GTPL Hathway Limited

GTPL Hathway reported a consolidated total income of INR 1,020 crores for Q1 FY27, marking a 12% year-on-year and 9% quarter-on-quarter growth. Consolidated subscription revenue increased by 2% sequentially to INR 291 crores, while Broadband revenue grew 5% YoY and 2% sequentially to INR 143 crores. Consolidated EBITDA stood at INR 109 crores with an EBITDA margin of 10.7%, and net profit for the quarter was INR 2.3 crores. The consolidated operating EBITDA was INR 101 crores, reflecting an operating margin of 22%.

The Digital TV segment's subscriber base reached 9.60 million as of June 30, 2026, with 8.9 million paying subscribers. In the Broadband segment, the active subscriber base stood at 1.06 million (1,060K), adding 10,000 new subscribers year-on-year. The Broadband ARPU for Q1 FY27 increased by INR 5 to INR 470 compared to Q1 FY26. Average data consumption per user per month also saw a 6% increase year-on-year, reaching 436 GB.

GTPL Hathway entered into a business transfer agreement to acquire the digital business of 7 ACT Group companies for INR 36.23 crores, expected to close by September 15, 2026. This acquisition is projected to add approximately 6 lakh Digital TV subscribers, strengthening GTPL's presence in key Southern and Eastern markets and establishing a leadership position in Andhra Pradesh and Telangana. The full financial effects of this integration are anticipated to be visible from mid-Q2 and Q3 FY27, contributing to subscriber growth, revenue, and EBITDA.

The Headend-in-the-Sky (HITS) platform, launched in FY26, has shown encouraging traction. Approximately 2.5 million existing subscribers have been converted to the HITS platform, and 200,000 new subscribers have been added. The company reported INR 4 crores in bandwidth savings in Q1 FY27 due to HITS. Management expects 40-50% of the HITS benefits to materialize in FY27, with 100% realization by FY28, leading to increased operational margins.

GTPL Hathway successfully entered two new strategic markets, Kerala and Jammu & Kashmir, in Q1 FY27, leveraging the Headend-in-the-Sky technology for Digital TV services. These markets are considered lucrative with significant addressable TV households (7 million in Kerala, 4.5-5 million in J&K) and high broadband opportunities. The company plans to launch broadband services in these regions soon, aiming for a 6 to 12-month gestation period for the cable business to become positive.

For FY27, GTPL Hathway has planned a capital expenditure of approximately INR 400 crores. This capex will be equally split, with 50% allocated to the Broadband business and the remaining 50% to the Digital TV segment. This investment is aimed at supporting continued expansion and infrastructure development across both key business verticals.

Despite strong revenue growth, the company's net profit was impacted by higher depreciation and finance costs, which increased by approximately INR 6 crores. This rise is attributed to the capitalization of right-of-use assets related to the HITS infrastructure. Management anticipates that the operational margin, currently at 22%, will improve to 25% as the full benefits and cost efficiencies from the HITS platform are realized in future quarters.