Hathway Cable Profit Rises 13.5% Despite a 73% Revenue Collapse
A massive revenue contraction was offset by an even sharper fall in costs, pushing net profit margin to a multi-quarter high of 14.5%.
Hathway Cable's Q2 FY27 saw revenue plummet over 70% year-on-year. Yet, net profit rose 13.5% as costs fell faster, dramatically expanding the profit margin. The quarter highlights a major business restructuring.
For a cable and broadband operator, subscriber fees are the lifeblood. Hathway Cable & Datacom's second quarter saw that revenue stream collapse by over 73% from a year ago. Yet, the company's bottom line told a different story, with net profit rising 13.5% to ₹20.71 crore. This paradox points to a fundamental reshaping of the business, not an operational meltdown.
The numbers are stark. Consolidated revenue fell to ₹142.71 crore from ₹536.67 crore in Q2 FY26. Sequentially, the drop was even steeper at 74.7%. Profit, however, climbed from ₹18.25 crore a year ago. This pushed the net profit margin to 14.5%, a dramatic 1,110 basis point expansion from the 3.4% margin of the prior-year quarter.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 142.71YoY -73% | 565.10 | 536.67 |
| Profit (₹ Cr) | 20.71YoY +13% | 24.56 | 18.25 |
| Net Profit Margin (%) | 14.5YoY +326% | 4.3 | 3.4 |
The cause of the revenue collapse
This extreme revenue shift stems from a corporate clean-up. According to company announcements reviewed by Whalesbook, Hathway divested its entire stake in four non-operating subsidiaries and one associate company in November 2025. These entities contributed nil to consolidated turnover. Their removal from the financials explains the bulk of the reported revenue decline, effectively resetting the top-line base to a smaller, core operational footprint.
Where the profit strength came from
With non-core units stripped out, the remaining business ran leaner. Total expenses fell even more sharply than revenue on a like-for-like basis. This severe cost rationalization, outpacing the sales decline, is what powered the margin expansion and profit growth. The company's balance sheet, as noted by Stockfin.ai, remains conservative with zero net debt, providing stability through this transition.
A looming regulatory overhang
Beyond the restructuring, a significant risk cloud remains. The company is contesting Show Cause cum Demand notices from the Department of Telecommunications (DoT) aggregating to ₹3,201.93 crore, as disclosed in its filings. Management, backed by legal opinion, has not made any financial provision, viewing the claims as defensible. However, this contingent liability represents a major potential claim on the company's equity.
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· HATHWAY
(BSE)
ISIN: INE982F01036
Key Points
- Hathway's Q2 FY27 revenue fell 73.4% year-on-year, primarily due to the divestment of non-operating subsidiaries completed in late 2025.
- Net profit rose 13.5% as cost reductions outpaced the revenue decline, expanding the net profit margin to 14.5% from 3.4% a year ago.
- The company maintains a strong, debt-free balance sheet but faces a material regulatory risk from DoT demand notices totaling over ₹3,200 crore.
- The results reflect a streamlined corporate structure focused on core cable and broadband operations, setting a new, smaller baseline for future growth.
Hexa Perspective
This quarter is less an earnings report and more a corporate reset. The reported growth rates are distortions, with the real story being the exit from legacy subsidiaries and a sharper focus on the core MSO business. The resulting profitability improvement is a positive, but it comes from a one-time shrinkage, not operational leverage.
The path forward hinges on whether this leaner core can grow. The broadband segment, where revenue fell 2.8% year-on-year according to Money.Rediff, shows immediate pressure. With the corporate simplification largely done, investor attention now turns to subscriber trends, competitive intensity, and the unresolved multi-billion rupee DoT dispute that hangs over the equity.
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