D.B. Corp print ad growth of 10% drives margin gain despite circulation slide
Q1 print advertising up 10% to ₹4,320 mn; EBITDA margin rose 250 bps to 26.1%. Circulation falls to 38 lakh copies but management sees floor.
What's new
- Print advertising revenue ₹4,320 mn, up 10% YoY, broad-based growth.
- EBITDA ₹1,647 mn, up 19% YoY; margin 26.1%, up 250 bps.
- Circulation 38 lakh copies, flat QoQ but down 11% from two years ago.
- Radio EBITDA jumps 29% YoY to ₹148 mn on cost control.
- Capex guided at ₹150-160 cr for FY27, focused on owned property acquisitions.
Themes from the call
Demand
Print advertising grew 10% YoY with broad-based sectoral growth; education recovery expected in Q2; government ads strong from DAVP price hike.
Margins
EBITDA margin rose 250 bps to 26.1% despite newsprint costs up 13% YoY, driven by cost discipline and revenue growth.
Capital allocation
Capex of ₹150-160 cr allocated to replace lease-based model with owned properties in high-rental markets, targeting lower rent and asset appreciation.
Guidance watch
- Capex FY27 ₹150-160 cr, range-specific.
- Newsprint prices expected to rise further in Q2, moderate in Q3-Q4.
- Digital revenue contribution meaningful in 2-3 years; no near-term target.
- Circulation floor at 38 lakh copies, supported by market share gains in Rajasthan and Madhya Pradesh.
Risk flags
- Structural circulation decline continues, down 11% from two years ago.
- Education and auto advertising sectors weak due to NEET shift and geopolitical pressures.
- Newsprint cost pressure may persist through Q2 before moderation.
- Digital monetization still distant, with no near-term revenue contribution.
Key quotes
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"We are very clear that we do not want to unnecessarily burden the reader by increasing the price further. All our efforts are directed toward growing copies."
— Management, on circulation strategy
The brief
D.B. Corp's Q1 numbers show print advertising remains the bedrock. Print ad revenue rose 10% to ₹4,320 mn, driving a 19% EBITDA jump and a 250 bps margin gain to 26.1%. The growth is broad-based—government, real estate, FMCG all contributing, though education (20% of mix) was flat due to the NEET exam shift, and auto was pressured. Management expects an education recovery in Q2.
The circulation story is more tempered. Copies stayed flat quarter-on-quarter at 38 lakh, but that is down 11% from 43-44 lakh two years ago. The company is gaining share in Rajasthan and Madhya Pradesh, but the market itself is shrinking 2-3% annually. Management's response is to hold the cover price at ₹4.93, no increase for fear of losing readers, and instead prioritize volume over realization.
The radio segment performed well, with EBITDA up 29% to ₹148 mn on cost control. Digital properties hold 19-20 million MAUs, but monetization is a couple of years away from reaching 10-20% of revenue. The company is investing in AI-powered micro-dramas to deepen engagement.
Capital allocation is shifting: capex of ₹150-160 cr for FY27 will go toward owning rather than leasing printing plants in high-rental markets. That should reduce recurring costs over time.
Print holds, but the structural circulation decline and long digital monetization path limit the growth narrative. The company is executing well within its constraints, but the constraints are real.
D.B. Corp's print resilience is real, but structural circulation decline and a long digital monetization path keep the growth story bounded.