HATHWAY - Hathway Cable

📊 NSE: HATHWAY 🏢 Telecommunications - Service Provider 📅 Last Updated: 12/13/2025 22:49

💰 Financial Performance

Revenue Growth by Segment

Broadband Business revenue was INR 294.12 Cr in H1 FY26, down 2.86% YoY. Cable Television Business revenue was INR 740.67 Cr in H1 FY26, up 8.89% YoY. Dealing in Securities revenue was INR 32.38 Cr in H1 FY26, down 0.12% YoY.

Geographic Revenue Split

Not disclosed in available documents, though the company operates in 700+ cities and towns across India.

Profitability Margins

Operating Profit Margin was 17% (0.17) for FY25, compared to 16% (0.16) in FY24. Net Profit Ratio was 5% (0.05) for FY25.

EBITDA Margin

EBITDA margin was 21% as of Q2 FY23, with EBITDA at INR 101.1 Cr. Consolidated Profit Before Tax for H1 FY26 was INR 66.49 Cr, up 2.0% YoY from INR 65.17 Cr.

Capital Expenditure

Not disclosed in absolute INR Cr, but the company connected over 250 new locations with IP links to expand infrastructure for market share gains.

⚙️ Operational Drivers

Raw Materials

Bandwidth, Set Top Boxes (STBs), and Fiber Optic Cables are the primary operational inputs.

Capacity Expansion

Current infrastructure includes 5.6 million STBs. Expansion includes connecting 250+ new locations with IP links to enhance reach.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company is shifting to MPEG-4/HEVC STBs and DOCSIS 3.1/GPON networks to manage technology costs.

Manufacturing Efficiency

Achieved 96% online collection efficiency through the Hathway Connect portal, reducing manual intervention and improving cash flow cycles.

Logistics & Distribution

Distribution is managed through a network of LCOs across 700+ cities and towns.

📈 Strategic Growth

Expected Growth Rate

5.10%

Growth Strategy

Growth will be achieved by offering OTT and broadband bundles to existing cable customers, upgrading to high-efficiency MPEG-4/HEVC STBs, and expanding the GPON network. The company is also leveraging its Hathway Connect portal to onboard LCOs faster and gain a first-mover advantage in new geographies.

Products & Services

Broadband internet services, Cable TV subscriptions, OTT (Over-The-Top) service bundles, and Set Top Boxes.

Brand Portfolio

Hathway, Hathway Connect.

New Products/Services

Integrated OTT services for existing cable customers and high-speed broadband via DOCSIS 3.1/GPON networks.

Market Expansion

Targeting growth in 700+ existing cities and towns by enhancing infrastructure in 250+ new locations.

Market Share & Ranking

Maintains a base of 5.6 million STBs; specific industry ranking not disclosed.

Strategic Alliances

Sold entire equity stake in three subsidiaries (Hathway Nashik, Chennai Cable Vision, and others) to Infomedia and Networking Private Limited (INPL) for INR 40.

🌍 External Factors

Industry Trends

The industry is seeing a convergence of broadband and cable services with a rapid shift toward OTT. Hathway is positioning itself by upgrading to HEVC technology to handle higher data demand.

Competitive Landscape

Characterized by low entry barriers and multiple players across geographies, leading to intense price competition.

Competitive Moat

Moat is built on an extensive last-mile infrastructure and a digitized LCO management system (Hathway Connect) that handles 96% of collections, creating high switching costs for operators.

Macro Economic Sensitivity

Global growth is projected at 3.3% for 2025, which may impact consumer discretionary spending on media and internet services.

Consumer Behavior

Shift toward on-demand OTT content and high-speed fiber broadband is driving the need for GPON network upgrades.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically Regulation 33 for financial reporting and Regulation 34 for corporate governance.

Taxation Policy Impact

Income tax refunds of INR 5.81 Cr were received in H1 FY25; current tax rate not specified.

Legal Contingencies

The company stated that no provision is necessary for a specific pending matter mentioned in the financial notes, though the INR value was not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Awareness risk: Delays in onboarding LCOs to new initiatives could negate first-mover advantages. Technology risk: Rapid evolution may lead to the obsolescence of existing STB assets.