# 1. Financial Performance ## A. Key Figures * **Total Revenue:** **₹5,872 Mn** Q1 FY26 (-33%) · **₹6,163 Mn** Q1 FY25 * EBITDA: **₹1,384 Mn** Q1 FY26 (-56%) · **₹1,909 Mn** Q1 FY25 * Net Profit: ₹80.8 Cr Q1 FY26 (-32%) · ₹117.9 Cr Q1 FY25 * **Print EBITDA Margin:** **31%** Q1 FY26 (+300 bps YoY) · **28%** Q1 FY25 ## B. Revenue Trends * **Sharp Top-Line Contraction:** Revenue declined significantly YoY, driven by a **~₹30 Cr drop in print and other advertising** amid weak demand trends. * **Profitability Pressure:** EBITDA fell sharply due to **~₹50 Cr rise in operating expenses**, outweighing partial margin gains in print. ## C. Profitability Metrics * **Print Margin Resilience:** Print EBITDA margin reached a high of 31%, reflecting strong cost control and **stable newsprint prices** as a key enabler. * **Segment Neutrality:** Management views **education, real estate, auto, healthcare, and jewelry** as equally critical to sustaining margin momentum. ## D. Balance Sheet & Cash * **Strong Liquidity, No M&A Signal:** Despite **doubled cash reserves**, management provided no indication of acquisition plans. * **Dividend Consideration:** Elevated cash levels prompted a proposal for a higher dividend, to be reviewed by the Board. --- # 2. Advertising & Revenue Mix ## A. Key Figures * Radio EBITDA: ₹1.15 Cr Q1 FY'26 (decline from ₹1.32 Cr YoY) * **Govt. & Political Revenue Contribution:** **24%** last year · **16–17%** this year * **Category Growth (Ex-Govt):** **Education (10%)**, **Real Estate (27%)**, **Auto (7%)**, **Healthcare (17%)**, **Jewellery (18%)** ## B. Segment Contribution * **Underlying Advertising Strength:** Excluding government election-related revenue, core advertising grew at a **high single-digit pace**, driven by robust demand in real estate, healthcare, and education. * **Seasonal Revenue Mix:** Education accounts for **25% of revenue** in Q1, consistent with historical seasonality, while healthcare and jewellery remain in the single-digit contribution range. * **Radio Performance:** Despite flat reported revenue, radio delivered **high single-digit like-to-like growth**, though EBITDA declined due to cost pressures or mix shifts. ## C. Government Exposure * **Sharp Decline in Public Sector Spend:** Government and political advertising fell **~40% YoY**, significantly weighing on overall growth despite double-digit momentum in private categories. * **Normalization of Government Contribution:** Public sector contribution has receded to **15–16%**, moving toward the typical baseline of **12–14%**, indicating post-election rebalancing. --- # 3. Circulation & User Growth ## A. Key Figures * **Print Circulation:** **~40 lakh copies** (stable QoQ and YoY) * Cover Price: INR 4.89 (unchanged YoY and QoQ) * **Digital MAUs:** **~2 crore** (reached in May 2025) ## B. Print Circulation * **Resilient Readership:** Circulation held steady during seasonally weak summer months, reflecting stable demand and reader loyalty. * **Targeted Geographic Focus:** Growth efforts concentrated in **Tier 3–5 cities with populations above 35,000**, excluding rural areas as per government definition. * **Long-Term Growth Mindset:** Circulation expansion treated as a sustained initiative requiring continuous engagement, akin to FMCG brand building. * **Mixed Regional Response:** While some markets show growth, **limited traction observed in Tier 4–6 regions of Rajasthan**, indicating uneven penetration. ## C. Digital MAUs * **Strong Digital Traction:** Monthly active users surged to near **2 crore**, driven primarily by **major news events** like Operation Sindoor and India-Pakistan developments. * **App-First Engagement:** All **2 crore users access content directly via the app**, with minimal reliance on web or third-party platforms. * **UP Expansion Strategy:** Digital-first push in **Uttar Pradesh gaining traction**, despite absence of print presence in the state. * **Growth Levers:** While ground campaigns continue, recent user spikes are **news-event driven**, not sustained by marketing alone. ## D. User