Q3 Earnings Impact: GTPL Hathway shares crash 10% on weak Q3 results, profit drops 57%

Shares of GTPL Hathway plunged nearly 10 percent in intra-day trading on Friday, January 10, following the announcement of weaker-than-expected financial results for the quarter ended December 2024 (Q3FY25). The stock hit a 52-week low of ₹132.65, reflecting a decline of 9.8 percent during the session. This sharp drop places the stock over 38 percent below its 52-week high of ₹215.05, recorded in February 2024.

Weak Financial Performance

GTPL Hathway reported a consolidated net profit of ₹10.17 crore for Q3FY25, marking a significant decline of 57.03 percent compared to ₹23.67 crore in Q3FY24. Revenue from operations, however, showed a modest increase of 4.27 percent, reaching ₹887.27 crore as against ₹850.87 crore in the corresponding quarter last year. On a sequential basis, the company’s net profit dropped 20.42 percent, while revenue grew by 3.70 percent compared to Q2FY25.

The company’s EBITDA stood at ₹113.80 crore for Q3FY25, reflecting a year-on-year decline of 12.76 percent from ₹130.50 crore in Q3FY24. The EBITDA margin contracted significantly to 12.7 percent, compared to 15.2 percent in the same quarter last year, highlighting pressure on profitability.

Growth in Subscribers

Despite financial challenges, GTPL Hathway showed positive momentum in subscriber growth across its business divisions:

Digital Cable TV Segment: Active subscribers increased by 200,000 year-on-year, reaching a total of 9.60 million. Paying subscribers also grew by 200,000, now totaling 8.90 million. Subscription revenue for the quarter stood at ₹3,024 million.

Broadband Segment: Broadband subscribers increased by 37,000 year-on-year, bringing the total count to 1.04 million. The company’s homepass network expanded to 5.95 million, with 75 percent now capable of FTTX (Fiber-to-the-X) conversion. Broadband ARPU (Average Revenue Per User) rose slightly to ₹465 per month, up by ₹5 year-on-year. Average data consumption per user grew by 6 percent, reaching 365 GB per month.

Management Commentary

Anirudhsinh Jadeja, Managing Director of GTPL Hathway, expressed optimism despite the current challenges. He stated, “GTPL continues to consistently grow its subscriber base across both business divisions, reflecting our commitment to provide best-in-class and innovative products and services to our customers. Our focus on providing a holistic experience for our subscribers has enabled us to maintain our position as the largest MSO in the country. We are confident of our growth in upcoming quarters in both the business segments based on favorable industry dynamics towards continued consolidation.”

GTPL Hathway is a leading multi-system operator (MSO) in India, offering digital cable TV services and broadband solutions. The company is the sixth-largest private wireline broadband service provider in the country, serving millions of subscribers with a focus on quality and innovation.

While GTPL Hathway’s financial performance in Q3FY25 fell short of expectations, the company’s subscriber growth and expansion efforts in both digital cable TV and broadband segments indicate potential for recovery.