GTPL Hathway Limited — Q1 FY26 earnings call

Call held 11 Jul 2025

Management summary

GTPL Hathway reported a mixed Q1 FY26 with consolidated total income growing 7% YoY to INR 9,091 million, driven by strong broadband subscriber additions and ARPU growth. However, consolidated EBITDA margin compressed to 12.4%, and net profit was INR 105 million. The cable TV segment faced challenges with a 5% YoY decline in subscription income due to increased churn and competition, while the company is progressing with its HITS platform launch and aiming for double-digit growth and margin recovery.

Highlights

  • Consolidated total income grew by 7% YoY and 1% QoQ to INR 9,091 million.

  • Standalone total revenue grew by 10% YoY and 5% QoQ to INR 5,990 million.

  • Broadband active subscriber base reached 1.05 million, adding 20,000 new subscribers (2% YoY increase).

  • Broadband ARPU increased by INR 5 to INR 465 compared to Q1 FY25.

  • Average data consumption per month increased by 17% YoY to 410 GB.

Concerns

  • Consolidated EBITDA margin at 12.4% (down from previous 23-25% range).

  • Net profit for Q1 FY26 stood at INR 105 million consolidated, and INR 56 million standalone.

  • Cable TV subscription income down by 5% YoY due to higher churn and competition.

  • Tax expense for Q1 FY26 was almost 40% of PBT, higher than the usual 24-26%.

Key financials

  1. Consolidated Total Income 9,091 Mn +7%YoY
  2. Consolidated EBITDA 1,123 Mn
  3. Consolidated EBITDA Margin 12.4%
  4. Consolidated Net Profit 105 Mn
  5. Standalone Total Revenue 5,990 Mn +10%YoY
  6. Standalone EBITDA 592 Mn
  7. Standalone EBITDA Margin 9.9%
  8. Standalone Net Profit 56 Mn
  9. Broadband ARPU ₹465
  10. Broadband Subscribers 1.05 Mn +2%YoY
  11. Digital Cable TV Subscribers 9.6 Mn
  12. Cable TV Paying Subscribers 8.9 Mn

What they filed

Q1 FY27: revenue up 12.4%, net profit down 81.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue856 887 891 904 959 +12%933 +5%924 +4%1,015 +12%
EBITDA107 105 105 107 104 −3%113 +8%80 −24%105 −2%
Net profit14 10 11 7 7 −46%12 +20%-14 −229%1 −81%
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

  • Broadband
    1,359 Mn Revenue1% YoY Growth20,000 Subscribers Added
  • Cable TV
    -5% Subscription Income YoY Change

Capital allocation

high confidence
  • Capex ₹79 Cr this quarter · ₹350 Cr (FY26) planned
    • Broadband (CPE and Homepass materials) ₹30 Cr
    • CATV (STB and network materials) ₹50 Cr
    • HITS platform (part of CATV capex)
    The capex for the quarter 1, as we gave you in the guidance in the last call also, that the capex for this year is going to be somewhere between INR350 crores to INR400 crores, which we usually do. This quarter, we did around INR79 crores of capex on consolidated basis, where in the broadband, it is around INR30 crores has gone into broadband and INR50 crores have gone into the CATV.

Guidance & targets

Capex

  • Consolidated Capex Capex · FY26 · High confidence INR 350-400 crores
    The capex for the quarter 1, as we gave you in the guidance in the last call also, that the capex for this year is going to be somewhere between INR350 crores to INR400 crores, which we usually do.

    — Piyush Pankaj

  • CATV Capex Capex · FY26 · High confidence INR 200 crores
    Out of INR350 crores, we are looking forward that somewhere around INR200 crores will be on the CATV side and INR150 crores will be on the broadband side.

    — Piyush Pankaj

  • Broadband Capex Capex · FY26 · High confidence INR 150 crores

    — Piyush Pankaj

Margin

  • Operating EBITDA Margin Margin · Year-end (FY26) · Medium confidence 23-25%
    We are looking forward that again, we are going to have healthy margin between 23% to 25%, which was there of the operating margin of 23% to 25% again, back to that. Right now, we are at 22%.

    — Piyush Pankaj

Subscriber

  • Subscriber Addition Subscriber · FY26 · Medium confidence 500,000
    Sir firstly in the previous call, quarter 4, you had mentioned FY '26, it seems to be that you can touch that 500,000 subscriber addition. Is that something you see happening? Yes, we are looking forward for that, Rahil, actually.

