Hindustan Media Ventures Limited — Q2 FY26 earnings call

Call held 11 Nov 2025

Management summary

Hindustan Media Ventures Limited reported a solid Q2 FY26 with consolidated revenue growing 4% YoY to INR 499 crores and EBITDA improving 33% YoY to INR 44 crores, driven by strong Print performance. While the Digital segment saw robust revenue growth, its margins remained suppressed due to strategic investments and timing differences in costs. The Radio business continued to face industry-wide stress, contributing to a significant impairment loss.

Highlights

  • Consolidated revenue of INR 499 crores, up 4% YoY.

  • Consolidated EBITDA of INR 44 crores, up 33% YoY, with margin expanding 200 bps to 9%.

  • Print business operating EBITDA of INR 40 crores, nearly double the same period last year, with margins expanding 500 bps.

  • Digital business revenue grew 10% YoY and sequentially, demonstrating strong revenue numbers.

  • OTTplay saw a significant reduction in subscriber acquisition cost in September, alongside good subscriber additions and renewal rates.

Concerns

  • Exceptional item loss of INR 37.76 crores for HT Media, primarily due to impairment of investments in the Radio business.

  • Digital segment reported a negative operating EBITDA of INR 30 crores, an increase from the previous quarter, attributed to timing differences in revenue booking and costs for unexpected scale-up.

  • Radio business remains under stress, reporting a negative operating EBITDA of INR 4 crores.

  • Newsprint prices, currently at their lowest quartile, are estimated to see 'slightly rising prices but not sharply but very gradually' going forward.

Key financials

  1. Consolidated Revenue ₹499 Cr +4%YoY
  2. Consolidated EBITDA ₹44 Cr +33%YoY
  3. Consolidated EBITDA Margin 9%
  4. Consolidated PAT Margin -1%
  5. Net Cash Position ₹947 Cr -3%QoQ

What they filed

Q1 FY27: revenue up 19.4%, net profit up 410.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue172 197 182 165 197 +15%183 −7%216 +19%197 +19%
EBITDA-14 2 24 9 -10 +29%20 +900%65 +171%28 +211%
Net profit14 18 45 10 10 −29%1 −94%27 −40%51 +410%
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

  • Print
    ₹278 Cr Ad Revenue7% Operating Revenue Growth₹40 Cr Operating EBITDA500 bps Operating EBITDA Margin Expansion
  • Print - English
    ₹154 Cr Revenue— Circulation Revenue
  • Print - Hindi
    — Growth— Circulation Revenue
  • Radio
    ₹32 Cr Revenue₹-4 Cr Operating EBITDA
  • Digital
    10% Revenue Growth10% Operating Revenue Growth₹-30 Cr Operating EBITDA

Capital allocation

high confidence
  • Liquidity Cash ₹947 Cr Net cash position remains healthy at INR 947 crores, compared to INR 976 crores in the previous quarter.
    If you look at our YoY performance, you can see that the total revenue is up 4% at INR 499 cr, and EBITDA has a good improvement at 33% coming at INR 44 cr, with EBITDA margin expanding by 200 basis points at 9%. PAT margin is about a break even or -1%, and the net cash position remains healthy at INR 947 cr. If we look at sequentially, again, there's a growth of 11% with revenue at INR 451 cr in the previous quarter, and on a net cash basis, again, it was INR 976 cr in the previous quarter.

Guidance & targets

Profitability

  • Digital segment losses Profitability · going forward · Medium confidence Drop in loss
    Otherwise, going forward, we should continue to see a drop in loss.

    — Anna Abraham

Input Costs

  • Newsprint prices Input Costs · going forward · Medium confidence Slightly rising prices but not sharply but very gradually
    RISI's estimate - RISI, which publishes the forward-looking estimate is talking about slightly rising prices but not sharply but very gradually, but at this point in time, we are discussing with various suppliers in terms of the forward buying that we have to do. But right now, we have sufficient inventory, but the trend is that we have bottomed out on the low end of the prices but we'll see as we go forward.

