The Nifty Media index, a sector benchmark, has declined nearly 20% while Network18 Media & Investments, the worst performer in the pack, has fallen by 40%. The next in line are Tips Music and Saregama India with share price erosion of 29% and 25%, respectively.
Others like Zee Entertainment Enterprises, Hathway Cable & Datacom, PVR Inox, Sun TV Network, D.B. Corp and Nazara Technologies have lost between 24% and 10%.
Media stocks outside the index viz. NDTV and TV Today are also down 29% and 37%, respectively.
Prime Focus, a stock with market capitalization of Rs 17,329 crore remains in top form despite uninspiring earnings. Company’s consolidated net profit fell 89% in the September quarter to Rs 3.6 crore versus Rs 33 crore in the year ago period. Its topline growth stood at 18% YoY in the July-September quarter.
The sector running out of favour in 2025 has multiple reason attributed to it.
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Kranthi Bathini, Director-Equity Strategy at WealthMills Securities, who has a ‘Neutral’ view on the sector, sees the changing dynamics of media as the reason for insipid performance of the media stocks. “The consumer is shifting to web-based consumption and that is evident from the proliferation of YouTube and OTT. Even on the television sets, which are now replaced with smart TVs, the content being consumed is shifting from traditional channel-based viewership to applications,” Bathini said.
He also notes a shift in investor preference towards innovation-led companies, while pointing out that the scope for big-bang innovations capable of grabbing investor attention remains limited in traditional media companies.
Analyst Khushi Mistry of labels media sector’s sharp underperformance as structural and not cyclical stress. “Linear TV continues to lose share to digital platforms, while ad spends remain fragmented and price-led. High fixed costs, weak content monetisation, and pressure from global OTT players have squeezed margins. Stocks like Network18 and PVR corrected sharply as earnings visibility deteriorated. The market is clearly discounting a long transition phase with limited near-term catalysts and rising execution risk,” she said.
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Earnings snapshot
The earnings environment has also turned-off the investors. The biggest loser Network-18, saw its revenues decline 73% YoY in Q2FY26 though it swung to profits of Rs 41 crore in the same period versus the loss of Rs 96 crore in the year ago period.
In news for recently released blockbuster movie Dhurandhar, PVR reported profit after tax (PAT) in the September quarter versus YoY loss while its revenues jumped 12% over the corresponding period of the last financial year. Yet, the stock has failed to impress the Street.
Saregama India and Zee Entertainment Enterprises reported declines in their Q2 PAT and revenue.
Hathway Cable recorded a 29% YoY consolidated PAT fall in Q2 while its revenue increased 5%. Sun TV’s topline grew 39% in Q2 while profit declined 13%.
Meanwhile Tips Music and DB Corp, each reported double-digit growth in sales PAT in Q2FY26.
2026 outlook
Mistry said that 2026 could mark stabilisation rather than a sharp rebound. In her view, advertisement spends could remain selective
and event-led, while consolidation and cost rationalisation may improve survivability.
“Any sustainable re-rating will depend on successful digital monetisation, pricing power in cinemas, and balance-sheet discipline. The sector may see stock-specific opportunities, but broad-based recovery appears unlikely without a clear improvement in ROCE and free cash flow generation,” the Bonanza Research Analyst said.
Bathini sees the pressure on media stocks to sustain in the medium term.
(Data Inputs by Ritesh Presswala)
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)