Shemaroo’s Bank Rating Cut to CARE BB- as Losses Mount and GST Risks Linger

Shemaroo Entertainment Ltd. ( (IN:SHEMAROO) ) has issued an announcement.

Shemaroo Entertainment Ltd. has had its long-term bank facilities rating downgraded by CARE Ratings to CARE BB- with a stable outlook, from CARE BB, on facilities now totaling ₹195.90 crore after a reduction from ₹215 crore. The downgrade reflects weakened operating and financial performance, including revenue declines, operating and net losses driven by slower syndication growth, industry-wide softness in advertising, and accelerated inventory amortisation.

CARE also highlighted sizeable contingent liabilities of about ₹133.61 crore at the company level stemming from GST-related demands, which could pressure liquidity if crystallised, even as management plans to pursue legal remedies. Despite continued net losses, weak debt coverage metrics and heightened competitive and ad-revenue risks, the rating retains support from Shemaroo’s experienced promoters, extensive content library and distribution reach, with a stable outlook based on expectations of a moderate near-term financial risk profile.

More about Shemaroo Entertainment Ltd.

Shemaroo Entertainment Ltd. operates in the Indian media and entertainment industry, focusing on content ownership, aggregation and distribution across traditional and digital platforms. The company leverages a large content library and an established distribution network to serve broadcasters, OTT platforms and other partners, with meaningful exposure to advertising-driven and syndication-based revenue streams.

Average Trading Volume: 1,069

Technical Sentiment Signal: Sell

Current Market Cap: 2.55B INR

Find detailed analytics on SHEMAROO stock on TipRanks’ Stock Analysis page.