    — Piyush Gupta

Digital Business

  • OTTplay subscriber acquisition cost (CAC) Digital Business · next quarter · Medium confidence Sustaining reduction
    Now in the next quarter we'll validate whether this is sustaining itself or there are some oddities.

    — Piyush Gupta

What to watch in Q3 FY26

Digital segment profitability

next quarter
Current Negative Operating EBITDA of INR 30 crores
Target Drop in losses, moving towards break-even

Why it matters

Crucial for the overall profitability of the growth-oriented Digital segment and validation of strategic investments.

Otherwise, going forward, we should continue to see a drop in loss.

Risks & concerns

  • Radio business under stress

    high

    The core radio proposition across the industry remains under duress, leading to negative operating EBITDA of INR 4 crores and being the primary driver of a significant impairment loss of INR 37.76 crores.

    Management acknowledged

  • Digital business margins suppressed in the near term

    medium

    While Digital revenue is growing, margins are suppressed due to strategic scaling and timing differences in cost recognition, leading to an increased negative operating EBITDA of INR 30 crores this quarter.

    Management acknowledged

  • Potential increase in newsprint prices

    medium

    Newsprint prices, a key input cost, have bottomed out and are expected to see gradual increases according to RISI's estimates, which could impact Print segment profitability going forward.

    Management acknowledged

Q&A highlights

5 direct
Exceptional item loss of INR 37.76 crores for HT Media Direct
90% of this impairment that you're seeing in the standalone results of HT Media are consequent to the performance in our Radio business because that investment is tested for impairment at every balance sheet date and September is a balance sheet time.

Clarifies the nature and primary driver (Radio business underperformance) of a significant one-time loss, indicating underlying stress in the Radio segment.

Asked by Ranga Prasad

Increasing losses in the Digital segment (negative INR 30 cr from INR 21.7 cr) Partial
there is some cost which has come in the quarter where the benefits will actually start showing up in the next quarter. So, there's a bit of a timing difference in terms of the revenue booking vis-a-vis the cost incurred, and that is why the losses are showing a little increased as of now. Otherwise, going forward, we should continue to see a drop in loss.

Addresses the concern about rising digital losses, attributing it to timing differences and strategic investments for future growth, implying future loss reduction.

Asked by Ranga Prasad

Circulation revenue decline (15% YoY) in English Print despite sequential growth Direct
there is growth in copies both YoY and sequentially. However, there are certain pricing actions... a INR 1 to INR 2 cr change also translates to a 15% to 22% in percentage terms. But in absolute rupee terms, you will see that it's only about a INR 2 cr variation on an English business portfolio.

Explains that the percentage decline in English circulation revenue is due to pricing actions and a small absolute change, while copies are actually growing, suggesting a strategic rather than fundamental issue.

Asked by Yash R

Significant reduction in OTTplay subscriber acquisition cost (CAC) Direct
in month of September, we have seen a significant reduction in the acquisition cost, or CAC... we are adding more subscribers, and some of them are sticky subscribers, so the renewal rate's also good... in the next quarter we'll validate whether this is sustaining itself or there are some oddities.

Highlights a positive trend in the unit economics of the digital business, crucial for future profitability, but also flags the need for validation in the next quarter.

Asked by Mehul Parikh

Drivers of Hindi Print revenue growth (festival/Bihar elections vs. structural) Partial
Well, tough to say, but definitely those two things are playing a role here. The Bihar elections will definitely play a role... But I think some part of this is structural, but we will have to see as we go into the next quarter. Right now, I mean, our best estimate is half and half.

Provides insight into the sustainability of Hindi Print growth, indicating a mix of cyclical and structural factors, with a need to monitor post-election impact.

Asked by Mehul Parikh

Higher other expenses in HMVL Direct
Most of the expenses which are coming slightly higher are consequent to our investment in OTTplay... readings on OTTplay subscription base, the renewal rates, and the CAC, etcetera, for September have been very good, exceptionally good, I would say. So, some of these expenses are getting consolidated into those lines, but generally these are OTTplay expenses which are getting consolidated.

Explains the increase in operating expenses as a strategic investment in the growing OTTplay business, linking it to positive subscriber metrics and future potential.

