Indian Economy Overview:
Indias economic outlook for 2025 reflects cautious optimism, amidst the backdrop of persisting external headwinds. On the positive side, consumer spending is expected to gain momentum, driven by an improved outlook for the agriculture sector, which is likely to bolster rural consumption and sentiment in the first half of the next fiscal year. Food inflation which has remained elevated for over a year and strained household budgets, particularly for low- and middle-income urban families is expected to ease. As inflationary pressures recede, urban consumption is anticipated to witness a recovery, especially for low-ticket and discretionary items.
On investment front, the governments focus on capital expenditure is expected to remain a key growth driver in the year 2025-26. Investments in infrastructure and allied sectors such as roads, housing, logistics, and railways are anticipated to further economic momentum. Additionally, the services sector, particularly hospitality, real estate, health, and education, is expected to contribute to creation of fresh capacity.
Nonetheless, downside risks remain on the horizon. The private capital expenditure cycle is expected to stay subdued, with a cautious outlook limiting large-scale capacity additions. Factors such as geopolitical uncertainties, uneven domestic demand, oversupply from China have kept investors on the edge.
However, with deleveraged corporate balance sheets, capacity utilization rates holding up, and uptick in demand, the momentum in private investments could build.
Merchandise exports are projected to face persistent challenges, constrained by weak global demand, potential tariff wars, and ongoing geopolitical tensions. While services exports are expected to perform better than merchandise exports, uncertainties stemming from US trade policies and financial market volatility could pose additional risks.
Challenges and Opportunities for India
There is a possibility of short-term disruptions through channels like exports, foreign capital flows, and input costs for the US trading partners including India.
The likelihood of tax cuts (personal and business) could increase the US fiscal deficit, while higher tariffs and stricter immigration norms could push up labour costs and inflation. The Federal Reserve, in response, could cut the policy rates by less than what was anticipated. This may reduce capital inflows into emerging markets, including India, causing Rupee fluctuations. Trade tensions, including a potential US-China trade conflict, could disrupt supply chains and raise input costs in the short term. However, there is expectation that the US will take a calibrated approach towards India.
Nonetheless, India is poised to benefit from global supply chain diversification away from China. Its strategic position as a manufacturing hub could attract foreign direct investment in sectors like semiconductors, electronics, and automotive components. Targeted industrial policies and sector-specific strategies will remain critical to seizing these opportunities.
The energy sector holds promise, with the revitalized US-India Strategic Clean Energy Partnership (SCEP) emphasizing renewable energy, energy efficiency, and sustainable fuels. India could also benefit from lower global oil prices as US production increases. Strengthened collaboration in civil nuclear energy will further enhance ties.
To address risks and unlock opportunities, India should evaluate reducing tariffs on select and specific US imports while ensuring revenue stability and minimal domestic impact. Diversifying export markets and leveraging ongoing trade negotiations will be critical to enhancing trade resilience.
Also, development of high-quality industrial clusters with robust backward and forward linkages is essential for India to integrate into diversifying global supply chains. Complementing this effort, infrastructure upgrades and sector-specific policies can attract greater foreign direct investment (FDI).
Expanding trade and investment partnerships across agriculture, defence, energy, healthcare, and emerging technologies will foster mutual growth. Deepening collaborations in areas like artificial intelligence, clean energy, and cybersecurity will further strengthen economic and strategic ties between India and the U.S.
Source: https://ficci.in/public/storage/SEDocument/20712/DSyNdso0hGSIZ4J1XdRnQdM8FQ0nUh3ZeE7Zc4lz.pdf
Future outlook
We now expect India to grow between 6.5% and 6.8% in our baseline scenario. Although admittedly lower than previously estimated, because of a slower first half of the year, we expect strong domestic demand in the second half, driven by a significant uptick in government spending).
