72% | +13.93% | 0.00% | 0.00% | 0.52% | 16.42% |
| Sep'24 | 42.79% | — | 0.00% | 0.00% | 0.52% | 16.49% |
Institutional participation remains negligible, with zero FII and mutual fund holdings. Other DII holdings stood at 5.90% in September 2025, down dramatically from 16.42% in December 2024, indicating institutional investors are actively exiting the stock. Insurance company holdings have declined to a token 0.05% from 0.52% in December 2024. The 61.84% non-institutional holding reflects a largely retail shareholder base with limited sophistication and resources.
The sharp decline in Other DII holdings by 10.52 percentage points between December 2024 and March 2025 coincided with the company's worsening financial performance, suggesting informed investors recognised the deteriorating fundamentals early. The absence of any institutional support—no FIIs, no mutual funds, minimal insurance participation—leaves the stock vulnerable to further declines without any stabilising buying interest.
Stock Performance: Catastrophic Wealth Destruction
TV Vision's stock performance over the past year represents one of the most severe wealth destruction stories in the Indian equity market. The stock has declined 72.18% over the past year, underperforming the Sensex by 81.31 percentage points. Year-to-date, the stock is down 71.99%, with an alpha of negative 80.50% versus the Sensex's 8.51% gain.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Day | -3.72% | +0.38% | -4.10% |
| 1 Week | -3.09% | +1.77% | -4.86% |
| 1 Month | -5.71% | +2.99% | -8.70% |
| 3 Month | -14.51% | +5.27% | -19.78% |
| 6 Month | -20.45% | +4.48% | -24.93% |
| YTD | -71.99% | +8.51% | -80.50% |
| 1 Year | -72.18% | +9.13% | -81.31% |
| 2 Years | +64.82% | +30.57% | +34.25% |
| 3 Years | +101.69% | +37.21% | +64.48% |
The technical picture confirms the bearish fundamental outlook. The stock trades below all key moving averages—5-day (₹6.11), 20-day (₹6.20), 50-day (₹6.51), 100-day (₹6.94), and 200-day (₹6.57)—indicating sustained selling pressure. The technical trend turned "Mildly Bearish" on November 12, 2025, from "Bearish," but this represents no meaningful improvement given the stock's proximity to its 52-week low of ₹3.80.
The stock's beta of 1.50 indicates high volatility relative to the market, with annual volatility of 49.15% far exceeding the Sensex's 12.33%. The risk-adjusted return of negative 1.47 over the past year places TV Vision in the "HIGH RISK LOW RETURN" category—the worst possible combination for investors. With immediate support at ₹3.80 and resistance at ₹6.20, the stock faces a precarious technical position with limited upside and significant downside risk.
"TV Vision's 72% decline over the past year reflects not temporary market pessimism but fundamental business failure, with revenues collapsing and losses accelerating in a structurally challenged industry."
Investment Thesis: Multiple Red Flags, Zero Catalysts
TV Vision's investment thesis can be summarised in one word: uninvestable. The company's Mojo Score of 6 out of 100 with a "STRONG SELL" rating accurately reflects the multiple layers of risk facing investors. The financial trend is "NEGATIVE," the technical trend is "MILDLY BEARISH," the quality grade is "BELOW AVERAGE," and the valuation is "RISKY." Not a single parameter offers any reason for optimism.
The company's five-year sales growth of negative 13.78% demonstrates a business in structural decline, not temporary difficulty. With operating margins deeply negative and worsening, TV Vision lacks the fundamental profitability required to sustain operations. The negative book value of ₹143.77 crores means the company is technically insolvent, whilst the pledging of 50.82% of promoter shares raises questions about the promoters' ability and willingness to support the business.
Limited Positives
- Zero debt burden with minimal interest costs
- Debtors turnover ratio improved to 8.39 times in H1 FY26
- Established presence in television broadcasting
Critical Concerns
- Revenue collapsed 52.86% YoY to ₹5.94 crores in Q2 FY26
- Operating losses exceed revenues (margin: -105.39%)
- Negative book value of ₹-37.11 per share
- Accumulated losses of ₹182.51 crores
- Working capital deficit of ₹176.35 crores
- 50.82% promoter pledging signals financial stress
- Zero institutional holdings (FII, MF)
- Stock down 72.18% over past year
- Mildly Bearish technical trend with high volatility
- No visible path to profitability or turnaround
Outlook: What to Watch (or Why to Avoid)
For the few investors still holding TV Vision shares, the outlook is bleak. The company faces multiple existential challenges with no clear solutions. The continued revenue decline, accelerating losses, and negative working capital position suggest the business may not be viable in its current form. Potential restructuring, asset sales, or capital infusion would be necessary even to stabilise the situation, let alone return to growth.
Potential Stabilisation Signs (Unlikely)
- Revenue stabilisation above ₹10 crores quarterly
- Operating margins returning to positive territory
- Promoter un-pledging of shares
- Fresh capital infusion or strategic investor
- Restructuring plan announcement
Red Flags to Monitor
- Further revenue declines below ₹5 crores quarterly
- Operating margins deteriorating beyond -110%
- Additional promoter pledging or stake sales
- Creditor actions or legal proceedings
- Delisting or suspension risk
- Further institutional exits
- Stock breaking below ₹3.80 support
The media and entertainment sector's structural shift towards digital platforms compounds TV Vision's company-specific challenges. Without the scale, content library, or financial resources to compete in streaming, and with its traditional broadcasting business in free fall, the company lacks a viable business model. The 50.82% promoter pledging suggests even the promoters lack confidence or resources to support the business meaningfully.
The Verdict: Avoid at All Costs
Score: 6/100
For Fresh Investors: Completely avoid. TV Vision represents a value trap with negative book value, collapsing revenues, and no visible path to turnaround. The stock's 72% decline over the past year reflects fundamental business failure, not temporary weakness. With operating losses exceeding revenues and negative working capital of ₹176 crores, the company faces potential insolvency. There are no compelling reasons to invest and multiple reasons to stay away.
For Existing Holders: Exit at the earliest opportunity, even at current distressed prices. The deteriorating fundamentals—revenues down 52.86% YoY, operating margins at negative 105.39%, and losses accelerating—suggest further downside ahead. With 50.82% promoter pledging, zero institutional support, and a Mojo Score of just 6/100, the risk-reward is entirely unfavourable. Cut losses before potential further deterioration.
Fair Value Estimate: Not applicable. The company's negative book value and lack of earnings make traditional valuation impossible. The current price of ₹5.95 may still overvalue a business with no clear path to profitability.
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's financial distress, negative book value, and operational challenges present significant risks that could result in total loss of investment.
