GTPL Hathway Limited — Q4 FY26 earnings call

Call held 16 Apr 2026

Management summary

GTPL Hathway reported a 4% YoY consolidated revenue growth in Q4 FY26, reaching INR9,344 million, with full-year revenue up 7% to INR37,466 million and a 22% operating EBITDA margin. However, the quarter saw a negative PAT due to one-time revenue impacts, accounting adjustments, and forex losses. Subscriber growth was muted, but management expects additions from Q1 FY27, driven by strategic focus on the HITS platform and aggressive consolidation plans, with a target to return to INR200 crores PAT and 15% ROCE in 3-4 years.

Highlights

  • Consolidated revenue rose 4% YoY to INR9,344 million in Q4 FY26.

  • Full year FY26 consolidated revenue grew 7% annually to INR37,466 million.

  • Full year FY26 operating EBITDA was INR4,026 million, maintaining a 22% margin.

  • Active broadband subscriber base stood at 1.06 million, adding 15,000 new subscribers Y-o-Y.

  • Balance sheet remains healthy with a debt-to-equity of 0.18 times as of March 31, 2026.

  • Net cash flow from operations for FY26 was a robust INR3,601 million, with the company being free cash flow positive.

  • Board recommended a dividend of 20% of face value (INR2 per share) for FY26.

Concerns

  • Company reported a negative profit after tax (PAT) in Q4 FY26.

  • PAT decline driven by ~INR12 crore revenue impact from lower operating days, ~INR7.5 crore one-time accounting adjustments, and ~INR9 crore one-time forex loss.

  • Cable TV and broadband subscriber bases did not grow this quarter, remaining muted.

  • Q4 FY26 operating EBITDA margin was 18%, lower than the full year 22% and prior years' 24-25%.

  • ROCE has come down to single digits in the last year.

Key financials

2 periods

Q4 FY26

  • Consolidated Revenue
    9,344 Mn
    YoY +4%
  • Consolidated Reported EBITDA
    908 Mn
  • Consolidated Reported EBITDA Margin
    9.7%
  • Consolidated Operating EBITDA
    854 Mn
  • Consolidated Operating EBITDA Margin
    18%

FY26

  • Consolidated Revenue
    37,466 Mn
    YoY +7%
  • Consolidated Reported EBITDA
    4,321 Mn
  • Consolidated Reported EBITDA Margin
    11.5%
  • Consolidated Operating EBITDA
    4,026 Mn
  • Consolidated Operating EBITDA Margin
    22%
  • Net Profit Attributable to Parent
    156 Mn
  • Net Cash Flow from Operations
    3,601 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

  • Cable TV
    9.4 Mn Digital Cable TV Subscriber Base8.7 Mn Paying Subscribers
  • Broadband
    1.06 Mn Active Subscriber Base15,000 subscribers New Subscribers Added (Y-o-Y)5.95 Mn Homepass75% FTTX Availability₹465 ARPU (Q4 FY26)436 GB Average Data Consumption10% Average Data Consumption Growth (Y-o-Y)

Capital allocation

high confidence
  • Capex ₹290 Cr
    • Broadband ₹110 Cr
    • HITS (Cable) ₹180 Cr
    Yes, capex this year we did around INR290 crores of capex total. Out of that around INR110 crores is in the broadband and INR180 crores which includes the HITS capex is INR180 crores.
  • Debt Debt disclosed
    Balance sheet of the company remains healthy with a debt-to-equity of 0.18 times as on 31st March.
  • Dividend ₹2/share (final)
    for the financial year FY26, the Board of Directors have recommended dividend of 20% of face value INR2 per share.
  • Liquidity Liquidity disclosed Net cash flow from operations for the full year stood at a robust INR3,601 million, and we are also free cash flow positive for the financial year.
    Net cash flow from operations for the full year stood at a robust INR3,601 million, and we are also free cash flow positive for the financial year.

