Hindustan Media Ventures Limited — Q3 FY26 earnings call

Hindustan Media Ventures reported a stable consolidated revenue of INR 532 crores for Q3 FY26, remaining flat YoY while achieving a 7% sequential growth. The company's consolidated EBITDA improved by 9% YoY to INR 51 crores, resulting in a 10% margin. PAT before exceptional items^📎 stood at INR 17 crores, reflecting a 3% margin, and the company maintained a robust net cash position of INR 945 crores, consistent with the previous quarter.

The core Print segment demonstrated positive momentum, with its overall operating revenue growing 2% YoY to INR 395 crores. The segment's operating EBITDA reached INR 60 crores, significantly expanding its margin to 15% from 11% in the previous year. This improvement was primarily driven by pricing growth, lower newsprint costs, and disciplined control over discretionary spends, including marketing and administrative expenses. Ad revenue for the Print segment was INR 301 crores, showing an 8% sequential growth.

Within the Print segment, English titles showed strong performance, with advertising revenue growing 16% sequentially to INR 179 crores and remaining almost flat YoY despite shifts in festive periods. English circulation revenue also recorded an 8% YoY growth. Conversely, Print Hindi advertising experienced a marginal 4% YoY decline, though it remained flat sequentially, with circulation revenue holding steady at INR 38 crores.

The Radio business continued to operate in a challenging market environment, reporting revenue of INR 34 crores. While this represented a positive 5% sequential movement, it marked a YoY contraction primarily due to a high base effect from a significant event in the previous year. The segment recorded an operating EBITDA loss of INR 5 crores, prompting management to proactively recalibrate business operations to better align with current industry dynamics.

The Digital business delivered a strong performance, with operating revenue growing 30% YoY and 9% sequentially to INR 67 crores. Despite reporting losses of INR 23 crores, the segment achieved significant margin improvements both on an annual and sequential basis. This trajectory validates the company's commitment to scaling its digital-first offerings while maintaining a clear path toward profitability.

The company booked an exceptional item^📎 of INR 41.4 crores, primarily due to the impact of the new labor code. Management clarified that this is an aggregated historical cost across years, not an annual expense, and is a true-up^📎 of carrying liability based on new laws. They noted that this is an evolving regulation, and all companies are currently grappling with how to absorb such costs into their overall business expenses.

Management indicated that the market suggests a potential gradual increase in newsprint prices after the first quarter of next year, although no major shift is expected in the immediate next quarter. The company currently has reasonable cover for newsprint till Q1 next year. To mitigate potential impacts, strategies include optimizing buying, newsprint mix, and consumption, though increasing cover prices in Hindi markets is considered a tougher option.

The company views AI as an enabler for efficiency and productivity across industries, and a strong tool for its editorial setup, enhancing content credibility. Management highlighted a proposed government regulatory framework that suggests platforms using AI should compensate original content providers. They see AI as a potential revenue opportunity, not just a cost-saving measure, and anticipate more structured developments as the regulatory environment evolves.