Network18: JioStar + BookMyShow Hidden at Discount

What Is Network18 — The Simple Explanation

Most people think of Network18 as a TV news company. And they are right — but only partially.

Network18 Media and Investments Limited is a Reliance Industries-controlled media and digital company that does three distinct things simultaneously.

First: It runs India's largest TV news network — 20 channels including CNN-News18, CNBC-TV18, News18 India, and 14 regional language news channels. It is the market leader in news television by reach and viewership.

Second: It holds a indirect stake of approximately 6.34% in JioStar — the massive joint venture between Reliance and Disney that controls Hotstar, Star Sports, Star Movies, Star Plus, and dozens of other entertainment channels. JioStar is arguably India's most powerful media company.

Third: It holds approximately 39% in BookMyShow — India's largest ticketing and live entertainment platform.

The core TV news business is what shows up in the quarterly results. The JioStar and BookMyShow holdings are what make this stock genuinely interesting to investors — because their combined value may exceed the company's entire current market capitalisation.

The FY26 Financial Results — A Turnaround on Paper, Still Weak Underneath

The Headline Numbers

Network18 reported a consolidated net profit of ₹155.20 crore for the full year FY26 — a massive turnaround from the net loss of ₹1,776.67 crore recorded in FY25.

Full year revenue from operations stood at ₹2,121 crore against ₹2,026 crore in FY25 — a 5% growth. EBITDA stood at ₹44 crore — flat year-on-year. EBITDA margin was 2.1% for FY26.

In simple terms: Network18 earned ₹2,121 crore in revenue and made ₹155 crore in annual profit. The profit is a genuine improvement from the massive loss of the previous year.

But — and this is important — the annual profit was driven largely by exceptional items and income from associate companies, not from the core TV news business.

The Q4 FY26 Reality — Core Business Still Weak

Network18 reported a consolidated net loss of ₹29.61 crore in Q4 FY26. Its consolidated revenue from operations rose by 9.7% to ₹615.78 crore.

Q4 FY26 EBITDA was ₹30 crore — up 58% from ₹19 crore in Q4 FY25. EBITDA margin was 4.9% — the highest in eight quarters.

The quarterly operating margin of 4.9% is an improvement — it is the best in two years. But a 4.9% operating margin for a media company is still very thin. For comparison, well-run media companies globally operate at 20-30% EBITDA margins.

Q1 FY27 — Early Numbers Show Mixed Signals

Network18's Q1 FY27 investor update showed consolidated revenue rose 10.3% to ₹516 crore. EBITDA was ₹8 crore. Consolidated loss was ₹38.36 crore for Q1 FY27.

So the first quarter of FY27 is loss-making again — ₹38 crore in the red — despite decent revenue growth of 10.3%. The business keeps growing its topline but struggles to convert that growth into profit at the core operating level.

What Drove the FY26 Annual Profit?

Share of profit from associates and joint ventures grew to ₹303.42 crore — acting as a vital pillar for the company's overall financial health.

This is the key number. Network18's own operations generated very thin margins. But its stake in JioStar (accounted as an associate) generated significant profit share that flowed into Network18's accounts. Without this associate income, Network18 would still be loss-making at the consolidated level.

The Core Business — India's Largest TV News Network

H3: What the News Business Looks Like

Network18's core business — the 20-channel TV news network — is the largest news broadcaster in India by reach and viewership. CNN-News18 competes with NDTV, Times Now, and Aaj Tak. CNBC-TV18 is India's leading financial news channel. The 14 regional channels give it a presence in languages and geographies that no other news broadcaster matches.

The news business generates revenue primarily from advertising — brands paying to show their ads during news programmes. This model is under structural pressure across the world as digital consumption grows and TV viewership declines.

Network18's TV advertising revenue grew modestly — about 5-7% year-on-year — in line with the broader industry. Election years historically boost news channel advertising significantly. FY24 was a big election year — Q1 FY25 had a very high advertising base. Q1 FY26 suffered a decline because of this comparison effect.

The Digital Business — Growing but Small

Network18 runs digital news properties alongside its TV channels — News18.com, Moneycontrol (India's most visited financial website), Firstpost, and others.

