Shemaroo Entertainment Ltd (NSE: SHEMAROO) Q2 2025 Earnings Call dated Nov. 06, 2025
Corporate Participants:
Hena Khatri — AVP Business Development
Mr. Amit Haria — Chief Financial Officer
Mr. Hiren Gada — Whole Time Director & Chief Executive Officer
Mr. Arghya Chakravarty — Chief Operating Officer.
Analysts:
Unidentified Participant
Anirudh K — Analyst
Neil Guha — Analyst
Presentation:
operator
Ladies and gentlemen, the call for Shimmer Entertainment will be will begin shortly. Requested to please stay connected. Thank you. Good afternoon ladies and gentlemen. Thank you for joining Shimaru Entertainment conference call. The call will begin shortly. Request you to please stay connected. Thank you for your patience. Sam ladies and gentlemen, good day and welcome to the Q2 and H1FY226 conference call of Shimaru Entertainment Limited hosted by Valorum Advisors. As a reminder, all participants line will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Hena Khatri from Valerum Advisors. Thank you. And over to you ma’. Am.
Hena Khatri — AVP Business Development
Thank you. Dhanish. Good afternoon everyone and a warm welcome to you all. My name is Heena Khatri from Valorim Advisors and we represent the investor relations of Shimaru Entertainment Limited on behalf of the company, I would like to thank you all for participating in the company’s earnings call for the second quarter and first half of the financial year 2026. Before we begin a quick cautionary statement. Some of the statements made in today’s con call may be forward looking in nature. Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated.
Such statements are based on management’s belief as well as assumptions made by an information currently available to the management. Audiences are cautioned not to place any undue reliance on this forward looking statements in making any investment decisions. The purpose to today’s earnings con call is purely to educate and bring awareness about the company’s fundamental business and financial quarter under review. Now I would like to introduce you to the management participating with us in today’s earnings call and hand it over to them for the opening remarks. We have with us Mr. Hiren Gadda, CEO, Mr. Aaragya Chakravarti, COO and Mr.
Amit Harya, CFO. Without any further delay, I request Mr. Amit Harya to start with his opening remarks on the financial highlights. Thank you. And over to you sir.
Mr. Amit Haria — Chief Financial Officer
Thank you Henna. And good afternoon everyone and welcome to our earnings call for the second quarter and first half of the financial year 2026. Let me first start by giving some of the key financial highlights after which our CEO, Mr. Hirangada will give you some of the operational highlights. For the second quarter of the financial year 226, the revenue from operation stood at around INR 143 crores which declined by approximately 12% year on year. The company reported an EBITDA loss of about INR 55 crores for the quarter while the net loss stood at around 45 crores.
For the first half of the financial year 2026, the revenue from operations stood at around 283 crores which declined by approximately 11% year on year. The company reported an EBITDA loss of about 110 crores for the period while the net loss stood at around 91 crores. With regards to new initiatives, expenses in Q2 FY2026amounted to INR 33 crores. Adjusting for this investment, the EBITDA loss from the existing operations for the quarter would have been around 22 crores. The same expenses in H1amounted to around 65 crores. Adjusting for this investment, the EBITDA loss from operations for the first half would have been around 45 crores.
Digital media revenues for the second quarter stood at approximately 60 crores, suggesting a year on year decline of 10%. Traditional media revenues for the quarter were around 83 crores, down 12% year on year basis. Now I would request our CEO Mr. Hiringada to give you operational highlights for the period under review.
Mr. Hiren Gada — Whole Time Director & Chief Executive Officer
Thank you Amit and good afternoon everyone. Decline in revenues during the second quarter was on account of some deferment of syndication deals in the digital business and a muted festive season advertising in our traditional business, which was one of the weakest in recent years that we have witnessed as FMCG spend on television remains subdued. Additionally, a packed sports calendar prompted several key advertisers to reallocate budgets towards sports properties. With the impact of the GST rate cut now stabilizing in the economy and supply chain efficiencies showing improvement, we remain cautiously optimistic about a gradual recovery in FMCG advertising spend in the coming quarter.
