Sun TV profit drops 39.63% as other income plunges
Standalone operating margin fell 2.23 percentage points YoY, while the stock's 6.18% initial decline exceeded its typical results-day move.
Filed 09 Jul 2026, 14:44 IST · Sun TV Network Ltd (SUNTV)
Key takeaways
- Standalone net profit fell 39.63% YoY to Rs 218.64 cr as other income dropped 85.51% and the tax rate rose 6.49 percentage points.
- Operating margin narrowed 2.23 percentage points YoY to 44.73% because revenue declined 6.66% while expenses fell only 2.73%.
- The stock fell 6.18% on the initial market reaction, larger than its 4.12% median absolute move after the past eight results.
Price around the results
Lower revenue and other income cut standalone profit
Revenue declined 6.66% YoY, while operating profit fell 11.09%, showing that the lower topline translated into a sharper operating setback. Profit before tax fell 34.15%, partly because other income dropped 85.51% from the year-ago quarter. Other income still represented 7.25% of pre-tax profit, so the decline materially affected reported earnings quality.
Sequential cost growth drove the margin slide
Revenue rose 2.49% QoQ, but expenses grew 12.17%, causing operating margin to narrow 4.77 percentage points to 44.73%. The tax rate also rose 3.00 percentage points sequentially to 28.62%, adding pressure below operating profit. Interest expense fell 3.90% QoQ, but that was not enough to offset the cost and tax-rate increases.
Margin has fallen for two straight quarters from the Q2 peak
Operating margin declined from 64.15% in Q2FY26 to 49.50% in Q3FY26 and 44.73% in Q4FY26. Despite that direction, Sun TV's margin remained 29.92 percentage points above the 14.81% median for 93 Consumer Discretionary peers that had reported the quarter.
Initial market reaction was weaker than Sun TV's usual move
The stock fell 6.18% on the initial reaction, with volume at 3.12 times its reference level and a 6.45% decline relative to the market. That was larger than the 4.12% median absolute move across the past eight results, when reactions were evenly split between four rises and four falls. The decline narrowed to 0.40% by the fifth session.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹848 cr | ₹828 cr | +2.49% | -6.66% |
| Other income | ₹22 cr | ₹126 cr | -82.41% | -85.51% |
| Expenses | ₹469 cr | ₹418 cr | +12.17% | -2.73% |
| Operating profit | ₹380 cr | ₹410 cr | -7.39% | -11.09% |
| Operating margin (%) | 44.73% | 49.50% | — | — |
| Interest | ₹2 cr | ₹2 cr | -3.90% | -13.62% |
| Depreciation | ₹93 cr | ₹108 cr | -13.97% | -17.16% |
| Profit before tax | ₹306 cr | ₹425 cr | -28.00% | -34.15% |
| Tax | ₹88 cr | ₹109 cr | -19.58% | -14.85% |
| Net profit | ₹219 cr | ₹316 cr | -30.91% | -39.63% |
| EPS (₹) | ₹5.55 | ₹8.03 | -30.88% | -39.61% |
Operating margin of 44.73% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -6.18% | -6.45% |
| Next session | -4.71% | — |
| 5 sessions | -0.40% | +0.75% |
| 15 sessions | -0.19% | — |
| 30 sessions | -2.18% | — |
Volume on the results session was 3.12× its 20-day average.
What to watch
- Whether operating margin stabilises after falling to 44.73% from 49.50% QoQ.
- Whether expense growth comes below the 12.17% QoQ increase recorded against 2.49% revenue growth.
- Whether other income remains around 7.25% of pre-tax profit and the tax rate moves below 28.62%.