D. B. Corp Limited (DBCORP) Earnings Call Transcript & Summary

Good evening, ladies and gentlemen, and welcome to D.B. Corp Limited Q1 FY '27 Earnings Conference Call. We have with us today the senior management team of D.B. Corp Limited, Mr. Pawan Agarwal, Deputy Managing Director; Mr. Girish Agarwal, Director; Mr. Lalit Jain, Chief Financial Officer; and Mr. Mushtaq Ali, Senior Vice President, Finance and Accounts, who will be representing the D.B. Corp Limited on the call today. The management will be sharing the key operating and financial highlights for the quarter ended June 30, 2026, followed by a question-and-answer session. Please note that some of the statements made in today's discussion may be forward-looking in nature and may involve risks and uncertainties. Documents relating to the company's financial performance have already been e-mailed to you and are available on the website of the Stock Exchanges and the company's Investors section. Trust you have been able to go through the same. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Pawan Agarwal. Thank you, and over to you, sir.

Thank you, and good evening, everyone. Thank you for joining us for our Q1 FY '27 earnings call. We will begin with an overview of our financial performance for the quarter ended June 30, 2026, followed by key operational updates across our businesses. We have started the financial year on a strong growth, delivering healthy growth in revenue, improved profitability and continued margin expansion despite a challenging cost environment. Our consolidated total revenue increased by around 8% year-on-year to INR 6,220 million, reflecting steady momentum across our core businesses. More importantly, our focus on operational excellence and disciplined cost management translated into stronger profitability. EBITDA grew by around 19% year-on-year to INR 1,647 million, significantly outpacing revenue growth. Consequently, our EBITDA margin expanded by 250 basis points to 26.1% compared to 23.6% in Q1 FY '26, demonstrating the strength of our business model. Our profit after tax increased by around 25% year-on-year to INR 1,007 million compared with INR 808 million in the corresponding quarter last year. This strong bottom line performance reflects the combined benefits of healthy revenue growth, effective cost optimization and sustained operational discipline. Our consolidated advertising revenue continued its strong trajectory, growing by around 10% year-on-year to INR 4,320 million compared with INR 1,933 million in Q1 FY '26. The growth is broad based across key sectors and reinforces the continued strength of print advertising and the leadership in markets. Print and other business EBITDA grew by 18% year-on-year to INR 1,499 million as compared to INR 1,270 in Q1 FY '26. At the same time, our tabulation revenue remained stable at INR 1,204 million, reflecting the continued loyalty of our readers and the strength of a market-leading publication despite an evolving media landscape. Our radio business also delivered an encouraging performance during the quarter. Revenue increased to INR 425 million from INR 392 million last year, while EBITDA grew by around 29% year-on-year to INR 148 million compared to INR 150 million last year. The strong profitability improvement highlights the continued recovery and operating leverage within the radio business. On the cost front, newsprint prices witnessed some upward pressure during the quarter, primarily due to broader macroeconomic and geopolitical developments. Despite this inflationary pressure, our continued emphasis on procurement efficiency, cost optimization and disciplined execution enabled us to successfully mitigate much of the impact resulting in healthy margin expansion during the quarter. Let me move on to our digital business. Digital continues to be an important long-term growth pillar for the company. And as of May 2026, our new applications recorded around 20 million monthly active users, maintaining Dainik Bhaskar's position as the #1 Hindi and Gujrati news app. Our continued investments in high-quality content, technology and user experience are helping us strengthen user engagement, improved retention and further expand our digital reach. With that, I would now like to hand over the call to Mr. Girish Agarwal for his comments. Over to you, Girish.

Thank you, Pawan, and good evening, everybody. Thanks to you all for joining us today. This quarter has been another demonstration of the resilience and strength of our business. Newspaper continues to perform consistently, reinforcing its relevance as a trusted and effective medium for both readers as well as advertisers. Our performance during this quarter reflects disciplined execution across all our businesses, sustained market leadership and our continued ability to deliver profitable growth. With that now, I would like to open the floor for the questions-and-answer session. Thank you very much.

[Operator Instructions] First question is from the line of [ Shivam Gupta ] from [indiscernible] Asset Managers.

I want to know like circulation copies had dipped to around 39 lakh in Q4. Has the new circulation team has to stabilize or grow that number in Q1? And what's the updated outlook for the full year?

So the circulation number in Q1 this year is around 38 lakh copies. With all our efforts, I think some of the impact of the summer also is in this, but it would be in the range of 38 lakh, 39 lakh only. I guess, with all the efforts of circulation, which our team is doing, we are able to maintain the number. And in certain places, we have been able to increase our market share also.

Okay, sir. And the next question is like about the MAU, you told around 20 million, 20 million as of Q4 or Q1?

In Q4. In Q1, the number is around 19 million, 20 million. So the number has been hovering around the same 19 million, 20 million.

And when can we expect that it will contribute meaningful to the consolidated revenue rather than just user growth?

