Hathway Cable and Datacom shares declined 4.6% on October 15 following the announcement of its Q2 FY27 results, according to Moneycontrol. The stock decline reflects investor concerns over the company's declining profitability despite revenue growth, with the market reacting negatively to the mixed financial results that showed revenue expansion but profit compression. The 4.6% decline on the day of results announcement demonstrates market sensitivity to the company's operational challenges and the broader market weakness affecting mid-cap stocks.
Hathway Cable and Datacom reported a 44.3% year-on-year decline in consolidated net profit to ₹10.16 crore for the second quarter of FY27, compared with ₹18.25 crore in the corresponding period last year. According to reports from CNBC TV18, the company's revenue from operations rose 5.7% year-on-year to ₹567.51 crore from ₹536.67 crore in the year-ago quarter. However, total expenses increased 9.5% to ₹582.89 crore from ₹532.42 crore a year earlier, outpacing revenue growth and weighing on profitability. The company also faced pressure on operating margins, with EBITDA falling 27.4% signalling broader challenges in profitability.
Pay channel costs, the company's largest expense, rose significantly to ₹335.91 crore from ₹280.03 crore in the corresponding quarter last year. As reported by CNBC TV18, this substantial increase in pay channel costs contributed to the pressure on operating profitability. Profit before tax fell 42.2% year-on-year to ₹15.14 crore from ₹26.21 crore, indicating the impact of rising operational expenses on the company's bottom line performance.
On a sequential basis, net profit declined 58.6% from ₹24.56 crore in the June quarter, while revenue from operations edged up from ₹565.10 crore. For the first half of FY27, Hathway Cable's consolidated net profit fell 29.5% year-on-year to ₹34.72 crore from ₹49.28 crore, as reported by CNBC TV18. Revenue from operations rose 6.1% to ₹1,132.61 crore from ₹1,067.17 crore during the same period, showing mixed performance trends across different time periods.
In a separate development, Hathway Cable and Datacom appointed Jitesh Shah as its chief financial officer (CFO) and key managerial personnel, effective September 1, 2026. He succeeded Sitendu Nagchaudhuri, who superannuated on August 31. The appointment was approved by the board of directors at its meeting on August 31, following recommendations from the Nomination and Remuneration Committee and the Audit Committee. This leadership transition comes as the company navigates challenges in its financial performance.
