GTPL Hathway targets double-digit revenue growth, EBITDA margin up to 26%
- Net loss widens to ₹3.55 crore in Q2FY27 despite 19% revenue growth
- Expects double-digit subscription revenue growth for Digital TV and Broadband
- Operational EBITDA margin projected to rise by 150-250 bps by FY27 end
- Targets 13-14 million Digital TV subscribers in three years
- Broadband subscriber base targeted at 1.2 million with 7-8% annual growth
*this image is generated using AI for illustrative purposes only.
GTPL Hathway reported a consolidated net loss of ₹3.55 crore (₹35.48 million) for Q2FY27, swinging from a profit of ₹7.40 crore (₹73.97 million) in the corresponding period last year.
The cable and broadband operator saw its consolidated bottom line deteriorate significantly despite robust top-line growth. Revenue from operations rose 19% YoY to ₹1,143 crore (₹11,430.55 million), driven by expansion in the Cable TV segment which contributed ₹983 crore.
Financial performance
The standalone entity also recorded a net loss of ₹1.35 crore (₹13.47 million) compared to a profit of ₹5.25 crore (₹52.49 million) in Q2FY26. Consolidated EBITDA stood at ₹107 crore (₹1,070 million), reflecting the same marginal increase noted in prior estimates, but the margin compressed to 9.35% from 10.87% YoY due to higher operating expenses.
| Metric | Q2FY27 | Q2FY26 | Change |
|---|---|---|---|
| Revenue | ₹1,143 crore | ₹959 crore | +19% |
| EBITDA | ₹107 crore | ₹104 crore | +3% |
| EBITDA Margin | 9.35% | 10.87% | Down |
| Net Profit/Loss | Loss ₹3.55 crore | Profit ₹7.40 crore | Swing |
Strategic acquisitions and corporate actions
In a move to consolidate operations, the Board approved the acquisition of the balance 74% equity stake in its subsidiary, DL GTPL Cabinet Private Limited, for ₹8.33 crore (₹8,32,50,000). This transaction, executed at ₹937.50 per share, will make DL GTPL a wholly owned subsidiary. The acquisition is expected to be completed by October 31, 2026.
Additionally, during the quarter, the company completed the acquisition of the Cable Television Business from entities belonging to the ACT Group for ₹35.55 crore (₹355.54 million), effective July 1, 2026. This acquisition was accounted for using the acquisition method under Ind AS 103.
Growth outlook and operational targets
GTPL Hathway expects subscription revenue to grow in double digits for Digital TV and Broadband segments. The company anticipates its operational EBITDA margin will rise by 150 to 250 basis points by the end of FY27, up from 21% in H1FY27. Post full integration, EBITDA margins are projected to expand from 12% to 25-26%.
Key subscriber targets include:
- Digital TV: Growth of 1.8 million to 1.9 million subscribers for FY27, aiming for 13 million to 14 million subscribers in three years.
- Broadband: Plans to reach 1.2 million subscribers with 7% to 8% annual growth.
What the numbers show
A divergence is visible between top-line expansion and bottom-line health. While revenue grew significantly by 19%, the absolute EBITDA increase was minimal at just 3%, leading to notable margin compression. This suggests that operating costs rose at a faster pace than revenues, eroding incremental gains. Furthermore, trade receivables surged to ₹1,404 crore (₹14,043.58 million) from ₹545 crore (₹5,454.73 million) as on March 31, 2026, indicating significant working capital pressure alongside the swing to losses.
The company also disclosed contingent liabilities related to Department of Telecommunications (DoT) demands totaling ₹975 crore (₹9,754.15 million) regarding license fees, which remain unprovisioned based on legal assessments.
Historical Stock Returns for GTPL Hathway
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.32% | +3.52% | -3.21% | -16.74% | -46.97% | -80.22% |
How will the surge in trade receivables to ₹1,404 crore impact GTPL Hathway's liquidity and ability to fund its aggressive subscriber acquisition targets?
What specific cost synergies are required to achieve the projected EBITDA margin expansion from 12% to 25-26% post-integration of the ACT Group assets?
What is the potential financial exposure if the unprovisioned ₹975 crore DoT license fee demands are ruled against the company in future legal proceedings?
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