Shemaroo posts Rs 45.8 crore Q1 loss as revenue and margins dip sharply

MUMBAI: Drama, but no dividends Shemaroo’s first quarter script writes itself into the red. The veteran media and entertainment company reported a consolidated net loss of Rs 45.8 crore for Q1 FY25, ballooning from Rs 17.2 crore in the same quarter last year. Even standalone losses were sharper, at Rs 46.9 crore versus Rs 17.5 crore year-on-year. Despite total income standing at Rs 143.2 crore, a steep rise in expenses especially operational and employee-related pushed the firm into deeper losses.

Revenue from operations dropped 9.6 per cent year-on-year to Rs 139.5 crore (from Rs 154.4 crore), and sank over 31.7 per cent from Rs 204.3 crore in the previous quarter (Q4 FY24). Employee costs rose marginally to Rs 31.2 crore, while operational costs climbed significantly to Rs 152.3 crore, overtaking revenue altogether.

Shemaroo’s loss before tax stood at Rs 60.9 crore for the quarter, compared to Rs 22.8 crore in Q1 FY24. The company’s total comprehensive loss now stands at Rs 45.8 crore for Q1 FY25, compared to Rs 17.2 crore a year earlier and Rs 5.1 crore last quarter.

The board, however, remained busy beyond the balance sheet. It approved the reappointment of three top Shemaroo executives Raman Maroo as managing director, Atul Maroo as Joint MD, and Hiren Gada as CEO for another three-year term beginning January 2026. Additionally, Namrata Shinde was appointed compliance officer, effective immediately.

But the real plot twist comes from the GST front. The company is entangled in a legal showdown after the GST department demanded recovery of inadmissible input tax credit (ITC) of Rs 70.3 crore, interest, and penalties totalling a staggering Rs 133.6 crore each on the Joint MD, CEO, and CFO. Shemaroo has challenged the order in the Bombay High Court and secured an interim stay on proceedings.

In another strategic move, the company plans to transfer the broadcasting license of Mango TV to Mango Mass Media Pvt Ltd for at least Rs 25 lakh, subject to MIB approval.

From VHS tapes to digital platforms, Shemaroo has seen the industry’s highs and lows. But if Q1 FY25 is any indicator, the road ahead might call for some tight editing and serious plot development both financial and regulatory.