Event Participants
Executives
4 Aaditya Mulani, Anna Abraham, Pervez Bajan, Piyush Gupta
Analysts
5 Mahima, Mehul Pathak, Rana Prasad, Rohan Agarwal, Yash R
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Revenue | ₹497 crores | +15% YoY, led by print advertising growth; consolidated HT Media including HMVL |
| EBITDA | ₹90 crores | Nearly 3x YoY from ~₹30 crores; margin expansion of 12 points on sustained cost discipline |
| PAT | ₹47 crores | PAT margin improved to 9%; substantial improvement YoY |
| Net Cash | ₹922 crores | Healthy consolidated position; concentrated at HMVL while HT Media and Digicontent remain net debt |
| Print Advertising Revenue | ₹295 crores | +15% YoY; English +12% to ₹156 crores; driven by yield improvement and November 2025 government rate hike |
| Print Circulation Revenue | ₹52 crores | Flat YoY; English +14% to ₹13 crores; Hindi (HMVL) flat |
| Print Operating Revenue | ₹376 crores | +16% YoY |
| Print Operating EBITDA | ₹50 crores | 13% margin despite elevated newsprint prices (~$650-700/MT) |
| HMVL (Hindi Print) Revenue | ₹139 crores | Increased YoY; circulation flat |
| HMVL Other Operating Income | ₹20 crores | Doubled YoY (₹10 crores); includes job work income and scrap sales |
| Radio Operating EBITDA | -₹3 crores | Top line flat; operating on leaner footprint post license surrenders |
| Digital Operating Revenue | -28% YoY | Deliberate portfolio reset toward focused offerings; EBITDA -₹3 crores (-12% margin) |
| Employee Cost | ~₹99 crores | Down from ₹111 crores YoY (consolidated); organization right-sizing across entities |
Geographic & Segment Commentary
Print (HT Media Total): Ad revenue grew 15% YoY to ₹295 crores on a combination of yield improvement programs, government rate increases (first in seven years, effective November 2025), and steady commercial volumes. EBITDA margin held at 13% despite newsprint at post-COVID peak of $650-700/MT and rupee at lifetime high; management believes prices have peaked and should plateau.
Hindi / HMVL: Revenue grew YoY to ₹139 crores with circulation flat. Other operating income doubled to ₹20 crores on job work and scrap sales. HMVL holds the bulk of the group's ₹922 crores net cash; no preferential issue was proposed at HMVL level given surplus cash position.
English / HT Media: Ad revenue grew 12% YoY to ₹156 crores with sequential decline attributed to seasonality. Circulation grew 14% to ₹13 crores, driven by pricing and subscription-copy mix dynamics rather than copy volume changes; market-by-market copy share is steady state.
Radio: Top line remained flat YoY. Operating EBITDA was negative ₹3 crores. The segment now operates on a leaner, sustainable footprint following surrender of licenses for non-viable stations.
Digital: Operating revenue declined 28% YoY with EBITDA at -₹3 crores (-12% margin). This is a deliberate reset of the portfolio around leaner, focused offerings aimed at driving sustainable and profitable growth over the medium term.
Company-Specific & Strategic Commentary
Preferential Issue: Board approved preferential issue of equity shares at HT Media and Digicontent Limited (not HMVL) at ₹24.70/share, priced strictly per SEBI formula (higher of 10-day/90-day VWAP). Proceeds to retire 30-50% of debt, which management expects to be accretive to EPS, interest coverage, and credit rating. Promoters subscribing at identical terms as third-party investors up to regulatory cap.
Discontinuation of Loss-Making Verticals: OTTplay operations discontinued effective 31 March 2026, with improvements in consolidated profitability visible in Q1 FY27. Management has consistently signaled monitoring of incubating businesses and taking calls when profitability isn't achievable.
Yield Improvement Program: Substantial portion of the 15% print ad revenue growth driven by pricing/yield initiatives rather than volume; government rate hike (November 2025) also contributing. Management emphasized this is recurring and sustainable, not one-off.
