DB Corp posts 13% CAGR in ad revenue from FY22 to FY25

In the January–March quarter (Q4FY25), D.B. Corp reported a decline in total income, which fell to Rs 566.7 crore from Rs 642.6 crore in Q3FY25. The company’s net profit for the quarter stood at Rs 52.3 crore, reflecting a sharp 57% decline both quarter-on-quarter and year-on-year. 

The fall in net profit was primarily attributed to a high base in the previous year’s Q4 and cautious advertising spending due to the pre-election period, which historically sees subdued ad spends. Despite the challenges during this period, the company managed to maintain a stable circulation base, providing some degree of buffer against the soft market conditions.

FY25 performance

For the full financial year ended March 31, 2025, D.B. Corp posted a total income of Rs 2,421.2 crore, marginally down from Rs 2,482.1 crore in FY24, reflecting a slight year-on-year contraction. Revenue from operations stood at Rs 2,339.1 crore, marking a 2.6% year-on-year decline. 

The company’s profit after tax (PAT) stood at Rs 371 crore, which was a 13% decrease compared to the Rs 426 crore achieved in FY24. 

Despite these challenges, the company maintained a solid EBITDA of Rs 627 crore for FY25, with an industry-leading margin of 26%, aided by efficient cost controls and a reduction in newsprint costs.

Advertising and radio growth

One of the key highlights for D.B. Corp during FY25 was the strong long-term growth in its advertising revenue. Over the past three years, advertisement revenue rose at a compound annual growth rate (CAGR) of 13%, growing from Rs 1,182.7 crore in FY22 to Rs 1,689.9 crore in FY25. This robust growth is attributed to sustained demand from clients, along with improved monetization across multiple platforms within the company’s ecosystem. 

The radio segment also performed well, with MyFM  reporting a 4.4% increase in advertising revenue, reaching Rs 166.3 crore in FY25. EBITDA from the radio segment rose by 1.3% year-on-year to Rs 55.8 crore. 

However, D.B. Corp’s print and publishing business, which is its core segment, faced a decline in its annual segment profit. The segment’s profit dropped to Rs 419.8 crore in FY25, down from Rs 507.4 crore in FY24, largely due to reduced advertisement spend in the final quarter and the overall slowdown in the print media sector.

Cost controls and circulation strategy

In terms of cost management, D.B. Corp benefited from a significant drop in newsprint costs, which fell 13% year-on-year to Rs 47,550 per metric tonne during FY25. The company reported stability in newsprint prices in dollar terms during Q4 and expects newsprint prices to remain soft in the near term, barring any forex volatility. 

Additionally, D.B. Corp’s continued focus on improving circulation helped buffer some of the negative impacts from the softer Q4. The company noted in a press release that circulation growth was a key achievement for the quarter, reaffirming the enduring strength of print media even in a digital-first world.

Sudhir Agarwal, Managing Director of D.B. Corp, emphasized that, “The standout achievement this quarter has been our rising circulation numbers, which validates the enduring power of print media and gives us optimism for the quarters ahead.” 

Outlook for FY26

Despite the softer performance in Q4FY25, D.B. Corp’s management remains cautiously optimistic about FY26. Agarwal noted that several macroeconomic factors could help the company’s performance in the coming year. These include the anticipated rollout of the 8th Pay Commission, expected tax benefits, and a favorable monsoon forecast, all of which are expected to stimulate consumption growth. While external pressures from subdued market sentiment and the absence of poll-related advertising impacted Q4, the management remains hopeful that these positive factors will offset the challenges and lead to stronger performance in FY26.

Agarwal commented on the overall performance, “Our digital ecosystem continues to gain momentum, solidifying our integrated leadership across all platforms.” He also acknowledged the external pressures that weighed on Q4 performance, particularly the absence of a poll-led advertising boost and a more cautious advertising market during the pre-election period. 

However, Agarwal remains confident in the company’s long-term prospects, stating, “We are optimistic for FY26 as we anticipate macroeconomic triggers like tax benefits, the potential rollout of the 8th Pay Commission, and a favorable monsoon forecast to drive consumption growth.”