Moneycontrol — which Network18 owns — is India's most visited financial news and investment information website, with tens of millions of monthly users. It generates advertising and subscription revenue, and has been growing its premium subscriber base.

The digital business is growing faster than the TV business — but it is still a small contributor to overall revenue. The transition from TV advertising to digital advertising — which is happening across the media industry — is the long-term structural challenge Network18 must navigate.

The Two Hidden Assets — JioStar and BookMyShow

JioStar — The Sleeping Giant in Network18's Portfolio

This is where the Network18 investment case gets genuinely interesting.

When Reliance and Disney merged their India media assets — bringing together JioCinema, Hotstar, Star Sports, Star Movies, Star Plus, and 30+ other channels — they created what is arguably India's most powerful media entity. JioStar has:

Over 300 million streaming users

Rights to IPL, ICC cricket, Premier League

Star Sports — India's dominant sports broadcaster

Hotstar — one of India's most-used streaming apps

Over 40 linear TV channels

Network18 holds approximately 6.34% in JioStar indirectly. This stake is not valued separately on any exchange — there is no listed market price for JioStar. But analysts estimate JioStar's overall enterprise value at anywhere between $8 billion to $12 billion — roughly ₹65,000 to ₹1,00,000 crore.

At a $10 billion midpoint valuation for JioStar, Network18's 6.34% stake is worth approximately ₹5,000-6,000 crore.

Compare that to Network18's entire current market capitalisation of approximately ₹4,500 crore.

In simple words: Network18's JioStar stake alone may be worth more than the entire current market cap of the company. And that is before you count the BookMyShow holding.

BookMyShow — India's Entertainment Ticketing Giant

Network18 holds approximately 39% of BookMyShow — India's most dominant entertainment ticketing platform.

BookMyShow sells tickets to movies, concerts, sports events, plays, and experiences across India. It has survived and thrived through COVID, emerged stronger with live entertainment booming post-pandemic, and expanded into a broader live events and experiences platform.

BookMyShow has been preparing for an IPO — discussions have been going on and multiple bankers have been approached. Pre-IPO estimates for BookMyShow's valuation range from $1.5 billion to $2.5 billion — roughly ₹12,000 to ₹20,000 crore.

At a conservative $1.5 billion valuation, Network18's 39% stake in BookMyShow is worth approximately ₹4,600-5,000 crore.

Again — that number alone matches or exceeds Network18's current market capitalisation.

The Sum of Parts That Should Make Your Eyes Widen

Let us add this up simply:

Asset Network18's Stake Est Value

JioStar (6.34%) ~₹5,000-6,000 cr

BookMyShow (39%) ~₹4,600-7,800 cr

News Business (100%) ~₹1,000-2,000 cr

Total - ₹10,600-15,800 crore

Network18's current market cap: ~₹4,500 cr

The implied discount between what the company's assets are worth and what the stock market is valuing the entire company at is extraordinary. This type of gap is called a "holding company discount" — and it is the central investment thesis for anyone considering Network18 as a stock.

The Ownership Structure — Why Reliance Matters

H3: The Reliance Connection

Promoter holding in Network18 stands at 56.89%. Reliance Industries, through various entities, is the controlling promoter of Network18.

This Reliance connection is a double-edged sword for minority investors.

The positive side: Reliance's backing means Network18 has access to capital, technology, and distribution infrastructure that no independent media company in India can match. The JioStar stake exists because of Reliance's strategy to build a dominant media and entertainment empire. The BookMyShow holding reflects Reliance's interest in live entertainment. Network18 is not a standalone company navigating a competitive media environment alone — it is part of one of the world's largest conglomerates.

The complex side: Reliance has historically structured transactions within its group in ways that optimise for the overall group rather than minority shareholders of individual entities. Several of Network18's most valuable assets — including Viacom18, which was the entertainment TV channels business — have already been transferred into JioStar as part of the Disney-Reliance merger. Minority shareholders of Network18 did not independently participate in the economics of that consolidation. This creates an ongoing question: if Reliance decides to restructure further, what happens to the minority shareholders who hold the remaining Network18?

