Key Business Updates and Strategic Initiatives

  • The company appointed Mr. Vivek Raina as the new Broadband business CEO to drive focused growth in B2B and B2C segments.
  • GTPL Hathway entered into a business transfer agreement to acquire the digital television business of 7 ACT Group companies for an aggregate cash consideration of INR 36.23 crores. The transaction is expected to be completed by September 15, 2026.
  • The ACT acquisition is expected to add approximately 6 lakh Digital TV subscribers across Andhra Pradesh, Telangana, Odisha, and Karnataka, strengthening the company's presence in Southern and Eastern markets.
  • The company expanded into two new strategic markets in Q1 FY27: Kerala and Jammu & Kashmir, achieving presence in all southern markets.
  • The GTPL Infinity HITS platform has been operationalized with approximately 2.7 million subscribers converted to the platform, resulting in bandwidth savings of approximately INR 4 crores in Q1.

Operational Key Performance Indicators (KPIs)

Digital TV Segment:

  • Total Digital TV subscriber base as of June 30, 2026: 9.60 million
  • Paying subscribers: 8.9 million
  • Total business partners: More than 51,000

Broadband Business:

  • Active subscriber base: 1.06 million (adding 10,000 new subscribers YoY)
  • Broadband ARPU: INR 470 (increased by INR 5 compared to Q1 FY26)
  • Average data consumption: 436 GB per user per month (6% increase YoY)
  • Home pass: 5.95 million with ~75% FTTX ready

Financial Performance - Consolidated (Q1 FY27)

  • Total income: INR 1,020 crores (12% YoY growth, 9% QoQ growth)
  • Subscription revenue: INR 291 crores (2% sequential growth)
  • Broadband revenue: INR 143 crores (5% YoY growth, 2% sequential growth)
  • Consolidated EBITDA: INR 109 crores
  • EBITDA margin: 10.7%
  • Net profit: INR 2.3 crores
  • Operating EBITDA: INR 101 crores
  • Operating margin: 22%

Financial Performance - Standalone (Q1 FY27)

  • Total revenue: INR 693 crores (16% YoY growth, 12% sequential growth)
  • Subscription revenue: INR 213 crores (2% QoQ growth)
  • Standalone EBITDA: INR 64.4 crores
  • EBITDA margin: 9.3%
  • Net profit: INR 1.9 crores

Capital Expenditure and Future Outlook

  • Planned capex for FY27: INR 400 crores (50% for Broadband, 50% for Digital TV)
  • Management expects operational margin to improve from current 22% to 25%
  • Full benefits of HITS platform expected to materialize by end of Q3/beginning of Q4 FY27
  • Target broadband extraction rate: 20-21% (current rate: 16-17%)
  • The company aims to achieve market leadership in Andhra Pradesh and Telangana through the ACT acquisition

Q&A Session Highlights

  • Management attributed the PAT decline of ~INR 8 crores YoY primarily to higher depreciation and finance costs related to HITS infrastructure capitalization
  • Integration of ACT acquisition expected to contribute to revenues and EBITDA from Q2/Q3 FY27
  • New markets (Kerala and J&K) expected to have 6-12 month gestation period before achieving profitability
  • Addressable market size: Kerala (~6.5-7 million TV households), J&K (~4.5-5 million TV households)
  • ARPU trajectory expected to remain around INR 470 in the near term
  • Company focusing on combo products (Cable + Broadband + other services) to increase stickiness and revenues