Detailed Narrative
Q4 FY26 Performance Overview and Strategic Transformation
HT Media reported a 2% decline in consolidated revenue to INR 558 crore for Q4 FY26, but EBITDA grew 5% to INR 131 crore, with margins expanding by 100 basis points to 23%. For the full year FY26, revenue remained flat, while EBITDA increased by 8% to INR 298 crore, also with a 100 basis point margin improvement. The company undertook decisive transformations, including exiting the unprofitable 'OTTplay' business and surrendering non-viable Radio licenses, aiming for improved profitability. A robust net cash position of over INR 1,000 crore was maintained.
Strong Print Business Performance Driven by Yields
The Print segment demonstrated strong performance, with advertising revenue growing 10% to INR 313 crore in Q4 FY26, primarily driven by yield improvement rather than volume. Circulation revenue saw a 4% uptick to INR 51 crore, mainly due to increased copies. For the full year, Print advertising revenue grew 8% to INR 1,148 crore, contributing to an 8% increase in operating revenue to INR 1,500 crore and an operating EBITDA of INR 208 crore with a 14% margin. Both English and Hindi mastheads contributed to this growth.
Radio and Digital Business Restructuring
The Radio business faced a challenging year, with revenue declining and operating EBITDA at negative INR 7 crore in Q4 FY26 and negative INR 22 crore for the full year. The company streamlined operations by surrendering non-viable licenses. In the Digital segment, operating revenue remained flat at INR 39 crore in Q4 FY26 and INR 155 crore for the full year, with operating EBITDA at negative INR 2 crore and negative INR 8 crore respectively. The discontinuation of the 'OTTplay' business reflects a deliberate focus on profitable growth, with management confirming no further significant exceptional losses are expected from these exits.
Other Income Impacted by Treasury Mark-to-Market Losses
Other income experienced a decline, primarily due to mark-to-market losses on the company's substantial treasury investments. These losses, estimated at approximately INR 50 crore for the full year, were a consequence of high yield curves. Management acknowledged this impact but expressed confidence that yield curves would stabilize, leading to a recovery in other income, as these are 'patient capital' investments.
Capital Allocation Strategy: Core Business and Digital Investments
HT Media's capital allocation strategy prioritizes investments in its core Print business, focusing on increasing copy share, and in future Digital businesses, particularly within Digicontent Ltd. The company confirmed its active approach to monetizing Advertising For Equity (AFE) assets, aiming to sell them at the earliest opportunity to maximize value. Management stated there are currently no plans to return capital to shareholders, emphasizing long-term value creation through strategic investments.