Engagement * **High-Quality Engagement:** Direct app usage indicates **strong user intent and loyalty**, differentiating from passive web traffic. * **Deepening Interaction:** Average session duration of **~11 minutes per visit**, with engagement rising QoQ, signaling improving content stickiness. --- # 4. Cost & Input Trends ## A. Key Figures * **Newsprint Cost:** **₹47,100/ton** Q1 FY26 · **₹47,400/ton** Q4 FY25 (-300 bps) * **Other Expenses:** **₹178 Cr** Q1 FY26 (vs. ₹197–198 Cr Q4 FY25) * **Personnel Costs:** **₹110 Cr** Q1 FY26 (vs. ₹107 Cr Q4 FY25) ## B. Newsprint Costs * **Stable Input Prices:** Newsprint costs moderated slightly with expectations of near-term stability, though exposed to currency volatility. * **Favorable Sourcing Mix:** **75:25** domestic-to-imported newsprint ratio reduces forex sensitivity and supports cost control. ## C. Operating Expenses * **Cost Normalization:** Sharp decline in other expenses post-circulation initiative, establishing a **sustainable baseline** at current Q1 levels. * **Inflationary Pressures:** Personnel costs rose modestly due to annual increments, while digital investments contributed to prior-year expense pressure. --- # 5. Digital Strategy & Monetization ## A. App Performance * **Platform Leadership:** Dainik Bhaskar leads peers in social media followership across Instagram, Facebook, and Twitter, but lags behind Dainik Jagran and HT Media’s Live Hindustan on YouTube despite print presence. * **User Engagement Differentiation:** Web traffic is largely casual and referral-driven, while app usage reflects intentional, higher-engagement behavior. ## B. Paywall Testing * **Monetization Progress:** Paywall tests show **positive early traction in select markets**, prompting phased expansion despite challenges in India’s price-sensitive environment. ## C. Platform Expansion * **Event-Led Engagement Surge:** National events drive elevated news consumption across formats, offering credible platforms a strategic window to deepen trust and boost digital engagement. * **Industry-Wide Re-engagement Push:** Management views this as a pivotal moment for Indian newspapers to revitalize the category through enhanced content, delivery, and reader benefits. * **Google Revenue Goal on Hold:** The target to double Google-related revenue to **$10 million** remains stalled due to the **ongoing CCI sub judice matter** and unresolved revenue-sharing discussions. * **Growth-Phase Investment:** Digital operations are scaling with Board-approved investments, though **no timeline for profitability or breakeven** has been provided. --- # 6. Risks & Market Factors ## A. Advertising Volatility * **Preference for Market Growth Over Market Share:** Management emphasizes the importance of a competitive newspaper landscape focused on expanding overall readership rather than zero-sum competition. * **Ad Yield Pressure Persists:** Despite proactive efforts, advertising yields show no meaningful year-on-year improvement amid a difficult demand environment. ## B. Newsprint Pricing * **Near-Term Price Stability Secured:** Q2 newsprint costs are locked in through forward contracts, with no anticipated changes, providing short-term margin visibility. * **Q3 Uncertainty Ahead:** Newsprint pricing beyond Q2 remains unclear and will depend on evolving market conditions, posing a potential cost risk. --- # 7. Guidance & Outlook ## A. Growth Expectations * **Resilient Advertising Momentum:** Advertising revenue momentum remains strong post-election normalization, indicating sustainable demand trends. * **Recovery in Government Billing:** Negative impact from government billing expected to ease, with renewed growth anticipated from Q2 onward. * **Macro Optimism:** Management expresses strong confidence in India’s growth trajectory, viewing company prospects as aligned with broader economic and sectoral expansion. ## B. Dividend Policy * **Consistent Capital Return:** Company reaffirms commitment to high dividend payouts, declaring **INR 5/- interim dividend** in line with long-standing policy.