GTPL Hathway Ltd. reported a sharp 78.03% year-on-year decline in consolidated net profit to ₹2.32 crores for Q1 FY27, despite posting its highest-ever quarterly revenue of ₹1,015.41 crores. The Ahmedabad-based cable and broadband services provider achieved revenue growth of 12.36% year-on-year, demonstrating continued subscriber additions and price realisations. However, the profitability collapse was overshadowed by the revenue achievement, highlighting significant operational challenges during the quarter.
The company's operating margin (excluding other income) contracted to 10.31% from 11.83% in Q1 FY26, marking the weakest quarterly margin performance in recent periods. Operating profit (PBDIT excluding other income) declined 2.05% year-on-year to ₹104.68 crores despite the revenue growth, highlighting significant operating leverage challenges. Gross margin also contracted to 9.81% from 11.47% in Q1 FY26, reflecting rising content costs, network maintenance expenses, and competitive pricing dynamics. The PAT margin compressed to a wafer-thin 0.14%, down from 0.81% in the year-ago quarter, as reported by Business Standard.
GTPL Hathway Limited announced a significant strategic acquisition by signing a business transfer agreement to acquire seven ACT Group Digital TV businesses for ₹36.23 crore. The company also launched GTPL Infinity, its Headend-in-the-Sky (HITS) platform which is backed by a world-class C-Band teleport in Ahmedabad and powered by the Telkom-4 satellite. The platform offers pan-India coverage with rapid deployment and delivers ~800 channels, including ~100 HD channels. As of June 30, 2026, GTPL served 9.60 million Active Digital TV subscribers and 1.06 million Broadband Subscribers with a Broadband Home-pass footprint of about 5.95 million.
The stock has remained under pressure, trading near its 52-week low of ₹55.22 and down 49.60% from its 52-week high of ₹127.00. The stock has fallen 46.21% over the past year, significantly underperforming both the Sensex and its media and entertainment sector peers. The market's negative reaction reflects concerns about the sustainability of the company's business model amid intensifying competition and rising operational costs in the cable and broadband segment. The abnormally high tax rate of 52.43% in Q1 FY27 severely impacted net profitability, with profit before tax standing at merely ₹2.88 crores.
The company's return on equity has deteriorated sharply to 1.42% on a trailing basis, down from an average of 9.41% over the past five years. Return on capital employed has similarly collapsed to 1.82% from a five-year average of 13.03%, indicating minimal returns on capital invested. Trade payables surged to ₹952.02 crores in FY25 from ₹715.40 crores in FY24, a 33.08% increase that outpaced revenue growth, suggesting potential delays in supplier payments. Foreign institutional investor holding has declined from 8.61% in December 2024 to 7.37% in March 2026, with the most recent quarter seeing a 0.98 percentage point decline. Mutual fund and insurance company holdings stand at 0.00%, indicating complete absence of domestic institutional support.
