# 1. Financial Performance ## A. Key Figures * **Consolidated Revenue:** **₹499 Cr** Q2 FY26 (+4% YoY) · **₹451 Cr** Q1 FY26 (+11% QoQ) * **EBITDA:** **₹44 Cr** Q2 FY26 (+33% YoY) * **EBITDA Margin:** **9%** Q2 FY26 (+200 bps YoY) * **Net Cash Position:** **₹947 Cr** Q2 FY26 (vs. ₹976 Cr prior quarter) ## B. Revenue Growth * **Solid Top-Line Momentum:** Revenue growth accelerated sequentially, reflecting strong demand and operational execution across businesses. * **Print Business Strength:** Print segment delivered both annual and sequential revenue growth, with **cost optimization driving margin expansion**. ## C. Profit & Cash Flow * **Profitability Pressure:** PAT margin remains near break-even at **-1%**, despite significant EBITDA expansion. * **Non-Recurring Cost Impact:** Sequential decline in employee expenses driven by **reversal of variable salary provisions** in Q2, making period non-comparable. * **Strong Liquidity:** Company maintains a robust net cash position over **₹940 Cr**, fully self-sustained without leverage. --- # 2. Print Business & Ads ## A. Key Figures * **English Print Revenue:** **₹154 Cr** (+8% YoY, +10% QoQ) * **Hindi Print Revenue:** **+13% YoY** · **+7% QoQ** * **Ad Revenue Growth:** **+9% QoQ** * **Circulation Revenue (English):** **-15% YoY** · **+20% QoQ** ## B. Ad Revenue Trends * **Broad-Based Ad Strength:** Double-digit ad growth driven by **early festive demand** and expansion across all commercial categories in both English and Hindi publications. * **Volume and Pricing Momentum:** Management confirms **both volume and pricing are contributing** to ad revenue growth, signaling healthy demand dynamics. * **Near-Term Headwinds Ahead:** Hindi Print’s current ad growth includes temporary tailwinds from **Bihar elections**, which will reverse next quarter due to election code restrictions. ## C. Circulation Volume & Pricing * **Strategic Circulation Expansion:** Print circulation volumes growing YoY and sequentially across English and language publications, supported by **targeted market-by-market scaling** and short-term pricing incentives. * **Revenue Volatility from Small Absolute Shifts:** Minor fluctuations in English circulation revenue (around **₹2 Cr**) create large percentage swings due to smaller revenue base, limiting YoY comparability. * **Copy Mix Influences Revenue:** Revenue trends are affected by the balance between cover price sales, subscriptions, and promotional gifting, with no disclosure of exact growth rates for competitive reasons. ## D. English vs Hindi Performance * **Hindi Outperforms in Growth:** Hindi Print delivers stronger top-line momentum (13% YoY) versus English (8% YoY), with added support from **Government segment demand**. * **Profitability Drivers Under Review:** Roughly **half of Hindi Print’s margin improvement** is believed to be structural, though confirmation awaits post-election performance. --- # 3. Digital & OTT Progress ## A. Key Figures * Digital Segment Loss: ₹30 Cr (up from ₹21.7 Cr) ## B. OTTplay Subscribers & CAC * **CAC Improvement:** Significant reduction in subscriber acquisition costs observed in September, supporting better long-term unit economics amid strong subscriber growth and renewals. * **Strong Engagement:** OTTplay’s performance metrics, including renewal rates and subscription base, described as exceptionally strong, signaling product-market fit. ## C. Revenue & Loss Trends * **Growth-Driven Losses:** Digital revenue shows consistent growth, but near-term margin pressure persists due to unexpected cost escalations from rapid OTT scale-up. * **Expense Consolidation:** OTTplay-related investments are fully consolidated under HMVL (75% owned by HT Media), driving higher reported losses despite favorable underlying trends. ## D. Path to Profitability * **Near-Term Timing Lag:** Temporary loss spike due to timing mismatch between cost incurrence and revenue recognition; improvement expected in coming quarters. * **Profitability Outlook:** Digital business on track to become profitable in the coming years, with OTTplay’s subscription growth—bolstered by events like cricket—providing a scalable foundation. --- # 4. Segment & Segment EBITDA ## A. Key Figures * **Radio Revenue:** ₹32 Cr (-YoY) (+4% QoQ) * **Radio Operating EBITDA:** **-₹4 Cr** (+43% QoQ) * **Digital Segment Revenue:** +10% YoY (+8% QoQ) * **Digital Operating EBITDA:** **-₹30 Cr** ## B. Radio Business Performance * **Stabilization Underway:** Radio segment shows clear signs of stabilization with sequential revenue and EBITDA improvement despite structural industry headwinds. * **Profitability Recovery:** EBITDA loss narrowed significantly on a sequential basis, reflecting **operational improvements** and cost discipline. * **Strategic Refocus:** Management is actively enhancing product offerings to reinvigorate the core radio business amid evolving consumer trends. ## C. Cost Optimization Impact * **Digital Segment Trends:** OTTplay-driven digital revenues grew steadily year-on-year and quarter-on-quarter, though EBITDA remains under pressure. * **Cost Pressures Emerge:** **Digicontent** reported a sharp **40% increase in other expenses**, while **HMVL** saw a **15–16% rise**, signaling potential margin headwinds; context remains limited. --- # 5. Supply & Input Costs ## A. Newsprint Price Trends * **Prices at Cyclical Lows:** Newsprint prices in dollar terms are in the **lowest quartile** of the commodity cycle, reflecting subdued global levels. * **Stabilization Underway:** Domestic rupee-based prices have **bottomed out** and are expected to rise gradually, per RISI estimates, signaling end of downward pressure. * **No Sharp Inflation Expected:** Forward-looking price increases for domestic inventory are projected to be **gradual, not sharp**, limiting near-term cost risks. ## B. Inventory & Forward Buying * **Sufficient Stockpiles:** Current inventory levels are adequate, providing buffer against near-term price fluctuations. * **Forward Buying Under Review:** Company is actively **in discussions with suppliers** on forward purchase opportunities amid stabilizing prices. --- # 6. Risks & Media Challenges ## A. Key Figures * Impairment: **₹37.76 Cr** total (90% linked to Radio business) ## B. Radio Business Viability * **Substantial Impairment:** Majority of the impairment tied to Radio segment due to **unrecoverable inter-company loans** and poor operational performance. * **Mandatory Trigger:** Impairment recognized following required testing at September balance sheet date, confirming non-recoverability. ## C. Digital Investment Losses * **Minor Digital Write-down:** Mosaic Digital recorded a minor impairment due to **valuation shortfall relative to capital invested**. --- # 7. Guidance & Outlook ## A. Revenue Momentum * **Strategic Pivot to Digital:** Company advancing targeted digital content initiatives while reinforcing core Print value and evolving Radio into integrated, immersive audience formats. * **Confident Forward Outlook:** Management expresses confidence in sustaining strong financial performance, with expectations to repeat results in the upcoming quarter.