Hindustan Media Ventures Limited

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.

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.

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.

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.

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.

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.

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.