GTPL Hathway Q1 FY27 Results (NSE: GTPL)
Signal: Margin pressure
The read
Revenue crossed ₹1,000 Cr run-rate but the trajectory is troubling: PAT collapsed to ₹2.32 Cr (-78% YoY) as depreciation soared (₹96.74 Cr, +72% YoY) from broadband capex maturing, leaving EBIT at just ₹12.42 Cr. EBITDA margin contracted 170bps YoY to 10.7%, marking the 5th consecutive quarter of YoY compression (from Q2FY25 to Q1FY27). Operating EBITDA margin (22%) held flat YoY, suggesting the headline margin erosion is partly from activation cost changes; still, the core telecom business is barely profitable with other income at 155% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹101.99 Cr | 12.4% | -72.7% |
| EBIT | ₹1.24 Cr | -40.5% | |
| Net profit | ₹0.23 Cr | -78.0% | |
| EPS | ₹0.21 | -77.7% | |
| EBIT margin | 10.8% |
P&L walk
Revenue crossed ₹1,019.89 Cr (+12% YoY), boosted by a 5% Broadband revenue rise and stable Digital TV subscriptions; EBITDA margin contracted 170bps YoY to 10.7%, despite 100bps QoQ improvement; operating EBITDA margin held at 22% YoY; depreciation more than doubled from ₹56.37 Cr to ₹96.74 Cr, crushing EBIT to ₹12.42 Cr; PAT of ₹2.32 Cr was 78% lower YoY, and earnings quality flagged as other income (₹4.49 Cr) was 155% of PBT (₹2.89 Cr), covering a near-zero operating profit.
Key positives
- Broadband revenue grew 4.9% YoY to ₹1,425 Mn, and ARPU increased ₹5 YoY to ₹470/month.
- Operating EBITDA margin held flat at 22% YoY, indicating opex control in core subscription business.
- QoQ EBITDA margin improved 100bps (9.7% → 10.7%), a sequential recovery from Q4's depressed base.
- Digital TV active subscribers stable at 9.60 Mn, with ACT acquisition (6 lakh subs) expected to close by Sep 2026.
Key concerns
- PAT collapsed 78% YoY to ₹2.32 Cr, and is now -78% lower than the ₹10.83 Cr reported in Q4FY25; EPS fell to ₹0.21.
- EBITDA margin contracted 170bps YoY to 10.7%, the 5th consecutive quarter of YoY compression.
- Depreciation surged to ₹96.74 Cr (implied +72% YoY), killing operating profit — EBIT margin was just 1.2% of revenue.
- Other income (₹4.49 Cr) was 155% of PBT, flattering an otherwise near-loss-making quarter.
Earnings quality: includes non-operating other income
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