SITI Networks Limited has reported significant defaults on loan repayments totaling ₹1,206.03 crore to multiple financial institutions as of March 31, 2026. The disclosure was made on April 30, 2026, in compliance with SEBI Circular SEBI/HO/CFD/CMD1/CIR/2019/140 regarding mandatory reporting of payment defaults on loans from banks and financial institutions.

Default Details and Lender Breakdown

The company's defaults span across eight major lenders, with the largest exposure being to Asset Reconstruction Company India Limited (ARCIL). The comprehensive breakdown reveals the extent of the company's financial distress:

The defaults relate to term loan installments that became due on March 31, 2026, and have continued beyond the 30-day grace period, triggering the mandatory disclosure requirements under SEBI regulations.

Corporate Insolvency Resolution Process

SITI Networks has been undergoing Corporate Insolvency Resolution Process (CIRP) since February 22, 2023, when the National Company Law Tribunal (NCLT) Mumbai initiated proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016. Mr. Rohit Mehra was appointed as the Interim Resolution Professional, with the company's Board of Directors' powers currently suspended under Section 17 of the IBC.

The insolvency proceedings faced initial challenges when Ms. Shilpi Asthana, a director of SITI Networks, filed an appeal before the National Company Law Appellate Tribunal (NCLAT). However, the NCLAT dismissed the appeal on August 10, 2023, upholding the original admission order and reinstating the CIRP.

Legal Developments and Supreme Court Proceedings

Significant legal developments occurred with the NCLT passing a crucial order on October 1, 2024, establishing February 22, 2023, as the insolvency commencement date. The tribunal ruled that moratorium provisions under Section 14 of the Code were applicable during the stay period and directed that transactions undertaken during this period should revert to the corporate debtor's accounts.

The NCLAT subsequently dismissed all appeals from financial creditors on July 31, 2025, directing them to remit appropriated amounts back to the corporate debtor with accrued interest. However, certain financial creditors have approached the Supreme Court, which has currently granted a stay preventing creditors from remitting amounts received during the CIRP stay period.

Related Party Transactions and Current Status

A notable aspect involves Vani Agencies Private Limited (VAPL), which acquired the financial creditor claim of Zee Entertainment Enterprise Limited (ZEEL) on July 2, 2024. The Resolution Professional admitted VAPL's claim as financial debt after verification, classifying it as a related party under Section 5(24) of the Insolvency and Bankruptcy Code, 2016.

The disclosure filing is based on claims received from financial creditors as of August 10, 2023, and February 22, 2023. The company has indicated that any further changes or additions resulting from the ongoing Supreme Court appeals will be incorporated in subsequent regulatory filings, ensuring continued compliance with SEBI disclosure requirements throughout the resolution process.

SITI Networks Limited has completed the regulatory requirement of publishing its unaudited financial results for the second quarter and six months ended September 30, 2025, through newspaper advertisements. The company submitted the newspaper publication compliance to BSE Limited and National Stock Exchange of India Limited, marking another reporting milestone under Corporate Insolvency Resolution Process (CIRP) management.

Regulatory Compliance and Publication

The company published its financial results extract in two newspapers on April 8, 2026 - "Business Standard" (All Editions) in English and "Mumbai Mitra" (Mumbai Edition) in Marathi. This publication follows the submission of complete unaudited financial results on April 7, 2026, prepared under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

The published financial results showed the company's continued operational challenges under CIRP management. Revenue from operations reached ₹961.87 million in Q2 FY26, representing an increase from ₹799.55 million in the preceding quarter, though remaining below the ₹922.61 million recorded in the corresponding quarter of the previous year.

CIRP Status and Management Structure

The financial results were prepared and signed by the Resolution Professional and Chief Executive Officer, exercising powers conferred under Section 17 of the Insolvency and Bankruptcy Code 2016. The Corporate Insolvency Resolution Process continues following the National Company Law Tribunal's admission order dated February 22, 2023.

Balance Sheet Position

The company's financial position reflects significant structural challenges. As of September 30, 2025, the company reported accumulated losses of ₹30,626.63 million, resulting in a negative net worth of ₹13,691.34 million on a standalone basis. Current liabilities exceeded current assets by ₹17,527.75 million, creating substantial liquidity pressures.

Subsidiary Developments

A significant development occurred with NCLT New Delhi's approval on October 9, 2025, of the Resolution Plan for subsidiary Siti Jind Digital Media Communications Private Limited. Consequently, this entity ceased to be a subsidiary effective from the approval date and has not been consolidated in the Q2 FY26 results.

Legal and Operational Updates

Recent legal developments include the Supreme Court's stay order dated October 13, 2025, regarding payments to operational creditors, adding complexity to the resolution process. The company has also resumed broadcasting of ZEEL channels in the Rest of India region effective from February 26, 2026, following Committee of Creditors approval.

Going Concern and Auditor Disclaimer

The statutory auditors have issued a disclaimer of opinion on the financial results, citing multiple factors including the ongoing CIRP, unreconciled creditor claims, and material uncertainties about the company's ability to continue as a going concern. The company's future depends entirely on successful implementation of a resolution plan under the insolvency process.

The newspaper publication compliance underscores the company's commitment to regulatory transparency while navigating the challenging Corporate Insolvency Resolution Process.