Eros International Media Limited Reports Q2 FY26 Results with Board Restructuring
Eros International Media Limited announced Q2 FY26 financial results showing continued losses with net loss of ₹3,599 lakhs for H1 FY26 and fully eroded net worth of ₹(42,419) lakhs. The company implemented significant board restructuring with appointments of Anand Shankar Kamtam and Vijay Gulab Chand as Additional Directors, while Sagar Sadhwani resigned citing personal reasons. The company faces ongoing regulatory challenges including SEBI investigations and Enforcement Directorate scrutiny while implementing liquidity enhancement measures.
*this image is generated using AI for illustrative purposes only.
Eros International Media Limited concluded its board meeting on December 12, 2025, announcing Q2 FY26 financial results alongside significant board restructuring. The media and entertainment company reported continued financial challenges while implementing strategic leadership changes.
Financial Performance Overview
The company's financial performance for the quarter and half year ended September 30, 2025, reflects ongoing operational difficulties. Key financial metrics demonstrate the challenging business environment:
| Financial Metric | Q2 FY26 | Q1 FY26 | Q2 FY25 | H1 FY26 | H1 FY25 |
|---|---|---|---|---|---|
| Revenue from Operations | ₹993 lakhs | ₹421 lakhs | ₹1,161 lakhs | ₹1,414 lakhs | ₹3,079 lakhs |
| Total Income | ₹994 lakhs | ₹421 lakhs | ₹1,164 lakhs | ₹1,415 lakhs | ₹5,390 lakhs |
| Total Expenses | ₹2,396 lakhs | ₹2,618 lakhs | ₹1,665 lakhs | ₹5,014 lakhs | ₹5,377 lakhs |
| Loss Before Tax | ₹(1,402) lakhs | ₹(2,197) lakhs | ₹(501) lakhs | ₹(3,599) lakhs | ₹13 lakhs |
| Net Loss | ₹(1,402) lakhs | ₹(2,197) lakhs | ₹(501) lakhs | ₹(3,599) lakhs | ₹(1,165) lakhs |
The company's earnings per share stood at ₹(3.75) for the half year ended September 30, 2025, compared to ₹(1.22) in the corresponding period of the previous year.
Balance Sheet Position
As of September 30, 2025, the company's financial position shows significant stress indicators:
| Balance Sheet Item | September 30, 2025 | March 31, 2025 |
|---|---|---|
| Total Assets | ₹47,950 lakhs | ₹47,505 lakhs |
| Equity Share Capital | ₹9,591 lakhs | ₹9,591 lakhs |
| Other Equity | ₹(52,010) lakhs | ₹(48,411) lakhs |
| Total Equity | ₹(42,419) lakhs | ₹(38,820) lakhs |
| Total Liabilities | ₹90,369 lakhs | ₹86,325 lakhs |
The company's net worth has been fully eroded, with current liabilities significantly exceeding current assets, indicating severe liquidity constraints.
Board Restructuring
The board meeting resulted in substantial leadership changes, with two new appointments and one resignation:
New Appointments
Anand Shankar Kamtam was appointed as Additional Director effective December 12, 2025. The 57-year-old commerce graduate from Mumbai University brings over 20 years of experience in accounts, finance, and the media industry. He has been associated with the Eros Group since May 2002, serving as Group Financial Controller (India).
Vijay Gulab Chand joined as Additional Non-Executive Non-Independent Director, also effective December 12, 2025. The 58-year-old postgraduate in commerce currently serves as Director of Eros Worldwide FZE since February 2018, bringing 31 years of total experience including 13 years in India across corporate financial services and import-export operations.
Director Resignation
Sagar Sadhwani resigned from his position as Non-Executive Non-Independent Director effective December 12, 2025, citing personal reasons and other commitments. His resignation letter confirmed no material reasons beyond those stated.
Regulatory and Operational Challenges
The company continues to navigate significant regulatory scrutiny. SEBI investigations remain ongoing following the Interim Ex-Parte Order dated June 22, 2023, and subsequent Confirmatory Order dated October 13, 2023. The company has filed appeals and is responding to show cause notices while maintaining compliance with SEBI directions.
Additionally, the Enforcement Directorate conducted search operations under the Foreign Exchange Management Act, 1999, at the company's registered office, concluding on February 06, 2025.
Going Concern Considerations
Despite material uncertainties affecting the company's ability to continue as a going concern, management has prepared financial statements on this basis. The company has implemented various measures to enhance liquidity, including cost-saving initiatives, monetization of film and music library rights, and efforts to recover overdue trade receivables from group entities totaling ₹26,928 lakhs (net of provisions).
The auditors have issued a qualified opinion highlighting these material uncertainties while noting that the financial statements have been prepared assuming continued operations. Both appointments are subject to shareholder approval at the upcoming Annual General Meeting.
18