Cost Discipline & Right-Sizing: Employee costs declined ~₹12 crores YoY on consolidated basis; ongoing organization right-sizing across HT Media and HMVL as part of margin expansion strategy.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Newsprint Prices | Peaked at $650-700/MT; expected to plateau before declining | No forward commodity market exists for newsprint - no hedging possible; rupee at lifetime high exacerbates cost pressure |
| Print EBITDA Margin | ~13% as a modeling baseline | Q2 FY27 will see slightly higher newsprint prices vs Q1; achievable margins contingent on newsprint and currency stability |
| Overall Profitability | No formal guidance given | Management "hopeful" of sustaining Q1 performance through FY27 based on internal scenario planning |
| Government Ad Rate Benefit | Cycling lower pricing for next two quarters | November 2025 government rate increase (first in 7 years) will annualize after Q3/Q4, removing a tailwind |
Risks & Constraints
| Risk | Context |
|---|---|
| Newsprint Prices & Currency | Newsprint at post-COVID peak of $650-700/MT represents 25-40% of total print bill of materials. No forward market exists for hedging, and all pricing is in USD while rupee sits at lifetime high - a "double whammy" on costs. Management believes prices have peaked but acknowledges commodity unpredictability. |
| Preferential Issue Governance Perception | Shareholders publicly objected to the ₹24.70 pricing vs book value of ~₹70/share and ~15% dilution, with some voting against the resolution. Minority shareholders questioned the moral/ethical dimension and consistency with prior management statements on not using debt. Management defends SEBI-formula pricing and argues issuance is EPS-accretive. |
| Digital Revenue Decline | Digital revenue down 28% YoY as portfolio resets; no timeline given for return to growth or profitability. EBITDA at -₹3 crores with margin of -12%. |
| Radio Losses | Radio continues to post negative EBITDA (-₹3 crores) despite license surrenders and leaner footprint; no profitability timeline provided. |
| Hindi Cover Price Lever | Management noted limited ability to raise Hindi newspaper cover prices further given recent industry-wide increases; pricing lever largely exhausted. |
Q&A Highlights
Preferential Issue Rationale & Pricing
- Question: Why raise equity through preferential issue at ₹24.70 when net cash is ₹922 crores, book value is ~₹70/share, and this dilutes shareholders by 15%? Why not a rights issue? (Rana Prasad, Mehul Pathak)
- Answer: The ₹922 crores net cash is consolidated and sits entirely at HMVL; HT Media and Digicontent are separately in net debt with no surplus cash. Preferential issue is 2-3 months faster than rights, provides certainty of fundraising with no undersubscription risk, and pricing follows SEBI formula strictly (no premium). Proceeds will retire 30-50% of debt, accretive to EPS and interest coverage. (Piyush Gupta, Anna Abraham)
- Answer: On valuation concerns: share trades below 0.5x book value persistently; the company cannot control market pricing. Promoters are subscribing on identical terms as external investors, committing capital up to regulatory maximum. (Piyush Gupta)
Other Income Composition (HMVL)
- Question: What is the nature of the other income jump in HMVL - treasury gains or one-off MTM? (Rohan Agarwal)
- Answer: Treasury gains (NAV-based mutual fund returns driven by yield curve movement toward quarter end) plus actual realized profit on sale of assets. Market volatility makes sustainability unpredictable; accordingly, other income should not be modeled aggressively. (Anna Abraham)
Newsprint Outlook & Print Margin Sustainability
- Question: What's the newsprint cost trajectory and is 13% EBITDA margin a baseline? Are there hedging mechanisms or circulation price increases? (Rohan Agarwal)
- Answer: Newsprint at $650-700/MT is post-COVID peak; expected to plateau before declining. No forward market exists for newsprint hedging. Q2 will see slightly higher newsprint prices vs Q1; margins will depend on ad category mix and pricing. Hindi cover price increases are largely exhausted post industry-wide hikes. 13% margin is a fair modeling assumption unless currency/commodity moves adversely. (Piyush Gupta, Anna Abraham)
Print Ad Revenue Growth Drivers
- Question: What drove the mid-double-digit ad growth in a supposedly difficult quarter - volume or pricing? (Yash R)
- Answer: Combination of both. Yield improvement programs contributed substantially; government rate increase (first in 7 years, November 2025) helped both volume and pricing; commercial revenues held on volumes with yield benefit. Government remains a decent but minority share of print ad revenue. (Anna Abraham, Piyush Gupta)
English Circulation Growth
- Question: Is the 14% English circulation growth from copy increases or price hikes? (Yash R)
- Answer: Primarily pricing and subscription vs single-copy mix dynamics rather than copy volume changes. Absolute increase is small (~₹1 crore); copy levels are steady state market-by-market with no drastic pricing or copy actions taken. (Anna Abraham, Piyush Gupta)
Employee Cost Reduction
- Question: Employee cost declined from ~₹111 crores to ~₹99 crores - is this across both HT Media and HMVL? (Yash R)
- Answer: Yes, both entities have been right-sizing the organization as part of ongoing efficiency drives. (Piyush Gupta)
Combined Call Structure
- Question: Would separate calls for HMVL and HT Media provide clearer, more transparent financial information? (Mahima)
- Answer: Financial statements are already published separately for HMVL, HT Media standalone, and HT Media consolidated. The single call is a deliberate choice covering shareholders of both listed entities; analysts may ask questions on either company. (Piyush Gupta)
Key Takeaway
Hindustan Media Ventures began FY27 with a strong consolidated performance within the HT Media group structure - revenue up 15% YoY to ₹497 crores, EBITDA nearly tripling to ₹90 crores with 12-point margin expansion, and PAT improving to ₹47 crores (9% margin). Print advertising grew 15% to ₹295 crores on yield improvement and a belated government rate hike, while circulation held flat at ₹52 crores. Cost discipline drove employee expenses down ₹12 crores, and discontinued loss-making verticals (OTTplay, non-viable radio stations) began contributing to sustainable profitability. Consolidated net cash of ₹922 crores sits largely at HMVL, while HT Media and Digicontent remain net debt, prompting a SEBI-formula-priced preferential issue (₹24.70/share) to retire 30-50% of debt - a decision that drew sharp shareholder criticism over dilution and governance perception. Key watch points include newsprint prices at $650-700/MT peak with an unhedgeable cost base, rupee weakness, digital revenue down 28% amid portfolio reset, and the sustainability of print margins (13%) into FY27 as government rate tailwinds annualize. Management remains confident of sustaining current profitability levels, contingent on commodity and currency stability.