Ladies and gentlemen, good day and welcome to the GTPL Hathway Limited Q1 FY 2027 earnings conference call hosted by Emkay Global Financial Services Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is been recorded. I now hand the conference over to Mr. Aryan Tripathi from Emkay Global Financial Services Limited. Thank you, and over to you, sir. Good evening, everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Mr. Anirudh Singh Jadeja, Promoter and Managing Director, Mr. Piyush Pankaj, Business Head, B2B, CATV and Broadband, and Chief Strategy Officer, and Mr. Saurav Banerjee, Chief Financial Officer. I shall hand over the call to the management for the opening remarks. Over to you, gentlemen. Thank you. Welcome to the call of GTPL Hathway Limited to discuss financial performance of the first quarter of FY 2027. As the country's largest MSO, we continue to take initiatives to further strengthen our presence across the digital TV and broadband businesses. We appointed Mr. Vivek Raina as our new broadband business CEO to have a focused approach and lead growth in B2B and B2C segments. Both our digital TV and broadband businesses continue to demonstrate resilience and consistent operating performance. With the launch of GTPL Infinity, our HITS platform in FY 2026, and the recent acquisition of the ACT Group's digital television business, we are strengthening our platform for future growth and enhancing our ability to scale efficiently across key markets. The further details of the acquisition will be shared by Piyush Pankaj. Thank you. Now, I hand over the call to Piyush Pankaj, who will take you through the KPIs for digital TV and broadband segment. Thanks, Mr. Jadeja. Good evening, everyone. Let me begin with giving you all an overview of the key highlights of this quarter. GTPL Hathway entered into a business transfer agreement to acquire the digital business of seven ACT Group companies for an aggregate cash consideration of INR 36.23 crore, which is expected to get completed by 15 September 2026. The transaction is expected to add approximately 6 lakh digital TV subscribers across Andhra Pradesh, Telangana, Odisha, and Karnataka market, thereby strengthening our presence in key southern and eastern markets and supporting our strategy of expanding the digital TV business through both organic and inorganic growth. This acquisition will give us leadership position in Andhra Pradesh and Telangana, which will help us to trigger the synergetic benefit for revenue consolidation and cost optimization. We are pleased to report that we entered two new strategic markets in Q1 FY 2027, namely State of Kerala and Jammu and Kashmir. By entering the Kerala State, we have expanded our presence in all southern markets. Now, the KPIs for our digital TV and broadband business are as follows. First, digital TV segment. Our digital TV subscriber base as on 30th June 2026 stood at 9.60 million. Among the total subscriber base, paying subscribers stood at 8.9 million. The total business partners count now stands at more than 51,000, and they remain instrumental in fueling our nationwide expansion journey. In the broadband business, active subscriber base at the end of the quarter stood at 1,060. 1,060 K, 1.06 million, adding 10,000 new subscribers on a YOY basis. The broadband ARPU for Q1 FY 2027 stood at INR 470, increased by INR 5 as compared to Q1 FY 2026. Average data consumption per month stood at 436 GB per user, a 6% increase YOY. As we move forward, we remain committed to accelerating our expansion across new states, broadening our total addressable market, and advancing our vision of becoming a truly pan-India digital TV and broadband player. Thank you. I will now hand over the call to Mr. Saurav Banerjee, CFO, who will take you through the financial performance of the company. Thank you, Mr. Piyush. Good evening to all the participants. For the quarter, on a consolidated basis, our total income grew by 12% year-on-year and 9% on a quarter-on-quarter basis to INR 1,020 crore. Subscription revenue saw an increase of 2% sequentially to INR 291 crore. The broadband revenue stood at INR 143 crore and registered a growth of 5% on a yearly basis and grew marginally by 2% sequentially. Consolidated EBITDA stood at INR 109 crore with an EBITDA margin of 10.7%. Net profit for Q1 FY 2027 stood at INR 2.3 crore. Looking at the standalone performance for the quarter. Our total revenue grew by a healthy 16% YOY and 12% sequentially to INR 693 crore. Subscription revenue saw an increase of 2% QOQ to INR 213 crore. Standalone EBITDA stood at INR 64.4 crore with an EBITDA margin of 9.3%. Net profit for Q1 FY 2027 stood at INR 1.9 crore on a standalone basis. Our consolidated operating EBITDA stood at INR 101 crore in Q1 FY 2027, registering an operating margin of 22%. I would now request the moderator to open the floor for the Q&A session. