D B Corp Ltd Management Discussions

Indian Economy

The IMF projects India to become a _ 4,33,15,000 crore (US$ 5 trillion) economy by FY28, growing to _ 5,46,37,541 crore (US$ 6.307 trillion) by FY30 with a nominal annual growth rate of 10.2% from FY25 to FY30. In rupee terms, Indias GDP is expected to grow at about 10.7% annually in the same period.

As per the IMF, India is expected to remain the global growth leader in 2025.

In rupee terms, Indias nominal GDP grew at a compounded annual rate of 12.4% in the three decades ending FY24. In the next five years, the IMF projects that Indias nominal GDP will grow at around 10.7% annually. The global economy grew by 3.2% in 2024, with the IMF projecting a growth rate of 3.3% for 2025. We expect Indias economy to maintain the growth rate of 6.5% in fiscal 2026, assuming the upcoming monsoon season is normal yet again and commodity prices remain soft, cooling food inflation, the tax benefits announced in the Union Budget 2025-26 and lower borrowing costs will drive discretionary consumption. Indian Economy is likely to get a huge consumption growth with the implementation & execution of 8^th Pay Commission which is already constituted by the Federal Government and the same is expected to be implemented from 1^st January, 2026. It is gathered that an average govt employee will witness a salary hike ranging from 35% to 50% which is expected to boost disposable income significantly in unmetro India.

We expect healthy domestic consumption, particularly in fast-moving consumer goods, consumer durables, two-wheelers and discretionary segments such as tourism. Supported by the growth of consumption-related sectors, we anticipate corporate revenue growth to be 7-8% in fiscal 2026, a tad higher than the previous year.To its credit, India has built a few safe harbours against exogenous shocks over the past few years.

Indias foreign exchange reserves stood at _ 55,46,919 crore (US$ 640.3 billion) as of the end of December 2024, sufficient to cover approximately 90% of the countrys external debt of _ 6,166,323 crore (US$ 711.8 billion) as of September 2024, reflecting a strong buffer against external vulnerabilities. Healthy economic growth, low current account deficit and external public debt, and adequate forex reserves provide ample policy latitude. Indias services sector exports grew by 11.6% in the first nine months of FY25, with net services receipts increasing from _ 10,40,426 crore (US$ 120.1 billion) in the same period of FY24 to _ 11,37,452 crore (US$ 131.3 billion) in FY25. Exports in this sector are projected to increase from _ 34,652 -

_ 43,315 crore (US$ 4–5 billion) in FY23 to _ 17,32,600 - _ 25,98,900 crore (US$ 200 - 300) billion by 2030.National Infrastructure Pipeline (NIP) aims for _ 1,11,00,000 crore (US$ 1,281.31 billion) investment from FY20 to FY25.

National Monetisation Pipeline (NMP) targets _ 1,91,000 crore (US$ 22.05 billion) for FY25, focussing on monetising core infrastructure assets.

Dedicated Freight Corridors (DFCs): 96.4% of the planned 2,843 km network is complete, transforming logistics efficiency.

_ 91,000 crore (US$ 10.50 billion) capital investment in aviation from FY20 to FY25; 91% of this achieved by November 2024.

Bharatmala Pariyojana: 34,800 km of highways planned, 76% awarded, 55% constructed.

Solar energy dominates - 97.8 GW of installed capacity as of December 2024.

Power Sector Reforms: _ 3,00,000 crore (US$ 34.63 billion) allocated for Revamped Distribution Sector Scheme (FY22–FY26).

Growing telecom penetration: 5G rollout completed in 779 districts, with 4.6 lakh 5G towers installed. 2.14 lakh gram panchayats connected via broadband under BharatNet Project.

Foreign direct investment (FDI) inflows increased by 17.9% in the first eight months of FY25, reaching _ 4,81,663 crore (US$ 55.6 billion). Gross FDI inflows surpassed _ 86,63,000 crore (US$ 1 trillion) from April 2000 to September 2024. We retain our view that India will remain one of the fastest-growing large economies until the end of the decade. Since the economic reforms of 1991, Indias growth has trended up every decade.Growth is now returning to pre-pandemic rates as fiscal impulse normalises and the high-base effect wears off.

