1. At a Glance
Shemaroo just dropped another quarterly drama—except this one wasn’t “family-friendly.” A brutal ₹45.8 Cr loss in Q1 FY26, OPM at -40% (yes, negative), and a stock trading at 0.78x book value like it’s on a clearance sale at Big Bazaar. Legacy content library? Check. Legacy financial woes? Double check.
2. Introduction with Hook
Imagine Netflix, but only if it refused to move past 90s Govinda comedies, made no profits, and took personal loans to fund its YouTube uploads. That’s Shemaroo.
Highlights:
- Q1 Loss: ₹46 Cr, like setting fire to your own content vault.
- Operating Margin: -40%, which makes even Balaji Telefilms look like Berkshire Hathaway.
It’s the OTT version of “Kyunki Business Kabhi Profit Nahi Karta.”
3. Business Model (WTF Do They Even Do?)
Shemaroo is the video content uncle of Indian media—hoards old tapes, sells them digitally, and prays someone streams Jai Santoshi Maa on Mango TV.
Revenue streams:
- Content Licensing: Selling rights to platforms, DTH, TV.
- YouTube/OTT: Monetizing nostalgia and bhakti content.
- Mango TV: The “startup” within a dinosaur, now being transferred elsewhere. No, seriously.
Basically, it digitizes grandma’s DVD shelf and calls it “AI-driven storytelling.”
4. Financials Overview
| Metric | Q1 FY26 | QoQ | YoY |
|---|---|---|---|
| Revenue | ₹140 Cr | -31% | -9% |
| EBITDA | ₹-55 Cr | 🔥 | 🔥 |
| Net Profit | ₹-46 Cr | 🔥 | 🔥 |
| OPM | -40% | LOL | LOL |
Commentary:
This isn’t just a bad quarter—it’s a financial faceplant. Losses deep enough to echo. EBITDA has officially ghosted them.
5. Valuation
CMP: ₹134
Book Value: ₹173
P/E: LOL (negative earnings = no P)
Fair Value Range: ₹90 – ₹150
Method 1: P/B Method
- CMP/BV = 0.78 → cheap? Yes. Deserved? Also yes.
- Historical mean = ~1.2x → FV = ₹170 (if turnaround happens).
Method 2: Discounted Misery Flow (aka DCF)
- Negative FCF + declining revenues → needs divine intervention.
- Adjusted FV range: ₹90–₹110 until it stops hemorrhaging.
Buying now is like investing in cassettes during the Spotify IPO.
6. What’s Cooking – News, Triggers, Drama
- ₹45.8 Cr Q1 loss: The kind of loss that makes CFOs update their LinkedIn.
- Mango TV license transfer: More spin-offs than a Marvel franchise.
- Top-level reappointments: Because if the Titanic is sinking, you might as well keep the same captain.
Plot twist? The company’s still pitching “content IP monetization” like it’s 2012.
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹27 Cr |
| Reserves | ₹444 Cr |
| Borrowings | ₹303 Cr |
| Net Worth | ₹471 Cr |
| Total Liabilities | ₹866 Cr |
Key Take:
Debt isn’t crushing, but it’s doing the job. With declining cash and assets shrinking faster than box office footfalls, liquidity is on the ropes.
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹-17 Cr | ₹-19 Cr | ₹36 Cr | ₹-1 Cr |
| FY24 | ₹26 Cr | ₹-7 Cr | ₹-19 Cr | ₹-1 Cr |
| FY25 | ₹75 Cr | ₹-1 Cr | ₹-73 Cr | ₹1 Cr |
Net cash flow resembles the company’s latest devotional series—lots of prayers, zero results.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | -16.5% |
| ROCE | -9.3% |
| D/E | 0.64 |
| OPM | -12% |
| P/E | NA (Negative) |
Let’s be honest: These ratios are stressier than watching your crypto portfolio during a Fed meeting.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹557 Cr | ₹47 Cr | ₹10 Cr |
| FY24 | ₹707 Cr | ₹-0.2 Cr | ₹-40 Cr |
| FY25 | ₹685 Cr | ₹-80 Cr | ₹-84 Cr |
The P&L isn’t a report—it’s a horror story in Excel. Every new row comes with a plot twist.
11. Peer Comparison
| Company | Revenue (Cr) | PAT (Cr) | P/E | ROE |
|---|---|---|---|---|
| Saregama | 1171 | 201 | 47.5 | 13.1% |
| Tips Music | 311 | 161 | 49.6 | 82.9% |
| Prime Focus | 3599 | -100 | NA | -15.7% |
| Shemaroo | 670 | -113 | NA | -16.5% |
Shemaroo looks like the poor cousin crashing the media party. It has content but no cash, vision, or viral reel.
12. Miscellaneous – Shareholding, Promoters
| Holder | Jun ’24 | Jun ’25 |
|---|---|---|
| Promoters | 65.68% | 65.54% |
| FIIs | 0.00% | 0.00% |
| DIIs | 0.00% | 0.00% |
| Public | 34.33% | 34.44% |
Retail seems to be holding the emotional baggage here. Promoters slightly trimmed their stake, and institutions are avoiding it like a rebooted Doordarshan serial.
13. EduInvesting Verdict™
Shemaroo has the content. Unfortunately, it also has 2005’s business model, 2010’s debt load, and 2025’s financial anxiety. Unless Mango TV turns into a blockbuster or they pivot harder than Hotstar post-IPL, it’s a nostalgia-driven trap.
As for now?
Think of it as a nostalgia vending machine… that’s out of order.
Written by EduInvesting Team | 24 July 2025
Tags: Shemaroo Entertainment, Media Stocks, Q1 Results, EduInvesting Premium