Guidance & targets

Subscriber Growth

  • Subscriber Additions (Cable TV & Broadband) Subscriber Growth · Q1 FY27 onwards · Medium confidence Positive additions
    But next quarter, from the next quarter onwards, we will start seeing the addition in the subscriber base again.

    — Piyush Pankaj

ARPU

  • ARPU Increase ARPU · every year · High confidence 3-4%
    We are increasing it and every time if you see it's increasing by INR3 to INR4 to INR5, which is hardly you can say 3% to 4% increase. But that 3% to 4% increase will happen every year.

    — Piyush Pankaj

  • ARPU Increase (3 years) ARPU · in three years' time · High confidence 10-12%
    So in three years' time, you will say, yes, 10% to 12% increment has happened in the ARPU.

    — Piyush Pankaj

Capex

  • Total Capex Capex · next year · High confidence INR350 crores
    We are looking forward that next year we will be again back to INR350 crores somewhere where we are looking forward that INR150 crores to INR160 crores will be on the broadband and rest will be on the cable and HITS.

    — Piyush Pankaj

  • Broadband Capex Capex · next year · High confidence INR150-160 crores

    — Piyush Pankaj

  • Total Capex (2 years) Capex · next 2 years · High confidence INR700 crores
    So that's way you can say next 2 years somewhere around INR700 crores what we are trying to do. Out of that INR350 crores will be the maintenance capex and INR350 crores will be the growth capex.

    — Piyush Pankaj

PAT

  • PAT PAT · next 3 to 4 years · Medium confidence INR200 crores
    We are hopeful that we will again reach to that level in next 3 to 4 years.

    — Piyush Pankaj

ROCE

  • ROCE ROCE · next 2 to 3 years · High confidence 15%
    we are hopeful that we will achieve back again 15% in next 2 to 3 years ROCES.

    — Piyush Pankaj

What to watch in Q1 FY27

Subscriber Additions (Cable TV & Broadband)

Next quarter (Q1 FY27)
Current Muted/no growth in Q4 FY26
Target Positive subscriber additions

Why it matters

Key indicator of business growth and effectiveness of HITS platform and broadband expansion efforts.

But next quarter, from the next quarter onwards, we will start seeing the addition in the subscriber base again.

Risks & concerns

  • Negative Profit After Tax (PAT) in Q4 FY26

    high

    PAT declined due to ~INR12 crore revenue impact from lower operating days, ~INR7.5 crore one-time accounting adjustments, and ~INR9 crore one-time forex loss.

    Management acknowledged

  • Muted Subscriber Growth in Q4 FY26

    medium

    Both cable TV and broadband subscriber bases did not grow this quarter, though management expects additions from Q1 FY27.

    Management acknowledged

  • Competition from New Broadband Technologies

    medium

    Competition, particularly from new technologies like AirFiber, has impacted broadband growth.

    Management acknowledged

  • Decline in Return on Capital Employed (ROCE)

    medium

    ROCE has come down to single digits in the last year, though management targets a recovery to 15% in 2-3 years.

    Analyst acknowledged

Q&A highlights

7 direct
Subscriber growth stagnation and exceptional items Direct
For the first question, yes, you're right. There is no increase in the subscriber base of cable TV and broadband both side. Cable TV, as you know, we have started implementing Headend-In-The-Sky, so we are concentrating right now more of converting the current subscriber base and going for the cost saving, which will start reflecting from first quarter, rather than the expansion in the first quarter in this quarter. All the expansion and all the things will happen from the first quarter of FY27. So you will start seeing some positive attraction on that way.

Addresses the core concern of flat subscriber numbers and clarifies the nature and non-recurring status of the exceptional financial charges.

Asked by Suvarna

Duration and drivers of industry consolidation Direct
This industry is in the consolidation stage, and we are also preferring to go for the acquisitions and do the consolidation of the industry. As you know that out of around 80 million subscriber base, still 40 to 45 million subscriber base is with the smaller MSOs where with the changing technology and the quality and all, it is difficult for them to hold the subscriber base for long.