What Analysts and Brokers Are Saying

Network18 is not heavily tracked by major sell-side brokerages — partly because of its complex holding structure and partly because of its small market cap. But the views that exist are instructive.

The Bull Case

The bull case for Network18 is entirely about the hidden value in JioStar and BookMyShow.

Analysts who are positive on Network18 argue that the stock is trading at a massive discount to its intrinsic value. If JioStar goes public — which is widely expected to happen eventually — or if BookMyShow's IPO materialises, the underlying values that currently sit invisible in Network18's balance sheet will become visible and separately priced. This "value unlocking" event is what bull-case investors are waiting for.

The operating business — thin margins, structural TV advertising headwinds — is essentially being valued at near zero in this thesis. Everything above ₹4,500 crore in market cap is pure option value on asset unlocking.

The Bear Case

The bear case is equally straightforward. Network18's core operating business is structurally challenged — thin EBITDA margins, declining TV viewership, and competitive pressure from digital platforms. The company has been loss-making at the operating level for extended periods. The annual profit in FY26 was driven by associate income and exceptional items, not by a genuinely healthy business.

The JioStar and BookMyShow values are real — but they are illiquid. There is no guarantee of when or whether they will be unlocked in a way that benefits Network18 minority shareholders. Reliance has shown it is willing to restructure group companies in ways that serve the group's overall strategic objectives.

The Key Risk That Every Investor Must Understand

The most important risk for Network18 minority investors is what analysts call "corporate governance risk at the holding company level." In plain terms: Reliance controls 56.89% of the company. If it decides that Network18's JioStar and BookMyShow stakes should be restructured into Reliance Industries directly — removing those assets from Network18 — minority shareholders have limited recourse.

This is not a theoretical concern. Similar restructurings have happened in Indian holding companies historically, where the most valuable assets are absorbed into the promoter's preferred holding structure, leaving minority shareholders holding a diminished entity.

The Verdict — A Classic Value Trap or a Hidden Gem?

Network18 is the kind of stock that creates very different opinions depending on your investment philosophy.

If you are a deep value investor who believes in sum-of-parts analysis, has patience for 2-3 year timelines, and trusts that the BookMyShow IPO and eventual JioStar value clarity will force a re-rating, then Network18 at ₹30-36 looks extremely cheap on an asset basis.

If you are a quality investor who prefers companies with strong operating cash flows, good governance, and clear capital return policies, then Network18's weak operating margins, poor stock performance, and corporate governance uncertainty make it a difficult investment to justify at any price.

The holding company discount that Network18 trades at is real and large — but holding company discounts in India can persist for years or even decades without resolving. The resolution requires either a specific catalyst (BookMyShow IPO, JioStar restructuring) or a change in Reliance's group strategy.

The safest way to think about Network18 for the ordinary investor: it is a speculation on two events — BookMyShow IPO and JioStar value clarity — not an investment in a business with strong operating fundamentals. If you are comfortable with that framing and have a 2-3 year horizon, the risk-reward at current prices is interesting. If you need a business that generates profits from its own operations, look elsewhere.

The Simple Summary

Network18 is a Reliance Group media company that owns India's largest TV news network — 20 channels including CNN-News18 and CNBC-TV18 — plus 6.34% in JioStar and 39% of BookMyShow.

The core business is recovering but still weak — FY26 annual profit of ₹155 crore was driven largely by associate income, not operating strength. Q1 FY27 showed a consolidated loss of ₹38 crore.

The hidden assets — JioStar and BookMyShow — may together be worth ₹10,000-15,000 crore at reasonable estimates. Network18's entire market cap is approximately ₹4,500-5,500 crore.

The investment thesis is simple: you are buying the TV news business at effectively zero and getting JioStar and BookMyShow stakes at a massive discount to their probable fair value. The risk is that Reliance restructures those stakes away from Network18 before the value is unlocked for minority shareholders.

Network18 is not a stock for conservative investors. It is a bet on value unlocking — and the timing of that unlocking is entirely in Reliance's hands.

Disclaimer: This article is independently written using verified public data from company filings, analyst reports, and public reporting. It is not investment advice.