HT Media margin slips as costs outpace revenue growth
Consolidated net profit fell -17.40% qoq after the tax rate rose 12.28 percentage points; other income was 110.56% of pre-tax profit.
Filed 05 Nov 2026, 12:53 IST · H T Media Ltd (HTMEDIA)
Key takeaways
- Consolidated operating margin narrowed by 0.71 percentage points qoq to 6.22% as expenses grew +1.75%, faster than revenue at +0.98%.
- Net profit fell -17.40% qoq to Rs 35.94 cr as the tax rate rose 12.28 percentage points to 27.53%.
- Other income equalled 110.56% of pre-tax profit, while operating margin was 5.53 percentage points below the 230-peer sector median.
Price around the results
Q2FY27 profit weakened despite modest revenue growth
H T Media's consolidated revenue rose +0.98% qoq to Rs 441.59 cr, but operating profit fell -9.37% to Rs 27.46 cr as costs increased faster. Pre-tax profit declined -3.92% to Rs 54.38 cr, while net profit fell -17.40% to Rs 35.94 cr. EPS consequently dropped -24.63% qoq to Rs 1.01.
Higher costs narrowed the operating margin
Expenses grew +1.75% qoq against revenue growth of +0.98%, reducing operating margin by 0.71 percentage points to 6.22%. Interest expense fell -8.35% and depreciation declined -0.46%, but this was not enough to offset the operating cost pressure. The tax rate rose 12.28 percentage points to 27.53%, adding to the decline in net profit.
Other income remains central to reported profit
Other income of Rs 60.12 cr represented 110.56% of pre-tax profit, showing that reported profit was not driven by operating earnings alone. Operating margin also fell from 6.93% in Q1FY27 to 6.22% in Q2FY27. Among 230 Consumer Discretionary peers that have reported, the company's margin was 5.53 percentage points below the 11.75% median.
Print supported the quarter as radio and digital improved
Management said print advertising revenue grew year-on-year across both English and Hindi titles, keeping print at the centre of the quarter's performance. The company said its radio network rationalisation helped establish a more sustainable operating base, while the radio segment returned to positive EBITDA. Management also said digital became profitable despite lower revenue and that the business remains focused on a leaner portfolio and quality of earnings.
Management flags newsprint and currency pressure
Management said higher newsprint costs and rupee depreciation amid global uncertainty pressured margins. The company said it remains focused on strengthening its core businesses and maintaining financial discipline in the festive quarter. Management identified newsprint costs and rupee depreciation as important considerations for the coming quarters.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹442 cr | ₹437 cr | +0.98% |
| Other income | ₹60 cr | ₹61 cr | -1.18% |
| Expenses | ₹414 cr | ₹407 cr | +1.75% |
| Operating profit | ₹27 cr | ₹30 cr | -9.37% |
| Operating margin (%) | 6.22% | 6.93% | — |
| Interest | ₹14 cr | ₹15 cr | -8.35% |
| Depreciation | ₹19 cr | ₹20 cr | -0.46% |
| Profit before tax | ₹54 cr | ₹57 cr | -3.92% |
| Tax | ₹15 cr | ₹9 cr | +73.46% |
| Net profit | ₹36 cr | ₹44 cr | -17.40% |
| EPS (₹) | ₹1.01 | ₹1.34 | -24.63% |
Operating margin of 6.22% compares with a Consumer Discretionary sector median of 11.75% across 230 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Print advertising revenue grew year-on-year across both English and Hindi titles.
- The radio segment returned to positive EBITDA in the quarter.
- The digital segment turned profitable despite lower revenue.
Guidance & outlook
- The company remains focused on strengthening its core businesses and maintaining financial discipline in the festive quarter.
- Higher newsprint costs and rupee depreciation remain important considerations for the coming quarters.
New initiatives
- The company rationalised its radio station network to strengthen profitability and establish a more sustainable operating base.
- Digital operations are focused on a leaner portfolio, quality of earnings and sustainable profitable growth.
Problems & risks
- Higher newsprint costs and rupee depreciation amid global uncertainty pressured margins.
- Radio revenue declined after the overall station network was streamlined.
- Digital revenue declined year-on-year during the quarter.
What to watch
- Whether consolidated operating margin holds above 6.22% after the qoq decline.
- Whether the tax rate moves back from 27.53% toward the Q1FY27 level of 15.25%.
- Whether other income's 110.56% share of pre-tax profit reduces as operating earnings develop.