GTPL Hathway Limited — Q1 FY27 earnings call

Call held 16 Jul 2026

Management summary

GTPL Hathway reported a robust 12% YoY growth in consolidated total income to INR 1,020 crores for Q1 FY27, driven by resilient Digital TV and Broadband businesses. The company strategically expanded its footprint by acquiring ACT Group's digital business for INR 36.23 crores, adding ~6 lakh subscribers, and entering new markets like Kerala and J&K. Despite strong top-line growth, net profit declined to INR 2.3 crores due to increased depreciation and finance costs related to HITS infrastructure capitalization, though management expects margin improvement as HITS benefits fully materialize.

Highlights

  • Consolidated total income grew by 12% YoY and 9% QoQ to INR 1,020 crores.

  • Broadband ARPU increased by INR 5 to INR 470 compared to Q1 FY26.

  • Acquisition of 7 ACT Group companies' digital business for INR 36.23 crores is expected to add approximately 6 lakh Digital TV subscribers.

  • Successful entry into two new strategic markets, Kerala and Jammu & Kashmir, expanding presence.

  • HITS platform showed early success with INR 4 crores in bandwidth savings and 2.5 million existing subscribers converted.

Concerns

  • Consolidated Net Profit for Q1 FY27 stood at INR 2.3 crores, a sharp decline YoY, primarily due to higher depreciation and finance costs (around INR 6 crores).

  • Consolidated EBITDA margin was 10.7%, with operating EBITDA margin at 22%, which management aims to improve to 25%.

Key financials

  1. Consolidated Total Income ₹1,020 Cr +12%YoY
  2. Consolidated Subscription Revenue ₹291 Cr +2%QoQ
  3. Consolidated Broadband Revenue ₹143 Cr +5%YoY
  4. Consolidated EBITDA ₹109 Cr
  5. Consolidated EBITDA Margin 10.7%
  6. Consolidated Net Profit ₹2.3 Cr
  7. Consolidated Operating EBITDA ₹101 Cr
  8. Consolidated Operating Margin 22%
  9. Standalone Total Revenue ₹693 Cr +16%YoY
  10. Standalone Subscription Revenue ₹213 Cr +2%QoQ
  11. Standalone EBITDA ₹64.4 Cr
  12. Standalone EBITDA Margin 9.3%
  13. Standalone Net Profit ₹1.9 Cr

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

  • Digital TV
    9.6 Mn Subscriber Base8.9 Mn Paying Subscribers
  • Broadband
    1.06 Mn Active Subscriber Base10,000 subscribers New Subscribers (YoY)₹470 ARPU436 GB/user/month Average Data Consumption

Capital allocation

high confidence
  • Capex ₹400 Cr
    • Broadband ₹200 Cr
    • Digital TV ₹200 Cr
    Yes. So that's -- right now, we have kept at around INR 400 crores for this financial year, the capex, where it is going to be around 50% for Broadband and 50% for Digital TV.
  • M&A Digital business of 7 ACT Group companies Acquisition · Announced · Consideration ₹[object Object] (cash)

    Strengthening presence in key Southern and Eastern markets, supporting strategy of expanding Digital TV business through inorganic growth, and achieving leadership position in Andhra Pradesh and Telangana.

    Expected to add approximately 6 lakh Digital TV subscribers; full effect on financials expected mid-Q2 and Q3 FY27.

    GTPL Hathway entered into a business transfer agreement to acquire the digital business of 7 ACT Group companies for an aggregate cash consideration of INR 36.23 crores and which is expected to get completed by 15th September 2026. The transaction is expected to add approximately 6 lakh Digital TV subscribers across Andhra Pradesh, Telangana, Odisha and Karnataka market, thereby strengthening our presence in key Southern and Eastern markets and supporting our strategy of expanding the Digital TV business through both organic and inorganic growth.

