GTPL revenue up 12% but profit drops on HITS costs; ACT deal on track
Broadband reset and margin recovery targets for H2 as ACT acquisition of 600k subs nears close by September 15.
— 6 earlier stories on GTPL Hathway Ltd. →What's new
- Revenue up 12% to ₹1,020 cr but net profit drops to ₹2.3 cr on HITS depreciation.
- ACT cable TV acquisition on track to close by Sep 15, adding 600k subs.
- HITS platform at 2.7M subs; management expects margins to recover to 25% in H2.
- Broadband gets new CEO, ARPU steady at ₹470.
Why this matters
The profit drop is from non-cash HITS costs, not operational weakness. The ACT deal makes GTPL the largest player in Andhra Pradesh and Telangana, and the HITS savings should lift margins. But with a micro-cap market cap of ₹686 cr and a recent CFO loss, delivery is key.
What we're watching
- ACT deal closing and subscriber integration by Sep 15.
- EBITDA margin recovery to 25% in H2 FY27.
- Broadband home pass expansion under new CEO.
The full read
GTPL Hathway revenue climbed 12% year-on-year to ₹1,020 crore in the June quarter, but net profit slid ₹8 crore to ₹2.3 crore — a direct consequence of depreciation and finance costs from the HITS digital platform rollout. The company is betting that same platform will flip the script. HITS now serves 2.7 million subscribers and is already generating bandwidth cost savings. Management expects operating margins to recover to 25% in the second half of the fiscal year, up from 10.7% in Q1. The larger catalyst is the ₹36.23 crore acquisition of ACT Group's cable TV business, adding 600,000 subscribers and making GTPL the largest player in Andhra Pradesh and Telangana. The deal is on track to close by September 15. Meanwhile, the broadband business is being reoriented under a new CEO with ARPU steady at ₹470. With a market cap of ₹686 crore and a recent CFO departure, execution on these bets will determine whether GTPL's revenue growth finally translates into profit.
Questions answered
- Why did net profit fall despite revenue growth?
- Net profit dropped ₹8 cr to ₹2.3 cr due to depreciation and finance costs from the HITS digital platform rollout. Revenue grew 12% to ₹1,020 cr.
- What is the ACT acquisition and when does it close?
- GTPL is acquiring ACT Group's cable TV business for ₹36.23 cr, adding 600,000 subscribers. The deal is expected to close by September 15 and will make GTPL the largest operator in Andhra Pradesh and Telangana.
- How will operating margins improve?
- The HITS platform now serves 2.7M subscribers and is generating bandwidth cost savings. Management expects operating margins to recover to 25% in the second half of the fiscal year, from 10.7% in Q1.
- What is the broadband strategy?
- GTPL is reorienting its broadband business toward home pass expansion under a new CEO. ARPU held steady at ₹470, indicating pricing stability.
- Is the company financially healthy?
- GTPL has a low debt/equity ratio of 0.20 and trailing ROE of 4.1%. However, net profit was just ₹2.3 cr in Q1 and trailing PAT growth was -217.4%, reflecting the HITS investment cycle.
GTPL Hathway Ltd.
Latest quarter · Jun 2026
Strength & growth
Story so far
All notes on GTPL →- 16 Jul 2026 · 5:06 PM IST GTPL revenue up 12% but profit drops on HITS costs; ACT deal on track
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