💰 Financial Performance

Revenue Growth by Segment

In Q2FY26, Standalone Operating Revenue reached INR 413.77 Cr, a 10.1% increase from INR 375.76 Cr. Advertisement revenue grew 12.9% to INR 276.15 Cr. Dainik Jagran segment revenue grew 12.3% to INR 299.29 Cr. Digital revenue was INR 20.27 Cr, down 2% from INR 20.69 Cr. Outdoor and Event businesses grew by 27% and 8% respectively in the previous fiscal year.

Geographic Revenue Split

The company maintains a dominant market leadership position in the Hindi belt, covering 13 states including Uttar Pradesh, Uttarakhand, Bihar, Jharkhand, Punjab, Haryana, and the National Capital Region. Specific percentage split per state is not disclosed, but Dainik Jagran accounts for approximately 72% of standalone operating revenue.

Profitability Margins

Standalone Operating Profit for Q2FY26 was INR 70.09 Cr (16.9% margin), up 9.1% from INR 64.25 Cr. PAT for Q2FY26 rose 49.6% to INR 123.70 Cr, aided by INR 31.80 Cr from Keyman policy proceeds. Consolidated Net Profit Margin fell to 4.71% in FY25 from 8.15% in FY24 due to impairment losses in subsidiaries.

EBITDA Margin

Consolidated Operating Profit Margin was 15.41% in FY25, down from 19.05% in FY24. The decline was driven by higher impairment losses on financial assets in the Music Broadcast Ltd (MBL) subsidiary and lower overall revenues.

Capital Expenditure

The company maintains moderate capital expenditure plans, which are comfortably covered by a cash balance of INR 1,083 Cr as of March 31, 2025. Specific INR Cr figures for future capex are not disclosed, but historical debt obligations of INR 175 Cr were met in FY24.

Credit Rating & Borrowing

CRISIL has assigned 'CRISIL AA/Stable' for Jagran Prakashan Ltd and Music Broadcast Ltd, and 'CRISIL AA-/Stable' for Midday Infomedia Ltd. Interest coverage ratio stood at 13.56x (Consolidated) and 17.38x (Standalone) for FY25.

⚙️ Operational Drivers

Raw Materials

Newsprint is the primary raw material, representing a substantial but unspecified percentage of operating costs. Volatility in newsprint prices is cited as a major risk to operating margins.

Import Sources

Not specifically disclosed in the documents, though newsprint is typically sourced both domestically and through imports in the Indian print industry.

Capacity Expansion

The company operates 300+ editions and sub-editions across 10 languages. It has a 13-state print presence and 19 digital media portals. No specific MTPA or unit-based expansion was quantified.

Raw Material Costs

Newsprint price volatility significantly impacted EBITDA margins in FY23. Prudent cost control and operational efficiencies in Q2FY26 contributed to a 16% increase in Dainik Jagran's operating profit to INR 69 Cr.

Manufacturing Efficiency

Operating margin for the core Dainik Jagran business improved to 23.01% in Q2FY26 from 22.38% in Q2FY25, reflecting improved operational efficiency.

Logistics & Distribution

Circulation revenue decreased by 6% in FY25 due to lower circulation volumes, following industry trends. The company is taking initiatives to stabilize circulation in H2 FY26.

📈 Strategic Growth

Expected Growth Rate

10.10%

Growth Strategy

Growth is targeted through the integration of Radio and Digital offerings, expansion of non-Free Commercial Time (non-FCT) segments like events, and leveraging leadership in Tier-2 and Tier-3 cities. The company is also focusing on product enhancement by increasing pages per copy.

Products & Services

Newspapers (Dainik Jagran, Mid-day, Naidunia), Magazines (Sakhi), Radio broadcasting (Radio City), Digital news portals, Outdoor advertising (OOH), and Event management.

Brand Portfolio

Dainik Jagran, Radio City, Mid-day, Inext, Naidunia, Punjabi Jagran, Inquilab, Sakhi, GujaratiJagran.com, Jagran Prime.

New Products/Services

Launched GujaratiJagran.com and Jagran Prime. Digital reach has reached ~65 million users in the News/Information category.

Market Expansion

Focusing on deepening presence in the Hindi belt and growing the digital segment, which currently contributes approximately INR 20.27 Cr per quarter.

Market Share & Ranking

Dainik Jagran is the No. 1 newspaper in India by readership (6.9 Cr readers), leading the No. 2 competitor by 1.6 Cr readers (a 30% lead).

Strategic Alliances

Consolidated entities include Music Broadcast Ltd (MBL), Midday Infomedia Ltd (MIL), Leet OOH Media Pvt Ltd, MMI Online Ltd, and X-Pert Publicity Pvt Ltd.

🌍 External Factors

Industry Trends

The print industry faces headwinds from digital transformation. JPL is positioning itself by growing its digital, OOH, and events segments to 16% of total revenue in FY25 from 8% in FY19.

Competitive Landscape

Primary competitors in the Hindi daily segment include Amar Ujala and Hindustan, particularly in Uttar Pradesh and Uttarakhand.

Competitive Moat

The moat is built on a 7-decade brand legacy and a massive readership base of 6.9 Cr. This scale creates a network effect for advertisers that is difficult for competitors to replicate in the Hindi belt.

Macro Economic Sensitivity

Highly sensitive to economic cycles as advertisement revenue (the primary income source) fluctuates with corporate marketing budgets and GDP growth.

Consumer Behavior

Shift toward digital news consumption is impacting print circulation, which remains below pre-pandemic levels across the industry.

Geopolitical Risks

Global supply chain issues affecting newsprint availability and pricing represent the primary geopolitical risk.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to DAVP (Directorate of Advertising and Visual Publicity) rates for government advertisements and RNI (Registrar of Newspapers for India) regulations.

Taxation Policy Impact

Effective tax rate is standard for Indian corporates; Standalone PBT of INR 161.50 Cr resulted in PAT of INR 123.70 Cr in Q2FY26.

Legal Contingencies

There is ongoing litigation among the promoters. CRISIL notes that while it currently has no material financial implication, any adverse outcome could impact the credit risk profile.

⚠️ Risk Analysis

Key Uncertainties

Volatility in newsprint prices (high impact on margins), promoter litigation (governance risk), and the pace of digital migration (long-term structural risk).

Geographic Concentration Risk

High concentration in the Hindi belt (North India), which accounts for the vast majority of print revenue.

Third Party Dependencies

Dependency on newsprint suppliers and government advertising bodies for revenue and receivables.

Technology Obsolescence Risk

Risk of print becoming obsolete; mitigated by investment in 19 digital portals and reaching 65 million digital users.

Credit & Counterparty Risk

Receivables from government departments take longer to recover, contributing to impairment losses on financial assets (INR 15 Cr provision in MBL in FY25).