Cable TV
Hathway to demerge broadband business to subsidiary company
MUMBAI: Hathway Cable & Datacom is planning to demerge its broadband business into its wholly owned subsidiary Hathway Broadband Private Limited.
The company’s board of directors have given in-principle approval to demerge, transfer and vest the company’s entire broadband business into its wholly owned subsidiary, subject to requisite approvals from the shareholders, creditors, High Court(s), Department of Telecommunications, Stock Exchanges, Securities and Exchange Board of India and other applicable regulatory governmental authorities.
The carving out of the broadband business is aimed at accelerating value creation for Hathway shareholders. The separation will allow Hathway to aggressively focus on the significant growth potential for high speed data and related services in India. Globally, wireline or fixed broadband has emerged as a key driver of technology adoption and overall, GDP growth. India lags most countries including countries in Asia in wireline broadband penetration reaching only about eight per cent of the potential universe.
Hathway Broadband intends to take the lead in driving wireline broadband penetration in India and become a key player in Prime Minister Narendra Modi’s Digital India initiative. The company believes that its hybrid fiber coax infrastructure on DOCSIS 3.0 platforms is the most effective and sustainable technology in a price sensitive market like India.
Hathway Cable & Datacom MD & CEO Jagdish Kumar said, “We are uniquely placed to leverage our leading position in the cable television industry and our brand to provide Indian subscribers with a world class broadband experience. This restructuring recognises that the market dynamics of the broadband business are unique as compared to our parent cable television business. The separation is a step towards increasing the broadband business’ customer focus and market competitiveness and in delivering a superior value proposition to our subscribers.”
MUMBAI: When margins wobble, liquidity talks and in Q3 FY25-26, cash did most of the talking. Den Networks Limited closed the December quarter with consolidated revenue of Rs.251 crore, marginally higher than the previous quarter but down 4 per cent year-on-year, even as profitability stayed resilient on the back of strong cash reserves and disciplined cost control.
Subscription income softened to Rs.98 crore, slipping 3 per cent sequentially and 14 per cent from last year, while placement and marketing income offered some cheer, rising 15 per cent quarter-on-quarter to Rs.148 crore. Total costs climbed faster than revenue, up 7 per cent QoQ to Rs.238 crore, driven largely by higher content costs and operating expenses. As a result, EBITDA dropped sharply to Rs.13 crore from Rs.19 crore in Q2 and Rs.28 crore a year ago, pulling margins down to 5 per cent.
Yet, the bottom line refused to blink. Profit after tax stood at Rs.40 crore, up 15 per cent sequentially and only marginally lower than last year’s Rs.42 crore. A healthy Rs.57 crore in other income helped cushion operating pressure, keeping profit before tax at Rs.48 crore, broadly stable quarter-on-quarter despite the tougher cost environment.
The real headline-grabber, however, sits on the balance sheet. The company remains debt-free, with cash and cash equivalents swelling to Rs.3,279 crore as of December 31, 2025. Net worth rose to Rs.3,748 crore, while online collections accounted for 97 per cent of total receipts, underscoring strong cash discipline across operations, including subsidiaries.
In short, while Q3 showed signs of operating strain, the financial backbone remains solid. With zero gross debt, steady profits and a formidable cash war chest, the company enters the next quarter with flexibility firmly on its side proving that in uncertain markets, balance sheet strength can be the best growth strategy.