I guess this is a long-term investment call, which we have taken looking at the growth in India and future probability. So we are looking at certain monetization strategies. But right now, the large focus is to develop the readers base. So that's what we are focusing on.

The next question is from the line of Kavish Parekh from 360 ONE Capital.

Congratulations on a great set of numbers. The first question is on the ad income. Could you share some more color on this. Did they involve some one-off? How would you break down sectorial contribution to this growth? Would you also say that there was some impact of government contribution? Because if I recollect, November 2025, the government had [indiscernible] increased prices by about 26-odd-percent. So would you say there is some impact of the same in these numbers?

I think in this quarter, important thing is that every possible category has shown an upward growth, barring out education and automobile. Education was flat for a simple reason because [ NEET ] exam was announced null and void, and they did a reexamination in the month of July -- sorry, June. Now which means the result of [ NEET ], which is going to come out in July or August, advertising around that result got shifted from quarter 1 to now quarter 2. So that's the reason education was flat. Automobile was down actually negative because of the geopolitical issues, the fuel supply, the rates and all that. I guess that's the reason why most of the automotive companies are holding on to the advertising. Except these 2 categories, whether it's response or real estate or jewelry or hospitals or FMCG or government, everyone has contributed to the growth in a good manner.

Could you also break down the contribution of the sectors?

Sure. I can do this for you. So education, as you know, in the quarter 1 is the highest contributing sector, so in the range of around 20%. Government was around 14%, 15%. Real estate was around 11%, 12%. Automobile came down from double digit to single digit. Jewelry around 5%. Other categories in the single digit.

And any comment on the point that I mentioned earlier, the [indiscernible] price increase about 26-odd percent. Has that kicked in over the past few quarters? And is that also one of the reasons?

It has kicked in. That's the reason the government numbers are also growing at double digit.

Understood, fair. Secondly, what would be your outlook on newsprint prices? Where do you think it can peak out?

Newsprint price, if you see in quarter 1, we have seen around 13% hike. Now quarter 2 also, we believe the price will continue to go up because in quarter 1, we had certain stock line from the earlier quantities. But we clearly see an indication from Q3 and Q4, the prices will start coming down. So as of now, let's look at quarter 2 where the prices will certainly go up.

Right, fair. And sir, just dropping back to the previous question on advertising. What in your view is the core driver for such strong growth on the print advertising side because if I hear commentary across the board, especially broadcasters, once you seem pretty soft for them given macro challenges, a lot of advertisers held back on their sense. So how should we think about this? What led to sort of strong performance on the print advertising side?

On a lighter note, I would say [indiscernible]. But honestly, see, there's no good thing in that. That shows that the efforts made by the team and the confidence of the various categories on the print. So I think because of that, every possible category is doing.

And last question from my side. On the circulation side, if I look at slightly longer term at one point, if I go back 2 years, circulation used to be somewhere around 43 lakh, 44 lakh copies. Today, that has come down to 38 lakh, 39 lakh. Structurally, that has seen some decline. While, of course, I appreciate the readership efforts that we are taking to maintain readership, it definitely has come down. How would you -- how should we assess the yield? Has that -- those realizations have been holding up? Or it's also very challenging to take price item realization side of it? If you could also put out the latest number of realizations.

If you look at my realization, we are at a flat. There's no growth, okay? Now we are very clear, we don't want to unnecessarily burden the reader by increasing the price furthermore. So all our efforts have been made to make sure that we are able to grow copies, but unfortunately, rather than growing, we are able to maintain and lose maybe a couple of percentage points. That's the reason we don't want to take any price hike because advertising is growing. So we are in a better situation position if we don't increase the cover price.

And you let us know the latest cover price?

One second. INR 4.93 is the average cover price.

Sure. And would you have the number for 1Q '26 and Y-o-Y?

Y-o-Y number was INR 4.9 again. So there's hardly any change.

The next question is from the line of Krushi Parekh from BugleRock.

Sir, I think most of my questions were asked by Kavish and a participant earlier. Just very small question that I have is that we have seen some, definitely, subscriber base for the apps that we run. Any...

I would not consider that as a debt because 20 million becoming 19, I won't really call it a debt, because in the digital business, unless until it is substantial beyond 10%, 20%, 30%, 2%,3% moving here in the early number.

No, so my question is actually coming from the perspective that I think 1 or 2 quarters back, we have even discussed about how we are going about the activation of subscribers over here. So it's coming from that perspective as well.

So we are looking at different markets like [indiscernible] and market, we are very focused on in terms of digital since we don't have a print over there. Editorially, in all our digital platforms, we are doing a lot of things. We are doing use of animations, a little bit of use of AI also there. So every possible effort has been made. And I think if you look at the -- again, not to justify. But I think compared to the market situation, our numbers are doing pretty good. But having said that, there are huge opportunity available. [indiscernible] government election will be there next year March. So that's a big opportunity for us. And yes, let's hope a lot of new cycle comes our way.

