Sony Pictures Networks India's FY26 EBITDA jumps 39%

Advertising revenue emerged as the biggest growth driver during the year, rising 19% to Rs 3,165 crore

by e4m Staff
Published: Jul 7, 2026 1:05 PM | 4 min read

Sony Pictures Networks India (SPNI) reported a 38.7% increase in EBITDA for FY26, reaching Rs 873 crore, driven by a cricket-heavy sports calendar and strong advertising demand.
Total income rose 9.4% to Rs 7,064 crore, with advertising revenue growing 19% to Rs 3,165 crore, while subscription income declined 4% to Rs 3,254 crore due to distribution disputes.
The broadcaster's net profit increased 15.6% to Rs 556 crore, reversing a significant decline from the previous year, aided by disciplined cost management and a successful sports strategy.
SPNI's operating performance was bolstered by major events like the Asia Cup and strategic digital rights sublicensing to JioHotstar, despite facing challenges in the Hindi fiction genre and increased employee costs.

Sony Pictures Networks India (SPNI) delivered a sharp improvement in operating profitability in FY26, with EBITDA surging nearly 39% as the broadcaster benefited from a cricket-heavy sports calendar, robust advertising demand and tighter control over content costs, marking the first full financial year under managing director and chief executive officer Gaurav Banerjee.

According to the company's consolidated financial statements filed with the Ministry of Corporate Affairs (MCA), EBITDA rose 38.7% year-on-year to Rs 873 crore in FY26 from Rs 630 crore a year earlier. The strong operating performance outpaced the company's 9.4% increase in total income, resulting in EBITDA margin expanding to 12.4% from 9.6% in FY25.

The improvement in operating profitability flowed through to the bottom line. Profit before tax rose 24.7% to Rs 753 crore, while consolidated net profit increased 15.6% to Rs 556 crore, reversing the steep decline recorded a year earlier when weak advertising demand had weighed on earnings. In FY25, SPNI's profit had fallen by about 45%.

The broadcaster reported total income of Rs 7,064 crore for FY26 compared with Rs 6,594 crore in the previous year, while revenue from operations increased 9% to Rs 6,830 crore.

People familiar with the company's operations said the improved performance was primarily driven by its premium cricket portfolio. The broadcaster aired the Asia Cup 2025, which generated strong advertiser interest after featuring three India-Pakistan matches and culminating in India lifting the trophy following a closely fought final against Pakistan.

SPNI had acquired the Asian Cricket Council media rights in 2024 through 2031 for $170 million, making the tournament a key component of its sports strategy.

The company also televised India's Test tour of England and monetised part of its sports investment by sublicensing digital streaming rights to JioHotstar. The arrangement helped recover a portion of its sports-rights costs while providing JioHotstar with premium live cricket content immediately after the conclusion of IPL 2025. The agreement also covered India's ongoing white-ball tour of England comprising five T20Is and three ODIs.

Advertising revenue emerged as the biggest growth driver during the year, rising 19% to Rs 3,165 crore. Besides cricket, flagship non-fiction shows such as Kaun Banega Crorepati and Wheel of Fortune supported advertising demand. However, Sony Entertainment Television continues to search for a breakthrough hit in the Hindi fiction genre.

The strong advertising performance helped offset continued weakness in subscription income, which declined 4% to Rs 3,254 crore. Industry executives attributed part of the decline to the broadcaster's distribution dispute with direct-to-home operator Tata Play.

Licensing income and programme sales almost doubled to Rs 410 crore from Rs 217 crore, largely due to the digital rights sublicensing agreement with JioHotstar.

A key factor behind the sharp rise in EBITDA was disciplined cost management despite an expensive sports calendar. Total expenditure increased 7.8% to Rs 6,311 crore, slower than revenue growth at the operating level. More notably, content, broadcasting and related costs declined 1.5% to Rs 3,621 crore from Rs 3,674 crore, even as SPNI carried marquee properties such as the Asia Cup, India's England cricket tour and its flagship entertainment programming.

The broadcaster did, however, incur higher employee-related expenses during the year. Employee benefit costs rose 18% to Rs 801 crore, reflecting one-time severance payouts following the company's cost-rationalisation exercise, which resulted in the layoff of more than 100 employees. Higher depreciation, amortisation and marketing expenses also contributed to the increase in overall expenditure.

FY26 was the first complete financial year under Banerjee, who assumed leadership after the collapse of Sony Group's proposed merger with Zee Entertainment. Since taking charge, the company has focused on strengthening its sports portfolio, improving operating efficiencies and rationalising costs while continuing investments in premium entertainment properties.

SPNI currently operates 28 television channels across genres and streaming platform SonyLIV.

The FY26 results suggest the broadcaster's strategy of leveraging premium sports rights while exercising greater discipline on content spending is beginning to yield results. Although subscription revenues remain under pressure amid ongoing distribution challenges, strong advertising growth, digital rights monetisation and improved cost efficiencies helped SPNI deliver its strongest operating profit growth in recent years.