Home / Business and Economy / Sun TV Network Scores Big with Coolie Movie, Faces Ad Decline
Sun TV Network Scores Big with Coolie Movie, Faces Ad Decline
17 Nov
Summary
- Coolie movie's strong ₹510 crore global gross bolstered Q2 revenue
- Core ad sales declined ~13% y-o-y amid shift to digital medium
- Subscription revenue grew 9% y-o-y, but growth expected to moderate
As of November 17, 2025, Sun TV Network's Q2 revenue and EBIDTA were ahead of analysts' estimates, primarily due to the strong performance of the Coolie movie. The film's global gross of ₹510 crore bolstered the company's Q2 results, with film distribution contributing 34% of total revenue.
However, the company is facing a structural shift in the advertising landscape, with core ad sales declining by around 13% year-over-year. This decline is attributed to FMCG brands diversifying their marketing efforts to the digital medium. The analysts expect an 8% ad decline in FY26 before a modest 3-4% recovery during FY27-28.
On a positive note, Sun TV's subscription revenue grew 9% year-over-year, aided by price hikes implemented in Q1. Although this growth is expected to moderate in the future, the company's other regional channels, such as Sun Marathi and Sun Neo, continue to gain market share.
As a result of these industry shifts, the analysts have pared down their revenue and earnings per share (EPS) estimates for Sun TV by 4% and 5-8%, respectively, during FY25-28. However, the company's consistent dividend payout of 35% and the potential valuation of the Royal Challengers Bengaluru IPL team (in which Sun TV holds a 30% stake) are seen as positive factors.
