SITINET - Siti Networks

📊 NSE: SITINET 🏢 Entertainment / Electronic Media Software 📅 Last Updated: 12/14/2025 13:27

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations for Q1 FY26 was INR 2,706.76 million, representing a 12.2% YoY decline from INR 3,083.06 million in Q1 FY25. The company operates in a single business segment of cable and broadband distribution.

Geographic Revenue Split

The company operates predominantly in a single business segment of cable and broadband distribution only in India, representing 100% of its geographic revenue contribution.

Profitability Margins

The company reported a consolidated net loss of INR 437.64 million for Q1 FY26, compared to a loss of INR 440.27 million in Q1 FY25. Standalone net loss for Q1 FY26 was INR 437.39 million. Net profit margin is significantly negative due to high operational and finance costs.

EBITDA Margin

Historical Q3 FY19 data showed an operating EBITDA of INR 930 million with a margin of 24.5%. However, for Q1 FY26, the company is operating at a loss before tax and exceptional items of INR 431.90 million (Consolidated), indicating a negative EBITDA margin.

Capital Expenditure

Not disclosed in available documents. The company is currently under Corporate Insolvency Resolution Process (CIRP), which restricts major capital expenditure.

Credit Rating & Borrowing

The company is under CIRP as per NCLT order dated February 22, 2023. Finance costs for Q1 FY26 were INR 241.40 million (Consolidated), representing approximately 8.9% of revenue from operations.

⚙️ Operational Drivers

Raw Materials

Pay channel costs (content acquisition) represent the primary operational cost, totaling INR 1,765.34 million in Q1 FY26, which is 65.2% of revenue from operations.

Import Sources

Not disclosed in available documents. Content is sourced from various domestic and international broadcasters operating within India.

Key Suppliers

Broadcasters (unnamed in documents) supply the pay channel content which constitutes the bulk of operational expenses.

Capacity Expansion

Not disclosed in available documents. Current focus is on maintaining operations under the Resolution Professional during the insolvency process.

Raw Material Costs

Pay channel costs were INR 1,765.34 million in Q1 FY26, down 11.4% YoY from INR 1,991.84 million in Q1 FY25. Procurement involves agreements with broadcasters for channel carriage and subscription sharing.

Manufacturing Efficiency

Not applicable as the company is a service provider. Historical SNL Subscription Collection Efficiency was reported at 94% in Q3 FY19.

Logistics & Distribution

Distribution costs are part of 'Other expenses' which were INR 816.53 million in Q1 FY26, representing 30.2% of revenue from operations.

📈 Strategic Growth

Growth Strategy

The company is currently managed by a Resolution Professional (Rohit Mehra) under CIRP. Growth is constrained by insolvency; the primary strategy is to maintain the 'going concern' status and resolve accumulated losses of INR 29,038.94 million (Group) through the NCLT process.

Products & Services

Cable TV distribution services and Broadband internet services.

Brand Portfolio

SITI Networks, Siti Broadband.

Strategic Alliances

The group includes 23 subsidiaries, such as Indian Cable Net Company Limited and Siti Vision Digital Media Private Limited, and various associates/joint ventures.

🌍 External Factors

Industry Trends

The industry is shifting from traditional cable to broadband-heavy and OTT-integrated models. SITI is struggling to transition due to its negative net worth of INR 13,380.37 million and negative working capital of INR 17,278.93 million.

Competitive Landscape

Key competitors include other Major Multi-System Operators (MSOs), DTH providers, and emerging fiber-to-the-home (FTTH) players like JioFiber.

Competitive Moat

Moat is based on its established distribution network and 23 subsidiaries, but this is currently unsustainable due to the disclaimer of opinion by auditors and the ongoing CIRP.

Macro Economic Sensitivity

Sensitive to Indian economic growth and consumer discretionary spending on entertainment and internet services.

Consumer Behavior

Shift toward on-demand content (OTT) and high-speed broadband is reducing traditional cable TV demand.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by TRAI regulations and SEBI Listing Regulations. The company is currently facing delays in compliance, such as the delay in holding its Annual General Meeting and filing Q2 FY26 results.

Taxation Policy Impact

The company has not recorded current or deferred tax expenses for Q1 FY26 due to significant accumulated losses.

Legal Contingencies

The company is under CIRP with ongoing litigations before NCLT Mumbai. One subsidiary, Siti Broadband Services Private Limited, is also under CIRP. Accumulated losses stand at INR 30,315.66 million (Standalone).

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the outcome of the CIRP and whether the company can remain a 'going concern' given its negative net worth of INR 13,380.37 million.