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to unmute while asking questions. Ladies and gentlemen, we will wait for a moment for any questions. We take the first question from the line of [Sajal Agarwal from Oswal Advisory]. Please proceed. Hi, good evening. Congratulations on the quarter. My first question- Sorry to interrupt, [Sajal]. I would request you to come closer to your device and then speak. Sorry? Your voice is coming a bit low. I would like to request you to please come to your device and then speak. Am I audible now? No. Can you please be a little louder? Okay. Am I audible now? Yes. [Sajal], please go ahead. Yes. Okay. Hi. Congratulations on the quarter, firstly. My question is on the ACT acquisition. As the integration progresses, what would you consider the key milestone we should monitor for the coming months, like to evaluate whether this acquisition would be delivering the expected returns? Yeah. In ACT integration, you can say that we have around 6 lakh subscriber base, which we are looking forward to integrate, and the whole agreement is going to get closed by 15th September 2026. The full effect of that will start coming in the mid quarter two, and then the next quarter in quarter three, which you will start seeing. You will see that the number of subscriber has to go up by that much. Plus, it will enhance our revenues and it will be accretive to our EBITDA. Those things you will start seeing it. In calls also, we will give you the figures that how it is contributing to our overall business, this acquisition. Okay. Mostly the benefit would be coming through operating leverage or through revenue synergy? The benefits will come on becoming a market leader, having a market leadership in Andhra and Telangana market, which will give us the synergy benefits as we have presence over there and we are taking over this. We are going to be market leader, that will give us better operating margin in that market. Okay. One more question. Broadband home pass has expanded meaningfully over the last quarter. Also subscriber additions have remained relatively moderate. Going forward, is your priority to improve utilization of the existing network, or you would be continuing to expand the home pass footprint? Yeah. The strategy in broadband is till date, we are not increasing our home passes and we are going for the extraction of the subscriber base on that, because already if you see the percentage is at around 16%-17% is the extraction rate right now, which we want to go up to around 19%-20% on this. Yes, as in my statement, we said that we have recruited a new CEO for the broadband business, we will have more focus at how we can expand all over India and increase our business in Gujarat market. We are going to invest in increasing our home pass also and create more infrastructure for the expansion of the future business. The focus will be back totally on the broadband business, that how we can expand that. That is one of the main reasons that our CEO has been recruited and put into the place to fuel that growth. Okay. Thank you so much. Thank you. Thank you. We take the next question from the line of [Sohani Singh] from SK Capital. Please proceed. Hi, sir. Good afternoon. My question was with regards to the financial performance of the company. Despite the revenue growing 12% year-on-year to INR 1,020 crore, the PAT declined sharply to around INR 2.3 crore. Could you help me understand the key reasons for this divergence between top-line growth and profitability, and which operating factors created the biggest pressure during the quarter? You're right. PAT has decreased around INR 8 crore YOY, if you see. This is mainly because of higher depreciation and finance cost. If you go through the whole credentials, you will see that the depreciation and finance cost has gone up by around INR 6 crore. That is because of the capitalization of right of use assets related to HITS infrastructure. In line with the accounting standards and conservative accounting practice, the company has taken the full cost and capitalization of HITS, but the cost saving and other operational benefits related to HITS will start flowing in future quarters, which will show positive effect impact in coming quarters. If you see, the company is maintaining the operational margin, and the margin will increase when the full benefit of HITS platform will be utilized. We have taken all the costs regarding the HITS on the capitalization and other cost, which is on the transponder cost and everything. Still, as the HITS implementation is going on, the benefits of HITS and the saving due to the HITS is yet to come into the books. That's why we are seeing that difference in the PAT. If you see at the EBITDA level, it is just INR 3 crore down, but at the PAT level, it is at INR 8 crore down. Okay, sir. How much of the margin pressure is structural versus one-off? Can we expect margin to improve during FY 2027? Yeah. The operational margin, which is at 22%, which we have shown, that will go up to 25%. That will help us in increasing our EBITDA and PAT, both the side. Okay, that helps. Also, the home pass stands at 5.95 million, with around 75% FTTH ready, the overall footprint appears to have remained broadly stable for the past few quarters. Could you tell me the pace at which GTPL expects to convert this existing