Hindustan Media Ventures Limited: Navigating Growth and Transformation in Q2 FY26

Hindustan Media Ventures Limited (HMVL) has delivered a robust performance in the second quarter of the financial year 2025-26, showcasing resilience and strategic adaptation across its diverse media portfolio. The company reported a consolidated total revenue of INR 499 crore, marking a commendable 4% year-on-year (YoY) growth and an impressive 11% sequential (QoQ) increase. This top-line expansion was complemented by significant profitability improvements, with consolidated EBITDA surging by 33% YoY to INR 44 crore. This led to an expansion of EBITDA margins by 200 basis points, reaching 9%. Despite some strategic investments impacting near-term profitability, the company's net cash position remained healthy at INR 947 crore, underscoring its financial stability.

The Print business, a cornerstone of HMVL's operations, emerged as a strong performer, demonstrating both annual and sequential growth. Its operating revenue reached INR 358 crore in Q2 FY26. The segment's advertising revenue, a critical indicator, witnessed a 10% YoY increase, reaching INR 278 crore. This growth, coupled with a disciplined focus on cost management, translated into a substantial expansion of operating margins. The Print segment's operating EBITDA more than doubled, soaring by 106% YoY to INR 40 crore, with margins improving from 6% to 11%. Both the English and Hindi Print verticals contributed to this positive trajectory. The Hindi Print business, in particular, saw consistent advertisement revenue growth, boosted by strong demand from commercial and government segments. While English Print circulation revenue experienced a 15% YoY decline, management noted sequential growth in copies, attributing the YoY dip to strategic pricing actions aimed at optimizing circulation and recruiting more readers.

Strategic Adaptation Across Verticals

Hindustan Media Ventures Limited is actively adapting its strategies across all business verticals to navigate the evolving media landscape. The Digital business, a key growth area, posted another set of strong revenue numbers, demonstrating consistent growth on both an annual and sequential basis. Operating revenue for the Digital segment grew by 10% YoY to INR 61 crore. The company is driving this growth through targeted content initiatives, particularly with its OTTplay proposition, which has continued to gain traction and attract a good number of subscribers. While margins in the Digital segment remain suppressed in the near term, this is a conscious outcome of the company's growth-oriented strategy, with management expecting a reduction in losses going forward. Furthermore, the company observed a significant reduction in subscriber acquisition costs for OTTplay in September, a trend it aims to validate in the upcoming quarter.

In the Print segment, the company is reinforcing the value of its core portfolio by optimizing circulation. This involves a granular, market-by-market approach to recruit more readers and enhance the robustness of its publications, complemented by strategic pricing adjustments. These efforts are designed to bolster overall Print business performance, driven by advertising and operational efficiency.

The Radio business, while still facing industry-wide challenges and operating under duress, showed signs of sequential improvement. Operating revenue for Radio stood at INR 32 crore, with operating EBITDA improving by 43% sequentially, though remaining negative at INR 4 crore. The company is sharpening its focus on integrated formats and immersive audience experiences, deploying targeted efforts to enhance its varied offerings within the segment.

Financial Prudence and Future Outlook

Despite the positive performance, the company transparently addressed certain challenges. An exceptional item loss of INR 37.76 crore was recorded by HT Media, primarily due to impairment of investments in Next Radio Limited, Next Media Works Limited, and Mosaic Digital. This impairment reflects the ongoing stress in the Radio business and a revaluation of certain digital assets. Management provided clear explanations for these impairments, linking them to the performance of the Radio business and the valuation of Mosaic Digital.

Looking ahead, management expressed confidence in its ability to sustain performance, anticipating a drop in Digital segment losses. They also highlighted the cyclical nature of newsprint prices, noting that current prices are in the lowest quartile, with industry estimates suggesting a gradual, slight increase. The company has sufficient inventory and is actively discussing forward buying strategies. The impact of upcoming events, such as the Bihar elections, on advertising revenue in the next quarter was also acknowledged.

Hindustan Media Ventures Limited's Q2 FY26 results reflect a period of strategic clarity and disciplined execution. The company is effectively leveraging its strong Print foundation while making targeted investments in its Digital future and adapting its Radio offerings. This balanced approach positions HMVL for sustained growth and continued value creation for its stakeholders.