TV ad-cap removal may lift broadcaster revenue only 1–3%, Elara says

Removing India’s TV advertising cap should increase available inventory but not materially expand advertiser demand, according to Elara. Sun TV is projected to see a bigger FY28E ad-revenue uplift than Zee as audiences and ad budgets continue shifting toward connected TV and digital measurement.

— Source published Mon, 17 Aug, 2026, 13:04 IST · First seen Mon, 17 Aug, 2026, 13:05 IST · Source ET Small Business

What happened

Sun TV Network · Elara says removal of India’s TV ad-cap will add inventory but only 1–3% industry ad revenue, constrained by advertiser demand. Sun TV is

Key facts

  • TV advertising revenue impact estimated at 1–3%
  • TV AdEx declined at about 4% CAGR from Rs 313 billion in CY21 to Rs 263 billion in CY25
  • Pay-TV households fell to about 104 million in CY25
  • Connected-TV households exceeded 40 million
  • FY28E ad-revenue uplift: Sun TV 4.5%, Zee 2%
  • FY28E PAT uplift: Sun TV 2.2%, Zee 3.3%

Why this matters

Media buyers and retail-ad platforms should view the policy change as a small legacy-TV catalyst rather than a structural demand shift, reinforcing the strategic value of connected-TV measurement capabilities.