Sandesh Ltd Q1FY26 FY25: Gujarati Newspaper Giant With ₹84 Cr Profit, P/E 10.4, Book Value Discounted Like Navratri Sale
1. At a Glance
Sandesh Ltd, born in 1943 (yes, before India even got independence), still runs the Gujarati daily “Sandesh,” prints across 6 cities, and even operates a TV news channel plus an app for digital news. Stock trades at ₹1,160 with a market cap of ₹880 Cr. Current P/E is 10.4, Book Value ₹1,783, meaning you’re buying it at 0.65x BV — basically, a Gujarati-style “wholesale discount.”
Quarterly revenue? ₹72.9 Cr (up 6.88% YoY). Quarterly PAT? ₹58.1 Cr (up 15.1% YoY). But here’s the twist — most of that is other income (₹55 Cr), not actual newspaper profits. In short: the paper prints headlines, but the profits come from mutual funds and investments.
ROE? 5.9%, which is weaker than your cousin’s attempt at a start-up pitch. Dividend yield? Just 0.43%, proving Gujaratis know better than to give away free mithai.
2. Introduction
Sandesh Ltd is what happens when a family-run newspaper learns how to survive 8 decades by mixing Gujarati news, political masala, and cricket scores. In Gujarat, Sandesh competes with Divya Bhaskar and Gujarat Samachar, but it holds its ground like that stubborn uncle who refuses to leave his chair at weddings.
The company knows one simple truth: Gujaratis read newspapers religiously with chai. But let’s be honest — most youth are now scrolling Insta reels instead of flipping broadsheets. To counter this, Sandesh launched a TV channel and digital app. Yet, bulk of its cash today doesn’t come from “breaking news,” but from breaking FDs and booking capital gains.
So what’s the business here? Running newspapers or running a treasury desk?
Question for you: Do you prefer your media houses to make money from journalism, or from stock markets like Sandesh?
3. Business Model – WTF Do They Even Do?
Sandesh is not just about screaming Gujarati headlines on politics and gold prices. Here’s their buffet spread:
Sandesh Newspaper: Old-school Gujarati daily with presses in Ahmedabad, Vadodara, Surat, Rajkot, Bhavnagar, Bhuj. Circulation covers most Gujarati families who still prefer newsprint with fafda-jalebi breakfast.
Sandesh Television: 24×7 Gujarati news channel. Basically Arnab Goswami energy but with more dhol background.
Sandesh Digital: E-paper, mobile app, social media. Growing, but nowhere near Instagram meme pages.
OOH Advertising: Branded as Spotlight, handles hoardings and out-of-home ads.
Real Estate (Applewoods): Promoter side hustle — an Ahmedabad township project. Company invested ₹211 Cr equity here, but says “no more funding.” Translation: “We’re stuck, but pretending it’s self-sustainable.”
Investments: Since FY20, Sandesh turned into a part-time NBFC — ICDs worth ₹146 Cr, equity portfolio worth ₹115 Cr, mutual funds, etc. Basically, “Dhandho Investor Pvt. Ltd.” vibes.
So yes, Sandesh sells news, but profits? That’s mostly financial engineering.