Coming Quarters during the quarter we expanded our channel portfolio with the launch of Shimaru Josh, a Hindi movie channel introduced on 1st September 2025. The channel features a curated lineup of Hindi films across genres and is available on major DTH cable and DD Freedish platforms. In other updates for Shimarumi Gujarati, we released eight new titles during the quarter with content across movies, web series and plays along with the digital world premiere of blockbuster movies Mithra Maiman Sanvi and Son Maum Tane Naisamjay Karkhanu. We also released the Hindi dub versions of Jankudi and Unfiltered Nari which is a Hindi dub version of Fakht Mehlao Mate on YouTube.
Our flagship channel Shemau Filmigane crossed a significant milestone of 73.5 million subscribers. Additionally, our SHIMARU Entertainment or ENT channel crossed 60 million milestones this quarter. Across our entire portfolio of channels, the company garnered more than 11 billion views during this quarter, underscoring the sustained strength of our digital engagement. However, margins are expected to remain under pressure due to the ongoing accelerated inventory charge offs, a strategic initiative we began seven quarters ago. It is important to highlight that these charge offs are purely accounting adjustments and do not affect the monetization of our content or our ability to generate free cash flows.
Looking ahead, we remain focused on strengthening our balance sheet, driving operational efficiencies and positioning the company to unlock substantial long term value. With that, I open the floor for the Q and A session.
Questions and Answers:
operator
Thank you sir. We’ll now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchton telephone. If you wish to remove yourself from the question queue, you may press Star then two participants are requested use headsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Our first question come from the line of Anirudh K from Cooper Capital. Please go ahead.
Anirudh K
Hi, thanks so much for the opportunity sir. I’m new to this business after a long time. I mean it’s been a while. So two questions essentially one digital media difference is understandable. The traditional media, do you see this as a structural downturn? Right. Because you don’t have sports calendars, you don’t have multiple channels in terms of Netflix and Prime and everything else multiple OTT going on. So do you see this? The spend in traditional media that has gone down, especially when we had Dasra and Diwali in October, which essentially means September should have been like a jam packed season.
Do you see this as a structural downturn?
Mr. Hiren Gada
So there are two parts to this. One is the fact that digital is. Sorry, the viewership is migrating to digital. I think that is anyway structural. It’s a secular theme. I don’t think that there is any denying of that fact. And over a period of time, if we see map last whatever year on year or over last five to seven years, the share of digital consumption on the digital platform has been going up and traditional has been coming down. I don’t think that we are trying to shy away or we in fact embrace or recognize that fact.
Having said that, I think there is still enough and more juice and consumption on the traditional platform. Not only consumption, there is enough revenue on the traditional platform which is there and available to capture. And that is really what we are trying to work with. There have been some, I would say seasonal or more than seasonal, I would say cyclical challenges. It’s not really, I would say seasonal to that extended. So for example, in the last couple of years we have seen a severe slowdown in consumption in the economy which has impacted the ability of the various brands to advertise and spend on advertising.
They have just focused on narrowly on what we call performance marketing or point of sale kind of spend versus actual brand building and those kind of things. Now the structural question, the larger structural question even beyond digital and traditional is the fact that is the India consumption story going to bounce back or not? We believe beyond cyclicality, it is going to bounce back. And once that happens, I think a lot of spend would get unleashed. And even today in terms of consumption. So we have seen consumption patterns on television over last several quarters and they are fairly intact.
It’s not that the consumption has been so digital has grown, no doubt about it, the share of digital has grown. But actually television has held on on its own. And television I would say is very much alive and kicking. It’s not really dead or it’s not about to die down soon. If that was the outlook, obviously we wouldn’t have continued to invest in that platform. But we’ve also, you know, considering the cyclical impact of where things are, we have also tempered down the cash flow and the investment that is needed.
Anirudh K
Got it, sir. Helpful. That’s very helpful. The second question then is this inventory write off. Sorry, I should have updated myself but could you tell us this inventory write off that you have been doing for 7 quarters, is this like a 50, 60 crore per quarter? How much more supposed to be written off? If you could just give a rough idea where did we start and where will we end?