Consumption sectors to drive revenue growth in fiscal 2026

Private consumption accounts for more than 55% of the countrys GDP. In this context, the revised income tax slabs under the new regime, along with lower inflation and interest rates, are expected to aid middle-income households, potentially boosting urban demand in segments such as ACs and two-wheelers.

India is poised to become the third-largest M&E market globally by 2028, on the back of this frenetic activity. Effective implementation of self-regulation in both the TV and streaming markets has simultaneously enabled us to pause when needed and demonstrate accountability to our society and culture. We hope to continue this balanced momentum into the new financial year. The Indian M&E sector continued to grow in 2024, it grew by _ 81 billion to reach _ 2.5 trillion (US$ 29.4 billion).

Print: Bucking the global trend, print continued to grow in India. Advertising revenues grew 1% in 2024, with a notable growth in premium ad formats, as print remained a "go-to" medium for more affluent and non-metro audiences. Event led revenues also increased for several newspaper brands. Subscription revenues fell 1% on the back of rising cover prices and falling circulation, particularly the second newspaper in the home. Digital revenues were not significant for most print companies, usually being under 5% of their total revenues

Advertising grew by 8.1% in 2024

Segment	2021	2022	2023	2024
Television	329	334	312	294
Print	151	170	178	179
OOH	26	48	54	59
Radio	16	21	23	25
Cinema	1	5	8	9
Total traditional	522	578	575	566
Digital	383	499	597	700
Online gaming	8	11	13	14
Total new media	391	510	609	714
Total	914	1,088	1,184	1,279

The ad to GDP ratio is currently at 0.38%, which remains much lower than most other developed countries which are at 1.25% of their GDP like USA, UK, China, Europe etc.

Advertising reached its highest ever level in 2024, of _ 1.28 trillion

Indias Media & Entertainment industry is positioned for transformative growth over the next 25 years. As a news organization, we must uphold the highest standards in news journalism, stay true to our values and serve our readers with integrity. Credibility is the North Star of our industry, and safeguarding it is the only way to ensure trust. Indias newspapers have had an impact on readers for decades, and we are confident they will continue to do so for many more years, while adapting to the changing environment and needs of readers. While the media landscape is changing to include digital platforms, print will remain a powerful and credible medium, especially in Bharats Tier 2 and 3 cities, where trust in traditional formats runs deep. A lot of jargon has been used to define the news industry, but from a readers perspective, two elements matter most - credibility and timely reporting. The core principles of journalism must remain uncompromised.

Print remains the go-to medium for reaching affluent audiences in India, and is used by most premium brands and categories like real estate, auto, luxury products, phones, etc. particularly for brand and product launches.

The affluence + tier-II and III story will resonate with advertisers

As consumption grows faster in smaller towns than in many metros, and affluence spreads across the country, the consumption story must be communicated strongly to media buyers

For many regional newspapers, a "state ownership" strategy will help in garnering a higher share of wallet, where the newspaper brand becomes the window to all media in that state for advertisers

News companies will focus on getting brands to spend consistently on print in 2025, rather than in short, tactical bursts, or when they see sales drop

There is scope for ad rates in regional language papers to correct as consumption grows faster in those markets than in metros

Hindi and other Indian languages together garnered 73% of newspaper ad volumes

Outlook

Print segment can grow to _ 288 billion by 2026, at a CAGR of 3.4%

Advertising will grow at a 4.7% CAGR, driven by access to increasingly elusive affluent audiences and premium inventory formats

Soft newsprint prices will help news companies improve margins, which can enable them to re-invest in growing circulation through schemes and bundling

Two years back the newsprint prices were at around US$ 950 spot price has now come down to around US$ 500 spot price, providing substantial much needed relief and improving the earnings.

Digital advertising

Our Apps have registered a tremendous growth from 2 million in January 2020 to almost 22 million in May 2025.