    — Piyush Pankaj

Revenue

  • Revenue Growth Revenue · FY26 · Medium confidence Double-digit (10-11%, potentially 20%)
    So yes, the double figure is going to be there in both of the revenue side and all. But achieving straight back to 20%, which we did around 2 years to 3 years back is still we have to watch. We have to see that's how we can do it. But yes, it's going to be the double-digit growth in the business.

    — Piyush Pankaj

Other

  • HITS Platform Launch Other · This quarter or early next quarter (Q2 FY26 or Q3 FY26) · High confidence Operational
    We are looking forward that somewhere, we are going to launch by end of -- by this quarter only, which we are looking forward. But we'll see that either this quarter or early next quarter, we are going to definitely launch.

    — Piyush Pankaj

  • BharatNet Tender Participation Other · Next 1-1.5 months · Medium confidence Participation in Gujarat tender
    BharatNet, right now we are hopeful for the Gujarat one. So already that is we are looking forward that, that tender will get open in next 1 month or 1.5 month's time. So we are hopeful for that. We have the capability. We already did the BharatNet project. So we are looking forward that we will participate there and so still keeping the finger crossed.

    — Piyush Pankaj

What to watch in Q2 FY26

HITS Platform Launch

This quarter or early next quarter (Q2 FY26 or Q3 FY26)
Current Regulatory approvals obtained, last stage of wireless operation license purchase.
Target Operational launch.

Why it matters

Operationalization of the HITS platform is expected to significantly expand GTPL's Pan-India CATV footprint and drive subscriber growth.

We are looking forward that somewhere, we are going to launch by end of -- by this quarter only, which we are looking forward. But we'll see that either this quarter or early next quarter, we are going to definitely launch.

Risks & concerns

  • Dynamic and competitive landscape in broadband and cable TV

    medium

    The company operates in a dynamic and competitive environment, requiring agility to sustain subscriber base and growth.

    Management acknowledged

  • Higher industry churn and competition in Cable TV

    medium

    Increased churn and competition from telcos, OTT players, and social media sites have led to a 5% YoY decline in cable TV subscription income.

    Management acknowledged

  • Free DTH gaining market share in rural areas

    low

    The rise of free DTH services providing more channels in rural areas poses a challenge to the cable TV segment.

    Management acknowledged

Q&A highlights

7 direct
Wired broadband market ranking in Gujarat Direct
We are number 1. As per the last report which we got, which is in '22-'23, we are number 1. Still, we are number 1, which is there.

Confirms GTPL's market leadership position in the wired broadband segment within its key operating region, Gujarat.

Asked by Kunal Tokas

Capex breakdown and purpose for Q1 FY26 Direct
This quarter, we did around INR79 crores of capex on consolidated basis, where in the broadband, it is around INR30 crores has gone into broadband and INR50 crores have gone into the CATV.

Provides specific allocation of capital expenditure between broadband and CATV segments, detailing the nature of investments (STB, network, CPE, Homepass, HITS).

Asked by Kunal Tokas

Cost benefits from offering bundled CATV and Broadband services Direct
That's on the capex side, yes. capex side is there that we get some capex benefits. Plus, we get the office, manpower, administrative, all those things benefit. Because we are already present there in the cable side.

Highlights the operational and capital expenditure synergies achieved by leveraging existing cable infrastructure and presence for broadband services.

Asked by Kunal Tokas

Strategic alliances and acquisitions for growth and technological advancements Direct
Yes, yes. Technology is – we have our partner... So yes, we look forward for best of technology partners in different areas... and always ready to partner with good technology players in the market.

Indicates the company's proactive strategy to pursue partnerships and M&A for expanding its footprint and enhancing its service offerings, including with startups and OTT platforms.

Asked by Nisha Murthy

Geographic distribution of Cable TV and Broadband subscribers Direct
In the cable -- in the cable side, you talk about the 9 million we are all over India... hardly 1.7 million, 1.8 million is in the Gujarat line, which is hardly 20%... in the broadband... around 77% to 78%, close to 80% customers are from Gujarat in the broadband side.

