Festive boost, GST cuts, soft newsprint lift DB Corp ‘Ad growth ahead of topline’: Girish Agarwal

New Delhi: DB Corp’s Q2 advertising growth was ahead of topline, driven by early festive timing and GST cuts, with soft newsprint supporting margins, said Non-Executive Director Girish Agarwal on the earnings call.

“Advertising revenue grew by 12% year-on-year, supported by positive macro trends such as a normal monsoon, interest-rate reductions, encouraging GDP growth, GST rate cuts and the early onset of the festive season. Even after excluding this early festive benefit, on a like-to-like basis we registered high single-digit growth in advertising revenue, which reiterates the trust advertisers continue to place in our platforms,” Agarwal said.

“In terms of profitability, we are encouraged by the operational performance with double-digit PAT growth and a sustained margin profile, aided by soft newsprint prices and disciplined cost controls. Looking ahead, we remain positive about the demand environment supported by a strong festive season, stable input costs and encouraging consumer sentiment. We will continue to build on our competitive advantages in print, digital and radio, with a sustained focus on efficiency, innovation and value creation for all stakeholders,” he added.

For Q2 FY26, ad revenue rose 12% to Rs 447.8 crore, outpacing total revenue growth of 9% to Rs 634.7 crore. Excluding the early festive boost, like-to-like ad growth was in high single digits; sequentially, ads were up about 13%.

Agarwal said that barring government and FMCG, all major categories delivered double-digit growth in Q2 — real estate, automobiles, jewellery, education, health response and BFSI.

Circulation revenue grew 3% to Rs 120.8 crore. EBITDA was Rs 158.4 crore (up 10% year-on-year after a small forex impact) and PAT rose 13% to Rs 93.5 crore.

Deputy Managing Director Pawan Agarwal said benign input costs supported margins. “Newsprint prices remained soft at around Rs 47,000 per metric tonne, same as Q1. We expect a range-bound environment, subject to currency. We delivered a decent set of numbers in Q2 FY26 and H1 FY26. Along with positive market dynamics, this performance reflects sustained advertiser confidence in the Dainik Bhaskar group and in print.”

In radio, ad revenue grew 4% to Rs 43.0 crore, with segment EBITDA at Rs 13.0 crore. DB Corp announced 14 new radio stations and said it will be the only private FM operator in seven locations. “We aim to operationalise all 14 between January and March 2026,” Pawan said, adding there are no new launches in Q3. 

Management clarified that higher “other expenses” this quarter include on-ground event spends tied to festive-season revenue, with corresponding income recognised under advertising.

On digital, DB Corp reported 2 crore monthly active users on its apps as of August 2025, maintaining leadership in Hindi and Gujarati digital news. 

After success in Uttar Pradesh, the company has announced an Uttarakhand state app launch. 

“This reflects the success of our content innovation, hyperlocal relevance and continued investments in technology,” Pawan said. 

Management noted MAUs can fluctuate by 10–20 lakh with event cycles and expects a lift around the Bihar election. Investments continue in hyperlocal coverage and product features to balance local and out-of-state preferences.

For H1 FY26, consolidated total revenue was Rs 1,221.9 crore (+2% year-on-year). Advertising revenue was Rs 845.5 crore (+2%), circulation revenue Rs 241.1 crore (+2%), EBITDA Rs 296.8 crore, and net profit was Rs 174.3 crore (figures reflect forex impact).