HT Media Ltd - Q1 FY27 Earnings Call Summary Wednesday, August 5, 2026, 2:30 PM IST
Event Participants
Executives
4 Aditya Melani, Anna Abraham, Parvez Bhagat, Piyush Gupta
Analysts
5 Mahima, Mehul Pathak, Ranga Prasad, Rohan Agarwal, Yash R
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Revenue | ₹497 crores | +15% YoY; print advertising led top-line growth, partially offset by digital decline |
| EBITDA | ₹90 crores | Nearly 3x YoY (~₹30 crores base); margin expanded 12 pts YoY to ~18% |
| PAT | ₹47 crores | PAT margin improved to 9%; driven by EBITDA expansion and treasury gains |
| Net Cash | ₹922 crores | Consolidated net cash remains robust, though cash is concentrated at HMVL (HT Media and DCL run net debt) |
| Print Operating Revenue | ₹376 crores | +16% YoY; advertising growth of 15% to ₹295 crores, circulation flat at ₹52 crores |
| Print EBITDA | ₹50 crores | 13% margin despite elevated newsprint prices and weaker rupee |
| English Ad Revenue | ₹156 crores | +12% YoY; sequential decline due to seasonality; yield improvement key driver |
| English Circulation Revenue | ₹13 crores | +14% YoY; largely pricing/subscription-mix driven, INR1.5 crores absolute change |
| Hindi Ad Revenue | ₹139 crores | Increased YoY; circulation revenue flat |
| Radio EBITDA | -₹3 crores | Top line broadly flat; operating on leaner footprint post license surrenders |
| Digital Revenue | -28% YoY | Deliberate portfolio reset around leaner, focused offerings following OTT discontinue |
| Digital EBITDA | -₹3 crores (margin -12%) | Loss-making; reset intended to drive sustainable, profitable growth |
| Employee Costs | ₹99 crores | Down from ₹111 crores YoY; continued organizational right-sizing |
Geographic & Segment Commentary
Print – English (Hindustan Times): Ad revenue grew 12% YoY to ₹156 crores, driven primarily by yield/pricing improvement, with commercial and government ad volumes both contributing; sequential decline reflects seasonality. Circulation revenue grew 14% to ₹13 crores, driven by pricing and subscription mix rather than copy gains; management characterizes copy levels as steady-state with no price hikes in the quarter.
Print – Hindi (Hindustan): Advertising revenue grew YoY to ₹139 crores, with steady circulation. Print segment overall (English + Hindi) delivered ₹376 crores operating revenue (+16% YoY) and ₹50 crores EBITDA (13% margin) despite newsprint at a post-COVID peak of $650–700/MT.
Radio: Top line remained flat YoY; operating EBITDA was a negative ₹3 crores. Following surrender of licenses for non-viable stations, the segment now operates on a leaner, more sustainable footprint.
Digital: Operating revenue declined ~28% YoY as management deliberately reset the portfolio around leaner, focused offerings, following the decision to shut down the OTT business effective March 31, 2026. EBITDA was negative ₹3 crores (margin -12%); the reset is intended to drive sustainable, profitable growth.
Company-Specific & Strategic Commentary
Preferential Equity Issue: Board approved a preferential issue of equity shares/warrants in HT Media and Digi Content Ltd (DCL) at ~₹24 per share, priced strictly per SEBI formula (higher of 10-day/90-day VWAP). Proceeds will retire 30–50% of debt in these entities, which are in net debt positions despite consolidated net cash of ₹922 crores; expected to be accretive to EPS, interest coverage and credit rating. Management cited speed (2–3 months faster than rights issue), certainty of fundraising, and elimination of under-subscription risk as rationale. The issue is subject to regulatory and shareholder approval.
Cost Discipline & Right-Sizing: Consolidated employee costs reduced to ₹99 crores from ₹111 crores YoY; organizational right-sizing continues across both listed entities. Management reiterated its stated approach of monitoring incubating businesses and exiting non-profitable ventures (referencing the OTT shutdown effective March 31, 2026, which drove the profitability improvement).