footprint into paying broadband subscribers? What are the key bottlenecks to the accelerating conversion? Yeah. We are looking forward that out of this 6 million, 5.95 million home pass, we should have 20%-21% conversion rate, extraction rate. That should be there, which we are trying to achieve. Plus, now we are going to invest back into increasing our home passes. There also, we are expecting that the healthy extraction rates should be 20%-21%. That's what we are aiming for and we are looking forward as we are going to be more aggressive in the market for the broadband. Okay, that helps, sir. My next question was related to the recent acquisition. Could the management elaborate on the key synergies expected from the acquisition of the seven ACT Group digital TV businesses? Specifically, how should we think about the potential benefits in terms of market expansion, cost efficiencies, and cross-selling opportunities? See, Andhra Pradesh and with the Telangana market, if I will say, we already have more than a million subs, and adding this 6 lakh, we are going to cross somewhere around 1.6, 1.7 million subs. Which is, we are going to be the largest player in that market, and that is going to help us in expanding also, expansion also. We're going to have a much better synergies in that market, and that will help us in operational synergies and vendor synergies, everything. That is going to give us more margin in that market. That's the benefit we will start seeing into the coming quarters as the deal will get closed. That's on 15 September 2026, which we have to close before that, on 15th or before that. You will start seeing that effect in our P&L also. As I said that we will keep you informed in every call that how it is progressing and what more benefits we are getting out of this acquisition. Can you shed more light on what contribution are we expecting on revenue and EBITDA from this acquisition? Right now, we don't want to give it. First, we let the integration happen and get this deal get closed, as this is getting closed by 15 September, as we announced in public. Before that, we don't want to give any figures and all. Yes. In the next call, we will get all the figures, and we will start getting it in the result also. One last question. What is the planned CapEx for FY 2027 across broadband expansion, FTTH conversion, HITS infrastructure, and integration of acquired assets? Right now, we have kept it around INR 400 crore for this financial year, the CapEx, where it is going to be around 50% for broadband and 50% for digital TV. Yeah. That helps, sir. Thank you very much. Wish you all the best. Thank you. Thank you. We take the next question from the line of [Dhara Mandhani from Sandsage Investments]. Please proceed. Hello, am I audible? Yeah, you are. Go ahead. Yeah. Sir, my first question was, how do you encourage upsell to the higher tiers in cable TV and broadband? Come again. Sorry, your voice was cracking and I missed it. Hello. Hello. Sir, yeah. My question was, how do you encourage upsell to higher tiers in cable TV and broadband? Upsell. You're talking about upsell? Yeah. Upsell. Am I audible? Combo. Sir, actually, we are trying pilot projects in few cities regarding this combo that I think you're referring to, regarding the cable TV and broadband. So far, there is a good sign, obviously, because eventually, the idea is to bring them together and increase the broadband subscribers with the kind of number of cable TV we have. I cannot exactly tell you the plan, but far it's looking as a good sign. We have started the combo products already. It is in our stable, that is doing very good. That combo product is more of cable plus broadband plus other services, games and everything. That's a very promising product, which we are upselling to both our cable and broadband subscribers, bringing them. That is increasing our stickiness and plus this is increasing our revenues on that side. Okay. Sir, in case of a scenario of stronger competition on Jio, what are the levers you would use to protect margins and market share in cable TV and broadband? We are the number one digital TV provider right now, as you say. We are expanding in different states. Already we are in 26 states and five UTs, only two states are left, and I think three UTs are left. That's why we have gone for Headend In The Sky technology, where we have the signal at every nook and corner of the country now. We are looking forward that how densely we can expand into every district of India going forward. It's more of like if you are in Aurangabad, then we are not only in the city, we are in the whole district, we are in the whole villages and everything, which is covered. As you know that in India, around 350 million households are there. Only 210 million households are TV households. Still there is a long way for India to go. Same in the broadband, if you talk about 300 million households in India, and only somewhere around 50 million ones are in the broadband, in the FTTH. Still long way to go. Here we have to create the infrastructure, which is future ready to expand your business