HMVL - Hindustan Media

📊 NSE: HMVL 🏢 Entertainment / Electronic Media Software 📅 Last Updated: 12/13/2025 23:03

💰 Financial Performance

Revenue Growth by Segment

Print (Hindi) operating revenue grew 14% YoY to INR 197 Cr in Q2 FY26 from INR 172 Cr. Digital business revenue is scaling with consistent growth, though specific segment percentages were not disclosed. Total revenue for H1 FY26 reached INR 379.86 Cr, a 13.7% increase from INR 334.17 Cr in H1 FY25.

Geographic Revenue Split

Primary focus is on Hindi-speaking markets, specifically targeting incremental revenue in Tier 2 and Tier 3 cities. Regional markets are showing early signs of rising advertising rates, though specific % split by state is not disclosed.

Profitability Margins

Operating EBITDA margin for the Print segment improved to 11% in Q2 FY26 from 6% in Q2 FY25. However, HMVL's consolidated PAT margin declined to 4% in Q2 FY26 from 7% YoY, and consolidated EBITDA margin dropped to 8% from 10% YoY due to higher digital investments.

EBITDA Margin

Consolidated EBITDA was INR 18 Cr in Q2 FY26, a 15% YoY decrease from INR 22 Cr. The margin contraction from 10% to 8% is attributed to suppressed margins in the Digital segment as the company scales OTTplay.

Capital Expenditure

HMVL plans to replace and overhaul old equipment and machinery to drive efficiency. While specific INR Cr for future capex is not disclosed, the company maintains a robust net cash position of INR 947 Cr as of Q2 FY26 to fund initiatives.

Credit Rating & Borrowing

HMVL holds an [ICRA]A1+ rating for its INR 250 Cr Commercial Paper program. Borrowing costs include a coupon rate of 6.28% for a specific INR 50 Cr issuance maturing in January 2026.

⚙️ Operational Drivers

Raw Materials

Newsprint and Ink are the primary raw materials. Raw material expenses for Q2 FY26 were INR 56 Cr, representing 28.4% of operating revenue, up 16% YoY from INR 48 Cr.

Import Sources

Sourced from diverse geographic locations including both international (imported) and domestic vendors to mitigate geopolitical supply chain disruptions.

Key Suppliers

Not specifically named, but the company utilizes a 'dual approach' involving both international and domestic suppliers with a focus on vendor diversification.

Capacity Expansion

Current capacity not disclosed in MT; however, the company is focused on 'resource efficiency' and overhauling existing machinery rather than just volume expansion.

Raw Material Costs

Raw material costs increased 16% YoY to INR 56 Cr in Q2 FY26. Procurement strategies include spot buying for imported newsprint to capitalize on favorable market pricing and aggressive negotiations with domestic vendors.

Manufacturing Efficiency

Achieved a 7% reduction in hazardous waste and implemented resource efficiency programs for primary inputs like newsprint and ink to reduce downtime.

Logistics & Distribution

Focus on intensifying circulation drives for 'Hindustan' to expand readership and consolidate market share in key regional markets.

📈 Strategic Growth

Expected Growth Rate

13.70%

Growth Strategy

Growth will be achieved through circulation drives for the 'Hindustan' newspaper to capture Tier 2/3 city markets, calibrated pricing actions to optimize ad revenue, and scaling the OTTplay platform through strategic partnerships and bundling arrangements.

Products & Services

Hindi daily newspaper (Hindustan), digital news platforms, and OTT content aggregation services (OTTplay).

Brand Portfolio

Hindustan (Print), OTTplay (Digital), and Radio (segment mentioned under HT Media group).

New Products/Services

OTTplay is the primary new-age digital product. While it suppresses near-term margins, it is expected to drive long-term digital revenue as it reaches product-market fit.

Market Expansion

Targeting Tier 2 and Tier 3 cities in Hindi-speaking markets to capture incremental advertising and circulation revenue.

Market Share & Ranking

Hindustan is a leading Hindi daily; the company aims to consolidate market share through aggressive circulation drives.

Strategic Alliances

OTTplay is pursuing strategic partnerships and bundling arrangements with telecom or internet service providers to broaden audience reach.

🌍 External Factors

Industry Trends

The industry is seeing a digital transformation with news gaining wider acceptance online. HMVL is positioning itself by aligning content with market trends and investing in OTT aggregation to counter the 8.1% operating losses seen in the broader group during FY23.

Competitive Landscape

Faces competition from newer advertising mediums and other regional print players. The group's radio business also faces duress across the industry.

Competitive Moat

Moat is built on a legacy brand (Hindustan) and deep penetration in Hindi-speaking markets. Sustainability depends on successfully transitioning the audience to digital platforms like OTTplay.

Macro Economic Sensitivity

Highly sensitive to inflation in newsprint prices and general economic activity affecting advertising spends by corporates.

Consumer Behavior

Shift toward digital platforms for news and entertainment is a critical risk, prompting the company to prioritize digital product focus.

Geopolitical Risks

Geopolitical conflicts impact the global supply chain for newsprint, leading to price volatility and sourcing uncertainties.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to Audit Bureau of Circulation (ABC) audits and standard media regulations. No specific new restrictive pollution or pricing norms were cited.

Environmental Compliance

Planted ~7,000 trees contributing to a reduction of ~169 metric tons in carbon emissions; achieved 7% reduction in hazardous waste.

Taxation Policy Impact

Effective tax rate is approximately 9.4% based on Q2 FY26 PBT of INR 12.89 Cr and PAT of INR 1.168 Cr (standalone).

Legal Contingencies

No specific pending court case values were disclosed, but the company received zero sexual harassment complaints in FY 2024-25.

⚠️ Risk Analysis

Key Uncertainties

Volatility in newsprint costs and the speed of digital migration are the primary uncertainties, with potential to impact operating margins by several percentage points.