Sun TV Share Price Rises Over 30% In September, Here’s Why
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Sun TV's cricket franchise revenue rose 33% year-on-year to ₹629.83 crore in Q1 FY27, while consolidated revenue increased 13%. Advertising revenue declined 2.6% during the quarter.
Sun TV share price has risen more than 30% in September, with the stock seeing a sharp run-up over the past few trading sessions. The move has brought the company's cricket business, upcoming movie releases and cash position into focus.
Sun TV's Q1 FY27 results had already shown a strong contribution from its cricket franchises. Revenue from the cricket business rose 33% year-on-year to ₹629.83 crore in the June quarter, from ₹473.03 crore a year earlier.
The increase in cricket revenue helped consolidated revenue rise 13% in Q1 FY27. EBITDA increased 19%, while profit after tax rose 16%. The company's consolidated EBITDA margin stood at around 51.5%.
The performance, however, was mixed across its businesses. Advertising revenue declined 2.6% during the quarter, while domestic subscription revenue increased 3.3%.
The stock's recent rise has also come ahead of Jailer 2, the Rajinikanth-starrer that is expected to contribute to Sun TV's content and movie-related revenue in Q3 FY27.
Sun TV Cricket Business In Focus
Sun TV owns the SunRisers Hyderabad franchise in the Indian Premier League and SunRisers Eastern Cape in South Africa's T20 league. It has also acquired SunRisers Leeds, formerly known as Northern Superchargers, in The Hundred in the UK.
Cricket franchise revenue stood at ₹629.83 crore in Q1 FY27, compared with ₹473.03 crore in the same quarter last year. The business was a key contributor to the increase in Sun TV's quarterly revenue.
Nuvama's valuation framework has estimated the value of Sun TV's cricket franchise at around ₹18,500 crore. The brokerage has valued the company's core business at roughly six times FY27 estimated earnings after adjusting for cash, according to NDTV Profit.
Sun TV has a market capitalisation of around ₹21,000 crore.
Sun TV Advertising Revenue, Cash And Jailer 2
Sun TV's television advertising business remains an area to watch after revenue from the segment fell 2.6% in Q1 FY27. Domestic subscription revenue, meanwhile, grew 3.3%.
Sun TV ended FY26 with around ₹250 crore of cash, according to estimates cited by NDTV Profit. Market speculation around possible capital deployment, including a buyback, has also added to the recent focus on the stock.
The company is also preparing for the contribution from its movie business. Jailer 2, starring Rajinikanth, is expected to contribute to Sun TV's content and movie-related revenue in the third quarter of FY27.
Sun TV's recent stock move has therefore come against a mix of stronger cricket revenue, expectations around its movie business and focus on its cash position, while a recovery in television advertising remains important for the core business.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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