Guidance & targets

Profitability

  • Operational Margin Profitability · Future quarters · Medium confidence 25%

    From 22% today

    Yes. So the operational margin, which is at 22%, which we have shown, that will go up to 25%. And that will help us in increasing our EBITDA and PAT both at both the side.

    — Piyush Pankaj

Broadband

  • Extraction Rate (existing home pass) Broadband · Ongoing · Medium confidence 19% to 20%

    From 16% to 17% today

    So the strategy in Broadband is, till date, we are not increasing our home passes, and we are going for the extraction of the subscriber base on that because already, if you see the percentage is at around 17% -- 16% to 17% is the extraction rate right now, which we want to go up to around 19% to 20% on this.

    — Piyush Pankaj

  • Extraction Rate (new home pass) Broadband · Ongoing · Medium confidence 20% to 21%
    And there also, we are expecting that the healthy extraction rate should be 20% to 21%.

    — Piyush Pankaj

  • ARPU Broadband · Near term · High confidence INR 470
    It will remain somewhere around INR470 for right now.

    — Piyush Pankaj

HITS Platform

  • Benefit Realization HITS Platform · FY27 · Medium confidence 40% to 50%
    So this year, you will see that somewhere around 40% to 50% benefit has come over the year because we are expanding doing the things.

    — Piyush Pankaj

  • Benefit Realization HITS Platform · FY28 · High confidence 100%
    And from the next financial year, it will be 100%.

    — Piyush Pankaj

New Market Expansion

  • Breakeven Period (Cable Business) New Market Expansion · Post entry · Medium confidence 6 to 12 months
    That's what I say that to make a market positive in cable business, it takes 6 to 12 months. So there is going to be a gestation period of 6 to 12 months to make the business positive in that market.

    — Piyush Pankaj

What to watch in Q2 FY27

ACT Acquisition Integration & Financial Impact

Mid-Q2 and Q3 FY27
Current Deal expected to close by Sep 15, 2026; ~6 lakh subscribers to be integrated.
Target Progress on integration, contribution to subscriber base, revenue, and EBITDA.

Why it matters

This acquisition is a key strategic move to gain market leadership and is expected to materially impact GTPL's financials and market position.

So the full effect of that will start coming in the mid-quarter, quarter 2 and then the next quarter in quarter 3, which we will start seeing.

Risks & concerns

  • Higher Depreciation and Finance Costs

    medium

    Net profit declined due to an increase of around INR 6 crores in depreciation and finance costs, primarily from the capitalization of HITS infrastructure.

    Management acknowledged

  • Initial Margin Pressure from HITS Implementation

    medium

    While HITS implementation costs are incurred, the full benefits and associated cost savings are yet to flow into the books, causing temporary margin pressure.

    Management acknowledged

  • Lower ARPU in New Markets

    low

    New markets may initially have lower ARPU, but aggressive expansion and acquisitions are expected to improve this over time.

    Management acknowledged

Q&A highlights

8 direct
ACT Acquisition Integration & Milestones Direct
So the full effect of that will start coming in the mid-quarter, quarter 2 and then the next quarter in quarter 3, which we will start seeing. And you will see that the number of subscriber has to go up by that much. And plus, it will enhance our revenues and it will be accretive to our EBITDA.

Analyst sought clarity on how to monitor the success of the ACT acquisition, and management provided a timeline for financial impact.

Asked by Saizal Agarwal

Broadband Home Pass Utilization vs. Expansion Direct
So the strategy in Broadband is, till date, we are not increasing our home passes, and we are going for the extraction of the subscriber base on that because already, if you see the percentage is at around 17% -- 16% to 17% is the extraction rate right now, which we want to go up to around 19% to 20% on this. But yes, as in my statement, we said that we have recruited a new CEO for the Broadband business, and we will have more focus that how we can expand all over India and increase our business in Gujarat market.

Clarified the dual strategy for broadband growth: improving existing extraction rates and future investment in home pass expansion, driven by a new CEO.

