1.At a Glance
If Indian television were a joint family,Sun TV Network Ltdwould be that flamboyant, overachieving cousin who owns all the remotes, all the channels, and apparently now… an entireUK cricket franchise. The Q2FY26 numbers just dropped:Revenue ₹1,168.99 crore,PAT ₹329.79 crore, and a spicyinterim dividend of ₹3.75 per share— because why not keep shareholders mildly entertained between serials?
At a market cap of₹21,135 crore, trading at₹536/share, this media behemoth is now juggling more storylines than its own soap operas — TV, OTT, FM radio, IPL’sSunRisers Hyderabad, South Africa’sSunRisers Eastern Cape, and now the freshly importedSunRisers Leeds (formerly Northern Superchargers). The company maintains an enviableROCE of 20.4%,ROE of 15.7%, and a modestdebt of just ₹146 crore— basically, financial abs.
Despite anOPM of 51.2%, the last 12 months have been a TRP rollercoaster — ad revenues got hit, OTT competition intensified, and sports viewership stole a few eyeballs. Yet, in true “serial never ends” style, Sun TV keeps scripting new sequels — this time, global.
2.Introduction – From Chennai to Cricket Leagues, the Sun Rises Everywhere
Imagine you start as a Tamil TV channel in 1993, then fast forward three decades — you’re running an empire spanning six Indian languages, 59 FM stations, a film production arm (Sun Pictures), an OTT platform (SUNNXT), and cricket teams inIndia, South Africa, and now England. That’s not diversification; that’s multiverse madness.
In FY24, Sun TV generated₹4,282 crore in revenueand a cool₹1,926 crore in profit, running a lean and mean operation with aDebt-to-Equity ratio of 0.01. The company’s dividend yield of2.8%makes it a steady cash distributor in a volatile sector. Yet, sales growth over five years was a mere2.67%, because apparently, South Indians already watch too much Sun TV — market saturation achieved.
Still, when you have a content library that could entertain generations and aviewership dominanceacross Tamil Nadu, Kerala, and Andhra Pradesh, who needs rapid growth? Sun TV’s flagship channel continues to command the highest viewership in Tamil Nadu and consistently ranks in thetop five across India, proving that even in 4K OTT chaos, nostalgia and masala storytelling still win hearts.
And now, withSun NEO, the newly launched Hindi GEC channel in FY24, Sun TV wants to invade the North too. Someone clearly said, “Why stop at Deccan when you can take Delhi?”
3.Business Model – WTF Do They Even Do?
Let’s break down this beautiful chaos. Sun TV’s business model is like a thali — multiple dishes, all spicy:
- Television Broadcasting:31 channels across Tamil, Telugu, Kannada, Malayalam, Bangla, and Marathi. That’s more linguistic coverage than most Indian politicians.
- Content Creation:Owns and produces most of its content — cutting out middlemen and ensuring endless serials about amnesia, betrayal, and reincarnation.
- FM Radio:Operates throughSouth Asia FM LtdandKal Radio Ltd, running59 FM stationsunder brandsRed FMandSuryan FM— the jingles that haunt your morning commute.
- Movies:ThroughSun Pictures, it produces and distributes Tamil blockbusters — if Rajinikanth or Vijay are releasing something, chances are it’s stamped with the Sun logo.
- OTT Platform:SUNNXT— the streaming arm trying to keep up with Disney+ and Netflix. It’s basically “serials on-demand,” for people who missed last night’s drama but not the gossip.
- Sports:OwnsSunRisers Hyderabad,SunRisers Eastern Cape, and nowSunRisers Leeds(UK). The only Indian broadcaster that seems determined to conquer every cricketing time zone.
And all this empire feeds on two revenue monsters:
- Subscription income (~40%), and
- Advertising income (~32% in 9M FY24),with the rest coming fromcricket franchise income (~15%), movie distribution, and OTT subscriptions.
It’s like a diversified buffet — some dishes hot, others cooling off — but the spread keeps getting bigger.
4.Financials
Overview
| Metric (₹ Cr) | Q2FY26 | Q2FY25 | Q1FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1,168.99 | 936 | 1,300 | 24.9% | -10.1% |
| EBITDA | 674 | 541 | 754 | 24.6% | -10.6% |
| PAT | 329.79 | 409 | 355 | -19.4% | -7.1% |
| EPS (₹) | 8.3 | 10.39 | 8.99 | -20.1% | -7.7% |
Commentary:Revenue up sharply YoY — good! Profit down — classic TV soap plot twist. Advertisement revenue slowdown and increased sports franchise expenses are the villains of this episode. Still, a51% OPMand8.3 EPSaren’t bad numbers for a quarter dominated by cricket distractions.
5.Valuation Discussion – Fair Value Range Only
Let’s crunch this like a CA with too much filter coffee.
P/E Method:
- Current EPS (TTM): ₹41
- Industry PE: 19.7
- Sun TV PE: 12.7
- Fair Value Range: ₹520 – ₹808 (12.7× to 19.7×)
EV/EBITDA Method:
- EV: ₹21,088 Cr
- EBITDA (TTM): ₹2,945 Cr
- EV/EBITDA = 7.16×
- Industry Avg ≈ 10×
- Fair Value Range: ₹21,000–₹29,000 Cr → ₹530 – ₹740/share
DCF (simplified):Assuming cash flow growth 4%, terminal rate 2%, WACC 11%, fair value comes around₹600–₹750/share.
✅Educational Disclaimer:This fair value range (₹520–₹750) is for educational analysis only, not investment advice. Please consult your serial-writing aunt before making financial decisions.
6.What’s Cooking – News, Triggers, Drama
Sun TV has been servingmore plot twists than its 8 PM soap slotlately:
- July 2025:AcquiredNorthern Superchargers(nowSunRisers Leeds) forGBP 100.5 million— expanding their global cricket saga. That’s roughly ₹1,050 crore spent on another set of orange jerseys.
- April 2024:LaunchedSun NEO, a Hindi GEC channel. Translation: “Hum bhi Star Plus banenge.”
- FY24 Capex:A chunky ₹511 crore on PP&E — mostly for studios, transmission, and digital expansion.
- FM Radio Amalgamation:NCLT approved merger ofUdaya FMwithKal Radio, and another big merger withinSouth Asia FM Ltd.— creating one mega-radio boss entity.
- Dividend Policy:Still generous. In Q2FY26 alone, ₹3.75/share interim dividend declared.
- Ad Pressure:With IPL, OTTs, and live sports hogging ad budgets, TV ad revenue continues to feel the pinch.
Basically, Sun TV is juggling screens, stations, and stadiums — all while trying to make sure you still watch that
