Eros International Media Limited announced its financial results for the quarter and nine months ended December 31, 2025, revealing significant operational challenges and regulatory uncertainties. The entertainment company reported a quarterly net loss of ₹354 lakhs for Q3 FY26, marking a sharp reversal from the profit of ₹1,673 lakhs recorded in the previous quarter.

Financial Performance Overview

The company's operational performance showed considerable weakness during the quarter:

For the nine months ended December 31, 2025, the company reported a loss before tax of ₹3,953 lakhs with total income of ₹3,285 lakhs. The company's net worth has been completely eroded, raising significant concerns about its financial stability.

Outstanding Receivables and Provisions

Eros International faces substantial challenges with long overdue trade receivables from group entities. The company has outstanding receivables of ₹46,219 lakhs from Eros Worldwide FZE, against which there are payables of ₹30,417 lakhs, resulting in net receivables of ₹15,802 lakhs. Additionally, the company has receivables of ₹7,749 lakhs from Eros International Limited UK and ₹3,377 lakhs from Eros International USA Inc.

Considering the financial position of these entities, the company has made provisions of ₹25,884 lakhs for expected credit loss up to FY 2024-25, with an additional provision of ₹1,043 lakhs made during the period ended December 31, 2025. The company has filed applications with the Reserve Bank of India through Authorized Dealers to condone delays and permit net remittance arrangements.

Regulatory Challenges and Investigations

The company continues to navigate complex regulatory proceedings. SEBI had passed an Interim Ex-Parte Order dated June 22, 2023, followed by a Confirmatory Order dated October 13, 2023, imposing certain restrictions on the company and some directors. Content advances as of December 31, 2025, include ₹1,01,601 lakhs (₹3,289 lakhs net of impairment) given to certain parties that are subject to SEBI scrutiny and investigation.

Further regulatory action occurred when search operations were carried out under Section 37(3) of the Foreign Exchange Management Act, 1999, at the company's registered office by the Enforcement Directorate, Mumbai, which concluded on February 06, 2025.

Going Concern and Future Outlook

The auditors have highlighted material uncertainty regarding the company's ability to continue as a going concern. The company has incurred a loss before tax of ₹3,953 lakhs for the nine months ended December 31, 2025, and has defaulted on statutory dues on certain occasions.

To address these challenges, management has implemented various measures including:

• Restricting borrowing facilities and conserving cash through cost-saving initiatives
• Maximizing revenue by entering into long-term contracts to monetize the film/music library
• Pursuing recovery of overdue trade receivables
• Exploring strategic initiatives for fund mobilization

Despite these uncertainties, the Board of Directors approved the financial results at their meeting held on February 13, 2026, and management has decided to continue preparing financial statements on a going concern basis, banking on successful implementation of their liquidity enhancement measures.

Eros International Media Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, following the board meeting held on February 13, 2026. The company reported significant losses in both standalone and consolidated financials, reflecting ongoing operational challenges and regulatory uncertainties.

Financial Performance Overview

The company's standalone operations showed mixed revenue performance but continued profitability challenges during the reporting period.

For the nine months ended December 31, 2025, the company reported total income of ₹2,787 lakhs compared to ₹8,636 lakhs in the corresponding previous period, representing a decline of 67.73%.

Consolidated Results

The consolidated financial results, which include subsidiaries, showed similar challenging trends with operational losses across the group.

Regulatory and Operational Challenges

The company continues to face significant regulatory scrutiny and operational challenges that impact its financial performance. Trade receivables from group entities remain a major concern, with long overdue amounts totaling ₹26,928 lakhs (net) from various international subsidiaries including Eros Worldwide FZE, Eros International Limited UK, and Eros International USA Inc. The company has made provisions of ₹25,884 lakhs for expected credit losses up to March 31, 2025, with an additional provision of ₹1,043 lakhs made during the current period.

SEBI proceedings continue to pose uncertainty, with the company responding to show cause notices and awaiting the outcome of ongoing investigations. Additionally, search operations by the Enforcement Directorate under the Foreign Exchange Management Act concluded on February 06, 2025.

Going Concern Considerations

The auditors have highlighted material uncertainty regarding the company's ability to continue as a going concern, noting that the company has incurred a net loss before tax of ₹3,953 lakhs for the nine months ended December 31, 2025, and its net worth has been fully eroded. The company is implementing various measures including cost-saving initiatives, monetization of film/music library rights, and recovery of overdue receivables to address liquidity challenges.

Auditor's Qualified Opinion

Haribhakti & Co. LLP, the statutory auditors, issued qualified conclusions on both standalone and consolidated results, citing concerns over trade receivables from group entities, ongoing SEBI investigations, and the exclusion of one subsidiary (Colour Yellow Production Private Limited) from consolidation due to unavailability of financial information.