Asked by Saizal Agarwal

Reasons for PAT Decline Direct
Yes. So you're right, PAT has decreased around INR 8 crores Y-o-Y, if you see. And this is mainly because of higher depreciation and finance cost. If you go through the whole financials, you will see that the depreciation and finance cost has gone up by around INR 6 crores. And that is because of the capitalization of right-of-use assets related to HITS infrastructure in line with the accounting standards and conservative accounting practice.

Provided a clear explanation for the divergence between revenue growth and PAT decline, attributing it to HITS-related costs.

Asked by Sohani Sing

HITS Infrastructure Operationalization & Benefits Timeline Direct
Already around in the Headend-in-the-Sky, we have seen that around 2.5 million existing subscribers have been converted into Headend-in-the-Sky platform and around 200,000 new subscribers have come into the platform. We have saved around -- the bandwidth saving has already come into the effect of around INR 4 crores in the first quarter. ... You will start seeing it in the somewhere in the end of quarter 3 and start of quarter 4, the whole benefits of Headend-in-the-Sky, which will come into the effect. So this year, you will see that somewhere around 40% to 50% benefit has come over the year because we are expanding doing the things. And from the next financial year, it will be 100%.

Detailed the current progress and future timeline for HITS benefits, including subscriber migration and cost savings.

Asked by Dhara Mandhane

Upselling to Higher Tiers (Cable TV & Broadband) Direct
So actually, we are trying a pilot project in a few cities regarding this combo that you are, I think, referring to regarding the Cable TV and Broadband. So, so far, there is a good sign, obviously, because eventually, the idea is to bring them together and increase the broadband subscribers with the kind of number of cable TV we have. So I mean, I cannot exactly tell you the plan, but it's so far looking as a good sign.

Revealed a strategy of offering combo products to increase ARPU and subscriber stickiness, indicating a new growth lever.

Asked by Dhara Mandhane

Strategic Rationale for New Market Entry (Kerala & J&K) Direct
Yes. So we have started expanding first the entry is at the Digital TV, and it is through the Headend-in-the-Sky in these 2 markets. As you say that these are the 2 new markets, which we have not earlier there, and we wanted to have the presence in those markets. The opportunity for broadband is very high in these two markets both, and we have got a lot of inquiries on that. So soon, we are going to launch the broadband in these 2 markets also.

Explained the strategic importance of these new markets for both Digital TV and future broadband expansion, leveraging the HITS platform.

Asked by Pahel Sharma

Competitive Intensity in New Markets Direct
See, in any market, you will see the competition is like this only. And as I said that the whole addressable market is somewhere around 6.5 million to 7 million in Kerala and 4 million to 5 million -- about 4.5 million to 5 million in J&K. So it's a large market, and we have to make the strategy that how we can grab more and more market of that so that we can establish ourselves and make the business as a very good margin in those. So that is going to happen. Competition is there all over India. So we are doing the competition. It's not the problem.

Management acknowledged competition but expressed confidence in their strategy to gain market share in large, addressable new markets.

Asked by Pahel Sharma

Content Acquisition Cost Management Direct
Content increase that is happening every year or every second year, as you know. And we are managing through our partners, I will say broadcasters are our partners. We are managing through negotiating with them by absorbing the cost somewhere at some point of time in the back, we have increased our price also in the ground. But yes, somehow we are together, we are sitting and doing the negotiations with our partners, with the broadcasters.

Addressed a key industry concern, explaining their strategy of negotiation and shared cost absorption with broadcasters to manage rising content costs.

Asked by Priti Agarwal

3 min read 7 chapters

Detailed narrative

Q1 FY27 Consolidated Financial Performance

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%.

Digital TV and Broadband Business Performance

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.

ACT Group Acquisition and Strategic Expansion

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.

HITS Platform Progress and Benefits

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.

New Market Expansion (Kerala & J&K)

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.

Capital Expenditure Plans

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.

Profitability and Cost Management

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.

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