Shares slid 3.14% to ₹10.80 on the NSE on Wednesday, October 14, as Hathway Cable and Datacom announced a 44.3% year‑on‑year drop in consolidated net profit, down to ₹10.16 crore from ₹18.25 crore in the same quarter last year.
Revenue from operations edged up 5.7% to ₹567.51 crore, but total expenses grew 9.5% to ₹582.89 crore, outpacing sales and squeezing profitability. Pay‑channel costs, the largest expense line, jumped to ₹335.91 crore from ₹280.03 crore a year earlier, eroding the EBITDA margin.
On a sequential basis, net profit fell 58.6% from ₹24.56 crore in June to ₹10.16 crore, while revenue edged up from ₹565.10 crore. Profit before tax also fell 42.2% YoY to ₹15.14 crore, underscoring the cost‑driven environment.
The telecom‑cable sector is seeing mixed earnings; peers like Starlink and JSAT reported marginal gains, but industry analysts still flag margin pressure due to rising content delivery costs. Hathway’s decline is sharper than the sector average of a 12% net profit contraction.
The board’s appointment of Jitesh Shah as CFO on September 1 signals a restructuring push. Shah brings 15+ years of finance experience from Jio Platforms and Tata Consultancy Services. Analysts expect the new CFO to tighten cost controls and explore revenue‑sharing models as the company targets a 20% margin recovery in FY27.
Looking ahead, Hathway has not released guidance for Q3 2026‑27, but the company will report in December; investors are watching the CFO’s moves and any shift in content‑delivery strategy for clues on the next quarter’s trajectory.