DB Corp Q1 Results: Strong ad revenue growth aids profit, margin expansion; Stock jumps up to 7%

Shares of DB Corp Ltd. surged as much as 7.5% on Thursday, July 16, after the Dainik Bhaskar publisher reported a near 25% year-on-year rise in consolidated net profit for the June quarter, aided by robust advertising revenue growth and improved operating margins. The stock has since cooled off from the highs.

The media company’s June quarter net profit stood at ₹101 crore, up 24.6% from ₹80.8 crore in the year-ago period. Its revenue rose 8% to ₹603.7 crore from ₹559.4 crore a year earlier.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased 24% year-on-year to ₹136.4 crore, while EBITDA margin expanded 290 basis points to 22.6% from 19.7% last year.

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Growth in profitability was aided by a slower rise in expenses, which increased 4% year-on-year, compared with an 8% rise in revenue.

Advertising revenue, the company’s key growth driver, climbed 10% year-on-year to ₹432 crore during the quarter, supported by healthy demand across sectors such as real estate, jewellery, FMCG and government advertising, the company said. It added that circulation revenue remained broadly stable despite seasonal factors.

Speaking to CNBC-TV18 after the results, the company said it expects newsprint prices to soften in the coming quarters and is targeting strong single-digit topline growth in FY27. Management added that while the advertising environment saw a slowdown after Diwali, it remains optimistic about the rest of the fiscal year, citing a strong start to April.

It also said it expects its radio business to grow in the high single digits this fiscal year and remain EBITDA-positive for the year. The segment continued to improve profitability during the quarter, with EBIT rising 36% year-on-year while margins expanded to 26%.

DB Corp said its digital business continued to gain traction, with monthly active users (MAUs) of its news apps reaching around 1.9 crore as of May 2026. The company said Dainik Bhaskar remained the leading Hindi and Gujarati news app, driven by continued investments in content and technology.

The company’s board also declared an interim dividend of ₹5 per equity share for FY27. Shareholders on record as of July 23, 2026, will be eligible to receive the dividend, which will be paid on or before August 14, 2026.

Shares of DB Corp are trading 2.7% higher, having cooled off from the initial spurt at ₹214.58. The stock is still down 18% so far this year.