Sea TV Network reported a widened standalone net loss of ₹50.78 lakh in Q1FY26, up from ₹1.75 lakh in the corresponding period last year, as declining revenue and significant auditor caveats weighed on performance. The company’s consolidated net loss stood at ₹44.30 lakh, a sharp reversal from the ₹22.33 lakh profit recorded in Q1FY25. Alongside these financial disclosures, the Board of Directors accepted the resignation of Karishma Jain as Company Secretary and Compliance Officer, effective July 28, 2026, citing personal reasons.

The Board approved the unaudited standalone and consolidated financial results on July 25, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The meeting also addressed the departure of Ms. Jain, who tendered her resignation via letter dated July 18, 2026. The company confirmed it is in the process of appointing a replacement in accordance with Section 203 of the Companies Act, 2013. Ms. Jain, holding membership number ACS 46124, confirmed there were no outstanding dues or obligations towards the company and no other material reasons for her exit.

Financial Performance Overview

Revenue from operations declined for both standalone and consolidated entities. Standalone revenue fell to ₹169.71 lakh from ₹184.33 lakh in Q1FY25. Consolidated revenue dropped to ₹240.62 lakh from ₹187.65 lakh in the prior year quarter. Other income saw a sharp contraction, with standalone other income falling to ₹1.50 lakh from ₹35.69 lakh year-on-year.

Employee benefits expense remained the largest cost component, standing at ₹111.21 lakh on a standalone basis and ₹148.18 lakh consolidated. Other expenses increased to ₹104.14 lakh standalone and ₹122.30 lakh consolidated.

Auditor Caveats and Accounting Non-Compliance

Doogar & Associates, the statutory auditors, issued a limited review report highlighting a material deviation from accounting standards. The auditors noted that the company did not provide for interest on unsecured loans amounting to ₹66.49 lakh as of June 30, 2026. This omission violates Ind AS 109 – Financial Instruments, which mandates measuring financial liabilities at amortized cost using the effective interest method.

The auditors stated that had the interest been provided, the group’s loss would have been higher by ₹66.49 lakh. The company holds outstanding unsecured loans aggregating ₹3,382.81 lakh from directors, related parties, and corporates, carrying an interest rate of 8% per annum. No interest provision was made for the quarter ended June 30, 2026.

What the Numbers Show

The divergence between standalone and consolidated performance highlights the impact of subsidiary operations and intercompany dynamics. While the standalone entity reported a widening loss due to stable high costs against declining revenue, the consolidated loss was narrower than the standalone figure, primarily due to lower employee benefit expenses relative to revenue in certain subsidiaries. However, the consolidated result was significantly impacted by a drop in other income, which fell from ₹120.44 lakh in Q1FY25 to ₹3.65 lakh in Q1FY26. This suggests that previous periods benefited from substantial non-operational gains that are not recurring, making the current operational losses more pronounced when viewed against normalized earnings expectations.

Corporate Governance Update

Karishma Jain’s resignation was accepted upon the recommendation of the Nomination and Remuneration Committee. The company has disclosed this change under Regulation 30 of the SEBI Listing Regulations, read with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The company places on record its sincere appreciation for the valuable services rendered by Ms. Jain during her tenure.

SEA TV NETWORK LIMITED has announced its audited financial results for the quarter and year ended March 31, 2026. The Board of Directors approved the standalone and consolidated financial results during a meeting held on May 20, 2026, via video conferencing. The company reported a consolidated net profit of ₹51.78 lacs for the full year, while the standalone entity recorded a net loss of ₹150.04 lacs for the same period.

Financial Performance

For the financial year ended March 31, 2026, the company's consolidated total income stood at ₹1,243.52 lacs. Total expenses for the consolidated entity were reported at ₹1,192.35 lacs. In the standalone perspective, total income was ₹692.43 lacs against total expenses of ₹842.47 lacs. The basic earnings per share (EPS) for the consolidated entity was ₹0.43, whereas the standalone EPS was reported at a loss of ₹1.25.

Audit Qualification

The statutory auditors, Doogar & Associates, issued a qualified opinion in their report. The qualification arises because the company has not provided for interest on unsecured loans amounting to ₹69.84 lacs for the quarter and ₹233.14 lacs for the financial year ended March 31, 2026. The auditors noted that this non-recognition is not in compliance with Ind AS 109, which requires financial liabilities to be measured at amortized cost.

Management stated that due to financial constraints, the company is currently unable to service these interest obligations and is considering a restructuring of loan terms. However, no formal waiver or amendment of terms has been executed with the lenders as of the reporting date. Had the interest been recognized, the loss for the year would have increased by ₹233.14 lacs, and current liabilities would have been higher by the same amount.