Why did Sri Adhikari Brothers stock hit 5% upper circuit today?

SYNOPSIS: Sri Adhikari Brothers’ board will consider a stock split, promoter loans with possible equity conversion, and higher borrowing powers, while the promoter has pledged shares, taking encumbered capital to 9.85 percent.

During Friday’s trading session, shares of a media company that operates in areas of content production and syndication of content hit a 5 percent upper circuit on the stock exchanges. What triggered this steep rise? Let’s break it down in this article.

With a market cap of Rs. 4,421 crores, shares of Sri Adhikari Brothers Television Network Limited hit a 5 percent upper circuit at Rs. 1,742.35 on BSE, as against its previous closing price of Rs. 1,659.4.

The stock has delivered positive returns of 24 percent in one year, while delivering around 65 percent returns in six months. In the last 5 years, the stock has delivered multibagger returns of over 84,071 percent.

As per the disclosures of 1st January, Sri Adhikari Brothers Television Network Limited informed that a meeting of the Board of Directors will be held on Tuesday, 6th January 2026. The Board will consider the proposal for the sub-division (stock split) of the company’s equity shares, subject to approvals from shareholders and the relevant regulatory authorities.

In the same meeting, the Board will also review the proposal to accept loans from the Promoter, including the option to convert such loans into equity shares of the company. Additionally, it will consider and approve the company’s borrowing powers, along with any other business matters, with the permission of the Chairperson.

Separately, on 2nd January, the company disclosed that its Promoter, Kurjibhai Premjibhai Rupareliya, has created an encumbrance by way of pledge on 25 lakh equity shares in favour of Motilal Oswal Finvest Limited.

Following this pledge, the total number of shares encumbered represents 9.85 percent of the company’s total share capital, while the Promoter holds a total of 59.12 percent stake, equivalent to 1,50,00,237 shares, in the company. The pledges have been created for personal use by the Promoter, as stated in the disclosure.

Market participants appear to be reacting more to the stock split proposal and the upcoming Board meeting, which are typically viewed as positive triggers. In contrast, promoter pledging is generally perceived negatively, suggesting the recent price movement is likely driven by corporate action expectations rather than the pledge disclosure.

Financials & More

Sri Adhikari Brothers reported a decline in revenue from operations, experiencing a year-on-year decrease of over 97 percent, from Rs. 1.09 crores in Q2 FY25 to Rs. 0.03 crores in Q2 FY26. Meanwhile, the company reported a net loss of Rs. 1.86 crores from a net profit of Rs. 0.05 crores over the same period.

Sri Adhikari Brothers Television Network Limited is a pioneer in the field of Indian Media, backed by one of the country’s largest content libraries of over 5,500 hours and known as the founder of the world’s most-watched humour-focused channel, SAB TV.

The company operates across content production and syndication, supplying programming to broadcasters, aggregators, and satellite networks. It also holds the distinction of being India’s first media organisation to be listed on the BSE.

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