Eros International narrows H1 loss to ₹28 crore

Eros International Media, a film and music content company, has released its results for the second quarter and first half of the fiscal year 2026-27. The company reported a consolidated loss of ₹28 crore for the first half ended September 30, 2026. However, the loss was ₹50.04 crore in the same period last year.

According to the company's results released on November 13th, the board has approved the financials for the September quarter and the first half. Standalone results also show a narrowing of the first half's losses. The company incurred a loss of ₹18.28 crore (₹182.8 million), compared to ₹359.9 million (₹359.9 million) in the same period last year.

What was the situation in standalone results?

On a standalone basis, the company's operating income for the September 2026 quarter was ₹47.9 million (approximately $1.7 million USD), compared to ₹99.3 million (approximately $1.9 million USD) in the same quarter a year ago. The company reported a loss of ₹108.5 million (approximately $1.7 million USD) in the second quarter, compared to ₹78.4 million (approximately $1.7 million USD) in the same quarter a year ago.

The company's operating income for the first half was ₹82.8 million, compared to ₹141.4 million in the same period last year. Losses during the period narrowed from ₹359.9 million to ₹182.8 million.

The company's net worth is completely wiped out.

The company stated in its financial results that its standalone net worth has been completely eroded by September 30, 2026. In the first half, the company reported a pre-tax loss of ₹18.28 crore. Furthermore, it has defaulted on statutory obligations on several occasions.

The company said it is taking steps to improve its cash position, including controlling borrowings, cutting expenses, and maximizing revenue from its film and music library rights. It is also working to recover outstanding dues from group companies and raising funds from non-core assets.

Crores of rupees stuck with group companies

A major concern for the company is its outstanding trade receivables from group companies. According to the company, it owes approximately ₹498.73 crore in trade receivables from Eros Worldwide FZE. Against this, the company owes ₹328.54 crore to this entity. After calculating both, approximately ₹170.19 crore remains outstanding.

Additionally, approximately ₹83.61 crore is due from Eros International Limited UK and approximately ₹36.44 crore from Eros International USA Inc. The company has made provisions for a total of ₹290.25 crore through September 30, 2026, to cover potential losses on these outstanding amounts.

The company has also applied to the Reserve Bank of India (RBI), seeking forgiveness for delays in receiving outstanding export invoices, waiver of penalties, and permission to settle outstanding dues with group companies. RBI approval is awaited.

SEBI investigation and Content Advance are also matters of concern

The company's financial results also mention matters related to SEBI. The company received an interim order and subsequent confirmatory order from SEBI in 2023. The company appealed this matter to the Securities Appellate Tribunal (SAT). SEBI subsequently issued a show-cause notice to the company.

The company said it is seeking documents and information related to this notice from SEBI so that it can respond. The matter is scheduled for further hearing on December 17 and 18, 2026.

Additionally, the company said that SEBI is also investigating content advances totaling ₹1,016.01 crore given to certain parties until September 30, 2026. The company stated that the net amount after impairment and write-offs on these advances is zero.

Auditor expressed concern over the financial situation

Haribhakti & Co. LLP, the auditor who reviewed the company's results, also highlighted several key issues. The auditor issued a qualified conclusion on the standalone results. However, due to a lack of sufficient and appropriate evidence, the auditor issued no conclusion on the consolidated results.

The auditor also noted the unavailability of financial data for one of the company's subsidiaries, Colour Yellow Production Private Limited. The company stated that there is an ongoing dispute regarding the management and control of this subsidiary, and the matter is pending before the National Accounts Committee (NCLAT). The next hearing is scheduled for December 3, 2026.

The auditor also stated that the financial position of the company and the group is such that it raises serious questions about its ability to continue as a going concern. The company incurred a loss of ₹182.8 million on a standalone basis and ₹280 million for the group in the first half of the financial year on a consolidated basis.

The company's ability to continue operating depends on the amount of capital it can raise through the sale of rights to its film and music libraries, non-core assets, and outstanding balances from group companies. However, the company has prepared its financial statements based on a going concern assumption.