and cater to the need of the customers. That's what we are doing, and we are hopeful that this strategy will work. Okay, sir. Got it. Sir, how is the HITS infrastructure operationalization panning out currently? If you could share some light. Very good. Already in the Headend In The Sky, we have seen that around 2.5 million existing subscribers has been converted into Headend In The Sky platform, and around 208,000 new subscribers has come into the platform. The bandwidth saving has already come into the effect of around 2.47 million in the first quarter. We are looking forward that it will increase with the time. HITS is, I would say, successful. We have started the whole thing somewhere in February, end March start. In the last four months, a little more than 2.5 million more, we will say it's close to 2.7 million subscribers are there in this platform. Yes, we are looking forward that in the coming quarters, more savings, more operational benefit, and more penetration in the new markets. New markets means not in the state. I'm talking about the districts now. That will help us in the business in the whole side. That is successful. Roughly when can we expect full benefits from? You will start seeing it somewhere in the end of quarter three and start of quarter four. The whole benefits of Headend In The Sky, which will come into the effect. This year, you will see that somewhere around 40%-50% benefit has come because we are expanding, doing the things. From the next financial year, it will be 100%. Okay, sir. Sir, how is the traction on Buzz app? Any metrics in terms of downloads, daily, monthly active users, digital subscription renewals, or hours of content watched that you would like to throw out? Yeah. Already given that the data consumption is increasing. Already it has reached to around 436 GB per user per month. A total of 436 GB per month. That is increasing and that is showing that more consumption is happening, and the consumption is happening in all type of things. I don't want to go into the specific platforms and all in this call. Yes, overall, the consumption is increasing every month for us in the broadband business. Okay. That's great. You got it. Sir, in the broadband, ARPU has increased to INR 470 per month. That's right. ARPU has increased from INR 465 to INR 470, and that is mainly because people are shifting from lower packages to higher packages, higher speed packages. Okay. Sir. Got it. How sustainable would be this ARPU trajectory over the few quarters? Yeah. It will remain around constant. It will remain somewhere around INR 470 for right now. Okay, sir. Sir, the digital TV revenue has declined year-on-year while active and paying subscribers remain stable. Is the pressure mainly due to lower realization, channel mix discounts, or competitive pricing? No, as you know, I have given that in the earlier calls also. The churn is there, and you are entering into new markets where the ARPU is a bit lower than your established markets. Because of the change in the ARPU complex, the revenue is showing a bit dip. That will come back as we go more aggressive on the expansion as HITS platform has already been launched and we are going to be very aggressive, like we are doing the acquisitions right now, and we'll do more acquisitions and more aggressive expansion in the market. Okay, sir. Got it, sir. Sir, lastly, the average data consumption has increased to 436 GB per month per user. Yeah. Is the higher usage translating into upgrade to higher speed plans, or is it mainly increasing network cost, like without proportional ARPU upside? No, it is both. People are shifting to higher and the utilization is also getting increased. Okay, sir. Got it, sir. Thank you so much. All the best, sir. Thank you. Thanks, [Dhara]. Thank you. Before we proceed with the next participant, a reminder to the participants. In order to ask a question, you may press star and one on your touchtone telephone. We take the next question from the line of [Pahil Sharma] from DD Capital. Please proceed. Good evening. Am I audible? Yeah, [Pahil]. Please go ahead. Yes, sir. I had a couple of questions. Starting with, we have entered two new markets this quarter, Jammu Kashmir and Kerala, if I'm not wrong. Yes. What specific rationale drove GTPL's entry there? Could it be cable TV expansion, broadband opportunity, or cross-selling potential? Yeah. We have started expanding. Firstly, the entry is at the digital TV. It is through the Headend In The Sky in these two markets. As you said that these are the two new markets which we have not earlier there. We wanted to have the presence in those markets. The opportunity for broadband is very high in these two markets both. We have got a lot of inquiries on that. Soon we are going to launch the broadband in these two markets also. These are, you can say, lucrative markets as J&K and- Kerala. Kerala, both are lucrative markets. We look forward for a good outcome and good revenue and margin over there. Okay, sir. Got it. What is the current addressable subscriber base in these two markets? What subscriber addition target does