Hathway Cable & Datacom Ltd (HATHWAY)
🎯 Key Takeaways
- Hathway Cable & Datacom Ltd is in a mature, cash-generating phase with declining growth momentum and stagnant profitability, as evidenced by falling revenue, shrinking margins, and a ROE of just 1.7%.
- Revenue grew 3.5% QoQ to ₹565 in Q1FY27.
- ⚠️ 1) Persistent revenue and margin decline across four quarters with no visible recovery plan. 2) EBITDA margin compression to 28% despite flat operatin
📖 The Story
Hathway Cable & Datacom Ltd is in a mature, cash-generating phase with declining growth momentum and stagnant profitability, as evidenced by falling revenue, shrinking margins, and a ROE of just 1.7%. Management is focused on governance upgrades and audit stability rather than expansion, signaling limited reinvestment capacity. The company operates in a saturated telecom-service niche with minimal debt, but its financial trajectory reflects structural pressure on core operations.
📰 What's Happening
The company finalized its 66th AGM on August 19, 2026, where shareholders approved all resolutions including the adoption of FY2026 financials, appointment of Ms. Geeta Fulwadaya as Director, and the five-year appointment of Deloitte Haskins & Sells as joint auditors following a transition from Nayan Parikh & Co. The AGM was conducted via e-voting from August 16–18, 2026, using KFinTech’s platform, requiring institutional investors to submit board resolutions. Operational metrics showed mixed trends: network complaints fell 28%, 87% of non-network issues were resolved within an hour, and CSAT reached 96%, but standalone revenue declined to ₹582.0 crore (from ₹602.1 crore) and EBITDA margin dropped to 28% (from 31%).
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 537 | 537 | 546 | 565 |
| Operating Profit | 4 | 3 | 2 | 0 |
| OPM % | 0.8% | 0.6% | 0.4% | 0.0% |
| Net Profit | 18 | 22 | 11 | 25 |
| EPS | ₹0.10 | ₹0.12 | ₹0.06 | ₹0.14 |
Quarterly financials reveal a clear downward trend: standalone revenue fell to ₹565 crore in June 2026 from ₹537 crore in September 2025, while net profit dropped to ₹25 crore in June 2026 from ₹18 crore in September 2025, despite modest operational improvements. EBITDA margin compression to 28% in FY2026 reflects rising cost pressures or pricing headwinds, even as operating performance remained flat or slightly improved. The consistent decline in revenue and profit across four quarters suggests no meaningful recovery in core business performance, with profitability eroding despite stable asset base and zero debt.
🔮 Management Outlook & What's Next
Management has not provided forward-looking guidance in the latest filings beyond confirming the AGM schedule and e-voting procedures for August 2026. There is no explicit commentary on revenue growth, margin improvement, or capital allocation strategy in the financial results or annual report excerpts. The lack of strategic updates implies either operational stability is assumed or that management is deferring major decisions amid ongoing governance transitions.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 354 | 354 | 354 | 354 |
| Reserves | 3,980 | 4,028 | 4,078 | 4,111 |
| Borrowings | 16 | 13 | 9 | 0 |
| Total Liabilities | 5,203 | 5,122 | 5,435 | 5,182 |
| Fixed Assets | 1,291 | 1,248 | 1,185 | 1,257 |
| Investments | 2,643 | 2,752 | 2,945 | 2,426 |
| Total Assets | 5,203 | 5,122 | 5,435 | 5,182 |
The balance sheet remains extremely conservative, with zero net borrowings and equity of ₹354 crore supported by substantial reserves of ₹4,111 crore as of March 2026. Total assets of ₹5,182 crore are stable, but the growing reserve base suggests retained earnings are being absorbed into reserves rather than reinvested or distributed. This indicates a capital preservation posture, with no active debt financing or aggressive reinvestment, consistent with a company in low-growth or terminal decline phase.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | +290 |
| Investing | -264 |
| Financing | -8 |
| Net Cash Flow | +18 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 75.0% | 75.0% | 75.0% | 75.0% |
| FII | 0.8% | 0.7% | 0.6% | 0.4% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 20.7% | 20.9% | 21.1% | 21.3% |
| # Shareholders | 5,04,916 | 4,92,281 | 4,81,803 | 4,77,869 |
Promoter holding remains stable at 75%, but institutional investor interest is eroding: FII shareholding declined from 0.85% in Q2FY26 to 0.37% in Q1FY27, while DII remains at 0%. The number of shareholders has slightly decreased, suggesting retail and institutional exits may be offsetting new retail entries. The lack of institutional accumulation and stagnant public float indicate weakening investor confidence, despite stable promoter control.