Mr. Hiren Gada
Actually we can separately take it offline, but this is now we are, we are after this quarter. We are two more quarters away. So March quarter will be the last quarter. I don’t remember the exact number where it was before we started, but just to give you a sense, we were last year, one year ago September we were at 618 crores of inventory. We have closed with the current September 25th. So September 24th was 618 March was 568 and September is 477. So we have been consistently writing it off and it has, it is there.
So March 26th Q4 of the current financial year is the last. It was a nine quarter write off and Q4 is the last quarter. For.
Anirudh K
Last question, sir, is there any guidance that you’re giving on revenue? I understand the below the line is very difficult to give but at least on the revenue bit, are we okay with doing a 650700 crore revenue in FY27 the way you see it.
Mr. Hiren Gada
So if we were to simply annualize what we have done, then it kind of falls somewhere in the range of about 550 to 600. Okay. There is obviously some deal deferment and things like that which will kind of get added. The this cyclical uptick has not yet materialized in the spend. So we don’t see at least in the current quarter Q3 we don’t see any meaningful change in the advertising spend trajectory as of now at least because most of the advertisers post the GST they have face lot of operational challenges on inventory and credit notes and you know, logistical questions and all of that pipeline inventory that was in the, you know, in the system.
I think it will take couple of months to stabilize. Everyone has in fact guided around that we believe probably so we are already nearly a month, month and a half away from 22 September, the effective GST change date to now I think and probably my sense is that we’ll you know, take another probably it will be till end of December. We will see that destocking impact and everything else that would be there in this and that will impact their cash flows and sentiment to advertise because they are significantly caught up with the operational questions and challenges most brands.
And so therefore if we extrapolate this quarter definitely seems to be subdued in terms of the advertising spend. Yes, we have some syndication which have materialized so that will be helping us for the year.
Anirudh K
Got it. Okay, thank you so much. I’ll join back in the queue.
operator
Thank you sir. Our next question come from the line of Neil from Equity Capital. Please go ahead.
Neil Guha
Hello sir. Am I audible?
operator
Yes sir, you are.
Neil Guha
I had a few questions and almost two questions I need answer. One of the question is you just mentioned that your YouTube channels have crossed 73 million and 63 million subscribers and there has been around 11 billion quarterly views. Am I right?
Mr. Hiren Gada
Yes, yes.
Neil Guha
So I want to understand if the company has formulated any new monetization models. So to go beyond ad revenue to cater to this large audience base.
Mr. Hiren Gada
So finally see YouTube is a platform owned by Google or Alphabet, right? So we are, we are one of the content partners on the platform and there are probably quite a few, there are millions of content partners on YouTube’s platform. So our finally our dependency is on Alphabet’s or YouTube’s own monetization strategies. Now what are their monetization strategies? One is of course you know fundamentally there is an ad based and second there is a subscription based and third there could be a transaction based which is called a transaction VOD kind of model, pay per view kind of model in India.
So okay, let’s put it this way. So Google has been, you know, Obviously there is YouTube Premium, they have introduced recently a premium lite pack at a lower, lower rate. And all of this is with the attempt of increasing the subscription pie for YouTube and you know our experience. So we, we participate in terms of the monetization of the viewership that our content generates. If it comes from a free subscriber there’s an ad which gets displayed and we earn a share of that. And if it’s a paid subscriber then we get a proportionate share of the paid pie.
So in a way every viewer that comes on YouTube we get some share or some way of monetization participation. Our effort is really about firstly keep adding fresh content, keep adding more and more fresh and relevant content. Second, to do a good job of meta tagging and various other keeping the whole hygiene on the search and discoverability of the content. Third is obviously to keep a healthy CMS or a healthy platform which results in deep engagement and viewership. So the fact that why these numbers we keep sharing is to give an indication of the continued depth and level of engagement and the health of our, our entire cms.