Provides strategic insight into the industry's structural changes and GTPL's active role in consolidating the fragmented MSO market.

Asked by Richa Saini

Evolution of cable TV subscriber base with OTT platforms Direct
You see, the whole world is moving towards the connected TVs where you will getting the TV also, means a cable connection or DTH connection, plus you are having one or two OTTs or three OTTs there at the home. And that is the way which we look forward also that the future will be like that because content, you can say it is more of platform agnostic. So content has to reach to the customer.

Outlines GTPL's long-term vision to adapt to changing media consumption by becoming a 'pipe' for various content services, including OTT and gaming.

Asked by Richa Saini

Acquisition targets for MSO customers in FY27-FY28 Partial
It's a very speculative question, Harsh, as you know. We are in talk with different players, big players I will say, and which you will start getting the announcement in first quarter only as now already we have implemented Headend-In-The-Sky and now we are going ahead for the deal. So I will say, yes, good substantial number will come.

Confirms MSO acquisitions as a key growth strategy for GTPL, with announcements expected soon, despite not providing specific numerical targets.

Asked by Harsh

Difficulty of ARPU hikes and volume vs. value game Direct
See, ARPU you can do higher. We are doing it this year also; we did it last year also. But as you know, Indian markets are very sensitive about the ARPU. We are increasing it and every time if you see it's increasing by INR3 to INR4 to INR5, which is hardly you can say 3% to 4% increase. But that 3% to 4% increase will happen every year. That is going to happen. So in three years' time, you will say, yes, 10% to 12% increment has happened in the ARPU. But drastic improvement in ARPU is not, we are not looking forward to that. We are more going or playing the volume game rather than the value game here.

Clarifies the company's strategy of prioritizing volume growth over aggressive ARPU increases due to market sensitivity, while still expecting modest annual ARPU improvements.

Asked by Harsh

Capex peak and future investment plans Direct
So this is the time where you can ante your thing and out of 332 million only 46 million which is hardly around 14%, 13% to 14% penetrations are there. So there is, I will say, this next decade is going to be both for broadband and cable for both the businesses where you can increase your stake and the whole participation in the country. So I'm not looking forward for at least for next 3 years that we will going to reduce our capex.

Provides a clear outlook on sustained high capex for at least the next three years, driven by growth opportunities in both broadband and cable TV penetration.

Asked by Harsh

Q4 operating margin decline and future profitability Direct
This quarter, one minute. Yes, this quarter we have 18%. That is one of the exceptional because two days revenue has gone. So always Quarter 4 is lower, Vinit, because in Quarter 4 you get just the 90 days, not the 92 days. So, if you see the Quarter 3 was 24%, it was exceptional because you have got 92 days there. So that's why revenue goes up and down. So it's better to see on the yearly basis that where we are standing.

Explains the Q4 margin dip as an exceptional event due to fewer operating days and reiterates confidence in future margin improvement through HITS implementation and cost control.

Asked by Vineet Manek

Churn profile and retention initiatives for cable customers Direct
So churn if we talk about the industry churn is somewhere around 17% to 18%. We are at the same level. And if I talk about 17% to 18% churn, then you can see that if we are retaining our customer at the same level, I will say that it is a reducing churn year to year because when the COVID time was there, the churn has gone up to 24%.

Offers insight into customer retention performance, indicating GTPL is performing better than the industry average on churn rates.

Asked by Vrishti Gupta

3 min read 6 chapters

Detailed narrative

Q4 FY26 Performance Overview and Challenges

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.

Full Year FY26 Financial Highlights

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.

Subscriber Base and ARPU Trends

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.

Strategic Focus on HITS Platform and Industry Consolidation

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.

Capital Expenditure and Future Investment Plans

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.

Outlook on Profitability and ROCE

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.

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