All right. Wonderful. Just one small thing. Again, there's some decline in the other expenses, just a few crores. Anything structural, anything noteworthy over there?

No, no. I think every possible person in the company is trying to make sure that we save cost.

The next question is from the line of [ Abhinav from Equirus Investments. ]

Congratulations on the great results. First question is on regarding on the segmental growth, which you mentioned for education and auto. Can you give a number or directionary for other segment as well?

For our segments , all are doing good. Real estate is doing good, jewelry is doing good. I think CG is doing good. Electronics are doing good. Banking is doing pretty good. So I think also -- and this education also, because of the [ NEET ] shift that happened. So if I compare Q1 and Q2 put together, education will also be in a good growth.

Okay. And regarding the cash, how much are you planning to spend on CapEx? I think in Q4, you're going at around INR 150 crores, INR 160-odd crores, around that, right?

Yes, it's going to be around the same range also.

Okay. And another thing was I just wanted to understand, what was the driver for the margin expansion that we had year-on-year basis?

Sorry, what expansion?

Margin expansion on operating leverage. What were the key drivers for it?

Cost saving, top line going up.

Yes. I understand cost saving. But any specific thing or any specific cost savings being which was done.

As I mentioned to you, see, we realize in our business, the large cost is newsprint where none of us have any role to play. So what we have is the other costs, traveling, admin, everything possible. So rather than only limited people sitting in actually looking at the cost, we have now taken it to all the team members. Everybody is trying to save costs wherever they can. And that's the reason we have been able to save some cost.

The next question is from the line of Lohit Saini from Jay Ram Wealth.

Congratulations on a good set of numbers. I have one question. With the rapid emergence of micro drama platforms in India. Could you share your thoughts on whether the existing Bhaskar videos on the app, Dainik Bhaskar app, can be a potential strategic growth opportunity for the digital business given the use of AI and to short format videos? And how do you plan to advertise these Bhaskar videos?

First of all, thank you. You are really watching my app very closely. So as you rightly noticed that we are doing a couple of micro dramas using the AI on our platform and we've been getting good response from the readers. So idea is to make it more, make it more relevant. Only difference is that our drama are still has to be based on the news. We can't do fiction. So that's the reason we have a slight limited scope to play there, but still pretty large. And we continue to do more. And as far as the publicity is concerned, we are posting them on the other platform like YouTube and other places to get some traction there also.

Okay. Okay. And can we expect something like this in English app as well?

English app slightly later because all the resources are in Hindi and Gujarati. So to be very honest, English, but later, not now.

The next follow-up question is from the line of Kavish Parekh 360 ONE Capital.

Sir, if I heard you right, you mentioned that CapEx for this year could be somewhere around INR 150 crores, INR 160 crores. Before FY '26, CapEx seems to be much lower, F '26 saw a sharp bump up in that. Where exactly is this being spent?

Last year, sir, if you remember, we had taken a call 2 years back that wherever we are paying high rental, better to acquire the property and build it on our own. So for example, in Bhopal, we have finally bought a place and we are making up our own building. Similarly, we did it in a couple of more stations. So that's what the strategy is so that we are able to save the rental expense and build our own property and also get the appreciation of the property.

Fair enough. Understood. Secondly, within the other expenses, last year, we have started spending on initiatives to maintain leadership. Out of the other expenses on an annual basis, how much would that spend amount be?

I don't have the exact number with me right now. But I think all the expenses of circulation, promotion and all would be in the range of around INR 20 crores, INR 25 crores annual.

Sure. So on the digital, I heard Mr. Agarwal earlier today in an interview saying that you put out about 14,000-odd stories, 1,800-odd videos per day on the platform, a pretty, pretty high number, a very solid number. Could you share some more details here? What is the total team size like sector working only on the digital piece? How many on-ground reporters? How many people on the tech side? Some more details?

So these 14,000 stories are generated by the print and digital reporters together because, as you know, in print also has a huge team at every possible location. We print almost 250 district editions. We generate almost 1,700 newspapers on a daily basis. So all those things are also posted on the digital, except the video. The video, print cannot take it. So videos are done solely for digital. And digital also has their team in certain markets, certain places.

Any quantification on the team size working solely on digital?

For the big reason of the confidentiality to protect the competition to know much more detail, I can't divulge more, you'll appreciate that.

Sure. And last question from -- on the radio. What would be a realistic growth target on the radio segment?

They have grown by, how much, 8%, 9%, Pawan, this quarter? 12%, correct. We had about this quarter, about 8% increase in our revenue across our 37 stations. We have 7 more stations lined up. We are looking at a good growth this year on the bottom line because we have also put in a lot of cost control checks. So if you've seen our EBITDA in the first quarter has grown by about 15%. So this year is going to be a mix of both. Revenue and cost control.

Any quantification on the top line? What would be your aspiration for maybe this year and the next year?