Key Financial Figures

Consolidated Performance (Q1 FY27):

  • Total Revenue: INR 497 crore (15% year-on-year growth)
  • EBITDA: INR 90 crore (nearly 3x year-on-year increase)
  • EBITDA Margin: 18% (12 percentage point expansion)
  • PAT: INR 47 crore (substantial improvement)
  • PAT Margin: 9%
  • Net Cash Position: INR 922 crore (consolidated level)

Business Segment Performance:

Print Segment:

  • Advertising Revenue: INR 295 crore (15% year-on-year growth)
  • Circulation Revenue: INR 52 crore (virtually flat year-on-year)
  • Operating Revenue: INR 376 crore (16% increase)
  • Operating EBITDA: INR 50 crore
  • EBITDA Margin: 13%

English Print Sub-segment:

  • Advertising Revenue: INR 156 crore (12% year-on-year growth)
  • Circulation Revenue: INR 13 crore (14% year-on-year growth)

Hindi Print Sub-segment:

  • Advertising Revenue: INR 139 crore (year-on-year increase)
  • Circulation Revenue: Flat year-on-year

Radio Segment:

  • Topline: Flat year-on-year
  • Operating EBITDA: Negative INR 3 crore

Digital Segment:

  • Operating Revenue: Down 28% year-on-year
  • Operating EBITDA: Negative INR 3 crore
  • EBITDA Margin: Negative 12%

Strategic Updates and Management Commentary

The Chairperson's message highlighted:

  • Print remained the anchor business with advertising revenue growth and resilient circulation
  • Profitability improvement achieved through steady advertising revenue and disciplined cost management
  • Concerns about elevated newsprint prices, weaker rupee, and global supply chain uncertainties
  • Radio revenue remained steady following surrender of licenses for non-viable stations
  • Digital revenue moderated due to portfolio reset around leaner, focused offerings
  • Board approved preferential issue to strengthen capital structure, streamline debt profile, and provide capital for general business requirements

Preferential Issue Discussion

Management addressed significant shareholder concerns regarding the preferential equity issue:

  • Issue priced at approximately INR 24.7 per share based on SEBI formula (higher of 10-day or 90-day VWAP)
  • Rationale: HT Media Limited and Digicontent Limited operate with net debt positions despite consolidated net cash of INR 922 crore (which is primarily parked in HMVL)
  • Funds will be used to retire 30-50% of debt, expected to be accretive to EPS and improve interest coverage ratio and credit rating
  • Management defended pricing as following SEBI guidelines exactly, noting the company's price-to-book ratio is less than 0.5
  • Preferential issue chosen over rights issue for faster process and greater fundraising certainty

Cost and Operational Factors

Newsprint Impact:

  • Newsprint represents 25-40% of total bill of material costs
  • Current prices at $650-700 per metric ton, described as peak levels post-COVID
  • Dollar strength creating additional cost pressure as newsprint priced in USD
  • Management believes prices have peaked and should plateau before declining
  • No hedging available for newsprint as it lacks forward markets

Cost Management:

  • Employee costs reduced to INR 99 crore from INR 111 crore year-on-year through right-sizing and efficiency measures
  • Discontinued loss-making operations (particularly digital verticals) contributing to profitability improvement

Revenue Drivers:

  • Print advertising growth driven by yield improvement program and government rate increases (after 7 years) implemented November 2025
  • Combination of volume retention and pricing improvements across commercial and government revenues
  • Other operating income in HMVL doubled to approximately INR 20 crore from INR 10 crore year-on-year, including job work income and scrap sales

Treasury Operations

HMVL's other income includes substantial treasury gains from mutual funds (NAV-based) and profit on sale of assets. Management noted volatility in these gains makes forward prediction difficult.

Capital Structure Impact

The preferential issue, if approved, will dilute existing public shareholders by approximately 15%. Management argued this is necessary to address the net debt positions of HT Media Limited and Digicontent Limited specifically.

Forward-Looking Statements

Management declined to give specific guidance but expressed hope that the current performance is sustainable. They indicated all options for maximizing capital efficiency and cutting losses remain on table and are discussed at Board level.