Hathway Cable Q2 FY27 Results (NSE: HATHWAY)
Signal: Margin pressure
The read
The earnings inflection remains negative: consolidated revenue grew 5.7% YoY to ₹567.51 Cr, but the calculated EBITDA margin fell 280bps to 15.8% and PAT fell 44.3% to ₹10.16 Cr; this is the third consecutive quarter of YoY margin contraction after Q4FY26, Q1FY27 and Q2FY27, with pay-channel costs rising 20.0% versus revenue growth of 5.7%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹567.51 Cr | +5.7% | +0.4% |
| EBIT | ₹15.96 Cr | -31.4% | |
| Net profit | ₹10.16 Cr | -44.3% | |
| EPS | ₹0.06 | -40.0% | |
| EBIT margin | 15.8% |
P&L walk
Revenue increased 5.7% YoY to ₹567.51 Cr, but pay-channel cost rose 20.0% to ₹335.91 Cr and consolidated PAT declined 44.3% to ₹10.16 Cr; the calculated EBITDA margin fell to 15.8% from 18.6%.
Segments
Cable Television was the main drag, reporting a ₹29.44 Cr segment loss on ₹409.56 Cr revenue, while Dealing in Securities generated ₹15.24 Cr of segment result and Broadband reported a smaller ₹1.84 Cr loss; standalone PAT of ₹20.71 Cr was more than double consolidated PAT of ₹10.16 Cr because subsidiaries, JVs and associate results reduced group earnings.
Key positives
- Revenue increased 5.7% YoY to ₹567.51 Cr and 0.4% QoQ, maintaining growth despite the margin decline.
- Other operational expenses declined 9.1% YoY to ₹80.56 Cr, while employee cost rose only 4.4% YoY to ₹21.54 Cr.
- Operating cash flow was ₹119.58 Cr in H1FY27 versus ₹120.41 Cr in H1FY26, providing support despite lower reported profit.
- The Dealing in Securities segment generated ₹15.24 Cr of result on ₹15.24 Cr revenue, offsetting part of the Broadband and Cable Television losses.
Key concerns
- Pay-channel cost increased 20.0% YoY to ₹335.91 Cr, reaching 59.2% of revenue versus 52.2% a year earlier; the filing does not disclose a volume or pricing offset.
- Calculated EBITDA margin compressed 280bps YoY to 15.8% and 330bps QoQ, while PAT declined 44.3% YoY to ₹10.16 Cr.
- Cable Television reported a ₹29.44 Cr segment loss and Broadband reported a ₹1.84 Cr loss, leaving consolidated earnings dependent on securities-related results and other income.
- Trade receivables rose to ₹512.66 Cr from ₹253.27 Cr at March 31, 2026, despite H1 operating cash flow remaining broadly flat.
Research and educational content only. Not investment advice.