Airtel Digital TV reports a loss in Q3 FY26 amid flat revenue growth

Bharti Airtel’s Digital TV (DTH) business remained under strain in the third quarter of FY26, posting a loss of Rs 63.7 crore. The loss widened from Rs 60.6 crore in the previous quarter and marked a sharp reversal from a profit of Rs 31.3 crore a year earlier, as revenues stayed largely flat and the company increasingly leaned on IPTV-led growth to stabilise the segment.

Revenue from Digital TV services in Q3 FY26 stood at Rs 755.2 crore, marginally lower than Rs 760.7 crore in the corresponding quarter last year. For the nine months ended December 31, 2025, the DTH arm reported a loss of Rs 112 crore, compared with a profit of Rs 115.8 crore in the same period of the previous fiscal. Nine-month revenue declined to Rs 2,271.2 crore from Rs 2,296.4 crore a year ago.

Airtel said the Digital TV customer base stood at 15.4 million. It noted strong adoption of its IPTV service, driven by its convergence strategy and differentiated offerings. During the quarter, the company expanded its entertainment portfolio with the exclusive launch of Airtel Cartoon Network Classics in partnership with Warner Bros., adding to its suite of value-added services aimed at families.

The quarterly performance comes against the backdrop of continued subscriber attrition in the satellite TV segment. Rising content costs, intensifying competition from OTT platforms, and a broader shift towards broadband-led bundled entertainment have continued to weigh on traditional DTH economics. Airtel has been repositioning the business towards IPTV and bundled home services, while tightening costs and reducing subsidies to improve cash flows.

In Q2 FY26, the DTH business had lost 3.4 lakh subscribers and reported a loss before tax of Rs 60.6 crore, compared with a profit of Rs 1.2 crore in the same quarter last year. Revenue in Q2 stood at Rs 753 crore, down marginally year on year. For the first half of FY26, Digital TV revenue came in at Rs 1,516 crore, a 1.24% decline from Rs 1,535 crore in H1 FY25, while the segment posted a loss of Rs 58.3 crore versus a profit of ?84.5 crore a year earlier.

During Q2, Airtel also partnered with Perplexity to offer a 12-month Perplexity Pro subscription free to its Mobile, Home and Digital TV customers, as part of efforts to strengthen its digital value proposition through AI-powered services.

In terms of market share, for the quarter ended June 30, 2025, Tata Play retained leadership with a 31.42% share of the subscriber base, followed by Bharti Telemedia (Airtel Digital TV) at 29.33%. Sun Direct and Dish TV accounted for 20.13% and 19.13%, respectively. For the quarter ended March 31, 2025, Airtel Digital TV held a 30.20% share versus Tata Play’s 31.42%, indicating that while the overall DTH market continued to shrink, competitive positioning among major players remained relatively stable.

In Q1 FY26, Airtel Digital TV reported revenue of Rs 763 crore, down 1.8% year on year, with a customer base of 15.7 million. For the full fiscal year 2024–25, revenue stood at Rs 3,060.8 crore, largely flat compared to the previous year. Management has previously said it is implementing structural changes, including the removal of subsidies in the DTH business, to strengthen cash flows amid persistent industry headwinds.