This will be followed by growth between 6.7% and 7.3% in fiscal year 2025 to 2026, with significant downside risks. Indias growth projections in the subsequent year will likely be tied to broader global trends, including rising geopolitical uncertainties and a delayed synchronous recovery in the West than anticipated. Disruptions to global trade and supply chain due to intensifying geopolitical uncertainties will also affect demand for exports. Despite these challenges, we will continue to see the difference between actual GDP and no-COVID-19 levels progressively narrowing as growth picks up pace.
Indian Media & Entertainment (M&E) Sector Overview:
The Indian M&E sector continued to grow in 2024, albeit at a relatively modest 3.3%; it grew by 81 billion to reach 2.5 trillion while the sector was 30% above its pre-pandemic 2019 levels, television, print and radio still lagged their 2019 revenues.
Digital media overtook television for the first time to become the largest segment, contributing 32% of M&E sector revenues.
We expect the M&E sector to grow 7.2% in 2025 to reach 2.68 trillion (US$31.6 billion), then grow at a CAGR of 7% to reach 3.07 trillion by 2027.
Indian M&E sector grew 3.3% in 2024 to cross INR 2.5 trillion:
Segment | 2019 | 2022 | 2023 | 2024 | 2025 E | 2027 E | CAGR 2024 - 2027 |
Digital Media | 308 | 571 | 686 | 802 | 903 | 1104 | 11.20% |
Television | 788 | 726 | 711 | 679 | 676 | 667 | (0.60%) |
296 | 250 | 259 | 260 | 262 | 267 | 0.90% | |
Online Gaming | 64 | 222 | 236 | 232 | 260 | 316 | 10.80% |
Filmed Entertainment | 191 | 172 | 197 | 187 | 196 | 213 | 4.30% |
Animation and VFX | 95 | 107 | 114 | 103 | 113 | 147 | 12.50% |
Live Events | 83 | 73 | 88 | 101 | 119 | 167 | 18.20% |
Out of Home Media | 52 | 48 | 54 | 59 | 66 | 79 | 10.20% |
Music | 15 | 46 | 54 | 53 | 60 | 78 | 13.40% |
Radio | 31 | 21 | 22 | 25 | 27 | 29 | 6.60% |
Total | 1923 | 2237 | 2422 | 2502 | 2682 | 3067 | 7.00% |
Growth | 16% | 8% | 3% | 7% | 14% |
All figures are gross of taxes (INR in billion) for calendar years I EY estimates
The M&E sector :
The Indian M&E sector will grow at a CAGR of 7% and add INR564 billion in three years.
New media will provide 68% of this growth, followed by live events (12%) and animation and VFX (8%).
Barring unforeseen situations, we expect all segments to grow or remain flat, except liner television, so long as India real GDP grows 5% or more.
Advertising will comprise 52% of total sector revenues in 2027, while share of subscription will reduce to 35% by 2027.
Television
Pay TV will continue to gain audiences, but will also start switching to smart TVs as wired (or similar). Both the telcos and the MSOs will play an important role as they aim to increase ARPUs, through bundling broadband with linear TV services, as well as by bundling content to drive adoption of Cable Television (CATV).
Pay TV is expected to fall to 95 million homes in the country, as more large screen viewership moves to Connected TVs.
Free TV will remain and expected to grow to 53 million homes. As Indias per capita income increases and the lower middle class will grow and more people will be able to buy a television set. Currently, of over 320 million Indian households, around 100 million do not have a TV, and growth in per capita income will help those homes enter the TV segment.
Growth in Indias population will increase Indian households from 330 million in 2024 to 338 million till 2027. Further, the middle-class population is projected to grow substantially, reaching 715 million in 2030-31 and 1.02 billion in 2046-47. This will, in turn, increase the demand for TV sets.
Connected TV homes are expected to increase to 48 million by 2027, as broadband access in the home increases steadily. India has seen its wired broadband increase from 32 million to 46 million during the last two years.
