SANDESH - Sandesh

📊 NSE: SANDESH 🏢 Entertainment / Electronic Media Software 📅 Last Updated: 12/14/2025 12:46

💰 Financial Performance

Revenue Growth by Segment

Media segment assets grew 7.2% from INR 159.89 Cr in March 2025 to INR 171.40 Cr in September 2025. Finance segment assets decreased 18.8% from INR 37.63 Cr to INR 30.57 Cr in the same period. Subsidiary Sandesh Digital revenue was INR 1.06 Cr for H1 FY26.

Geographic Revenue Split

The company derives nearly 100% of its media revenue from Gujarat, where it maintains a largely stable market share in the regional newsprint media industry.

Profitability Margins

Subsidiary Sandesh Digital reported a net loss margin of 84% for Q2 FY26 (Loss of INR 42.55 Lakhs on Revenue of INR 50.80 Lakhs). Overall profitability is heavily influenced by treasury income, which saw a net loss on investments of INR 18.27 Cr in Q2 FY26.

EBITDA Margin

Consolidated operating profit before working capital changes was INR 20.20 Cr for the half-year ended September 30, 2025, supported by advertisement revenue and treasury income.

Capital Expenditure

Consolidated purchase of property, plant, and equipment (including work in progress) was INR 10.38 Cr for the half-year ended September 30, 2025.

Credit Rating & Borrowing

Ratings of CARE AA; Stable and CARE A1+ were withdrawn on February 19, 2025, as the company surrendered its bank facilities and has zero outstanding debt, resulting in negligible borrowing costs.

⚙️ Operational Drivers

Raw Materials

Newsprint is the primary raw material, representing the largest operational cost for the regional newsprint media business.

Import Sources

Not disclosed in available documents, though regional newsprint media typically sources from both domestic and international suppliers.

Capacity Expansion

Current installed capacity is not specified in MT; however, the company maintains a strong regional presence with established printing facilities in Gujarat.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but newsprint price volatility is a key operational risk affecting media segment margins.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is driven by maintaining a stable market share for the 'Sandesh' brand in Gujarat, expanding digital presence through Sandesh Digital Private Limited (H1 FY26 revenue of INR 1.06 Cr), and leveraging a massive treasury portfolio of INR 1,177.96 Cr to support operations.

Products & Services

Gujarati daily newspaper 'Sandesh', digital news content via Sandesh Digital, and financial/treasury investment services.

Brand Portfolio

Sandesh

New Products/Services

Expansion of digital news platforms and mobile applications under Sandesh Digital Private Limited.

Market Expansion

Focus remains on deepening penetration within the Gujarat regional market and growing the digital subscriber base.

Market Share & Ranking

Maintains a 'largely stable' market share in the Gujarat regional newsprint media industry.

🌍 External Factors

Industry Trends

The industry is shifting toward digital news consumption; Sandesh is positioning itself by scaling its digital subsidiary while maintaining its established print brand in a resilient regional market.

Competitive Landscape

Competes with other regional Gujarati language dailies and national media houses with regional editions.

Competitive Moat

Moat is built on a long-standing brand track record in Gujarat and a debt-free balance sheet with INR 1,413.11 Cr in equity, providing high financial stability and competitive resilience.