Print Yield Improvement Program: Substantial portion of the 15% print ad revenue growth attributed to yield/pricing improvements; government rate increase (November 2025, first in 7 years) also contributed. Management notes commercial revenue (with both volume and yield gains) remains the larger block versus government revenue.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue/Earnings | No formal guidance | Management explicitly declined to provide forward revenue or earnings projections, per usual practice |
| Print EBITDA Margin | ~13% baseline for FY27 modeling | CFO stated this is a "fair assumption" for modeling purposes, subject to newsprint and rupee movements |
| Newsprint Prices | $650–700/MT, expected to plateau | Management believes prices have peaked and should stabilize before declining; no forward market exists for newsprint |
| Q2 FY27 Newsprint Cost | Slightly higher vs Q1 | Q2 will see marginally higher newsprint prices before plateau |
| Debt Reduction | 30–50% of HT Media & DCL debt retired | Over FY27, contingent on preferential issue completion; expected accretive to EPS and credit metrics |
| Radio/Digital Direction | Leaner footprint, profitable growth focus | Radio now on sustainable footprint post license surrenders; digital reset around focused offerings to drive profitability |
Risks & Constraints
| Risk | Context |
|---|---|
| Newsprint Price Inflation | Newsprint is the single largest print cost item, representing 25–40% of total BOM. At $650–700/MT (highest post-COVID peak), CFO believes prices have peaked, but as a commodity with no forward market, certainty is impossible. Q2 will see slightly higher prices vs Q1. |
| Rupee Depreciation | Newsprint is priced in USD; rupee at a lifetime high creates a "double whammy" on cost. Dollar movement to ₹100/USD with commodity at $700/MT would cause material margin dilution. |
| Global Supply Chain Uncertainty | Chairperson's message flagged supply chain disruptions as a forward concern; post-COVID, these drove newsprint to historical highs. |
| Limited Circulation Pricing Leverage | Management noted cover price increases would be "a little difficult" going forward; Hindi papers are already well-priced, limiting a key offset to input cost inflation. |
| Digital Revenue Decline | Digital revenue down 28% YoY due to deliberate portfolio reset (post-OTT shutdown); segment remains loss-making (EBITDA -₹3 crores, margin -12%), with profitability timeline unguided. |
| Government Ad Dependence | Government is a "decent component" of print revenues; November 2025 rate increase was the first in 7 years, highlighting pricing stickiness risk in this revenue block. |
| Shareholder Dissent on Preferential Issue | Two shareholders publicly opposed the preferential issue on governance/pricing grounds (₹24 vs ~₹70 book value; ~15% dilution), voting against the resolution; overhang on completion timeline exists pending regulatory approvals. |
Q&A Highlights
Preferential Issue Rationale & Pricing
- Question: Why raise equity via preferential issue at ₹24/share when book value is ~₹70 and consolidated net cash is ₹922 crores, diluting public shareholders by ~15%? Should a rights issue have been used instead? (Ranga Prasad; Mehul Pathak)
- Answer: Consolidated net cash is in HMVL; HT Media and Digi Content Ltd are net-debt entities and hold no surplus cash — the issue is only in those companies. Pricing follows SEBI formula (higher of 10-day/90-day VWAP) with no premium added; book value discussion is moot since price-to-book is <0.5x. Preferential issue is 2–3 months faster than a rights issue, offers certainty of fundraising, and avoids under-subscription risk (which would trigger quasi-preferential allotment at inferior pricing). Proceeds will retire 30–50% of debt, accretive to EPS and credit rating in the short term. (Piyush Gupta; Anna Abraham)
Shareholder Governance Concerns on the Issue
- Question: Valuing only the HMVL stake suggests ~₹51.75/share of intrinsic value; all businesses together justify ₹140–150/share. Pricing at ₹24.7 is "ludicrous" and inconsistent with management's repeated stance of not being share price-driven. (Mehul Pathak)