These are kind of health metrics of the CMS which finally results in monetization as per Google’s own algorithm and things like that. So that’s really how we look at the whole thing. So YouTube keeps adding or coming up with more and more monetization mechanisms and we get our share of anything that they do.
Neil Guha
Okay, so I have another question. I guess in the last con call you are given this guidance that you are expecting to write off inventory around 140 crores. And so far I see in first half you have write of around 91 crores. So will we be able to meet the guidance and write up around 140 crores by end of the financial year?
Mr. Amit Haria
So Neil, this is Amit here. So when we said 140 crores it was an accelerated write off apart from that and regular write off of inventory would also be there. So if guidance of 140 has been given out of which the 70 roughly if I have to allocate 70 crores would have been done in the first half, 70 would be taken taken up in its second half.
Neil Guha
Okay, so are we in line to meet that guidance?
Mr. Amit Haria
Yeah, yeah,
Mr. Hiren Gada
yeah, yeah, yeah. So we have a. Actually a fixed fixed amount. So when we got the nine quarter thing it was a. The quarterly charge of is fixed. It’s a straight line charge off. There is no deviation on that. Hello?
Mr. Amit Haria
Yeah.
Mr. Hiren Gada
Hello, Hello.
operator
Yes sir, we can hear you. Please go ahead. Okay. Okay. I guess there’s no response from the dean as of now. So we’ll move forward to the next speaker share. Our next speaker is from the line of Vishal Sanghvi, an individual investor. Please go ahead.
Unidentified Participant
Hi sir, thank you so much for the opportunity. I have a couple of questions. So first is what is the syndication deals that we can expect in the coming quarter? Sir.
Mr. Hiren Gada
That is. So we cannot actually, unfortunately I’m not at liberty to give amounts. But what I can say is that some of those deals actually have already, you know, materialized during October and we have already done the invoicing and received the payments also for some of those. In fact quite a few of those deals. So they were actually in a way we had concluded them towards the end of the quarter. But as per our revenue recognition policy of you know, various that we need to complete before recognizing the revenue that was not concluded. So it kind of got differed into this quarter.
So that is what we were referring to.
Unidentified Participant
Correct. Also. So another question I had is that you, what is your outlook on the free cash flow for 26 and the debt reduction plan for 26 because right now.
Unidentified Participant
Hello?
Mr. Hiren Gada
Hello?
Unidentified Participant
Hello. Yeah, Am I audible sir?
Mr. Hiren Gada
Yeah, I can hear you. I thought there was someone else trying to. Okay. Anyway you continue.
Unidentified Participant
Okay, yeah, so just outlook on the FY26 free cash flow as well as that reduction plan.
Mr. Amit Haria
So. This is Amit here. So last, last con call we hire said that it looks bit difficult at this ensure to meet the debt reduction guidance considering the investments that were planned and the way market has performed. However, with respect to cash flow, free cash flow, we have been able to tightly manage the ship with tighter control and better recovery in receivers, better management of payable and have been able to generate an operational cash flow of 32 crores which is reflected in the cash flow and helped us in not taking any further debt in spite of the losses in the first half.
Mr. Hiren Gada
I’ll just add to that. So we had a intent when we began the year of reducing the debt by about 40 to 50 crores. That was our intent. Two things kind of derailed that to an extent. To a large extent I would say. One is the fact that the big broadcasters brought their GEC channels onto the free Dish platform and therefore took away viewership and advertising share which has resulted in a lowering of the cash flow generated by that business. Second, of course the tepid advertising situation has for the same GRP what revenue we would have expected or what the market generally would have received.
That revenue has been also lower. So both these factors combined has derailed that plan. And this is something that we had indicated in the last call also that we will try our best to. And this market conditions are dynamic, we don’t know because between the last call and now this entire GST cut has been laid out, etc. And obviously it has further changed some of the ground situation both in a short term negative but long term positive way. So we are very confident and hopeful that you know, if we believe in the India consumption story without, you know, the media spends of all and brand building of every brand that aspires for any consumption has to play out so that we are confident will happen.
