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    Cyber Media Research & Services Ltd

    CMRSL
    Media, Entertainment & Publication·11 Dec 2025
    Management Summary

    CMRSL reported strong Q2 and H1 FY26 results, demonstrating significant revenue and EBITDA growth driven by both international and domestic business expansion. The company is pursuing a strategic merger with Cyber Media (India) Limited (CMIL), which is expected to enhance shareholder value, improve liquidity, and generate annual cost savings. Management is also focusing on AI adoption and new customer acquisition for its key platforms, CMGalaxy and AuxoAds.

    Highlights

    5

    • H1 FY26 top line of ₹43.55 crore, a YoY growth of 20.4%.

    • H1 FY26 EBITDA of ₹2.69 crore, a YoY growth of 46.2%.

    • EBITDA margin for H1 FY26 improved from 5.1% to 6.2%.

    • Q2 FY26 revenue of ₹21.31 crore, a YoY growth of 19.2%.

    • International business expanded about 30%, and domestic business grew by 22%.

    Concerns

    2

    • CMIL's net worth was reported as negative, though management clarified this was due to past write-offs and asset valuation differences.

    • CMIL's rights issue was not fully subscribed, reaching 82.38%.

    Key financials

    Metrics

    6

    Periods

    2

    Headline

    4
    • H1 FY26 Revenue
      ₹43.55 Cr
      YoY+20.4%
    • H1 FY26 EBITDA
      ₹2.69 Cr
      YoY+46.2%
    • H1 FY26 EBITDA Margin
      6.2%
    • H1 FY26 PBT
      ₹2.34 Cr

    Q2 FY26

    2
    • Revenue
      ₹21.31 Cr
      YoY+19.2%
    • EBITDA
      ₹1.26 Cr
      YoY+41.6%

    Segment breakdown

    International Business
    30% Growth
    Domestic Business
    22% Growth
    CMIL Media Business (H1)
    ₹43.14 Cr Revenue33% YoY Growth₹35.73 Cr Previous H1 Revenue
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Debt

    Debt disclosed

    M&A

    Cyber Media (India) Limited (CMIL)

    merger · announced

    Guidance & targets

    5
    CategoryTargetPriority
    Merger
    Merger Completion Timeline
    approx. six to nine months
    		Medium
    Cost Savings
    Annual Cost Savings from Merger
    at least INR 1 crore
    		High
    Cost Savings
    Merger Cost Repayment Timeline
    within the first six months
    		High
    Profitability
    EBITDA Margin
    double-digit margin
    		Medium
    Performance
    Financial Year Performance
    best financial year performance
    		Medium

    What to watch in Q3 FY26

    5

    Merger Progress & Regulatory Approvals

    next quarter
    CurrentBoard recommended, internal integration processes started
    TargetRegulatory approvals obtained, merger signed/closed

    Why it matters

    This is a transformative event impacting financial structure, liquidity, and strategic direction.

    The merger is likely to take approx. six to nine months' time, subject to approvals from relevant authorities involved. It is expected that the merger will complete in the next financial year.

    Risks & concerns

    3
    RiskSeverity

    CMIL's Negative Net Worth

    Analyst raised concern about CMIL's reported negative net worth impacting the merger. Management clarified it was due to past write-offs from US operations and undervaluation of assets in books, stating all liabilities are settled and it's a 'clean slate now'. — Analyst acknowledged

    medium

    Merger Valuation Fairness

    Analyst questioned if market price-based valuation was fair to CMRSL shareholders given CMIL's negative net worth. Management explained it followed SEBI guidelines for listed entities, using the market approach (VWAP) as standard. — Analyst acknowledged

    medium

    CMGalaxy Commercialization Stage

    Analyst inquired about specific customer numbers for CMGalaxy. Management indicated it's in an 'early rollout phase' and 'strategy phase' for GTM, suggesting it's not yet a major revenue contributor and specific metrics will be shared later. — Analyst acknowledged

    low

    Q&A highlights

    7

    “If you look at the properties that are available with the us, the net worth is actually not negative. Because the properties available with us are about INR 27 crore as per valuation, which in our books are shown as INR 3.24 crore. The second reason is that the negative net-worth has happened because of the losses that we incurred in our operations in the U.S. business... Everything has been absolutely resolved and there is a clean slate now.”

    Clarifies the reasons behind CMIL's reported negative net worth, attributing it to asset valuation differences and past write-offs, and assures that all liabilities are settled.

    asked by Bhavesh Choudhary

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Q2 and H1 FY26 Financial Performance

    CMRSL delivered robust financial results for Q2 and H1 FY26. For H1 FY26, the company reported a top line of INR 43.55 crore, marking a 20.4% YoY growth, with EBITDA reaching INR 2.69 crore, a 46.2% YoY increase. The EBITDA margin improved significantly from 5.1% to 6.2% compared to the previous financial year. PBT for H1 FY26 stood at INR 2.34 crore, up from INR 1.45 crore last year. Q2 FY26 alone saw revenue of INR 21.31 crore (19.2% YoY growth) and EBITDA of INR 1.26 crore (41.6% YoY growth), indicating steady improvement.

    02

    Strategic Merger with Cyber Media (India) Limited (CMIL)

    The Board has recommended a merger of CMRSL with CMIL, with a proposed share swap ratio of 35 CMIL shares for every 8 CMRSL shares. This merger is expected to complete in approximately six to nine months, pending regulatory approvals. Management anticipates significant benefits, including enhanced liquidity for CMRSL shareholders (listing on main board), a stronger combined balance sheet (CMIL's immovable assets valued at INR 27 crore), and annual cost savings of at least INR 1 crore, with merger costs of INR 40-50 Lakh expected to be recouped within six months.

    03

    Business Segment Growth and International Expansion

    CMRSL's international business expanded by approximately 30%, supported by new business development manpower focused on Southeast Asia and the Middle East. The domestic business also grew by 22%. Specific growth areas include programmatic advertising, leveraging relationships with Google DV360, PubMatic, and Magnite, and market research, which continued to deliver high-value insights to enterprise customers like AWS, Qualcomm, and HP. CMIL's media business also showed strong growth, increasing revenue from INR 35.73 crore to INR 43.14 crore in H1 FY26, a 33% YoY growth.

    04

    CMGalaxy & AuxoAds Platform Development

    CMGalaxy remains an area of investment, with plans to onboard new customers in the coming quarter. Management noted positive feedback from demos and early adopters, focusing on AI integration and addressing data silo issues. AuxoAds, which contributes around 20% of the top line and generates double-digit margins, is being scaled up by adding more publishers and demand partners in international markets like Southeast Asia and the US. Both platforms are seen as critical for product-driven growth and margin improvement.

    05

    Focus on Efficiency, AI Adoption, and Financial Health

    CMRSL is actively adopting AI technology across various functions (finance, operations, sales) to improve business outcomes and efficiency. The company is also implementing new policies and protocols to streamline costs, including a career planning framework, IT and password policy, credit and vendor management policies, and an ECL policy. Management emphasized that the merged entity will have a much stronger balance sheet and improved cash flow, enabling better debt management and continued dividend payout to investors.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.