Kochi: Asianet News Network, widely regarded as the Malayalam news channel best placed to break even because of its market position, may end FY26 with a loss after at least two years of profitability, as weakening advertising revenue pushes its operating performance into the red.
The company is estimated to report a net loss of Rs2.64 crore in FY26, with an operating loss of Rs3.82 crore, if the latest assessment of its financial performance holds. The estimated loss follows a sharp deterioration in the nine months ended December 2025, with revenue and operating performance coming under pressure.
The deterioration is significant because advertising is the principal source of Asianet News' revenue. The latest assessment attributes the weakening performance partly to a decline in channel viewership rankings, which has affected advertising revenue.
"The company also faces the broader pressures confronting television broadcasting, including intense competition and the shift in viewers and advertisers towards digital platforms," said media experts while talking to businessbenchmark.news.
The operating performance of the company would likely remain subdued in near to medium term on account of demand side challenges and stiff competition, according to Acuite rating agency.
FY24, FY25 in profit
The FY26 estimates represent a sharp reversal from FY25. Asianet News Network reported operating income of Rs177.21 crore and PAT of Rs18.60 crore in FY25, compared with operating income of Rs183.72 crore and PAT of Rs10.13 crore in FY24.
Acuité Ratings has revised the outlook on Asianet News Network's BBB- rating from Stable to Negative, citing the deterioration in operating performance, declining revenue and operating losses in 9MFY26.
The deterioration at Asianet is particularly noteworthy because of its position in Kerala's news market. The company operates the Asianet News channel, the market leader in Malayalam news, and also has a significant presence in Kannada news through Asianet Suvarna News.
The widely held perception within Kerala's media industry is that if any Malayalam news channel has the scale and market position to consistently break even, it is Asianet News. Its projected loss therefore raises a much larger question about the economics of television news in the state.
Healthy debt-equity ratio
The financial pressure is not primarily a debt problem. Asianet's debt-equity ratio remained relatively comfortable at 0.28 times in FY25, with net worth at Rs132.58 crore and total debt at Rs37.43 crore. The bigger issue is the deterioration in the underlying operating business and the ability to generate sufficient advertising revenue.
There are also balance-sheet issues that merit attention. The company has significant exposure to group entities through inter-corporate deposits and accrued interest, with the recovery of these amounts remaining a credit monitorable. The exposure has also contributed to the company's working-capital intensity.
The rating assessment says the company's performance will remain vulnerable to advertising cycles, competition from established television players and changing consumer preferences. Continued investment in content, technology and marketing is also necessary to maintain viewership, adding to the cost pressure.
The rating agency's assessment therefore goes beyond Asianet News itself. If the dominant Malayalam news broadcaster struggles to generate an operating profit in a year when advertising revenue weakens, the financial health of the smaller news channels becomes an even more difficult question.