- Answer: Market values HMVL at one-third of its net worth — perpetual undervaluation is acknowledged, but management is not reacting to short-term share prices. The promoters are subscribing at the same SEBI-formula terms as third-party investors, up to regulatory limits. No premium was loaded precisely to avoid higher cost of capital for the company. Capital raised will be deployed to retire debt and provide flexibility; the company is actively evaluating all options to "maximize capital, cut losses, or increase EPS." (Piyush Gupta)
Other Income Drivers in HMVL
- Question: What is the nature of the significant HMVL other income jump — treasury gains, one-offs, or M2M? What is a normalized run-rate? Also, HMVL other operating income doubled from ₹10 cr to ₹20 cr YoY. (Rohan Agarwal; Yash R)
- Answer: Other income comprises treasury gains (mutual funds, NAV-based, not MTM) plus actual realized profit on sale of assets. Gains are a function of yield curve movement toward quarter-end; volatility is expected given global conditions, so no guidance on run-rate. The ₹20 crores other operating income includes job work income and scrap sales, both of which increased. (Anna Abraham)
Newsprint Costs & Print Margins Forward
- Question: Print EBITDA margin came down QoQ — is that newsprint-driven? Should ~13% be the baseline, and are there hedges or cost mitigations? (Rohan Agarwal)
- Answer: Newsprint represents 25–40% of print BOM; at $650–700/MT it is the highest post-COVID peak. Management believes prices have peaked and should plateau, but there is no forward market for newsprint, so no hedging is possible. Rupee at lifetime high compounds cost pressure. ~13% print EBITDA margin is a fair modeling baseline, though Q2 will see slightly higher newsprint vs Q1. Further cover price hikes are difficult — mitigation focuses on volume-side actions without compromising reach or product. (Piyush Gupta; Anna Abraham)
Print Ad Revenue Growth Drivers
- Question: What drove the 15% print ad revenue growth in a difficult quarter — volumes or pricing? What is the government share of ad revenue? (Yash R)
- Answer: Growth is a combination of volume and pricing. Yield improvement programs contributed substantially; commercial revenue held on volume with yield benefits, while government revenue benefited from the November 2025 rate increase (first in 7 years) — so it is cycling a low base for the next two quarters. Government share is "substantial but commercial is infinitely the bigger block." (Anna Abraham; Piyush Gupta)
Employee Cost Reduction & Circulation
- Question: Consolidated employee costs fell from ~₹111 cr to ~₹99 cr YoY — is this across HT Media and HMVL? Also, English circulation growth of 14% — is it copies or price? (Yash R)
- Answer: Yes, cost reduction is across both listed entities, driven by continued right-sizing. On circulation, the 14% YoY growth is mostly pricing and subscription-mix (line vs subscription, discounting), not copy growth — absolute movement is small (INR1.5 crores), and copy levels are steady-state and likely to remain so. (Piyush Gupta; Anna Abraham)
Key Takeaway
HT Media delivered its strongest consolidated quarter in several years in Q1 FY27: revenue grew 15% YoY to ₹497 crores, EBITDA tripled to ₹90 crores (margin +12 pts to 18%), and PAT reached ₹47 crores (9% margin), driven by print advertising yield improvement, government rate tailwinds, and cost right-sizing (employee costs down ₹12 crores YoY). The OTT shutdown effective March 31, 2026 drove digital revenue down 28% YoY, with the segment still loss-making. Management's strategic focus is on retiring 30–50% of debt at HT Media and Digi Content Ltd via a SEBI-priced preferential issue (₹24/share) — opposed by some shareholders on governance grounds — which is expected to be EPS-accretive in the short term. Print margins face twin headwinds from newsprint at $650–700/MT (post-COVID peak) and record-high rupee depreciation, with management guiding ~13% EBITDA margin as a modeling baseline. The company remains in a consolidated net cash position of ₹922 crores, though this is concentrated at HMVL. Forward outlook hinges on newsprint plateauing, continued yield-driven ad growth, and successful closure of the preferential issue, with no formal revenue or earnings guidance provided.