But yeah, in this current financial year these are two key factors which have, you know, kind of paid to our plans of. Having said that we in spite of all the P and L loss that is visible, you can see on the balance sheet side that actually even in this intervening six months we have actually reduced the debt even though albeit marginally by 5 crores but which in a way indicates that the cash flow position has been reasonably comfortable.
Unidentified Participant
Correct sir. So last question. Since we had a very sports heavy calendar, has the distribution of viewership among the free Dish ecosystem like has it stabilized among the top layers?
Mr. Hiren Gada
Yeah, viewership has stabilized for last almost, I would say two to three months at least the viewership maybe even more almost. Post June, July, post the ipl, I think the viewership has kind of stabilized. Yes, there will be week on week, some, you know, fluctuations here and there, but at a overall level I think the viewership has stabilized.
Unidentified Participant
Correct. Okay, sir, thank you so much for the opportunity, sir.
Mr. Hiren Gada
Yeah,
Mr. Amit Haria
yeah.
operator
Thank you. Ladies and gentlemen, just a general reminder, if you would like to ask a question, you may press star and one on your touch tone telephone. Our next question comes from the line of Ditakkar and individual investor. Please Go ahead.
Unidentified Participant
Yeah. Hello sir. So my question is on the OTT platform side. So could you share the subscriber base for the company and what has been the trend for the last three years?
Mr. Hiren Gada
So deer we have not shared and we have refrained from sharing the subscriber numbers. Having said that, I can say that for year on year trend has been on a upward trajectory. And actually as we stand where we stand today, our core investment which happens to be on the Gujarati side, Gujarati language content, I think there we have been able to generate a very strong consumer traction, a very good brand connect with the formidable content offering that we have. And we have a very, very strong leadership market leadership position on the Gujarati side. It’s literally, I would say that we stand out very, very strongly in that space.
There’s almost virtually negligible or very, virtually no competition on that. So we are very much riding the digital subscription growth, you know, wave that is kind of unfolding. But yeah, sorry, but we are not able to give numbers.
Unidentified Participant
Yeah, no problem, sir. Yeah. And you are true that Gujarati said. So apart from that, what are the expansion plans on the OTT platform if you, you know, leave the Gujarati aspect aside?
Mr. Hiren Gada
No, I think so. See, OTT is a business which is still in an investment mode. So I think our focus is to fortify our position on the Gujarati side. And yeah, there is also the, our core Bollywood offering and there would be some or the other Hindi content edition and you know, something we would keep doing on that. But still I would say the core focus is to be, you know, the undisputed and very, very strong number one by a mile on Gujarati.
Unidentified Participant
Yeah. Okay, sir, you got your point. Thank you for your time, sir.
operator
Thank you, sir. Our next question comes from the line of Manish Prajapati, an individual investor. Please go ahead, sir.
Unidentified Participant
Yeah. Hello, sir. So my question is when do you expect the impact of accelerated inventory charges to normalize and the margins to stabilize as we know that FY26 is the last year for that.
Mr. Amit Haria
Yeah. So we are quite hopeful and confident that first quarter of the next financial year onwards the we should be on a normal trajectory and mode.
Unidentified Participant
Okay, sir. Thank you.
operator
Thank you, sir. Ladies and gentlemen, just a gentle reminder. Anyone who wishes to ask a question May Press Star N1 on their touchdown telephone. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Ladies and gentlemen, just a gentle reminder. Anyone who wishes to ask a question May Press Star N1 on their Touchstone telephone. Our next question come from the line of Neil from Equity Capital. Please go ahead.
Neil Guha
Sir, you just mentioned that on September, Shemadu Josh was launched. It’s a Hindi channel. Hindi movie channel.
Mr. Hiren Gada
Yes.
Neil Guha
So I want to understand what, what, what is the expectation from a Hindi movie channel mean? What is expected contribution to the top line or how will that impact the current business?
Mr. Hiren Gada
Yeah,
Mr. Arghya Chakravarty
Neil, this is Orgo here. Am I audible? Can you hear me?
Neil Guha
Yes, sir.
