Chennai Super Kings is one of the most popular names in Indian cricket, and its business has expanded beyond just the IPL team. Chennai Super Kings Cricket Ltd (CSKCL) saw an increase in revenue for FY26, but its latest figures also show some changes to look at.
So, how did the company perform over the year, and what do the financials tell us about the business?
CSKCL FY26 Financials Analysis
Particulars | FY25 | FY26 | YoY Change |
Revenue from Operations | Rs. 674 Cr | Rs. 697 Cr | 3.5% |
Total Revenue | Rs. 704 Cr | Rs. 712 Cr | 1.1% |
Total Expenses | Rs. 495 Cr | Rs. 542 Cr | 9.6% |
PBT | Rs. 210 Cr | Rs. 170 Cr | -19.1% |
PAT | Rs. 148 Cr | Rs. 114 Cr | -23.3% |
PAT attributable to owners | Rs. 151 Cr | Rs. 124 Cr | -18.3% |
EPS | Rs. 4.08 | Rs. 3.47 | -15.0% |
Source: CSK FY26 Annual Report
Revenue Grew Despite Lower Central Rights Income
This is probably the most interesting part of CSKCL's FY26 numbers. Central Rights continued to be the company's largest revenue source, but income from it declined to Rs. 458 Cr in FY26 from Rs. 493 Cr in FY25, a fall of around 7%. But CSKCL managed to offset this decline through other sources.
Sponsorship income increased to Rs. 154 Cr from Rs. 116 Cr, while other tournament-related income rose to Rs. 67 Cr from Rs. 54 Cr. Academy membership, academy facilities, management and advisory services and other smaller revenue streams also contributed to growth.
What increased the operating costs?
Player and support staff remuneration: Rs. 196 Cr vs Rs. 160 Cr
Franchisee fee: Rs. 133 Cr vs Rs. 176 Cr
Tournament expenditure: Rs. 82 Cr vs Rs. 63 Cr
Administration expenses: Rs. 45 Cr vs Rs. 29 Cr
Academy coaches and support staff remuneration: Rs. 6 Cr vs Rs. 1 Cr
So, the increase in expenses is not simply a case of the company becoming inefficient. Hence, some of these costs are directly related to developing and running the cricket business. For example, spending more on players and tournaments is part of running the main cricket business. Similarly, the higher spending on the Academy is linked to CSKCL expanding its Academy network
Employee Costs Also Increased Sharply
Employee benefit expenses increased around 51.5% from Rs.17 cr to Rs. 25 Cr in FY26. The increase included higher salaries and wages, employee benefits and remuneration-related costs. Again, higher employee spending likely isn't automatically negative. Employee and operating costs can increase as a company expands its activities. However, the impact of these higher costs on revenue and profitability remains important for investors to watch.
EBITDA and Margins: The Key Concern
CSKCL does not separately report consolidated EBITDA in the Annual Report. So, for comparison, EBITDA can be derived by adding finance costs and depreciation back to PBT. On this basis:
Particulars | FY25 | FY26 |
Derived EBITDA | Rs. 222 Cr | Rs. 182 Cr |
EBITDA Margin | 31.5% | 25.5% |
That means CSKCL's estimated/derived EBITDA declined by around 18%, while the EBITDA margin fell by roughly 6 percentage points. This could be important because it tells us that the issue wasn't just lower profit after tax. The pressure was already visible at the operating profitability level.
Why Did Profit Fall?
CSKCL's total expenses increased to Rs. 542 Cr from Rs. 495 Cr, an increase of 9.6%. Revenue, meanwhile, grew only 1.1% at the total-revenue level. The biggest expense is cost of operations, which increased to Rs. 488 Cr from Rs. 451 Cr, up 8.4%. A closer look shows where the additional spending went.
Other Income Also Fell
Another factor affecting the bottom line was other income. Other income fell sharply to Rs. 15 Cr in FY26 from Rs. 30 Cr in FY25. The Annual Report shows that interest income on bank deposits and loans, advances and deposits declined significantly. At the same time, CSKCL recorded higher gains from the sale of investments during FY26.
This is worth separating from the core business. Operating revenue actually increased, while the decline in other income was largely related to changes in investment income. So, investors shouldn't interpret the entire decline as a deterioration in CSKCL's core operating business.
The Cash and Debt Fell Sharply
Cash and cash equivalents fell sharply to Rs. 71 Cr in FY26 from Rs. 336 Cr in FY25. However, borrowings remained extremely low. Consolidated borrowings declined to just Rs. 0.16 Cr from Rs. 5.13 Cr. So, the fall in cash is something investors may want to keep an eye on. At the same time, CSKCL’s reported borrowings remained low, suggesting that debt was not a major part of its balance sheet.
What Does This Mean for CSK Investors?
CSKCL’s FY26 numbers give investors a mixed picture. The company proposed a Rs. 1 per share dividend, the same as last year, subject to shareholder approval. At the same time, the CSK unlisted share price has moved from around Rs. 187 to Rs. 250 over the past year, which is a rise of about 34%. For investors, the next thing to watch is whether the company can keep growing its business while maintaining its profits. The dividend and share price movements are useful points to consider, but CSKCL’s future financial performance will remain important.