The key challenge posed by connected smart TVs is that broadcasters will now compete against social media and digital native platforms as well for share of time on the large screen.
Linear pay TV is here to stay
Linear TV will grow when TV dark homes come onboard and when free TV audiences upgrade to pay. In order to address the opportunity and reduce television dark households, a number of initiatives will need to be evaluated, such as:
a) Creation of lower priced FTA packs
b) Differential pricing and bundling for rural markets, in agreement with the regulator
c) Reactivation of the millions of inactive set-top boxes through incentive schemes
d) Creating relevant content baskets for underpenetrated markets
The television segment has witnessed some interesting, yet dichotomous developments in recent times. Although the number of pay TV subscribers continue to decline, the overall number of TV viewers continues to grow. While advertising shrunk, the number of TV screens are growing and the overall segment is expected to have a positive outlook in the coming times. Viewership of connected TVs would continue to grow and proliferate with the increase in broadband and 5G.
2024 | 2027E | 2030E | |
Pay TV | 111 | 95 | ALIGN=RIGHT>81 |
Free TV | 49 | 53 | 57 |
Connected TV | 30 | 48 | 76 |
Total | 190 | 196 | 214 |
EY estimates I millions of subscriptions
Future outlook
Television households will grow due to the following reasons:
The television has always been a way for families to spend time together and build a discuss stories and characters. We expect broadcasters to make significant investments in commissioning and promoting family content to bring back group viewing, on linear and CATV.
This will give rise to a new category of production houses and talent, across geographies.
We expect total TV subscriptions to grow to 214 million by 2030, driven by a 1% CAGR in Indian households and increasing per capita income.
By 2030 there would be three large and important segments - Pay TV, Free TV and Connected TV, and broadcasters will need to cater to them all.
Once OTT bundling picks up scale, and pricing parity between OTT and linear TV is more pronounced, the impact on TV homes could be faster.
In effect, CATV would be the largest distributor of content on large screens by 2030, but broadcasters would be competing with not just each other on the CATV platform, but also social media, short video, gaming,etc., all of which underlines the need for diversification of products and re-engineering organizations towards audience segments.
Growth Required innovation and Incentives
Multi-window innovation, i.e., packaging and pricing across the three TV consumer segments (Pay TV,Connected TV, Free TV), will be implemented to provide audiences with more content choices Increase flexibility to choose/ replace channels within bundles in order to prevent churn.
TV content distributed through OTT platforms could be placed behind a paywall, and not be provided free of cost online along with its TV broadcast, except for those who have subscribed to the channel on TV , or as delayed catch-up viewing.
Public-private partnership can enable TV dark homes to buy televisions through incentives such as:
Free distribution of sets under government programs in border/ sensitive areas
Subsidized distribution of sets and STBs
Creating a low-cost India TV plus receiver product
Increased adoption of HD hardware needs to be incentivized to enable premiumization
OPPORTUNITIES, THREATS AND BUSINESS OUTLOOK
Free Dish offering stiff competition in Phase 3 and 4 Hindi Speaking Markets
High end consumers / Nuclear families / Bachelors can move to TV viewing through OTT apps
The Company is taking various setps to improve performance by:
Penetration in untapped market
Rationalise ARPU through innovative DPO packs
Increase customer engagement through better regional content
Optimization of overheads by exercising effective control and regular reiew mechanism
INTERNAL CONTROL SYSTEMS AND ADEQUACY
The Company has proper and adequate internal control system under which management reports on key performance indicators and variance analysis are made. Regular management committee meetings are held where these report and variance analysis are discussed and action plan initiated with proper follow up. Operational Reports are tabled at Board Meetings after being discussed in Audit Committee meetings.
BUSINESS PERFORMANCE
The Company is providing Cable Television Network Services which is considered as the only reportable seement. The companys operations are based in the state of Maharashtra, India.
