Hindustan Media Ventures Limited

Hindustan Media Ventures Limited reported total revenues of INR 451 crores for Q1 FY26, marking a 6% year-on-year growth. Despite this, the company posted a negative PAT of INR 11 crores, though this represents a 59% improvement compared to the previous year. On a sequential basis, revenue saw a 23% decline, and PAT declined by 120%. The company maintains a healthy net cash position of INR 976 crores.

The Print business demonstrated an 8% year-on-year improvement in operating revenues, reaching INR 324 crores. This was primarily driven by a significant 17% year-on-year growth in advertising revenues, which stood at INR 255 crores. English Print advertising revenue grew by 19% year-on-year to INR 140 crores, while Hindi Print advertising revenue increased by 14% year-on-year to INR 116 crores.

English Print circulation revenue experienced a 22% year-on-year decline, attributed mainly to pricing adjustments, with copy volumes remaining sequentially flat. In contrast, Hindi Print circulation revenue was nearly flat year-on-year at INR 39 crores. Management indicated an ongoing strategy of offering discounts, particularly for the Hindustan (Hindi) publication, to recruit new readers, with a monthly review of this approach.

The Radio business continued to face challenges, with revenues dipping to INR 31 crores compared to INR 36 crores in the previous year, resulting in a negative margin of -21%. Management acknowledged the tepid growth in the industry and stated efforts to pivot the business with a focus on growing non-free commercial time revenue.

The Digital segment showed strong momentum, with operating revenues growing by 21% year-on-year to INR 56 crores. This growth was driven by platforms like Mosaic, Shine, and OTTplay, and was accompanied by a 100% year-on-year growth in the digital business, which the company aims to repeat. Operating margins for the Digital segment remained negative at -38%.

Management provided a stable outlook on newsprint prices, noting they have been flat for the last two quarters. They anticipate prices will remain within a tight band, approximately USD 500 per metric ton, with no foreseeable reasons for a spike.

The company utilizes a warrant structure for investments as a risk mitigation strategy, rather than direct equity payments. Conversion of warrants to equity is contingent on the invested company demonstrating substantial upside and being on a clear growth trajectory, with exercise decisions made within contractual timeframes based on financial performance.