Digital advertising grew 17% to reach _ 700 billion, which is 55% of total advertising revenues. Growth was led by search and social media (11%) and e-commerce advertising (50%), which reached _ 147 billion. Included in digital advertising are spends by SME and long-tail advertisers of over _ 258 billion

Digital media grew 17% in 2024

	2021	2022	2023	2024
Advertising	383	499	597	700
Subscription	56	72	89	102
Total	439	571	686	802

(_ billion (gross of taxes), including SME ad spends : EY estimates)

Digital media grew 17% in 2024 and was the fastest growing segment of the Indian M&E sector

For the first time in 2024, the digital media segment became the largest segment of the Indian M&E sector at _ 802 billion, overtaking television

Digital media now accounts for 32% of the Indian M&E sector and India has, in effect, reached its digital inflection point

Subscription accounted for just 13% of total revenues, due to the large advertising models in play in India, led by Google and Meta, as well as the growing advertising revenues earned by e-commerce platforms

Telecom subscriptions remained stable at 1.2 billion

There was a minor 0.2% growth in telecom subscriptions in December 2024 against 1.19 billion telecom subscriptions in December 2023

Urban subscriptions comprised 56% while rural subscriptions were 44%

The tele-density in India is now at 85% and remains heavily skewed to 132% in urban areas and just 58% in rural areas

The next wave of content consumption growth can therefore be expected to come from rural Bharat as against urban India

5G subscriptions are expected to reach 270 million in 2024, fuelled by fast-growing network availability, affordable service plans and availability of 5G smartphones across price points

23% of telecom subscriptions had migrated to 5G, which is more than double their 2023 share of 11%

4G and 5G subscriptions are estimated to grow to 92% of all mobile subscriptions by 2030, which will grow the base of content consumers

Internet Subscriptions (in million)	Dec-22	Dec-23	Dec 2024E
Narrowband (a)	34	32	26
Broadband (b)	832	905	945
Urban (a)	516	548	568
Rural (b)	350	388	403
Total (a + b)	866	936	971

TRAI : EY Estimates

97% of those accessing the internet used broadband, of which 5% used wired broadband and the rest used wireless services

Narrowband subscriptions declined by 18%, while broadband usage increased by 4% between December 2023 and December 2024

Urban internet subscriptions comprised 58% of all internet subscriptions

Rural subscriptions grew by 4% between December 2023 and December 2024; rural subscriptions now being more than two-thirds of urban subscriptions, pointing to a need to create content for both these markets

Smartphone users reached 562 million in 2024

At 562 million, 39% of Indias population uses smartphones

In addition, India still has approximately 230 million feature phones in use2, which provide a large opportunity for growth in the years ahead

Sensor Tower : Top five countries by average time spent : iOS and Android combined

Indians spent 4.95 hours per day on phone apps in 2024, a 3.1% growth over 2023

In aggregate, India spent more than 1.1 trillion hours on digital platforms, higher than any other market worldwide, which shows the immense potential for ad funded products

Time spent on media (including social media, films, entertainment, music and casual games) increased to 779 billion hours (69% of total time spent) in 2024

The mobile phone has thus become the go-to medium for large, national awareness campaigns as well as more targeted regional and local ones

Outlook

Digital advertising is projected to grow at a 13.5% CAGR to reach _ 842 billion, driven by improved governance

It is expected to surpass television as the largest segment by 2025, continuing to narrow the gap.

Radio

Radio segment revenues grew 9% in 2024 to _ 25 billion on the back of a growth in ad volumes, and alternate revenue streams. On an average, 20% of radio revenues are related to events, content production and other revenue streams

Radio segment revenues grew 9% in 2024 to _ 25 billion, reaching 81% of 2019 revenues; radio is the only segment which still lags its pre-COVID-19 revenue levels

India had 1,478 operational radio stations, an increase of 165 stations over previous year, including 388 private FM stations and 499 community radio stations. All India Radio generates programming in 23 languages and 179 dialects across 591 radio stations, covering 98% of Indias population

Ad volumes increased marginally by 3% in 2024 as compared to the previous year, while ad rates remained stressed

Quarter 1 of CY2024 saw a growth of 29% on the back of government advertising (at higher DAVP ad rates) and political campaigns leading up to the India general elections

