Aditya Birla Group sees long runway for IPL rights growth

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Aditya Birla Group is backing long-term growth in IPL media rights after its consortium acquired Royal Challengers Bengaluru at an enterprise valuation of about Rs 16,600 crore, or $1.78 billion. The bet matters because media rights remain the financial engine of IPL franchises, even as India’s broadcast market consolidates.

Sandeep Agarwal, head of group corporate finance at Aditya Birla Group, said the group expects near-term volatility but not a structural decline. “There may be some short-term bumps in terms of how media rights play out, but the long-term cycle we are extremely confident about,” he said.

The confidence rests on two assumptions: India’s appetite for live cricket will keep expanding, and global streaming platforms may eventually bid harder for premium sports rights. Agarwal pointed to Netflix and Amazon Prime as potential future contenders, saying Netflix has “barely 15 million paying subscribers in India” and may seek scale through sport.

The data supports the scale of the opportunity. BCCI’s IPL media rights for the 2023–2027 cycle were sold for Rs 48,390.32 crore, nearly three times the previous cycle’s value.

RCB also offers more than broadcast-linked revenue. The acquisition includes the men’s IPL team and women’s franchise, giving the owners exposure to fan engagement, merchandise, sponsorships, stadium monetisation and women’s cricket. Reuters reported that RCB’s revenue rose to $56 million in 2024–25, up 73% over three years.

The risk is clear: fewer serious bidders could weaken the next rights auction. But Aditya Birla Group appears to be buying into a broader India sports economy, not just one media cycle.