GTPL Hathway Swings to Loss as Costs Outpace Record Revenue
India's largest cable MSO posted a ₹3.55 crore net loss in Q2 FY27, despite revenue jumping 19% YoY, as operating expenses surged faster than sales.
GTPL Hathway's Q2 FY27 results show a stark divergence: revenue hit a record ₹1,143 crore, but the company swung to a net loss of ₹3.55 crore as total expenses climbed over 20% year-on-year.
For India's largest multi-system operator, scale arrived this quarter but profitability did not. GTPL Hathway reported its highest-ever quarterly revenue of ₹1,143 crore for Q2 FY27, a 19% jump from a year ago, driven by subscriber growth and a recent acquisition. Yet, the company swung to a consolidated net loss of ₹3.55 crore, as total expenses grew even faster, rising over 20% to erase all gains from the top line.
The numbers tell a story of expansion without earnings. Revenue has climbed steadily for three quarters, but profit has been volatile, slipping into negative territory this period.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 1143.06YoY +19% | 1015.41 | 959.05 |
| Profit (₹ Cr) | -3.55YoY -148% | 1.38 | 7.40 |
| Net Profit Margin (%) | -0.3YoY -137% | 0.1 | 0.8 |
Why the bottom line disappeared
Growth came from a 16% yearly increase in active digital cable TV subscribers to 11 million, according to a CNBCTV18 report. The company also completed the acquisition of ACT Group's cable business, adding about 600,000 subscribers in southern and eastern markets. However, this expansion came with a steep price tag. Total expenses surged to ₹1,150 crore, outpacing revenue growth by more than a percentage point.
This cost pressure crushed margins. The EBITDA margin compressed to 9.35% from 10.87% a year ago, as noted by ScanX Trade. The minimal 3% increase in absolute EBITDA, against the 19% revenue rise, shows operating costs eroded nearly all incremental gains.
The costs that will not fall soon
Management, cited by CNBCTV18, highlighted its focus on expanding footprint and scaling operations. The priority now is integrating the ACT acquisition and improving the overall economics. However, the financial strain is visible beyond the profit and loss statement.
Live Chart
· GTPL
(BSE)
ISIN: INE869I01013
Trade receivables ballooned to ₹1,404 crore as of September 30, 2026, up sharply from ₹545 crore at the end of March, indicating significant working capital pressure. The company also faces a contingent liability of ₹975 crore related to Department of Telecommunications license fee demands, which remains unprovisioned based on legal assessments.
Key Points
- Revenue reached a record ₹1,143 crore, up 19% year-on-year, driven by cable TV subscriber growth and the ACT acquisition.
- The company swung to a consolidated net loss of ₹3.55 crore as total expenses grew over 20%, severely compressing EBITDA margins.
- Working capital pressure intensified, with trade receivables surging to ₹1,404 crore, while a ₹975 crore contingent liability related to license fees remains.
- The broadband segment added 20,000 subscribers, but its revenue growth of 5% was overshadowed by the cable-driven cost surge.
Hexa Perspective
This quarter underscores the fragile economics of growth in India's cable distribution market. GTPL is successfully adding scale, but the path to converting that scale into stable profit is blocked by rising operating costs and working capital demands.
The promise lies in integration and efficiency. Management expects benefits from its new HITS platform and the ACT acquisition to materialize later this fiscal year. For investors, the next few quarters will test whether these operational improvements can outpace the structural cost pressures and competitive intensity from national telecom bundles.
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