HT Media Group Q1 FY27: Print-led rebound lifts margins as costs and capital structure stay in focus

HT Media Group began FY27 with a visible improvement in operating performance. Consolidated total revenue for Q1 FY27 rose to INR 497 crore, up 15% year-on-year. The bigger change came through profitability. Consolidated EBITDA, before exceptional items and share of JVs, increased to INR 90 crore versus INR 28 crore in Q1 FY26, taking the EBITDA margin to 18% from 6%. PAT before exceptional items and share of JVs improved to INR 47 crore from INR 4 crore.

Management attributed the margin expansion to steady advertising revenue and disciplined cost management. Print continued to be described as the anchor of the business. At the same time, the quarter carried clear reminders of risk drivers for the group, including elevated newsprint prices, a weaker rupee, and global supply-chain uncertainties.

Print stays central, advertising drives growth

The print segment delivered the largest contribution to consolidated operating revenue. Print operating revenue was INR 376 crore in Q1 FY27, up 16% year-on-year, supported by a 15% rise in advertising revenue to INR 295 crore. Circulation revenue remained stable at INR 52 crore.

Print operating EBITDA rose to INR 50 crore from INR 14 crore in the prior-year quarter, and the operating margin improved to 13% from 4%. Management highlighted that this margin was achieved despite higher commodity rates.

On the earnings call, management linked the print advertising improvement to a focus on yield improvement. It also noted a benefit on government advertising, referencing rate increases that came into effect around November of the prior year and the impact of cycling lower pricing from a government revenue perspective.

English and Hindi print trends

Within print, English and Hindi performance showed different patterns:

English print advertisement revenue increased to INR 156 crore from INR 140 crore in Q1 FY26. Circulation revenue rose to INR 13 crore from INR 12 crore. Management described circulation as steady state, and noted that percentage growth can appear large because the absolute base is small.

Hindi print (under HMVL) advertisement revenue increased to INR 139 crore from INR 116 crore in Q1 FY26. Circulation revenue was INR 38 crore versus INR 39 crore last year.

Radio and digital: footprint tightening and portfolio reset

Radio revenue remained broadly steady year-on-year. Segment operating revenue was INR 32 crore in Q1 FY27 versus INR 31 crore in Q1 FY26. Segment operating EBITDA remained negative at INR 3 crore, although it improved from a loss of INR 7 crore in the prior-year quarter.

Management said the radio business has surrendered licenses for certain non-viable stations, positioning the segment on a leaner and more sustainable footprint.

Digital revenue moderated during the quarter. Segment operating revenue declined to INR 27 crore from INR 38 crore in Q1 FY26. Segment operating EBITDA stayed at a loss of INR 3 crore. Management attributed the revenue moderation to deliberate portfolio streamlining, resetting the portfolio around leaner, more focused offerings with the stated intent of driving sustainable and profitable growth.

Cost drivers and other income: newsprint and treasury move the needle

Newsprint remained a central cost variable. Management stated that newsprint is the single biggest cost line item for the print business and can vary between 25% and 40% of the bill of material depending on the price environment. It cited prevailing levels of roughly USD 650 to 700 per metric ton and described this as the highest peak seen after the post-COVID decline.

Management believes newsprint prices have peaked and may plateau before moving down, but also stated that as a commodity, it cannot be predicted with certainty. It noted the additional pressure from a weaker rupee because newsprint is priced in US dollars and the market does not offer a forward curve for newsprint, limiting hedging certainty.

Other income also played a role, particularly in HMVL. On the call, management said HMVL other income included treasury gains and profit on sale of assets. It highlighted that treasury gains in this context relate to mutual funds and NAV movements and are sensitive to market volatility and yield curve shifts.

Capital structure debate: preferential issue and debt reduction

A key discussion point in Q&A was the group’s preferential issue approved by the Board, subject to regulatory and shareholder approval. Shareholders questioned the rationale for raising equity given the consolidated net cash position of INR 922 crore and raised concerns about dilution and pricing.

Management clarified that the consolidated net cash number does not reflect surplus cash at each entity. It stated that the surplus cash is parked in HMVL, while HT Media Limited and Digicontent Limited are net-debt entities. It also stated that the preferential issue is being undertaken in HT Media and Digicontent, not in HMVL.

On use of proceeds, management said the funds would be used to retire debt, with a stated intent to retire roughly 30% to 50% of the debt, which it expects to be EPS accretive and improve interest coverage and credit metrics.

On why a preferential issue rather than a rights issue, management cited speed and certainty. It said a preferential issue is faster by around two to three months and reduces underwriting and under-subscription risk compared to a rights issue. It also stated that pricing followed the SEBI formula based on the higher of 10-day or 90-day VWAP.

Financial snapshot

Takeaways from the quarter

The quarter reinforced the group’s near-term earnings dependence on print, where advertising performance and yield improvement supported growth and profitability. Cost discipline was visible in the margin expansion, but management also clearly highlighted that print margins remain sensitive to the combined effect of newsprint and currency.

Radio and digital remain work in progress. Radio losses narrowed, supported by a leaner footprint after surrendering non-viable licenses. Digital revenue moderated due to portfolio streamlining, with losses broadly unchanged.

Finally, the preferential issue and the associated discussion around cash at the consolidated level versus entity-level debt and liquidity is likely to remain a central investor topic, especially as management positions the transaction as a step toward lowering debt and improving financial flexibility.