D B Corp — Q1 FY26 earnings call

Call held 16 Jul 2025

Management summary

DB Corp reported a resilient Q1 FY26 performance despite a high base from last year's general elections, which impacted overall revenue and profitability. While total revenue and net profit saw YoY declines, advertising revenue showed underlying single-digit growth when adjusted for election-related billing. The company maintained circulation numbers, saw strong growth in digital MAU, and improved print business EBITDA margins, supported by stable newsprint prices and cost management.

Highlights

  • Total revenue for Q1 FY26 stood at ₹587.2 crores, a 4.72% decline YoY from ₹616.3 crores in Q1 FY25.

  • Advertising revenues for Q1 FY26 were ₹397.8 crores, showing single-digit growth when normalized for last year's election-related spike.

  • Overall EBITDA for Q1 FY26 was ₹138.4 crores, down 27.5% YoY from ₹190.9 crores in Q1 FY25.

  • Net profit for Q1 FY26 was ₹80.8 crores, a 31.47% decline YoY from ₹117.9 crores in Q1 FY25.

  • Print business EBITDA margin expanded to 31% in Q1 FY26 from 23% in Q4 FY25 and 30% in FY25 overall.

  • Radio segment advertising revenue grew 1.2% YoY to ₹39.2 crores in Q1 FY26.

  • Digital monthly active users (MAU) crossed 20 million, reaching almost 22 million in May 2025.

  • Newsprint prices remained soft, averaging ₹47,100 per metric ton in Q1 FY26, a slight decline from ₹47,400 in Q4 FY25.

Key financials

  1. Total Revenue ₹587.2 Cr -4.7%YoY
  2. Advertising Revenue ₹397.8 Cr
  3. Overall EBITDA ₹138.4 Cr -27.5%YoY
  4. Net Profit ₹80.8 Cr -31.5%YoY
  5. Overall EBITDA Margin 23.6%
  6. Print Business EBITDA Margin 31% +34.8%QoQ

What they filed

Q1 FY27: revenue up 8.1%, net profit up 24.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue559 643 548 559 614 +10%605 −6%576 +5%604 +8%
EBITDA121 177 83 111 138 +14%135 −24%104 +25%136 +23%
Net profit83 118 52 81 93 +12%96 −19%62 +19%101 +25%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Radio Business
    ₹39.2 Cr Advertising Revenue1.2% YoY Growth4% QoQ Growth₹11.5 Cr EBITDA-12.9% YoY EBITDA Growth

Guidance & targets

Newsprint Prices

  • Newsprint Price Environment Newsprint Prices · coming quarters · Medium confidence stable
    We expect the newsprint price environment to remain stable in the coming quarters, subject to currency fluctuations.

    — Pawan Agarwal

  • Newsprint Price Stability Newsprint Prices · Quarter 2 · High confidence under control
    Quarter 2 is very much under control. So we don't see any change happening in quarter 2.

    — Girish Agarwal

Ad Revenue Growth

  • Overall Ad Revenue Growth Ad Revenue Growth · quarters ahead · High confidence robust growth
    we are confident in our ability to resume robust growth in the quarters ahead since the government election billing issue is over now.

    — Girish Agarwal

  • Q2 Ad Revenue Growth Ad Revenue Growth · Q2 · Medium confidence pretty good, decent
    Yes. In Q2, last 15, 16 days of July has been good. There's been a decent number in markets... So as of now, it looks pretty good, decent.

    — Girish Agarwal

Costs

  • Other Operational Costs Costs · coming quarters · Medium confidence stabilize
    And we hope that in the coming quarters, this should stabilize.

    — Girish Agarwal

  • Circulation/Digital Spend Level Costs · going forward · Medium confidence at the level of Q1
    So we are trying and hoping that it should continue at the level of Q1 going forward.

    — Girish Agarwal

Digital Growth

  • Monthly Active Users (MAU) Digital Growth · monthly basis · High confidence keep growing
    And based on that, we expect that this number, which is now at 20 million average, should keep growing on a monthly basis.

    — Girish Agarwal

Digital Profitability

  • Digital Business Breakeven Digital Profitability · future · Low confidence few more quarters
    Now when we will be able to monetize it 100% and when we will become the -- I think that's we have to wait for a few more quarters.

    — Girish Agarwal

Dividend

  • Dividend Payout Policy Dividend · future · High confidence continue with that
    And the company intends to continue with that. As even today, Board has announced INR 5/- interim dividend.

    — Girish Agarwal

  • Interim Dividend Dividend · Q1 FY26 · High confidence INR 5/-
    As even today, Board has announced INR 5/- interim dividend.

