Hathway Cable Q1 FY27 Results (NSE: HATHWAY)
Signal: Margin pressure
The read
Revenue grew modestly but profitability declined sharply due to rising pay channel costs and cable TV losses; broadband turned positive but overall EBITDA margin compressed ~318bps to 13.3%; net profit down 21% YoY. The DOT contingency remains unresolved.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹565.1 Cr | 6.52% | 3.53% |
| EBIT | ₹32.14 Cr | -11.41% | |
| Net profit | ₹24.56 Cr | -20.85% | |
| EPS | ₹0.14 | -22.22% | |
| EBIT margin | 13.34% |
P&L walk
Revenue growth of 6.5% was outpaced by a sharp 18.8% rise in pay channel costs, compressing gross margin ~580bps. EBITDA margin fell ~318bps as cost growth outpaced revenue despite lower depreciation and employee costs. Other income remained steady. PAT dropped 21% YoY, driven by the margin erosion and lower share of JV/associate profit.
Segments
Cable TV revenue grew 12% YoY but segment PBIT loss widened to -₹16.75 Cr (from -₹16.45 Cr); Broadband turned profitable (₹0.64 Cr vs -₹0.75 Cr) but revenue declined; Dealing in securities saw lower revenue and profit.
Key positives
- Broadband business turned profitable at PBIT of ₹0.64 Cr vs loss of ₹0.75 Cr a year ago, a turnaround.
- Consolidated revenue grew 6.5% YoY driven by 12% growth in Cable TV to ₹405.51 Cr.
- Depreciation declined 11% YoY to ₹75.38 Cr, aiding EBITDA.
Key concerns
- Pay channel cost as % of revenue rose to 56.5% from 50.7% a year ago, compressing gross margin by ~580bps.
- Cable TV business loss widened to ₹18.59 Cr (after JV share) from ₹17.59 Cr, despite higher revenue.
- Net profit declined 21% YoY to ₹24.56 Cr, even as revenue grew.
- Other income fell 4% YoY and share of JV/associate slumped 87.5%.
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