D B Corp Ltd Q3 FY2026 Concall Summary

Key Takeaways

• High base masks stable demand: Revenue declined against a tough Q3 FY25 that captured both festive and election spending; excluding those one-offs, print advertising grew 6% and circulation volumes held flat.
• Print margin resilience: The print business expanded EBITDA margin 100 bps QoQ to 29% through cost control, even as the top line faced pressure from a reduced government ad mix.
• Government policy tailwinds are building: A 26% hike in government print ad rates is now flowing through, and two large states have mandated newspaper reading in schools, with more expected to follow.
• Digital and radio are investment-phase stories: The digital business is burning cash to acquire readers with monetization still some time away, while 14 new radio stations will launch over the next two quarters and need 2–3 years to mature.
• What to watch next quarter: The actual revenue impact of the government ad rate hike, progress on other states adopting the newspaper-in-schools mandate, and any recovery in automobile advertising.

Print Advertising: The Mix Shift Story

• High base distorts headline growth: Q3 FY25 included festive spending (Navratra shifted into Q2 this year) and state election advertising that was entirely absent this quarter, making year-on-year comparisons misleading.
• Underlying growth is volume-led: Excluding elections and government revenue, print advertising grew 6%, with 80–90% of that growth coming from volume rather than yield improvement.
• Government share fell sharply: Government advertising dropped from 24% to 17% of the mix, which management said "took out the steam of the whole system" even as private-sector categories performed.
• Category recovery bets: Management is looking for growth from automobile, real estate, healthcare, banking and finance, and education; real estate slowed after Diwali, while auto (currently ~10% of revenue) is expected to pick up as companies begin spending again.
• Rate hike now live: The government approved a 26% increase in print ad rates, already implemented by certain states, with the actual impact expected to be visible from this quarter itself.

Girish Agarwal: "So first of all, a very big thanks to Government of India and all the state government to finally agree to give us some benefit, considering the growth in the newsprint cost and other expenses."

Circulation: Decline Halted

• Volumes stabilized: Management stated that after sustained effort, the circulation decline has been stopped; the 9-month number shows no decline, and December circulation was around 40 lakh copies.
• Strategy is volume-only: The company is focused solely on circulation numbers, not on raising cover prices or circulation yield, prioritizing reach retention over near-term revenue from readers.

Girish Agarwal: "I would look at it slightly different that with all the effort we have done, we've been able to stop the decline. If you look at the 9-month number, there is no decline in the circulation."

Cost & Margin Management

• Cost discipline delivered margin expansion: Total cost declined 1.3% QoQ, and the print business EBITDA margin expanded 100 bps QoQ to 29% despite the revenue headwind.
• Consolidated margin at 25%: On an apple-to-apple comparison, consolidated EBITDA margin stood at 25%, supported by operating efficiencies.
• Newsprint costs benign but watchful: Newsprint prices were flat QoQ and down 2% YoY; management expects a minor increase of a couple of percentage points in Q4 and Q1/Q2 FY27 due to geopolitical factors, exchange rate fluctuations and sea freight.
• Asset ownership to reduce rental costs: The company is purchasing land where it already operates offices and printing centers on rent, aiming to eliminate those rental expenses going forward.

Government Mandates: A Structural Tailwind

• Newspaper-in-schools mandate: Uttar Pradesh and Rajasthan governments have made newspaper reading compulsory in schools, a move management called "very encouraging."
• More states expected: The company is actively following up and is hopeful that Madhya Pradesh, Chhattisgarh, Gujarat and other states will adopt similar mandates in the coming weeks and months.
• Implementation timeline: The Rajasthan mandate will take at least a quarter to implement because the budget must flow from finance to education departments to individual school boards.
• UP election in January: The Uttar Pradesh state election is scheduled for January next year, which should provide an advertising tailwind in that period.

Girish Agarwal: "Yes, this is a very encouraging move by the State Government. And Uttar Pradesh and Rajasthan has done it. As we are following up with the other governments, we are hopeful that Madhya Pradesh, Chhattisgarh, Gujarat and other states will follow suite in the next couple of weeks and months."

Digital & Radio: Investment Phase

• Digital is a reader-acquisition play: Investment in digital is directed at acquiring readers; most currently read for free, so meaningful digital revenue is still some time away and the business is running a burn rate.
• Digital profitability path: Once revenue begins to flow, digital should become EBITDA positive; management characterized the effort as playing out over a couple of years.
• English and regional apps nascent: The Bhaskar English app completed one year with consumer feedback described as decent but numbers still very nascent; the Uttarakhand app launch has seen initial encouragement. Both are targeted at existing markets, not new geographies like South India.
• 14 new radio stations launching: Seven stand-alone stations are expected to start by March or end of April, with the remaining seven by the first quarter of the next financial year (by June).
• Radio margins will start low: First-year margins for new stations will not reach the 30–40% level of mature stations; management expects it will take at least 2–3 years to reach that margin profile.
• Radio needs news to grow: Management believes the radio business cannot grow if it only does songs and music, and that the government needs to revisit the regulatory framework to eventually allow news on radio.

Girish Agarwal: "Having said that, I strongly believe government need to relook at this radio business. Because if radio continues to do only song and music, I don't think radio will be able to grow. What it was given us to understand 10 years back, 15 years back also that eventually radio will get into the news also."

Market & Competitive Position

• 14 states, deep penetration opportunity: Management views the 14 states where it operates (covering almost 50% of India) as a large enough market to penetrate further, with no plans to enter entirely new geographies like South India for the English app.
• Corporate sales continuity: The appointment of a corporate sales head in South India was a replacement hire, 100% focused on print with some digital responsibilities.
• No newsprint acquisition planned: Responding to a market rumor, management stated it is not aware of any acquisition of a large newsprint manufacturing company and is content with its contractual supply arrangements.

Guidance & Commitments

Key Metrics