Sun TV Network: Can its IPL Franchise drive growth in its share price anytime soon?

Synopsis: Shares of leading broadcasting and production house shares rose 5% as analysts highlight hidden value in its IPL franchise SunRisers Hyderabad, valued at Rs. 7,700–8,550 crore. Elara Capital sees 24% upside with a target price of Rs. 700.

The shares of this flagship channel of the company are primarily involved in television broadcasting and it produces/distributes movies under its banner are now in focus after it rose by 5% in today’s session following a BUY target given by Elara Capital.

With a market capitalisation of Rs. 22,190 cr, the shares of Sun TV Network Ltd were currently trading at Rs. 563 per share, jumping 5% in today’s market session, making a high of Rs. 564.40, up from its previous close of Rs. 537.25 per share. The stock has declined 7% over the past year. It is down 4% on a year-to-date basis, lower by 1% over the last six months, while showing a marginal 1% gain in the past month.

Q3 Results 

Sun TV Network reported modest revenue growth of 4% YoY, with sales rising to Rs. 862 crore from Rs. 829 crore, indicating steady top-line traction. Profitability weakened, with EBITDA declining 6% to Rs. 420 crore from Rs. 445 crore, reflecting margin pressure. Net profit fell 11% to Rs. 324 crore from Rs. 364 crore, while EPS dropped 11% YoY to Rs. 8.22 from Rs. 9.22, pointing to softer earnings despite stable revenue growth.

On a sequential basis, performance saw a sharp slowdown. Sales declined 34% QoQ from Rs. 1,300 crore to Rs. 862 crore, while EBITDA fell sharply by 44% to Rs. 420 crore from Rs. 754 crore. Net profit dropped 9% to Rs. 324 crore from Rs. 355 crore, and EPS decreased 9% to Rs. 8.22, reflecting significant sequential pressure on both operating and net profitability.

IPL Franchise Value Emerges as a Key Upside Trigger

Brokerages like Elara Capital remain optimistic, valuing Sun TV’s IPL business at the higher end and projecting 24% upside from the current levels with a target price of Rs. 700 per share.

Beyond its quarterly numbers, analysts believe Sun TV has a hidden value trigger in its IPL franchise, SunRisers Hyderabad (SRH), which it owns completely. Recent IPL franchise deals have shown a sharp jump in valuations. For instance, bids for Royal Challengers Bengaluru reportedly valued the team at Rs. 13,500–15,000 crore, highlighting how valuable IPL assets have become.

Compared to this, SunRisers Hyderabad’s brand value is estimated at $154 million, translating to roughly Rs. 7,700–8,550 crore. With Sun TV’s current market capitalisation at around Rs. 22,000 crore, SRH alone accounts for nearly 30% of the company’s total value, suggesting meaningful upside if IPL team valuations continue to rise across the league.

On the business front, analysts noted that subscription revenue grew 9% year-on-year in Q3FY26, offering some stability. However, advertising revenue remains weak, a trend seen across the broader media sector. 

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