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D B Corp Ltd

| Q2 FY26 Earnings Conference Call

NEUTRAL SENTIMENT

Report Source

⬤16th Oct 25

Summary : DB Corp reported strong Q2 FY26 financial performance driven by advertising growth and radio expansion, but faces challenges in circulation and government ad revenue.

Management Perspective positive : We are happy to share additions of 14 new radio stations. Looking ahead, we remain positive about the demand. We are encouraged by the operational performance with double-digit PAT growth. We have delivered a decent set of numbers.

Concall Report Analysis & Insights

Business Overview

  1. Q2 FY26 advertising revenue grew 12% YoY to Rs. 4,478 million, driven by positive market dynamics.
  2. Total revenues for Q2 FY26 increased 9% YoY to Rs. 6,347 million.
  3. Circulation revenue grew 3% YoY to Rs. 1,208 million, maintaining steady traction.
  4. Overall EBITDA rose 10% YoY to Rs. 1,584 million; PAT grew 13% YoY to Rs. 935 million.
  5. Radio business added 14 new stations, expanding reach; digital app users reached 20 million.

Future Growth Prospects

  1. 14 new radio stations will be operationalized between January and March next year.
  2. Strategic radio expansion aims to strengthen market position in untapped markets.
  3. Digital business expects continued demand, with recent launch of Uttarakhand state app.
  4. Management anticipates real estate advertising to start firing again in coming months.
  5. Continued focus on efficiency, innovation, and value creation across all segments.

Management Insights

  1. Q2 FY26 performance reflects a good, broad-based recovery across key segments.
  2. Advertising revenue growth was supported by positive macro trends and early festive season.
  3. Newsprint prices remain soft and are expected to stay range-bound for two quarters.
  4. Digital business shows strong traction, maintaining leadership in Hindi and Gujarati news.
  5. Company aims to maintain circulation numbers rather than increasing cover prices.

Signs of Skepticism

  1. Analyst questioned why circulation hasn't grown despite spending, while industry grew 2.7%.
  2. Digital app unique visitors decreased from 18 million to 16 million QoQ.
  3. FMCG advertising growth was only 5%, not double-digit like other categories.
  4. Real estate advertising has not yet fully benefited from GST changes.
  5. Government receivables are persistently old, with 30% over six months.

Risk Factors

  1. Weakness observed in government and FMCG advertising sectors.
  2. Circulation growth remains challenging despite significant on-ground efforts.
  3. Newsprint prices are subject to currency fluctuations, impacting costs.
  4. Approximately 30% of receivables are more than six months old, primarily from government entities.

Good To Know

  1. Other expenses included Rs. 2 crores for CSR, Rs. 8 crores for events, and Rs. 4 crores for installation promotions.
  2. Q2 FY26 newsprint mix was 70% Indian and 30% imported.
  3. TRAI is strongly recommending compulsory radio reception in all mobile handsets.
  4. Capital WIP of Rs. 25 crore is for plant and building upgradation in Jaipur and Kota.

Key Drivers

  1. New radio stations boost reach.
  2. Real estate ad spend recovery.
  3. Digital app user growth.
  4. Positive macro trends continue.

Key Analyst Discussions

Competitive Environment

  1. Dainik Bhaskar is validated as India's largest circulated newspaper group.
  2. Times of India restarting Mumbai Mirror is an encouraging sign for print readership.
  3. Company focuses on content innovation and hyper-local relevance for digital leadership.

Market Trends & Consumer Behavior

  1. Positive macro trends like normal monsoon, interest rate reduction, and GDP growth supported ad revenue.
  2. Reduced GST slabs by the Government of India are encouraging consumer sentiment.
  3. Early onset of the festival season in Q2 provided an advertising benefit.

Financial Highlights

  1. Q2 advertising revenue grew 12% YoY, total revenue 9% YoY.
  2. Government ad revenue declined 12-13% YoY in Q2, contributing 17% of total.
  3. Staff cost increased 6% QoQ due to increments and new market launches.
  4. Overall yield is largely volume-driven, with minor 1-2% fluctuations.
  5. Receivables over six months old are mainly from government entities.

Product Composition

  1. Print remains the main revenue driver, followed by radio; digital is a smaller contributor.
  2. 14 new radio stations will be operationalized by Q4 FY26.
  3. Digital app tracks age, gender, time spent, frequency, and content consumption.
  4. Circulation copies maintained at around 40 lakh.

Strategic Considerations

  1. Management is introspecting market-specific strategies to improve circulation growth.
  2. Efforts to increase readership include on-ground activities, schemes, and content quality.
  3. Company is building competitive advantages in print, digital, and radio segments.
  4. Digital strategy focuses on local news and content quality to attract sticky customers.
D B Corp Ltd (DBCORP) Concall Report Analysis & Insights | Dhanarthi