GTPL - GTPL Hathway Limited Share Price

Management of GTPL Hathway provided an optimistic outlook during the earnings conference call for Q2 FY '26, emphasizing the company's strong operational performance and leadership position in both Digital Cable TV and Broadband Services. They highlighted key financial metrics and strategic growth initiatives.

For the Digital Cable TV segment, the subscriber base as of September 30, 2025, was 9.50 million, with 8.80 million paying subscribers. The company has over 48,000 business partners contributing to its pan-India presence. In the Broadband division, the active subscriber count reached 1.05 million, a 1% year-over-year increase, with a Homepass number of 5.95 million.

Management announced several forward-looking initiatives, including:

1. Advancement of infrastructure to support enhanced content delivery.
2. Plans to operate the Headend-In-The-Sky (HITS) distribution platform in Q3 FY '26.
3. A clear focus on expanding market reach through bundling services like Cable, Broadband, and OTT offerings.

Financially, consolidated total revenue rose by 12% year-over-year to INR 9,649 million, with subscription revenue at INR 3,024 million. Broadband revenue also saw stability at INR 1,393 million. Consolidated EBITDA was INR 1,101 million, yielding an EBITDA margin of 11.4%. On a stand-alone basis, revenue grew by 17% year-over-year to INR 6,402 million.

Management expects revenue stabilization and potential recovery in subscription revenue, aiming for a CAGR of 8-11%. The overall capex is projected at INR 350-400 million for FY '26, with significant investments directed toward broadband expansion and HITS rollout.

In summary, management remains focused on both organic and inorganic growth opportunities, strategic partnerships, and cost efficiency to ensure sustainable growth and profitability moving forward.

Q1: Rehan Saiyyed: Can you explain the significant increase in receivables and payables related to broadcaster settlements? Will we view this as a one-time movement?

A1: Yes, the increase is typical. Trade receivables and payables tend to rise mid-year before tapering off by year-end. This balloon effect is due to broadcaster deals affecting costs and income. In this quarter, we saw increases of around INR460 crores in receivables and INR434 crores in payables, mainly tied to broadcasters. Historically, this trend has repeated over 5 years, and we expect it to follow a similar pattern moving forward.

Q2: Rehan Saiyyed: What measures are you taking to accelerate broadband subscriber additions, especially in Andhra Pradesh and Telangana?

A2: We're active in the Gujarat market, targeting a higher subscriber extraction rate. While competition from major players like Jio and Airtel has slowed growth, we're confident in broadband's future. Currently, only 44 million out of 350 million households are wired; we believe that can increase to 100 million in five years. We are investing in our B2B and B2C models to regain growth momentum.

Q3: Aditya Rawal: What concrete steps is GTPL planning to rebound profitability, given the decline in paid post-COVID?

A3: We are focused on maintaining our operational EBITDA margin at 22%. Although we faced a decline in the EBITDA over the last few quarters, we're addressing subscriber reach & cost conservation. Launching the Headend-In-The-Sky technology will enhance our footprint and potentially lower delivery costs. We're also layering services like OTT and gaming to boost retention and sales.

Q4: Sakshi Dwivedi: How does ARPU differ across Tier 1, Tier 2, and Tier 3 markets, and what strategies are you using?

A4: Our pricing ranges from INR200 to INR450. Generally, Tier 1 cities have higher ARPU due to the preference for premium packages, whereas Tier 3 markets opt for lower price points. We adapt our strategies based on market conditions, promoting higher packages to customers in better-paying segments to elevate ARPU.

Q5: Sakshi Dwivedi: Can you provide an update on the BharatNet project litigation issues?

A5: The tender for the BharatNet project is forthcoming, but I can't comment on specifics. We are actively bidding for both small and large tenders, and any wins will be announced once finalized.

Q6: Vivek Gupta: Can you elaborate on the capex spent this quarter and its primary focus?

A6: In H1, we spent INR153 crores; INR90 crores was for CATV, focusing mainly on STB, while INR63 crores was allocated to broadband. We expect our total capex for FY '26 to remain between INR350 to INR400 crores.

Q7: Priti Agarwal: What led to the marginal decline in subscription revenue?

A7: This quarter saw heightened churn due to excessive rains impacting retention and sales, and also the absence of major events like cricket. We dropped around 100,000 subscribers to 9.5 million. However, we expect recovery in Q3 and Q4, especially with upcoming major events.

Q8: Nakul Doshi: What is the company's approach to OTT pricing strategy?

A8: We aim to be highly competitive with our OTT pricing and will introduce tier plans based on market conditions. Our focus is on customer acquisition and retention, with existing tiers to facilitate upselling.

This summary addresses the major Q&As in the earnings call, capturing key questions and detailed responses, adhering to the character limit while providing crucial figures and guidance.