HUMAN RESOURCES
An orientation has been given to the personnel policy with emphasis on performance. Employee strength was managed at various levels with reallocation of responsibilities for better utilization of resources.
Measures are continuring to facilitate higher levels of output and productivity. Managerial Effectiveness is being improved by appropriate development and training programs, better co-ordination and improvement in communication.
As of March 31,2025 there were 10 permanent employees on the rolls of the company.
COMPANYS FINANCIAL PERFORMANCE AND ANALYSIS
(Rs. in lakh)
Particulars |
Year ended | |||
March 31,2025 | March 31,2024 | March 31, 2025 | March 31,2024 | |
Standalone | Consolidated | |||
INCOME |
||||
Revenue from Operations | 256.80 | 268.33 | 256.80 | 268.33 |
Other Income | 18.37 | 3.68 | 18.37 | 3.68 |
TOTAL INCOME |
275.17 | 272.01 | 275.17 | 272.01 |
EXPENSES |
||||
Feed Charges | 87.99 | 89.18 | 87.99 | 89.18 |
Other Operational Expenses | 22.60 | 22.77 | 22.60 | 22.77 |
Employee Benefit Expenses | 59.66 | 51.25 | 59.66 | 51.25 |
Depreciation, Amortization and Impairment | 15.61 | 16.77 | 15.61 | 16.77 |
Other Expenses | 82.43 | 87.90 | 82.43 | 87.90 |
TOTAL |
268.29 | 267.87 | 268.29 | 267.87 |
Profit / (Loss) before exceptional Items and tax |
6.88 | 4.14 | 6.88 | 4.14 |
Share of net Profit / (Loss) of Joint venture accounted for using the equity method |
- | - | (0.96) | (8.13) |
Profit / (Loss) Before Taxation |
6.88 | 4.14 | 5.92 | (3.99) |
Tax Expense |
||||
Current tax | - | - | - | - |
Deferred tax | 1.59 | 0.30 | 1.59 | 0.30 |
Profit / (Loss) After Taxation |
5.29 | 3.84 | 4.33 | (4.29) |
Other Comprehensive Income | 0.15 | 0.84 | 0.15 | 0.52 |
Total Comprehensive Income for the year |
5.44 | 4.68 | 4.48 | (3.77) |
Ratio Anaysis (Consolidated Basis) :
Sr. No. |
Particulars |
Year Ended March 31, 2025 | Year Ended March 31,2024 | % Variance | Remarks |
1 | Current Ratio | 1.01 | 0.49 | 105% | Due to increase in intercompany receivables and Other Financial Assets |
2 | Debt-Equity Ratio | NA | NA | NA | - |
3 | Debt Service Coverage Ratio | NA | NA | NA | - |
4 | Return on Equity Ratio | 0.02 | -0.02 | -201% | Due to increase in Profit on account of increased Other Income |
5 | Inventory Turnover Ratio | NA | NA | NA | - |
6 | Trade Receivables Turnover Ratio | 18.19 | 42.66 | -57% | Due to decrease in Operating Income and increase in intercompany receivables |
7 | Trade Payables Turnover Ratio | 2.59 | 6.61 | -61% | Decreased due to increase in trade payables |
8 | Net Capital Turnover Ratio | 302.32 | -8.20 | -3785% | Increased due to increase in net current assets |
9 | Net Profit Ratio | 0.02 | -0.02 | -205% | Increased due to net profit in current year |
10 | Return on Capital Employed (Excluding Working Capital Financing) | -0.06 | 0.00 | NA | |
11 | Return on Investment | 2.03 | 0.04 | 4967% | Increased due to increase in trade receivables |
Operational Review:
The financial statements of the company have been prepared on going concern basis which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. For the year ended March 31, 2025, the Companys total comprehensive income for the period is 5.44 Lakh and Net worth is Positive by 207.94 Lakh.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectation may be forward-looking within the meaning of applicable laws and regulations. Actual results might differ materially from those expressed or implied.
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