Clarifies that while cable TV subscribers are spread across India, the broadband customer base is highly concentrated in Gujarat, impacting growth strategies for each segment.

Asked by Anubhav Goel

Unusually high tax expense percentage in Q1 FY26 Partial
But in this quarter, the profitability has increased to a certain extent because of broadband. And also, there are some impacts that have been taken off deferred tax. So a combination of that factor is leading to arithmetically that percentage looking higher.

Addresses the concern about the tax expense being almost 40% of PBT, attributing it to a mix of profitability changes and deferred tax adjustments rather than a fundamental shift in tax rate.

Asked by Vivek Gupta

Reasons for Cable TV revenue de-growth Direct
So this industry witnessed a higher churn, during FY '24 -- FY'25, as the invent of expansion of different content providers in the industry, including telcos, the OTT players, social media sites, etc.

Explains the competitive pressures and market dynamics, including increased churn and competition from other content providers, that led to a decline in cable TV subscription income.

Asked by Radhi Shah

Strategy for GTPL's OTT play premium partnership Direct
So Genie app, we are see, Genie app also, we have aggregated the -- all the different OTT players... And that's why we wanted to go for the aggregator like an OTT player who is providing the whole thing together.

Details the company's shift from individual OTT agreements to an aggregated OTT platform model to offer a more comprehensive and streamlined content experience as existing agreements expire.

Asked by Rahul Jain

2 min read 6 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

GTPL Hathway reported a consolidated total income of INR 9,091 million for Q1 FY26, marking a 7% year-on-year and 1% quarter-on-quarter growth. Standalone revenue grew by a healthier 10% YoY and 5% QoQ to INR 5,990 million. Consolidated EBITDA stood at INR 1,123 million with a margin of 12.4%, while standalone EBITDA was INR 592 million with a 9.9% margin. Net profit for the quarter was INR 105 million consolidated and INR 56 million standalone, with tax expense at almost 40% of PBT, higher than the usual 24-26%.

Broadband Segment Drives Growth

The broadband business demonstrated robust growth, with the active subscriber base reaching 1.05 million, adding 20,000 new subscribers, a 2% YoY increase. Homepass expanded to 5.95 million, with 50,000 new additions YoY, and 75% of Homepasses are FTTX enabled. Broadband ARPU improved by INR 5 to INR 465, and average data consumption surged by 17% YoY to 410 GB per month, reflecting strong demand and usage. The company confirmed its number one position in the wired broadband market in Gujarat.

Cable TV Segment Faces Competitive Headwinds

The Digital Cable TV subscriber base stood at 9.60 million, with 8.90 million paying subscribers. However, the cable TV subscription income saw a 5% YoY decline, attributed to higher industry churn and increased competition from telcos, OTT players, and free DTH services. To counter these challenges, GTPL is focusing on leveraging its extensive network, expanding into cable dark and rural areas, and consolidating smaller MSOs to maintain its Pan-India presence.

HITS Platform and Future Expansion Plans

The company is nearing the launch of its Headend-In-The-Sky (HITS) platform, having secured regulatory approvals and expecting operationalization by the end of this quarter or early next quarter. This platform is anticipated to significantly expand GTPL's Pan-India CATV footprint, covering currently unserved areas. Management also highlighted a substantial opportunity in the cable market, with 40-45 million subscribers still served by smaller MSOs, presenting a clear path for consolidation and growth.

Capital Expenditure and Strategic Investments

GTPL incurred a consolidated capex of INR 79 crores in Q1 FY26, with INR 30 crores allocated to broadband and INR 50 crores to CATV. For the full FY26, the company projects a total capex of INR 350-400 crores, with approximately INR 200 crores earmarked for CATV (including the HITS platform) and INR 150 crores for broadband. These investments are strategically aimed at expanding network infrastructure, enhancing customer premise equipment (CPE), Homepass, and set-top boxes, as well as developing the new HITS platform.

Synergistic Bundled Offerings and Partnerships

GTPL is actively pursuing strategic alliances and acquisitions to strengthen its regional presence and accelerate technological advancements, including partnerships with startups and OTT platforms. The company's strategy involves aggregating various services like entertainment, broadband, and OTT to offer bundled products. This approach leverages its existing cable network to provide cost-effective solutions, enhance customer stickiness, and generate significant capex and operational benefits through shared infrastructure and manpower.

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