H T Media

HT Media reported a stable consolidated revenue of ₹532 crores for Q3 FY26 on an annual basis, while demonstrating a 7% sequential growth. The company achieved a consolidated EBITDA of ₹51 crores, representing a 10% margin and a 9% year-on-year improvement. PAT before exceptional items^📎 stood at ₹17 crores, with a 3% margin, and the net cash position remained robust at ₹945 crores.

The core Print segment continued its resilient performance, posting an overall operating revenue of ₹395 crores, a 2% year-on-year growth. Operating EBITDA for Print came in at ₹60 crores, with its margin expanding significantly to 15% from 11% in the previous year. This improvement was driven by strong advertising growth in English language titles, which saw a 16% sequential increase to ₹179 crores, coupled with pricing growth, lower newsprint costs compared to last year, and tight control over discretionary spends.

The Radio business faced a challenging market environment, with revenues and margins remaining under pressure. Revenue for the segment dropped to ₹34 crores, primarily due to a high base effect from a large event in the previous year, although it saw a 5% sequential growth. The segment reported an operating EBITDA loss of ₹5 crores, and management indicated ongoing recalibration of business operations to better align with current industry dynamics.

The Digital business delivered a strong performance, with operating revenue rising to ₹67 crores, marking a 30% year-on-year growth and a 9% sequential increase. Despite reporting losses of ₹23 crores, the segment showed significant margin improvement on both a sequential and annual basis, validating the company's commitment to scaling digital-first offerings while progressing towards profitability.

The company's disciplined approach to costs, including tight control over discretionary spends like marketing and administrative expenses, contributed to meaningful growth in profitability. Additionally, a reduction in HMVL staff costs was noted, attributed to a reversal in variable payouts and savings in other non-Print business lines. An exceptional item^📎 of ₹41.4 crores was booked due to the new labor code, clarified as an aggregated carrying liability true-up^📎 rather than a recurring annual cost.

HT Media views AI as a tool for editorial setup, enhancing efficiency and productivity, and sees its trusted source of news and content as a differentiator. Management highlighted a proposed regulatory framework where platforms using AI might need to remunerate original content providers, which could be a positive development. The company is exploring AI as an enabler for better offerings and potential revenue opportunities, though specific details on active pursuit of deals with AI companies were not disclosed.

Management acknowledged market indications of a potential gradual increase in newsprint prices after the first quarter of next year, noting that current prices are still below last year's levels. The company has reasonable cover for newsprint till Q1 FY27. Mitigation strategies include optimizing buying, newsprint mix, and consumption, with cover pricing being a tougher option, especially in Hindi markets.