Non-FCT revenues contributed an average of 20% of total revenues earned by radio companies - their highest levels since we started tracking the sector in 2017 - and went up to over 30% for some companies

Creating event IPs, brand activation, building communities, international music streaming, content production, digital marketing and influencer marketing were the top contributors to such revenues for radio companies we surveyed

Proposed FM radio auctions will help bridge gaps

The government is rolling out 730 new FM channels across 234 cities as part of the Phase III FM Radio Policy. This expansion supports the "vocal for local" initiative and focuses on enhancing local content, particularly in smaller tier-II and III cities

Given the current state of the private FM segment, we expect most companies to participate only in order to fill in gaps in their station bouquets, and expect that some stations may not find buyers since existing stations (which are larger) are still not profitable

The proposed 4% licence fee for new stations could help the auctions, but there is a need to understand the overall state of the FM radio segment, and build proactive regulation to assist its survival

The launch of digital radio can have implications

The government has been considering the launch of digital terrestrial audio and video in certain cities, which does not consume data

In the event this initiative comes to light, it could increase the number of frequencies available to radio stations, and lead to more variety in content

However, new receivers would be needed in phones and cars, which could take some years to gain scale, and issues in moving from analogue to digital radio would need to be carefully addressed

We believe that digital radio could help more than double radio segment revenues within four years of its launch

Source: TAM Media research. TAM AdExs data pertaining to 120+ radio stations for Jan to Nov 2024. Data for Dec 2024 is extrapolated in certain cases. The data has been provided by TAM Media Research to EY and has not been independently verified by EY.

Outlook

Revenue is anticipated to recover to _ 27 billion by 2026

Growth drivers include:

SME and retail advertisers, where spends can be easily attributed to sales

Launch of several new and challenger brands in FMCG, durables and electronics, where retail ad media are effective in creating awareness

Non-FCT revenues as radio companies create brand extensions to leverage additional opportunities for community building, content production, influencer marketing and short video

DBCL Segmental Performance

D. B. Corp Ltd. (DBCL) is Indias largest media conglomerate with strong presence across print, radio and digital segments. It is headquartered in Bhopal, Madhya Pradesh, India, with around 5,100 employees across the country. As Indias largest print media company, DBCL publishes 5 newspapers, namely, Dainik Bhaskar (43 editions), Divya Bhaskar (8 editions), Divya Marathi (6 editions), Saurashtra Samachar and DB Star in 3 languages, i.e., Hindi, Gujarati and Marathi. DBCL is present across 12 states of Madhya Pradesh, Chhattisgarh,

Rajasthan, Haryana, Punjab, Chandigarh, Himachal Pradesh, Delhi, Gujarat, Maharashtra, Jharkhand and Bihar.

DBCLs other business interest areas span across radio and digital mediums. In the FM radio segment, the brand has a strong presence in ‘94.3 MY FM, which is available in 7 states and 30 cities, creating a valuable package for advertisers in tier II and III cities, where Dainik Bhaskar is already a leader in the print business. DBCL also has a strong online presence with 4 internet portals and 4 mobile applications. DBCL is the No.1 digital player in Hindi and Gujarati languages as well.

Print

State-of-the-Art Printing Infrastructure: DB Corp Ltd has a cutting-edge printing infrastructure that spans across 12 states, with 52 printing centres and 81 state-of-the-art machines. This setup enables the company to effectively produce high-quality newspapers efficiently.

Advanced Technology: DB Corp Ltd has invested heavily in advanced technology that includes state-of-the-art CTPs, High-speed presses from renowned brands like KBA Germany and Manugraph India. The current infrastructure ensures that the company can produce large quantities of newspapers quickly with high precision quality.

Capacity and Reach: With an installed capacity of approximately 32 lakh copies per hour, DB Corp Ltd has the capacity to reach a vast audience across all locations in the shortest possible time & provide readers the latest content. Innovative Printing Solutions: DB Corp Ltd has developed innovative printing solutions that cater to the diverse needs of its advertisers & readers. The company offers a range of Industry leading print innovations, including Front Page Cloth Jacket, Embedded Tulsi Seed on live newsprint, 3D printing, fragrance printing, fuzzy folds, butterfly flaps, French windows, and super panorama, to name a few..

