Dish TV’s Q1 loss hits Rs 286 crore as DTH revenue falls 33% year-on-year

Dish TV India has reported a consolidated net loss of Rs 286.30 crore for the quarter ended June 30, 2026, as the direct-to-home (DTH) operator continued to face pressure from a declining subscriber base and weak operating performance.

The company’s consolidated revenue from operations stood at Rs 265.83 crore in the April-June quarter, down from Rs 329.36 crore in the year-ago period. Q1 revenue, however, was higher than the Rs 243.07 crore recorded in the preceding quarter.

Despite the sequential improvement in revenue, Dish TV’s consolidated loss before tax widened sharply to Rs 286.30 crore from Rs 91.81 crore in the June 2025 quarter. In the March 2026 quarter, the company reported a loss before tax of Rs 303.95 crore.

DTH business remains under pressure

Dish TV’s consolidated operations are divided into DTH, LED television and other businesses. The DTH business continued to be the largest contributor to revenue, generating Rs 213.60 crore during the June quarter, compared with Rs 318.57 crore a year earlier.

The decline in the core DTH business was accompanied by a significant deterioration in its segment performance. The DTH business reported a loss before finance costs, exceptional items and tax of Rs 199.34 crore in the June quarter, compared with a loss of Rs 33.97 crore in the corresponding quarter last year.

Sequentially too, the performance weakened. The DTH segment had reported a loss of Rs 156.81 crore in the March quarter.

The company’s LED TV business provided some offset on the revenue side, with revenue rising to Rs 51.55 crore in the June quarter from Rs 10.78 crore a year earlier and Rs 37.62 crore in the preceding quarter. However, the segment remained loss-making, reporting a loss of Rs 23.63 crore before finance costs, exceptional items and tax, against a profit of Rs 1.54 crore in the year-ago quarter.

Overall, the group reported a segment loss of Rs 224.33 crore before finance costs, exceptional items and tax, compared with a loss of Rs 32.44 crore in the same quarter last year.

Finance costs stood at Rs 67.60 crore during the quarter, broadly in line with Rs 68.27 crore in the March quarter and higher than Rs 64.12 crore in the year-ago period.

Rs 7,203 crore government demand at centre of licence-fee dispute

One of the most significant risks disclosed by Dish TV relates to its long-running dispute with the Ministry of Information and Broadcasting over the validity, computation and payment of DTH licence fees.

The company said it has challenged the applicability and quantum of the licence fee, as well as the interest imposed on the dues. Its writ petition remains pending before the Jammu & Kashmir and Ladakh High Court. Similar petitions filed by other DTH operators, including one relating to erstwhile Videocon d2h, which was acquired by Dish TV, are pending before the Supreme Court.

The company said the interim relief granted by the Jammu & Kashmir and Ladakh High Court in October 2015 continues to remain in force while the matter is pending. It also said it continues to be legally advised that its position has merit.

The dispute took on added significance after Dish TV received a communication from the Ministry of Information and Broadcasting on December 30, 2025, directing it to pay Rs 7,202.73 crore towards licence fees from the grant of the respective DTH licences through financial year 2024-25, including interest up to December 31, 2025.

The company said the amount remains subject to reconciliation based on the outcome of the Comptroller and Auditor General audit and the various legal proceedings before the Telecom Disputes Settlement and Appellate Tribunal, the Jammu & Kashmir and Ladakh High Court and the Supreme Court. Dish TV has disputed the demand.

Dish TV had a provision of Rs 4,929.47 crore against the matter as of June 30, 2026, compared with Rs 4,865.58 crore at the end of March. The company said the increase was primarily due to the interest component arising from the time value of money.

Negative net worth raises going-concern concerns

The company said that, as of June 30, its accumulated losses exceeded its equity share capital, resulting in negative net worth. It attributed the situation to the licence-fee matter, a declining subscriber base and weaker business operations.

According to the company, an unfavourable outcome in the licence-fee dispute could cast significant doubt on its ability to continue as a going concern.

