Picture fades on Sun TV's top line

A sports-heavy calendar and digital shift cloud visibility

- RAM PRASAD SAHU

Sun TV Network's 2024-25 (FY25) January-March quarter (Q4) results mirrored its FY25 trends, with declining advertising (ad) revenues and higher costs denting its revenues and operational performance. After a weak Q4 showing, most brokerages have cut the company's 2025-26 (FY26) and 2026-27 (FY27) earnings estimates by 4-9 per cent.

Gains for the South India-based television (TV) broadcaster will depend on a recovery in revenues, its control over costs, and the impact of competitive pressures. While there are multiple headwinds, what could support the stock is a gradual recovery in ad revenues, high margins, and dividends. The stock has shed about 14 per cent over the past six months and is priced at ₹623 a share. It is trading at 13.7x its FY26 earnings estimates, higher than the 12.5x average price-to-earnings valuation over the past five years.