DishTV FY26 loss widens to Rs 807 crore as OTT disruption hits subscription business

India’s largest direct-to-home (DTH) operator DishTV India Limited reported a sharp deterioration in its financial performance for FY26, as intensifying competition from OTT platforms, shifting consumer viewing habits and mounting industry pressures weighed heavily on its core subscription business.

The company on Tuesday posted a consolidated net loss of Rs 807.4 crore for the financial year ended March 31, 2026, widening from a loss of Rs 487.7 crore in FY25. Consolidated operating revenue fell 25.8% year-on-year to Rs 1,162.6 crore from Rs 1,567.6 crore a year earlier.

For the March quarter, DishTV reported consolidated operating revenue of Rs 243.1 crore, down 29.3% year-on-year, while quarterly net loss stood at Rs 303.9 crore. Subscription revenue for the quarter plunged 47.2% to Rs 156.3 crore from Rs 295.9 crore in the corresponding quarter last year.

The company’s EBITDA for FY26 slipped into negative territory at Rs 6.9 crore loss, compared with a positive EBITDA of Rs 529.1 crore in FY25. Quarterly EBITDA came in at a negative Rs 70 crore against a profit of Rs 97.3 crore a year earlier.

DishTV said the business environment remained challenging amid “intensifying competition from OTT and digital platforms, evolving consumer viewing preferences and consumption behaviour, persistent inflationary pressures affecting overall spending patterns, and continued currency depreciation”.

Despite the weak operational performance, the company continued to push its transition strategy beyond the traditional DTH business. DishTV said its VZY smart TV business crossed the Rs 100 crore sales milestone during FY26 as it sought to build a hybrid entertainment ecosystem integrating DTH, OTT aggregation, connected devices and smart TV experiences.

Chief executive Manoj Dobhal said the company remains focused on “building a future-ready hybrid entertainment ecosystem through platform diversification, connected entertainment experiences, operational discipline, and strategic partnerships”.

However, the company’s financial stress continued to deepen, with auditors again flagging material uncertainty over its ability to continue as a going concern. The company’s accumulated losses have exceeded its equity share capital, resulting in a negative net worth. Consolidated other equity stood at negative Rs 4,226.7 crore as of March 31, 2026.

The company highlighted that ongoing legal disputes over DTH licence fees and the company’s negative net worth could cast “significant doubt” on its ability to continue as a going concern, although the audit opinion remained unmodified.

A major overhang remains DishTV’s long-running dispute with the Ministry of Information and Broadcasting over licence fee liabilities. The company disclosed that it received a communication from the ministry on December 30, 2025 directing it to pay Rs 7,202.7 crore towards licence fees and related interest up to FY25, subject to reconciliation and court outcomes. DishTV has disputed the demand and said the matter remains sub judice before multiple courts, including the Supreme Court and the Jammu & Kashmir and Ladakh High Court.

The company has already provided Rs 4,865.6 crore in its books toward the disputed liability as of March 31, 2026.

DishTV also continued to take impairment hits linked to investments in newer businesses. The company disclosed impairment charges of Rs 592.1 crore in standalone accounts and Rs 143.5 crore in consolidated accounts during FY26, largely related to investments and advances associated with subsidiary Dish Infra Services Private Limited and its OTT-related initiatives including Watcho.

Operationally, the company said it will continue focusing on connected entertainment, OTT aggregation, smart devices and revenue diversification over the next 18–24 months, as traditional DTH subscriptions continue to decline across the industry.