Despite this, management has prepared the financial statements on a going-concern basis, citing the absence of debt on its books, its business outlook and its cash-generation capability.

The statutory auditor highlighted the same issue in its review report, drawing attention to the conditions that could cast significant doubt on the company’s ability to continue as a going concern. However, the auditor’s conclusion on the financial statements was not modified on account of this matter.

Standalone loss at Rs 75.5 crore

On a standalone basis, Dish TV reported revenue from operations of Rs 73.70 crore for the June quarter, sharply lower than Rs 157.16 crore in the year-ago period. Other income stood at Rs 53.93 crore, taking total income to Rs 127.63 crore.

The standalone entity reported a loss before tax and a net loss of Rs 75.52 crore, compared with a loss of Rs 23.26 crore in the June 2025 quarter. The March quarter had recorded a standalone loss of Rs 669.16 crore, which was substantially higher because of an exceptional impairment charge.

The company’s consolidated loss in the March quarter was also affected by exceptional items. The March 2026 figures included an exceptional impairment charge of Rs 143.48 crore at the consolidated level and Rs 592.09 crore at the standalone level.

Watcho and other investments face impairment

Dish TV’s disclosures also point to substantial impairment recognised in its subsidiary Dish Infra Services.

According to the company, Dish Infra, with the help of independent valuation experts, assessed the probable future economic benefits associated with intangible assets under development and advances relating to investments in new-age technologies, including its Watcho OTT platform.

As of March 31, 2026, the subsidiary had recorded an impairment of Rs 797.69 crore in intangible assets under development and Rs 202.38 crore in capital advances. It had also recognised impairment of Rs 263.48 crore in other advances.

The consequences were significantly larger in Dish TV’s standalone books. The recoverable value of its equity investment in Dish Infra was impaired by Rs 5,153.78 crore, while loans given to Dish Infra were impaired by Rs 27 crore as of March 31, 2026.

These impairments were reflected in the exceptional items reported for the previous financial year.

Shift in customer-premises equipment business model

During the June quarter, Dish Infra also reassessed its business model for customer-premises equipment.

Previously, equipment installed at customer premises was retained as Dish Infra’s capital asset under a rental model, with revenue generated through usage-based arrangements. Equipment that had not yet been installed was classified as capital work-in-progress.

Following a strategic reassessment, the subsidiary has moved to a sales-based model under which customer-premises equipment can be sold outright to customers, while retaining the option of a rental scheme.

As a result, equipment worth Rs 143.96 crore that had been classified as capital work-in-progress as of March 31, 2026, was reclassified as inventory because it is now held for sale in the ordinary course of business.

Board below prescribed strength

The company also disclosed a governance issue in its quarterly financial statements.

Dish TV said its board currently has four members, below the minimum requirement of six directors under SEBI’s Listing Regulations. The company attributed this to shareholders not approving proposals relating to the appointment and reappointment of certain directors, as well as resignations of directors.

The board has initiated steps to induct new members, the company said.

Licence renewal framework remains unresolved

Dish TV also said the regulatory framework governing its DTH licence remains in transition.

The company’s original DTH licence had been provisionally extended from time to time. Following amended DTH guidelines issued by the Ministry of Information and Broadcasting on December 30, 2020, Dish TV applied for a new licence and received a provisional licence on March 31, 2021.

The ministry subsequently issued operational guidelines for DTH broadcasting services in September 2022 and circulated a draft DTH licence agreement in October 2023. Dish TV submitted its comments and suggested changes in November 2023. According to the company, the guidelines had not been finalised as of the date of its latest disclosure.

For Dish TV, the combination of declining DTH revenue, continuing operating losses, negative net worth and the large outstanding licence-fee dispute leaves the company facing significant financial and regulatory uncertainty.

At the same time, the management maintains that the business can continue as a going concern, pointing to its debt-free books, business outlook and ability to generate cash. 

The June-quarter results therefore highlight a company attempting to navigate a difficult operating environment while its core DTH business remains under pressure and its largest financial overhang continues to be decided through regulatory and judicial processes.