    — Girish Agarwal

Risks & concerns

  • Currency fluctuations impacting newsprint prices

    medium

    Newsprint price environment expected to remain stable, but subject to currency fluctuations.

    Management acknowledged

  • Ongoing costs for circulation and digital initiatives

    medium

    Circulation initiatives and digital spend are ongoing, and management may push more if market response is good, implying continued investment.

    Management acknowledged

  • Challenge in growing advertising yield

    medium

    Management stated that growing ad yield is a big challenge in a difficult market, despite efforts.

    Management acknowledged

  • Competitive environment for digital business

    medium

    Competitive environment is cited as a reason for not disclosing individual sectorial numbers for digital.

    Management acknowledged

Areas of evasion (4)

  • Digital business profitability timeline
  • Specific social media strategy for YouTube
  • Breakdown of print business advertisement revenue
  • Individual sectorial numbers for digital

Q&A highlights

0 direct, 1 evasive
Digital business profitability timeline Evasive
I will not be able to give you any time line, as we mentioned that we are in the growth phase right now... we have to wait for a few more quarters.

Management declined to provide a specific timeline for when the digital business is expected to turn profitable, indicating continued investment phase.

Asked by Kushagra Gehlot

Social media strategy for YouTube growth Partial
Sir, these are the operational points. I may not be able to answer you here. But certainly, you have raised a valid point. We will certainly pass on this input to our operating team...

Management acknowledged the question about YouTube growth strategy but deferred it, indicating a lack of immediate, public-facing strategic details on this specific platform.

Asked by Lohit Saini

Utilization of cash reserves and potential for higher dividend Partial
I would take your point to the Board, sir, and give them the input which you have given it to me. And I'm sure the Board will decide.

Analyst questioned the doubling of cash reserves and expectation for higher dividends, to which management stated they would convey the input to the Board, without committing to a specific action.

Asked by Anurag Chheda

2 min read 6 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

DB Corp reported a total revenue of ₹587.2 crores for Q1 FY26, a 4.72% decline from ₹616.3 crores in Q1 FY25. Overall EBITDA decreased by 27.5% YoY to ₹138.4 crores, resulting in a net profit of ₹80.8 crores, down 31.47% from the previous year. This performance was largely attributed to a high base effect from government election advertising in Q1 FY25.

Advertising Revenue Trends and Category Performance

Advertising revenues for Q1 FY26 stood at ₹397.8 crores. While reported revenue showed a dip, normalizing for the election-related spike in Q1 FY25 revealed a decent single-digit growth. Key categories like education grew by almost 10%, real estate by 27%, automobile by 7%, healthcare by 17%, and jewellery by 18%. Government advertising, however, saw a significant dip of almost 40% in Q1 FY26, contributing 15-16% to overall revenue compared to 24% in Q1 FY25.

Circulation and Newsprint Dynamics

The company managed to hold circulation numbers at 'almost 40 lakh copies' despite Q1 being a lean summer period, attributing this to various circulation initiatives. Circulation copy revenue grew by 1%. Newsprint prices remained soft, with the average cost declining to ₹47,100 per metric ton in Q1 FY26 from ₹47,400 in Q4 FY25. Management expects newsprint prices to remain stable in the coming quarters, with Q2 prices 'under control'.

Radio Business Performance

The radio business showed steady momentum, with advertising revenue growing 1.2% year-on-year and 4% quarter-on-quarter to ₹39.2 crores in Q1 FY26. However, EBITDA for the radio segment declined by 12.9% YoY to ₹11.5 crores from ₹13.2 crores in Q1 FY25, also impacted by government billing from the previous year.

Digital Growth and Strategy

DB Corp's digital platform saw healthy growth, with monthly active users (MAU) crossing 20 million and reaching almost 22 million in May 2025. The company's focus is on providing real and factual content, expanding its editorial team, and expects continued monthly growth in MAU. Management is conducting paywall experiments in various pockets but stated that India is a very price-sensitive market. A timeline for digital business profitability was not provided, with management indicating 'a few more quarters' of investment.

Cost Management and Profitability

Overall EBITDA margin for Q1 FY26 was 23.56%, down from 30.97% in Q1 FY25. However, the print business EBITDA margin expanded to 31% in Q1 FY26, up from 23% in Q4 FY25. Other operational costs increased to ₹178 crores in Q1 FY26 from ₹161 crores in Q1 FY25, driven by circulation and digital initiatives. Personnel costs also saw a slight increase to ₹110 crores from ₹107 crores YoY.

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