Network18 Media & Investments Ltd Q2FY26 — When a 587 Cr “Fair Value Gain” Becomes Your Hero and Revenue Goes Missing in Action
1. At a Glance
If Reliance ever wanted a reality show titled “Kya Scene Hai Media Mein”, Network18 would be the main contestant — mostly because the TRP of its financials is as unpredictable as Bigg Boss’s eviction nights.
In Q2 FY26, the company pulled a magic trick worthy of a prime-time slot — Standalone operating revenue of ₹ 477 crore, but a profit of ₹ 446 crore, thanks to an exceptional fair-value gain of ₹ 587 crore. Without that gain? The P&L would’ve looked like a post-budget newsroom — noisy, confused, and broke.
At ₹ 49 per share and a market cap of ₹ 7,556 crore, this stock currently boasts a P/E of 846, which basically means the market has more faith in Mukesh bhai’s ecosystem than in accounting sanity. Over the past three months, the stock is down 19 %, and over a year, it’s down nearly 40 %, proving once again that even “media darlings” can go out of style faster than a Netflix India show after episode 3.
2. Introduction
Network18 is that cousin who turns up at family weddings boasting about “connections in Bollywood,” “insider access,” and “pan-India presence,” while quietly living off Reliance’s credit card.
This conglomerate’s empire stretches across TV channels, digital portals, print magazines, and the ever-chaotic JioCinema universe — from CNBC TV18 shouting about markets every morning to Colors TV crying about saas-bahu every night.
But behind the glitz is a spreadsheet that reads like a tragic screenplay: ROE – 3.3 %, ROCE 0.6 %, OPM 0 % — basically a masterclass in how to keep a ₹ 9,000 crore top line looking broke.
Still, you’ve got to admire the survival skills — in an age where media companies are vanishing like ethical WhatsApp forwards, Network18 continues to reinvent itself through mergers, schemes, and “arrangements” that sound less like corporate strategy and more like Bollywood marriages.
3. Business Model – WTF Do They Even Do?
Think of Network18 as the Thali of Indian media — a bit of everything, some spicy, some bland, all subsidised by Reliance Jio’s buffet.
Broadcasting – Through TV18 Broadcast, it runs the country’s largest news network: 4 business channels, 2 national news channels, 14 regional ones, and enough anchors shouting to make Arnab look calm.
Television Entertainment – Viacom18, the group’s glam child, hosts Colors, MTV, Nickelodeon, and now even JioCinema, the free-to-watch OTT app that made Disney Hotstar cry into its subscription logs.
Digital & Print – Moneycontrol, News18, Firstpost, CNBCTV18.com, Forbes India, Overdrive, and more — the content factory that feeds India’s caffeine-addicted investors and car nerds.
Commerce & Allied – It even holds the largest stake in BookMyShow, ensuring that even when your favourite movie flops, Network18 still gets its booking fee.
But here’s the twist: while the content is everywhere, the profits are nowhere. The business model depends less on ad revenue and more on Reliance’s willingness to keep the lights on.
4. Financials Overview
Metric
Latest Qtr (Q2 FY26)
YoY Qtr (Q2 FY25)
Prev Qtr (Q1 FY26)
YoY %
QoQ %
Revenue
₹ 498 cr
₹ 1,825 cr
₹ 468 cr
– 72.7 %
+ 6.4 %
EBITDA
₹ (0) cr
₹ (179) cr
₹ 4 cr
–
–
PAT
₹ 41 cr
₹ (152) cr
₹ 149 cr
+ 127 %
– 72 %
EPS (₹)
0.26
– 0.92
0.96
–
– 72 %
Annualised EPS ≈ ₹ 1.04 ⇒ P/E ≈ 47 × if you exclude the “exceptional item fairy.” Include it, and the ratio jumps to an inter-galactic 846 ×.
Commentary: If Excel could cry, this sheet would be a river. Sales collapse 73 %, profits rise 127 %, and somewhere a CA silently whispers, “Exceptional item hi sab kuch hai.”
5. Valuation Discussion – Fair Value Range Only
Let’s approach this with the calm precision of an auditor who’s just been bribed with samosas.
(a) P/E Method
Assume a realistic sector P/E ≈ 40×, EPS ≈ ₹ 1.0 → Implied value ≈ ₹ 40. At CMP ₹ 49, market is already pricing in a future that requires viewers to actually pay for news (🤣).
(b) EV/EBITDA
EV ≈ ₹ 10,766 cr; EBITDA ≈ ₹ 456 cr (TTM) → EV/EBITDA ≈ 23.6×. Industry median ≈ 15× → Fair range ₹ 35 – 45 per share.
