Summary
DB Corp Limited - Q3 FY 2026 Earnings Call Summary Friday, January 16, 2026 10:30 AM IST
Event Participants
Executives 5 Girish Agarwal (Promoter Director), Lalit Jain (CFO), Mushtaq Ali (SVP, Finance & Accounts), Pawan Agarwal (Deputy Managing Director), Prasoon Kumar Pandey (Head, Investor and Media Relations)
Analysts 5 Bhavi Chauhan (Care PMS), Falguni Dutta (Mansarovar Financials), Himanshu Shah (Dolat Capital), Khushi (Individual Investor), Mohit Seni (Individual Investor), Riya Mehta (Individual Investor), Yash R. (B&K Securities)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Revenue (Consol) | ₹629.3 crores | -4% YoY; impacted by a high base of election-driven advertising and festive shift to Q2. |
| Advertising Revenue (Print) | ₹439.5 crores | -7.8% YoY; however, excludes election base, like-to-like (LTL) advertising grew +6% in 9M FY26. |
| Advertising Revenue (Radio) | ₹41.0 crores | Declained YoY due to absence of Maharashtra elections and high base of government COVID initiatives. |
| EBITDA (Consol) | ₹159.2 crores | 25% margin; supported by tight cost controls despite revenue pressures. |
| EBITDA Margin (Print) | 29% | +100 bps QoQ; driven by stable newsprint prices and 2% sequential reduction in operating costs. |
| Profit After Tax (PAT) | ₹95.5 crores | Reflects operational resilience amid high base challenges. |
| Newsprint Costs | Stable | -2% YoY; management expects prices to remain range-bound with minor upside risk from sea freight/forex. |
| Circulation | ~40 lakh copies | Flat YoY for 9M FY26; management focused on volume maintenance over cover price increases. |
Geographic & Segment Commentary
- Print Segment: Performance was impacted by the absence of state election advertising and the shift of the Navratri festival into Q2. On a 9-month basis, traditional categories like Automobile (10-11% share), Real Estate (10%), Healthcare (+20%), and Banking/IPOs (+30%) showed growth, while Government/Political revenue declined by 24%.
- Digital Business: Recorded 21 million monthly active users (MAUs) as of November 2025 across Hindi and Gujarati apps. The segment currently operates at a “burn rate” as focus remains on reader acquisition and content quality rather than immediate monetization.
- Radio Segment (My FM): Reported EBITDA of ₹12.7 crores; results were hampered by a soft advertising environment and lack of news broadcasting rights. Management is expanding the footprint with 14 new stations acquired, targeting full operational status by June 2026.
Company-Specific & Strategic Commentary
- Asset Ownership Strategy: Gross fixed assets increased by ₹107 crores as the company transitioned from rented offices to purchasing land and building owned printing centers to save long-term rental costs.
- Yield vs. Volume: Strategy remains heavily weighted toward volume (70-80%) rather than aggressive rate hikes to avoid burdening readers and advertisers.
- Educational Integration: State governments in Rajasthan and UP have mandated newspaper reading in schools; management expects this to build a future reader base and eventually support circulation in MP, Gujarat, and Chhattisgarh.
- Government Ad Rates: The central government approved a 26% increase in print advertisement rates; implementation has begun in some states with financial impact expected from Q4 FY26.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Radio Expansion | 14 New Stations by Q1 FY27 | 7 stations to start by April 2026; remaining 7 by June 2026; 2-3 years needed for 30-40% margins. |
| Digital Revenue | Mid-teen % of total mix | Aspirational target for the next 3-4 years as monetization begins. |
| Newsprint Prices | Range-bound | Subject to minor fluctuations in sea freight and USD/INR exchange rates. |
| Advertising | Recovery in Q4 FY26 | Management noted encouraging demand trends in the first 10 days of January, particularly in Auto. |
Risks & Constraints
| Risk | Context |
|---|---|
| High Base Effect | The absence of cyclical election spending (which fell from 24% to 17% of revenue) creates difficult YoY comparisons for the top line. |
| Geopolitical & Forex | Potential volatility in newsprint prices due to sea freight disruptions and rupee depreciation could impact the currently stable 29% print margins. |
| Radio Regulation | Management expressed concern that the inability to broadcast news/current affairs limits the stickiness and growth potential of the radio business. |
| FMCG Softness | Unlike other sectors, FMCG advertising has shown a slight decline over the 9-month period, reflecting cautious rural/consumer spending. |
Q&A Highlights
Advertising Growth Dynamics
- Question: What is the underlying growth excluding elections? (Yash R.)
- Answer: On a 9-month like-to-like basis, excluding election revenue, print advertising grew 6%. Most categories like Education, Auto, and Jewelry grew, but a 24% decline in Government/Political spending masked this. (Girish Agarwal)
Fixed Asset Increase
- Question: What drove the ₹107 crore increase in gross fixed assets? (Himanshu Shah)
- Answer: The company is buying land for existing offices and printing centers where it previously paid rent. This move is intended to eliminate rental expenses and build long-term assets. (Girish Agarwal)
Digital Monetization
- Question: When will digital contribute significantly to the bottom line? (Himanshu Shah)
- Answer: Digital currently has a burn rate as focus is on the 21 million MAUs. The goal is for digital to reach mid-teen percentage of total revenue in 3-4 years and become EBITDA positive. (Girish Agarwal)
Radio Segment Challenges
- Question: Why is the radio decline so steep this quarter? (Himanshu Shah)
- Answer: Beyond the high base of Maharashtra elections, there were specific government billing initiatives (COVID-related) last year that did not recur. Also, the industry-wide price hike hasn’t fully materialized in the market. (Pawan Agarwal)
Key Takeaway
DB Corp’s Q3 FY26 results were characterized by a transition from a high-base election year to steady-state operational growth. While consolidated revenue fell 4% to ₹629.3 crores due to the absence of ₹130+ crores of political spend and a festive calendar shift, the core Print business maintained a strong 29% EBITDA margin through rigorous cost management and stable newsprint prices (₹2% lower YoY). Strategically, the company is doubling down on asset ownership to reduce rentals and expanding its Radio footprint by 14 stations. Despite the current “burn” in the Digital segment, its 21 million MAUs represent a significant future monetization pivot. Management anticipates a stronger Q4 as a 26% hike in government ad rates begins to flow through and traditional categories like Auto and Real Estate stabilize, though geopolitical impacts on newsprint remain a watch point for FY27.
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