GTPL Hathway Q2 FY26 Results: Revenue Jumps 12%, Profit Declines

Introduction

GTPL Hathway Limited, one of India's largest Multi-System Operators (MSOs), announced its financial results for the second quarter of fiscal year 2026, which ended on September 30, 2025. The company posted a 12% year-on-year increase in consolidated revenue, driven by its broadband division. However, profitability came under pressure, with a notable decline in net profit compared to the same period last year, reflecting ongoing challenges in the digital cable TV sector and rising operational expenses.

Detailed Financial Performance for Q2 FY26

For the quarter, GTPL Hathway's consolidated total revenue stood at ₹964.9 crore, a significant rise from ₹862.0 crore in Q2 FY25. This also represents a 6% sequential growth from the preceding quarter. Despite the top-line growth, the company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was ₹110.1 crore, with an EBITDA margin of 11.4%. The Profit After Tax (PAT) for the quarter was ₹9.3 crore, a sharp fall from the ₹12.9 crore reported in the corresponding quarter of the previous fiscal year. The increase in total expenses, which grew 13% year-on-year to ₹954.4 crore, played a key role in squeezing the net profit margin.

Operational Highlights: A Tale of Two Segments

GTPL's operational performance presented a mixed picture, highlighting the divergent trends in its core business segments. The digital cable TV business faced headwinds, with the active subscriber base declining slightly to 9.50 million as of September 30, 2025. The number of paying subscribers stood at 8.80 million. Management attributed the temporary dip in subscriber numbers to factors like heavy rainfall across its operational regions and the absence of major sporting events during the quarter. In contrast, the broadband segment continued its steady growth trajectory. The company added 10,000 new subscribers year-on-year, bringing its total broadband subscriber count to 1.05 million.

Broadband Business Remains a Bright Spot

The broadband division was the primary engine of growth for GTPL Hathway in Q2 FY26. Revenue from this segment increased by 2% year-on-year to ₹139.3 crore. Key performance indicators showed positive momentum. The Average Revenue Per User (ARPU) for broadband services increased to ₹465 per month, up by ₹5 from the previous year. Furthermore, data consumption saw a substantial 17% YoY increase, with the average user consuming 410 GB of data per month. The company's homepass, which represents the number of homes ready for connection, stood at 5.95 million, with 75% of this network being FTTX-enabled, positioning it well for future expansion.

Management Commentary and Strategic Direction

Mr. Anirudhsinh Jadeja, Managing Director of GTPL Hathway, commented on the results, stating, "I am pleased to share that we have sustained our subscriber base across both Cable TV and Broadband businesses, reflecting continued customer trust and operational resilience in a competitive environment." He emphasized the company's focus on enhancing customer experience by expanding beyond traditional services to include bundled offerings like OTT, Gaming, and TV Everywhere. The management remains committed to driving efficiency, customer acquisition, and retention through value-added products while maintaining financial discipline.

Future Outlook and Strategic Initiatives

Looking ahead, GTPL Hathway is preparing for the launch of its Headend-In-The-Sky (HITS) platform in the third quarter. This initiative is expected to significantly improve its distribution capabilities and expand its reach into new geographies. The company's strategy continues to revolve around bundling cable, broadband, and OTT services to increase its total addressable market. Management expressed optimism for a recovery in subscriber growth in the upcoming quarters, supported by the commencement of major sporting events and the end of the monsoon season.

Market Position and Stock Insights

As of January 13, 2026, GTPL Hathway has a market capitalization of approximately ₹1,174 crore. The company's stock trades at a TTM P/E ratio of around 28.92, which is higher than the sector P/E of 17.54, suggesting a premium valuation. The promoter holding has remained stable at 75.00% as of the September 2025 quarter. A significant factor for investors to monitor is the company's contingent liabilities related to Department of Telecom (DoT) license fee demands, which are currently under litigation and could have a material impact if the outcome is unfavorable.

Conclusion

GTPL Hathway's Q2 FY26 performance showcases a company in transition. While its legacy cable TV business faces subscriber and margin pressures, the broadband segment continues to deliver consistent growth in revenue and user engagement. The company's strategic focus on service bundling and technological upgrades, such as the upcoming HITS platform, will be crucial in navigating the competitive landscape and sustaining long-term growth. Investors will be closely watching for improvements in profitability and the resolution of regulatory challenges in the coming quarters.