⚖️ Peer Comparison — Telecom-Service
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| BHARTIARTL | 11.68 L Cr | 38.1 | 26.2% | 24.6% | 0.82 |
| IDEA | 1.52 L Cr | 4.1 | 51.1% | -104.6% | -4.18 |
| BHARTIHEXA | 75,718 | 41.5 | 30.3% | 25.5% | 0.38 |
| TATACOMM | 49,433 | 52.3 | 15.2% | 26.3% | 3.07 |
| TTML | 7,601 | — | -0.7% | 1.1% | -0.75 |
| HATHWAY | 1,862 | 25.1 | 2.4% | 1.7% | 0.00 |
| MTNL | 1,682 | — | -0.6% | 11.2% | -1.20 |
| STLNETWORK | 1,329 | — | 0.5% | -10.9% | 0.90 |
| ONMOBILE | 527 | — | -6.2% | -9.0% | 0.11 |
| RCOM | 224 | — | -0.1% | 10.3% | -0.52 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Persistent revenue and margin decline across four quarters with no visible recovery plan. 2) EBITDA margin compression to 28% despite flat operating performance, signaling structural cost or pricing pressures. 3) Extremely low institutional interest and declining FII holding, reflecting lack of confidence from sophisticated investors. 4) No forward guidance or strategic clarity from management on growth levers, making future performance highly uncertain.
📋 Recent Filings
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🟡 Board Meeting 31 August 2026Hathway announced the appointment of Jitesh Shah as new CFO effective September 1, 2026, succeeding Sitendu Nagchaudhuri who retired on August 31, 202...
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🟡 Board Meeting 19 August 2026Hathway Cable & Datacom Limited announced the appointment of Deloitte Haskins & Sells Chartered Accountants LLP as joint auditors for five years start...
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🟡 Board Meeting 19 August 2026Hathway Cable & Datacom Limited held its 66th Annual General Meeting on August 19, 2026, where shareholders approved all four proposed resolutions thr...
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🔴 annual report 24 July 2026Hathway Cable & Datacom Limited announced its 66th AGM scheduled for August 19, 2026, via video conferencing, with resolutions including adoption of F...
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🟡 Board Meeting 20 July 2026Hathway Cable & Datacom Limited announced its 66th Annual General Meeting will be held on August 19, 2026 at 3:00 PM IST via video conferencing, with ...
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🟡 Board Meeting 16 July 2026Hathway Cable & Datacom Limited announced consolidated and standalone unaudited financial results for Q1 FY2026 ended June 30, 2026, approved by its B...
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regulation 31 1 July 2026Reliance Industries, promoter group entity, filed a SEBI Regulation 31(4) disclosure confirming no share encumbrances on Hathway Cable & Datacom Limit...
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Financial Results 25 June 2026Hathway Cable & Datacom Limited announced that its trading window will close on July 1, 2026, and remain closed for 48 hours after the first quarter f...
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regulation 31 11 May 2026Hathway Cable & Datacom Limited disclosed on April 3, 2026, that its promoters and promoter group members have not created any encumbrance on their sh...
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regulation 31 20 April 2026Hathway Cable & Datacom Limited disclosed on April 2, 2026, that its promoter group members — Akshay Raheja, Viren Raheja, Hathway Investments Private...
🧠 Analyst's Read
Hathway Cable & Datacom is transitioning into a cash-generating but stagnant phase with deteriorating core metrics and minimal investor interest. The key watchpoint is whether management can stabilize revenue trends and improve margin sustainability, but current filings offer no indication of a turnaround strategy. Without new growth drivers or clearer guidance, the stock remains exposed to secular decline in its service segment.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-02.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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