D B Corp

D.B. Corp commenced FY27 with robust financial results, reporting a consolidated total revenue increase of 8% year-on-year to INR 6,220 million. This growth was significantly outpaced by EBITDA, which surged by 19% year-on-year to INR 1,647 million. Consequently, the EBITDA margin expanded by 250 basis points, reaching 26.1% compared to 23.6% in Q1 FY26. Profit after tax also saw a healthy increase of 25% year-on-year, reaching INR 1,007 million from INR 808 million in the corresponding quarter last year.

Consolidated advertising revenue demonstrated a strong trajectory, growing by 10% year-on-year to INR 4,320 million, up from INR 3,933 million in Q1 FY26. This growth was broad-based across most key sectors, reinforcing the strength of print advertising. Education, the highest contributing sector (around 20%), was flat due to the NEET re-examination, while automobile advertising was negative due to geopolitical issues. Government advertising, however, showed double-digit growth, benefiting from a 26% increase in DAVP prices.

Despite upward pressure on newsprint prices (a 13% hike in Q1, with further increases expected in Q2), the company successfully mitigated much of the impact through procurement efficiencies, cost optimization, and disciplined execution. This focus on operational excellence was a key factor in the healthy margin expansion observed during the quarter. Management emphasized a company-wide effort to save costs wherever possible, contributing to the improved profitability.

The digital business remains an important long-term growth pillar, with news applications recording around 20 million monthly active users as of May 2026. However, its contribution to consolidated revenue is currently miniscule, even lower than 5-10%. The company views digital as a long-term investment, focusing on developing the reader base and strengthening user engagement through high-quality content, technology, and user experience, rather than immediate monetization.

Circulation numbers in Q1 FY27 were around 38 lakh copies, a slight dip from 39 lakh in Q4 FY26. Management noted that while efforts are made to grow copies, the overall market is experiencing a slight decline (a couple of percentage points). The average cover price remained stable at INR 4.93, with no plans for price hikes to avoid burdening readers. The strategy is to maintain readership and gain market share, which has been successful in certain markets like Rajasthan and MP.

The radio business delivered an encouraging performance, with revenue increasing to INR 425 million from INR 392 million last year. EBITDA for the radio segment grew by 29% year-on-year to INR 148 million, demonstrating strong recovery and operating leverage. The company's capex for FY27 is projected to be around INR 150-160 crores, primarily for acquiring property and building to save on rental expenses and benefit from asset appreciation.