Asked by Mehul Pathak

Lack of mutual fund holdings and investor engagement with traditional media Partial
as far as a traditional media is concerned, I don't think it's finding the same place that it was, let's say, about, 5-7 years ago... We are happy to engage with any investors... why they are not investing I can't with credibility answer that.

Reveals a broader market perception challenge for traditional media companies and the company's efforts to engage with investors despite this, highlighting a potential valuation disconnect.

Asked by Mehul Pathak

Outlook on newsprint prices Direct
at this point in time, on the commodity cycle of newsprint prices, I think we are in the lowest quartile... RISI's estimate... is talking about slightly rising prices but not sharply but very gradually... the trend is that we have bottomed out on the low end of the prices but we'll see as we go forward.

Provides a forward-looking view on a key input cost, indicating potential for gradual price increases after bottoming out, which could impact Print segment profitability.

Asked by Yash R

3 min read 7 chapters

Detailed narrative

Consolidated Performance Overview

Hindustan Media Ventures Limited reported a consolidated revenue of INR 499 crores for Q2 FY26, marking a 4% year-on-year growth and an 11% sequential increase from INR 451 crores in the previous quarter. Consolidated EBITDA improved significantly by 33% year-on-year to INR 44 crores, with the EBITDA margin expanding by 200 basis points to 9%. Despite these improvements, the PAT margin remained around break-even or -1%, and the net cash position stood healthy at INR 947 crores.

Print Business Resilience and Margin Expansion

The Print business demonstrated strong performance, with ad revenues growing 10% year-on-year to INR 278 crores and 9% sequentially. Total operating revenue for Print saw a 7% growth. This growth, combined with a focus on cost efficiency, led to a substantial expansion of operating margins by 500 basis points, with operating EBITDA nearly doubling year-on-year to INR 40 crores. English Print revenues grew 8% YoY and 10% QoQ to INR 154 crores, while Hindi Print saw 13% YoY and 7% QoQ growth.

Digital Segment: Growth with Suppressed Margins

The Digital business, primarily OTTplay, posted strong revenue growth of 10% both annually and sequentially. However, margins in this segment remained suppressed, resulting in a negative operating EBITDA of INR 30 crores, an increase from the previous quarter. Management attributed this to a timing difference between revenue booking and costs incurred for an unexpected scale-up, with benefits expected to materialize in the next quarter, leading to a projected drop in losses.

Radio Business Challenges and Impairment Loss

The Radio business continued to face industry-wide stress, with revenue marginally lower year-on-year at INR 32 crores, though it saw a 4% sequential growth. The segment reported a negative operating EBITDA of INR 4 crores. This underperformance in the Radio business was the primary driver of an exceptional item loss of INR 37.76 crores for HT Media, stemming from the impairment of investments in its radio entities (Next Radio Limited and Next Media Works Limited) and Mosaic Digital business.

Circulation and Ad Revenue Dynamics

While English Print circulation revenue saw a 15% year-on-year decline, management clarified that this was due to strategic pricing actions and represented only a minor absolute variation of INR 1-2 crores, with copies actually growing both YoY and sequentially. Ad revenue growth was broad-based across all commercial categories, with festive demand coming in early. Both volume growth and pricing contributed to the ad revenue increase, and the Hindi segment also benefited from growth in the Government sector.

Cost Management and OTTplay Unit Economics

The company reported a sequential reduction in staff costs, attributed to a reversal in variable salary components in Q2. For the OTTplay business, management highlighted a significant reduction in subscriber acquisition costs (CAC) in September, along with good subscriber additions and renewal rates. These improvements in unit economics are crucial for the long-term profitability of the Digital segment, with validation of sustainability expected in the next quarter.

Newsprint Price Outlook

Regarding newsprint prices, a key input cost for the Print business, management indicated that prices are currently in their lowest quartile. While they do not provide forward guidance, they cited RISI's estimates suggesting 'slightly rising prices but not sharply but very gradually' going forward. The company currently holds sufficient inventory but is discussing forward buying strategies with suppliers, anticipating a gradual upward trend after bottoming out.

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