Hindustan Media Ventures Limited has announced the strategic closure of its OTTplay business operations, marking a significant shift in the company's digital entertainment portfolio. The Board of Directors reached this decision on March 26, 2026, following an assessment of the business unit's long-term viability and profitability prospects.

Business Closure Timeline and Impact

The company will discontinue offering new OTTplay subscription packs from March 31, 2026. However, existing subscribers will continue to receive platform support, ensuring service continuity for current users. This phased approach demonstrates the company's commitment to honoring existing customer relationships while strategically exiting the business.

Financial Performance Analysis

The OTTplay business unit's financial metrics for FY25 reveal the challenges that led to this closure decision:

Despite generating substantial revenue, the OTTplay division maintained a negative net worth of Rs. 38.09 crore, indicating ongoing operational challenges and capital requirements that could not be sustained long-term.

Strategic Rationale

The primary reason cited for the closure centers on profitability timelines. According to the company's assessment, the expected timeline for achieving sustainable long-term profitability does not meet the required criteria established by management. This decision reflects a strategic focus on optimizing resource allocation toward more viable business segments.

Regulatory Compliance

Hindustan Media Ventures has fulfilled all regulatory disclosure requirements under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also updated its website with relevant information and submitted comprehensive details to both BSE Limited and National Stock Exchange of India Limited.

Market Position

While the OTTplay closure represents a retreat from the digital streaming market, the company's overall financial position remains strong with a positive net worth of Rs. 1611.49 crore for FY25. The 8% revenue contribution from OTTplay, while significant, allows the company to maintain operational stability through its core media and publishing businesses.

Hindustan Media Ventures Limited has announced a strategic investment agreement worth Rs. 9.34 Crore in KSKT Agromart Private Limited, marking the company's entry into the organic grocery and dairy marketplace sector. The agreement was executed on March 20, 2026, at 6:00 p.m., as disclosed under Regulation 30 of SEBI LODR regulations.

Investment Structure and Details

The investment will be made through subscription to equity shares and convertible equity linked instruments, specifically compulsory convertible preference shares of KSKT Agromart Private Limited. The transaction is structured as a cash consideration deal, with completion targeted for April 2026.

Target Company Profile

KSKT Agromart Private Limited, incorporated on October 16, 2020, in Mumbai, operates the "Kaze Living" platform, which serves as a marketplace for healthier food alternatives in the organic grocery and dairy segment. The company has demonstrated substantial growth trajectory over the past three years.

Financial Performance Overview

The target company's turnover has shown remarkable growth, increasing from Rs. 1.17 Crore in FY 2022-23 to Rs. 12.99 Crore in FY 2024-25, representing significant business expansion in the organic food marketplace sector.

Strategic Rationale

The investment is being made in the fast-growing target company with the primary objective of generating capital returns in the future. Hindustan Media Ventures Limited aims to leverage its existing media assets to support this investment strategy. The transaction does not fall under related party transactions, and no promoter or group companies have any interest in the entity being acquired.

Shareholding and Control

The percentage of shareholding and control to be acquired will be determined at the time of conversion of the convertible equity linked instruments. This structure provides flexibility in the investment approach while allowing for potential future participation in the company's growth.