Digicontent Limited announced its consolidated financial results for the quarter and nine months ended December 31, 2025, showing mixed performance with revenue growth offset by significant exceptional charges. The Board of Directors approved the unaudited financial results at their meeting held on January 28, 2026.

Financial Performance Overview

The company's consolidated financial performance for Q3FY26 reflected both operational improvements and regulatory challenges:

Revenue Growth Amid Operational Challenges

Digicontent Limited demonstrated strong revenue momentum with consolidated revenue from operations increasing by 17.04% to ₹12,814 lakhs in Q3FY26 from ₹10,948 lakhs in Q3FY25. However, total expenses rose to ₹12,218 lakhs compared to ₹10,177 lakhs in the previous year, primarily driven by higher employee benefit expenses and other operational costs.

Impact of New Labour Codes

The company's financial performance was significantly affected by exceptional items totaling ₹1,589 lakhs related to the implementation of four Labour Codes notified by the Government of India on November 21, 2025. These codes consolidate 29 existing labour laws and resulted in incremental costs comprising:

• Gratuity impact: ₹1,446 lakhs
• Long-term compensated absences: ₹143 lakhs

Without these exceptional items, the company would have reported a profit before tax of ₹721 lakhs compared to ₹995 lakhs in Q3FY25.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the consolidated results showed:

Standalone Entity Performance

The standalone financial results of Digicontent Limited showed continued operational challenges with revenue from operations declining to ₹29 lakhs in Q3FY26 from ₹37 lakhs in Q3FY25. The standalone entity reported a net loss of ₹307 lakhs in Q3FY26 compared to ₹322 lakhs loss in the previous year.

Corporate Structure and Compliance

The consolidated results include Digicontent Limited and its wholly-owned subsidiary HT Digital Streams Limited. The company operates in the Entertainment & Digital Innovation Business segment. The financial results were reviewed by statutory auditors S.R. Batliboi & Associates LLP, who issued an unmodified review conclusion for both consolidated and standalone results.

Digicontent Limited , a key player in the Entertainment & Digital Innovation Business, has announced its financial results for the second quarter of fiscal year 2025, showcasing robust growth in consolidated revenue. The company's performance reflects its continued focus on digital innovation and content delivery in a rapidly evolving media landscape.

Financial Highlights

For the quarter ended September 30, 2025, Digicontent Limited reported the following consolidated results:

The company's consolidated revenue from operations saw a significant year-on-year increase of 15%, rising to INR 13,179.00 lakhs in Q2 FY2025 from INR 11,458.00 lakhs in the same quarter of the previous fiscal year. This growth underscores the company's strong market position and the increasing demand for its digital content and services.

Half-Yearly Performance

For the six-month period ended September 30, 2025:

• Consolidated revenue grew to INR 24,226.00 lakhs, up from INR 21,885.00 lakhs in the corresponding period of the previous year, marking a solid increase in the company's top-line performance.

Operational Highlights

Digicontent Limited continues to focus on enhancing its digital offerings and expanding its reach. Key operational highlights for the quarter include:

1. Employee Stock Options: The company granted 4.09 lakh Restricted Stock Units (RSUs) to eligible employees under the "Digicontent Limited - Restricted Stock Unit Plan 2025," aligning employee interests with the company's long-term growth objectives.

2. Subsidiary Performance: HT Digital Streams Limited, a wholly-owned subsidiary, contributed significantly to the group's performance. The parent company received an interim dividend of INR 100.00 lakhs from this subsidiary during the quarter.

3. Balance Sheet Strength: As of September 30, 2025, the company maintained a strong balance sheet with total assets of INR 23,960.00 lakhs, including current assets of INR 14,304.00 lakhs.

Management Commentary

While specific management quotes are not available, the company's focus on digital innovation and content delivery is evident from its continued investment in human resources and technology. The granting of RSUs suggests a strategy to retain and motivate key talent, which is crucial in the fast-paced digital content industry.

Looking Ahead

Digicontent Limited's strong revenue growth in a competitive market environment indicates its resilience and adaptability. The company's continued focus on digital innovation and content delivery positions it well to capitalize on the growing demand for digital media and entertainment services.

Investors and stakeholders will be watching closely to see how Digicontent Limited leverages its current momentum to drive future growth and profitability in the evolving digital landscape.

Note: All financial figures are based on the consolidated results as reported by the company.