Are Hathway Cable latest results good or bad?

Hathway Cable's latest financial results for Q2 FY26 reveal a complex picture characterized by modest revenue growth but significant challenges in profitability. The company reported net sales of ₹536.67 crores, reflecting a year-on-year growth of 4.67%. However, this growth is accompanied by a notable decline in net profit, which fell to ₹15.07 crores, representing a decrease of 44.25% from the previous quarter. This indicates a disconnect between top-line stability and bottom-line performance.
Operating margins also contracted to 15.07%, down from 16.51% in the prior quarter, marking the lowest level in recent quarters. The gross profit margin experienced a significant decline, indicating rising operational costs and competitive pressures within the industry. The reliance on non-operating income has raised concerns about the sustainability of the company's profitability, with 71.65% of profit before tax derived from such sources.

Despite maintaining a strong balance sheet with zero debt and net cash reserves of ₹2,152 crores, Hathway's return on equity remains low at 2.14%, suggesting inefficiencies in capital deployment. The operational metrics highlight ongoing challenges in the traditional cable distribution model, particularly as consumer preferences shift towards over-the-top (OTT) streaming services.

In light of these results, Hathway Cable experienced an adjustment in its evaluation, reflecting the pressures on its operational performance and the broader industry context. The company's ability to navigate these challenges will be critical for its future prospects.