Mr. Arghya Chakravarty
Okay, so this movie channel, obviously, as you know, you know, Shimaru, we are. We have been an aggregator and owner of a lot of ip. You know, we own a lot of Hindi film ip. So the launch of this channel is a natural progression of our expansion of our broadcast business. So this sits right and center in terms of our core competence. In terms of core competence and our long history of working with IPs which we own a lot of IPs we own. So in that segment, this has been. We have just started about a month and a half back.
I think the launch has been pretty good and there is some stabilization which is happening now. A lot of our quality content that we have in our library is getting infused gradually over a period of time. As the ad market settles down. There’s been a lot of discussion about the ad market which Hiran has talked about. As the ad market settles down, we see significant. Already there is revenue is coming in into the channel. But in terms of realizing the max potential of the channel, I think somewhere by the end of Q4, we should see the real realization, max realization of the channel.
And it should be a significant contributor to the overall top line of the broadcast business for the company.
Neil Guha
Okay.
Mr. Hiren Gada
Sorry, I can’t hear you. Neil. Yeah.
Mr. Arghya Chakravarty
You went off.
Mr. Hiren Gada
Yeah, yeah, Neil, I can hear you now. Are you.
Neil Guha
Yes, yes. Am I audible to you?
Mr. Arghya Chakravarty
Yes, yes,
Mr. Hiren Gada
yes, yes, yes.
Neil Guha
Yeah. In your presentation you mentioned that you have. You’ve expanded to Dubai as well by bringing Shamaru Digital. So if you could throw some light on what’s your expectation in regards to the international business.
Mr. Arghya Chakravarty
So as we indicated last time, you know, there is. We are, we are just trading cautiously in this, you know, business of the multiverse, the Metaverse business. We have our Metaverse ready and this is just the opening. The presence in the Dubai office is just keep our presence there. As of now, the entire ecosystem around Metaverse and Crypto is subdued. And we are also. We don’t have very big hopes as we speak right now, but we have kept our business alive and we have kept our presence in the right place, which is Dubai and Middle East.
Is there a lot of action is happening as and when the market opens up there we will have better situation. Right now we are just present and keeping our work there active without too much of aggressive activity on that front.
Neil Guha
Okay sir, thank you.
Mr. Arghya Chakravarty
I think there’s somebody in the queue.
Mr. Hiren Gada
Yeah. We can’t hear
operator
a nice question come from the line of Anirudh K. Please go ahead sir. From
Anirudh K
sure. Thank you for the opportunity. Seeing the announcement around options would find like 80,000 shares as an option and then close to 5 lakh shares at a 40% discount to market price. And that’s a substantial cost essentially. Right. With a 40% discount. So if you could just tell us the rationale behind Granting close to 5 lakh shares at a 40% discount the rest shares 10% discount is understandable but a 40% discount is not. So if you just explain the rationale that we create.
Mr. Hiren Gada
Yeah sure. So essentially what had happened was that we had put in place a performance linked scheme for ESOPs. And at that time when we had put in this scheme there was obviously a certain trajectory in which the company was moving. However, this, this extraordinary charge off which the company decided seven quarters ago was kind of not in. That was not envisaged at the time when the scheme was formulated. So we decided to kind of roll back and reissue those options. So in fact probably more than three and a half lakh options had expired because they were not exercised.
The price was lower than the option price because obviously the charge off has impacted the stock price. And we know that once the impact of the charge off is over we will all see a different. So it’s the key drivers of the business who in a way we are reinstating those options for them.
Anirudh K
Got it sir. Okay, understood. Second question sir, is we getting 32 crore operating cash flow? Just wanted to understand from our investing strategies are we continuing to invest in the new catalog business, in the new movie music business or a we continue to hold the older IP or which will generate revenue and all our investing, all our money will go into creating these new entertainment channels like Shamado Josh or another Gujarati channel or Gujarati OTT because we have a very strong market share there. So if you just can explain the strategy around reinvesting this cash flow, where is it going?