management expect over the next, let's say, 12-18 months? See, targetable, if you talk about the total TV households at Kerala market, that is somewhere around 7 million is there, 6.5 million-7 million subscriber base is there. It is spread over DTH and cable operation. We already have around 75,000-80,000 subscribers over there. We are looking forward that we are going to continue and grab more market over there as the potential is there. J&K also, the addressable market is somewhere around 5 million, so 4.5 million-5 million. We look forward that we will become a major player in the J&K also. Okay, sir. Got it. Sir, my next question was what upfront investments are required in these markets, like in the terms of network, LCO partnerships, set-top boxes, marketing, and customer acquisition? We entered as inorganic and organic and both ways in these markets. The investment, you can say, is hard to say what is the investment because we have to see with the return and all. STBs, as you see, we have to give it for every subscriber base. It all depends, the investment, based on whatever subscriber base we are going to achieve from that. It's based on the per subscriber base. All other costs, the fixed cost and all, are very less when we are doing it in the digital TV side. Yes, when we're going to start the broadband, we have to do some fixed cost investments and all, which we will do in future. Okay, sir. My next question was regarding ARPU. How should we think about ARPU and EBITDA margins in these new markets versus GTPL's existing core markets? As you enter into the new markets, you have to give some discounts and all. That's why in the beginning, you want to achieve to a scale where you can sustain the business and you can have a good margin on that. That takes, in any market, the cable businesses from six to 12 months. After that, we will start making the money in those markets. We are looking forward to that, and till that time, some investment will be made, you can say, and then we will start seeing the returns in those markets on the ROE or ROI basis. Okay. Sir, are these markets expected to be breakeven from day one through maybe existing local partnerships, or will there be an initial gestation period before profitability improves? That's what I said, that to make a market positive in cable business, it takes six to 12 months. There is going to be a gestation period of six to 12 months to make the business positive in that market. Okay, sir. Sir, my last question. What is the competitive intensity in these markets from DTH, local cable operators, Jio, Airtel broadband, and AirFiber-like offerings, and what will be GTPL's differentiation? See, in any market you will see their competition is like this only. As I said that the whole addressable market is somewhere around 6.5 million-7 million in Kerala and 4.5 million-5 million in J&K. It's a large market, and we have to make the strategies that how we can grab more and more market of that, so that we can establish ourselves and make the business as a very good margin in those. That is going to happen. Competition is there all over India, so we are doing the competition. It's not a problem. Okay, sir. Thank you so much, and all the very best for the future. Thank you. Thank you. We take the next question. Before we proceed with the next question, a reminder to the participants. In order to ask a question, you may press star and one on your touch-tone telephone. We take the next question from the line of Vivek Gupta from Star Investments. Please proceed. Yeah. Hi, sir. Am I audible? Yeah. Yeah, Vivek. Yeah. Sir, the GTPL Infinity, it has been launched and the management mentioned encouraging traction. Can you share early adoption metrics, target consumer segments, and the expected monetization timeline for the same? It's a long-term platform, Vivek. It's more of once you start giving, because it's a fixed cost, transponders cost are fixed. You can serve to 1 million also and 50 million also in this platform. As the number of subs grows, your operational margin increases in this platform. It's not that it's a variable like in CATV, that wherever we have to go, you have to go with the P2P or through fiber and all, which is variable cost, and the cost grows with the number of subs. Here, the number of subs, the costs are fixed, and as you are increasing the number of subs, your operational margins are increasing. That's why we are looking forward to that. It's not that, as fast as we can continue growing our subs in this platform, it will give us more margins and the operational margin will increase. That's what we are looking forward. Being an all of India player, and still we want to grow the digital TV in India, having a lot of potential on that side. We are looking forward that we will expand and make more and more margins on this platform, through this platform. Okay. Sir, just a follow-up on that. What kind of cost savings do you expect from this GTPL Infinity versus the traditional head-end model, especially on signal distribution, maintenance, and the network operations? Yeah. I'll just give you