GTPL Hathway Limited

GTPL Hathway reported a consolidated revenue of INR9,344 million for Q4 FY26, marking a 4% year-on-year growth. The quarter's reported EBITDA stood at INR908 million with a 9.7% margin, while operating EBITDA was INR854 million, achieving an 18% margin. However, the company recorded a negative profit after tax, attributed to a ~INR12 crore revenue impact from fewer operating days, ~INR7.5 crore in one-time^📎 accounting adjustments, and a ~INR9 crore one-time^📎 forex loss. Subscriber growth for both cable TV and broadband segments remained muted during this period.

For the full financial year 2026, GTPL Hathway's consolidated revenue grew 7% annually to INR37,466 million. Subscription revenue reached INR11,862 million, and broadband revenue increased 2% year-on-year to INR5,580 million. The company's consolidated reported EBITDA for FY26 was INR4,321 million (11.5% margin), with operating EBITDA at INR4,026 million, maintaining a 22% margin. Net profit attributable to the parent for the full year was INR156 million, and the balance sheet remained healthy with a debt-to-equity ratio of 0.18 times as of March 31, 2026.

As of March 31, 2026, the digital cable TV subscriber base was 9.40 million, with 8.70 million paying subscribers. The active broadband subscriber base reached 1.06 million, adding 15,000 new subscribers year-on-year. The company's Homepass stood at 5.95 million, with 75% available for FTTX. Broadband ARPU for Q4 FY26 was INR465, and average data consumption per month increased 10% year-on-year to 436 GB. Management anticipates a resumption of subscriber additions from Q1 FY27.

GTPL is leveraging its newly launched GTPL Infinity HITS platform to enhance operational scale, speed of ground implementation, and cost efficiency, which is expected to boost future subscriber growth and margins. The company is actively pursuing an aggressive consolidation strategy within the fragmented MSO market, aiming to acquire a significant portion of the 40-45 million subscribers currently served by smaller MSOs. Announcements regarding these acquisitions are expected to begin in Q1 FY27, aligning with the company's volume-driven growth strategy.

Total capital expenditure for FY26 amounted to INR290 crores, with INR110 crores allocated to broadband and INR180 crores to HITS. For the upcoming fiscal year, FY27, GTPL projects a capex of INR350 crores, with INR150-160 crores earmarked for broadband and the remainder for cable and HITS. Management indicated that capex will remain elevated for at least the next three years, with approximately 50% dedicated to maintenance and 50% to growth, targeting around INR700 crores over the next two years to capitalize on market penetration opportunities.

Despite the Q4 PAT decline, management expressed optimism for future profitability, targeting a return to INR200 crores PAT within the next 3 to 4 years. They also aim to achieve a 15% Return on Capital Employed (ROCE) within the next 2 to 3 years, up from the single-digit ROCE observed last year. This improvement is expected to be driven by cost savings from HITS implementation, ARPU increases of 3-4% annually, and a strategic focus on layering services like OTT, gaming, and financial services over their existing 'pipe' infrastructure.