Mr. Hiren Gada
Sure. So to give you an overall sense, so our content investment continues as it is. There is no change in that. Even in the last year or even this year whatever, we’ve been continuously acquiring content and replenishing the library to that extent we overall as far as Hindi is concerned, we do not play in. The. Premier release cycle of film. We typically participate in second, third cycle onwards. That has been a stated strategy for more than 15 years, I guess and that has not changed. We do not take pre release and release cycle risk. And to that extent the content pipeline plays out and we are available, you know, that content becomes available. To give you a sense, we last, you know, last year we bought movie like say Houseful or this year, you know, whatever, we bought movies like welcome back Gulmal again, etc. Etc. So all, you know, movies which kind of fall into the second and third cycle and onward cycles of monetization that we.
And that is a continuous part of the, of the investment. In addition to that, the platforms specifically require their own set of content or investment. So it would be say certain content for the YouTube and those platforms which is all baked in at the time of the annual planning that this is the kind of content that we would be looking to acquire. So I think that is a continuous part of the business. There is no let up in that. Now there are two business investment initiatives or two new business forays or I won’t call them new, but they are still under investment.
One is the broadcasting business, one is the OTT business. OTT again as we know globally and within India also, it’s a burn business and our effort has been to keep the burn as low as possible and still being able to maintain the leadership position. And I am happy to say that literally we have been able to grow the business with the same amount of burn which in a way shows the strength of what business that has been now built or is being built. And at some point this business will at least reach a break even stage, etc.
When there is enough and more consumer traction, consumption traction and consumer brand equity that now we have garnered today. On the Gujarati side, on the broadcast side there has been a certain, obviously this year has been a big setback because of the combination of the big four big broadcasters, GECs coming in on free Dish and the fact that the advertising market is as tepid as it. I mean, you know, we’ve never seen in our lifetime, you know, once. And obviously this is something that we will be looking at during the. Already we look, you know, we kind of look at it on a daily weekly basis to see what is a better way to navigate through these challenging times.
But there are certain things that if you have to run a channel, you have to keep certain, you know, certain content, certain play, certain engagement in place and all of that costs. So that’s really something that you know, this year we have to kind of take it in our stride and move along. Obviously as we go in our next coming years we will be looking at each and every business in its own with its respective merit. So I would say the core business investment. The core business is something that we keep fueling and feeding without a doubt.
And new businesses of course are something that is being invested in.
Anirudh K
Makes sense. And thanks for the very detailed answer, sir. So 32 cash flow in the first half. So let’s say 32 crore again in the second half. 65 crore or 60 crore. 60 to 65 crore. Would we say that 70% of this money would go into acquiring new content as in the second third cycle and 30% of this cash flow would go into broadcast and OTT. Is that a fair enough split?
Mr. Hiren Gada
No, I would say in fact this 32 crore is actually net of the investment in that respective business.
Anirudh K
Okay, got it.
Mr. Hiren Gada
So that there is in the. So 32 crore is actually in a way free cash flow available to invest in the new initiative. And it’s net of the investment that has gone into the existing business.
Anirudh K
Got it. So let me ask the question differently. So what is our usual capex in our industry’s capex for our company? And what percentage of it will go into buying content? And what percentage will go into ott? That was my broader question, sir.
Mr. Hiren Gada
So OTTN broadcast Aniruddh, we share every quarter what is the combined investment? And Amit called it out in his opening remarks. I’ll just tell you what it is. One second in the first half it has been 65 crores. It’s been 33 crores in the current quarter and 65 crores in the first half. This is the OTT and broadcast business investment.
Anirudh K
Okay, thank you so much.
operator
Thank you. As there are no participants in the queue, I would like to hand the conference over to the management for the closing comments. Thank you. And over to you sir.
Mr. Hiren Gada
Thank you everyone for participating in the Q2 earnings call. I hope that we have been able to answer your questions satisfactorily. If you have any further questions or would like to know more about the company, please reach out to our IR managers, Valorem Advisors. Thank you. And looking forward to seeing you all in the Q3 earnings call. Thank you.
Mr. Amit Haria
Thank you.
operator
Thank you, sir. Ladies and gentlemen, on behalf of Shimaru Entertainment Limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.