Market Overview – IPL as a New Investment Asset Class
- The Indian Premier League (IPL) has evolved into a global sports and business asset class, attracting attention not only from fans but also from global investors and family offices.
- According to the 2025 IPL Brand Valuation Study by Houlihan Lokey, the league’s enterprise value surged 12.9% to $18.5 billion, while its brand value jumped 13.8% to $3.9 billion.
- Record-Breaking 2025 Viewership: IPL 2025 set new digital consumption records, with JioHotstar alone delivering a 35% YoY surge in engagement. The opening weekend (22–24 March) saw 1.370 million views.
- Top franchises such as Chennai Super Kings (CSK), Mumbai Indians (MI), and Royal Challengers Bengaluru (RCB) generate diversified revenues through:
- Title and jersey sponsorships
- Merchandising and licensed products
- Ticket sales and matchday income
- Digital rights and brand licensing
About Company
- Founded: 2008
- Owner: Chennai Super Kings Cricket Ltd. (promoted by India Cements)
- Home Ground: M. A. Chidambaram Stadium, Chennai
- IPL Titles: 5 (2008, 2010, 2018, 2021, 2023) – tied for the most with Mumbai Indians
- Playoff Appearances: 12 out of 16 seasons – highest consistency in IPL history
- Estimated Fan Base: 45+ million
- Social Media Followers: 40+ million across platforms
CSK is widely regarded as the most consistent IPL team, led by iconic captain MS Dhoni, and maintains a loyal fan base translating directly into revenue stability, merchandise sales, and sponsorship value.
In FY2025, CSK registered an INR 148 crore PAT, has no debt, and continues to hold ample cash reserves—allowing CSK to be one of the only ongoing global sports franchises that contributes to earnings year in and year out.
CSK vs RCB – Key FY24 Numbers
For CSK (Chennai Super Kings):
- According to their annual report (FY 2024), total revenue was ₹676.40 crore.
- Their net profit (PAT) for FY24 was ₹229.20 crore, up from ₹52 crore in FY23.
- Equity (paid-up share capital): As per public reports, CSKCL’s paid-up equity increased from ~₹3.08 crore to ~₹3.79 crore (due to convertible debentures being converted to equity).
- Their balance sheet / profit & loss breakdown (from the annual report): details in Lakhs, operations cost, employee benefit cost, finance cost, etc., are disclosed.
For RCB (Royal Challengers Bengaluru):
- Reported revenue for FY24: ₹650 crore, up from ₹247 crore the previous year.
- Net profit for FY24: ₹222 crore, turning around from a loss of ~₹12–15 crore.
- According to United Spirits (USL), RCB contributed ~18% to USL’s net profit in FY24.
However, RCB is not a standalone publicly traded entity—it is owned by United Spirits / Diageo.
So the financials are embedded within a larger parent company, making transparency limited.
Strong Financials
Financial Table
| Particulars | FY23 | FY24 | FY25 |
| Revenue | ₹325.3 | ₹723.28 | ₹704.28 |
| Revenue Growth | — | 122.34% | -2.60% |
| PAT | ₹13.78 | ₹201.49 | ₹148.12 |
| PAT % | 4.23% | 27.85% | 21.05% |
| EPS | 0.34 | 5.41 | 4.08 |
EPS CAGR: ~246% over 2 years
PAT CAGR: ~278% over 2 years
Financials Comparison
| Particulars | CSK (FY25) | RCB (FY25) |
| Revenue | ₹704 crore | ₹514 crore |
| PAT | ₹148 crore | ₹14000.00% (as shown) |
| PAT Margin | 21.05% | 27% |
Valuation Snapshot
Chennai Super Kings (CSK) – one of the most successful and profitable franchises – appears to be significantly undervalued relative to peers such as Royal Challengers Bangalore (RCB).
Key Points:
- CSK’s implied valuation: ~ $900M
- RCB’s 2025 valuation: ~ $2 billion
- Valuation gap: ~ 2.2x
Investment Thesis & Outlook
- Valuation Gap: Current ~ $900M vs RCB ~ $2B — potential upside 1.5–2x.
- Exits are primarily expected through buyouts, while investors may also choose to remain invested and benefit from future upside.
An IPO is not the intended exit mechanism; however, if it takes place, it would act as the final exit option.
Conclusion:
CSK combines cash-rich, debt-free, brand loyalty, and consistent profitability with a significant valuation gap, making it a hidden gem for investors.
Disclaimer
This material is for educational and informational purposes only and should not be considered investment advice, solicitation, or a recommendation to buy or sell any securities. Investments in unlisted and private market instruments are highly risky, illiquid, and may result in total loss of capital. Past performance and market data are not reliable indicators of future results. Readers should conduct their own due diligence and consult qualified financial, legal, and tax advisors before making any investment decisions.