example that if I have to go for a traditional CATV, then I have to take a P2P or fiber to reach that place. Like I talked to you about Chhindwara. Chhindwara is one place in Madhya Pradesh. If I have to reach there, I have to take the point-to-point fiber from providers, telco providers or other providers, and we have to give the variable cost of that. If I will say that the cost is somewhere around INR 10 lakh per month. On INR 10 lakh, if you divide it by 12, it is like INR 80,000. An INR 80,000, if you are serving 5,000 customer per month, it's like INR 20 is what your cost is on INR 80,000. Your INR 20 is going just for the delivery cost here. Same if you are just serving 1,000 customers, it's INR 80 as a delivery cost for one subscriber. You are getting from the subscriber INR 125, INR 130 as ARPU plus tax, whatever. The distribution cost is just INR 80, it's not feasible to do the business on that basis. You can't go for a sub base less than 5,000 on that connection, that's why you have to leave north markets. You can't go into the rural markets because there you will find that there is a village of 500 houses, 100 houses, 1,000 houses, and you can't serve them because it's not financially feasible. Through Headend In The Sky, you are reaching everywhere, we have a fixed cost. You can serve anyone. You can go and serve for 100-house village, 50-house village, 200-house villages also. Plus, you can serve the whole city also, it's not a problem. There, the restrictions because of the financial feasibility on restrictions of subscriber base on to how you can go or how you can serve is gone. Now you can expand freely. Wherever you want to go, you can go, you can add the subscriber base. That's why still the rural market has lesser TV, and still 140 million-150 million households has no TVs because people can't reach over there. DTH can reach, but they are very costly, and you have to go for that cost, which is not affordable for rural markets. All those things are there. That does give us an edge that how you want to do, what strategy you can make, if you're on satellite, then you have the market open for you. Okay, sir. The average data consumption has increased to 436 GB per user per month. Is higher users translation into upgrades to higher speed plans, or is it mainly increasing the network cost without proportional ARPU upside? No, higher GB doesn't mean that the cost is increasing because you are maintaining the cost through optimization of your network and optimization of users of bandwidth and all. That doesn't translate into higher bandwidth cost and all. Yes, if users are increasing, then that is encouraging my customer to go into higher brackets, and that's why you are seeing that if you take our ARPU around two years or three years back, it was at around INR 400, INR 410, INR 420. That has gone up to INR 470 right now. That is mainly because of that lower bracket subscribers are going for the higher bandwidth and higher speed packages. That is the case. You don't translate this into increasing the bandwidth because you maintain the bandwidth cost through optimizations of your network and all. Okay, sir. Thank you. It's a healthy sign for the business that your consumption are increasing. Okay. Got it, sir. That really helps. Thank you, sir, and all the best. Thanks. Thank you. We take the next question from the line of Priti Agarwal from SK Associates. Please proceed. Yeah. Thank you so much for the opportunity. I wanted to know that how is the industry managing rising content acquisition cost, and what strategies is GTPL adopting? Content increase, that is happening every year or every second year, as you know. We are managing through our partners, I will say. Broadcasters are our partners. We are managing through negotiating with them. By absorbing the cost somewhere, at some point of time in the back, we have increased our price also on the ground. Yes, somehow together we are sitting and doing the negotiations with our partners, with the broadcasters. We are seeing that no one should lose even our subscribers and our partners, the LCOs and all. If it happens, then we both absorb some of the cost on that basis as a partner, and we move forward. That is the way it is. It's more of the negotiation. Yes, we being the largest MSO, yes, we have which we utilize, and we have that data. I will say that our partners, which are the broadcasters, are helpful in this. We sit together and take the course that how we should go ahead and take care of our subscriber base and our network partners and all. Okay, sir. Understood. That's it from my side. Thank you so much, sir. Thanks. Thank you. There are no further questions from the participants, I would now like to hand the conference over to the management for closing comments. Over to you, sir. Thanks a lot for taking your time for attending the Quarter 1 FY 2027 earnings calls for GTPL Hathway Limited. We look forward to interact with you next quarter. Have a good evening, and thank you once again. Thank you. On behalf of Emkay Global Financial Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.