Reliance-Disney JV Shows Improving Financials

The latest numbers from the Reliance-Disney joint venture caught my attention because the direction of the business seems to be improving. Walt Disney’s loss from its investment in the JV narrowed to $44 million in the June quarter from $50 million a year earlier. For the nine months ended June 27, Disney’s share of losses also reduced to $136 million from $186 million. More importantly, JioStar itself reported strong FY26 numbers. Revenue from operations increased 46.5% to ₹30,819 crore, while profit after tax surged to ₹3,145 crore from just ₹18 crore in the previous year. For me, this is the bigger takeaway. When Reliance and Disney combined their entertainment businesses, the scale was already massive. Now the focus shifts towards whether that scale can consistently translate into profitability. One thing investors should still keep an eye on is sports broadcasting. JioStar has ₹17,742 crore of provisions for onerous sports contracts, although this has reduced from ₹25,760 crore in the previous year. Sports rights can attract huge audiences, but the economics depend heavily on advertising, subscriptions and the cost of acquiring those rights. Overall, I would track JioStar not just from the revenue-growth angle but from how efficiently it monetises its television, streaming and sports ecosystem. If profitability continues improving along with scale, it can become increasingly important for Reliance’s media business.