Eco-Friendly Practices: At DB, we are committed to environmental sustainability and have adopted eco-friendly practices such as using Vio green eco-friendly plates processed in CTP devices. Solar Installations at various plants and city offices. This reduces the companys carbon footprint and supports its mission to minimise environmental impact. Strategic Locations: DB Corp Ltd has strategically located its printing centres to ensure timely delivery of its newspapers. This allows the company to maintain its competitive edge and stay ahead of the competition.

Continuous Upgrades: We monitor our competitors continuously & upgrade our infrastructure and technology to always stay ahead of the curve. This ensures that the company remains at the forefront of innovation in the print industry. Efficient Operations: DB Corp Ltd has implemented efficient operations to stay lean on costs and high on productivity through automation of various processes, digital properties, and effective cost management for total cost productivity.

Quality Control: At DB, we have a robust quality control mechanism in place as per the recommendations of IFRA to ensure that its newspapers deliver the highest standards of quality. We have a centralised QC Labs to test all the raw materials to ensure standards.

Advertisement

DB Corp witnessed growth in commercial advertising, however, the Government Advertsing category, due to high base of previous year saw a steep decline thus overall impacting Advertising Revenue Performance. While Retail advertising at the state level continue to witness growth consistently, our national corporate advertising maintained a stable performance. These figures underscore our robust market presence and strategic alignment with both regional and national advertisers.

Education, Real Estate, Jewellery, Automobile sectors continued to dominate commercial advertising: Overall, advertising sentiments have remained positive, an encouraging sign of the sectors resilience and potential. Commercial businesses, while still on a path to fully resuming their advertising momentum, show promising scope for growth. Advertisers are becoming increasingly result-oriented, moving beyond traditional advertising to more innovative and impactful strategies.

In response to these evolving needs, our company has developed varied solutions, including special initiatives and ground activations, tailored to capture market dynamics and deliver exceptional results for our clients. It is important to note that by the end of FY 2024-25, even national advertisers have shown a strong inclination towards these special initiatives. As we move forward, we remain committed to innovation, excellence, and delivering value to our clients and stakeholders. Together, we will continue to navigate the challenges and seize the opportunities that lie ahead.

Circulation

1. DB Corp has recorded good performance in reader acquisition and circulation growth. The morning newspaper remains an integral part of daily life for millions — a fact reflected in our growing circulation.

2. Our multi-channel circulation strategy blends innovation with on-ground execution. The landmark ‘Jeeto 14 Crores Reader Scheme captured attention across demographics, supported by a 900-member team conducting extensive door-to-door outreach. As we move forward, we aim to further strengthen our circulation base with a focus on quality, consistency, and innovation.

3. In most of the markets, DB has gained market share through its acquisition and new product launch strategies. Industry-first initiatives like Agent CRM and Agent Income Maximisation have strengthened the distribution network, enhanced agent loyalty and ensured sustainable long-term growth

Digital

For the past five years, the Digital Business has been a key focus area and an important pillar for future growth of our business and this focus has translated into strong gains. Our ability to innovate clearly puts us ahead in the market and with a highly personalised product experience – which includes text, graphics and videos as well as other new engaging formats. Our Apps have registered a tremendous growth from 2 million in January 2020 to almost 22 million in May 2025. This has propelled Dainik Bhaskar to extend its leadership as the dominant digital leader with the #1 Hindi and Gujarati News Apps, with the competition either staying flat or declining its user base. With our dominance already established in the print format and now in the digital format, we are undoubtedly the #1 Phygital Indian Language Newspaper in the country. Our three-dimensional approach towards user retention and engagement – high quality content, unparalleled user experience and strong technology backbone is one of the driving forces of our performance. Our teams continue to work on minor and major improvements to help deliver the crisp content curated by our editorial teams and ensure that our users get hyperlocal news from all towns, cities and states in our markets. We have also worked on increasing the visual aspect of the news for further engagement

1. DB is executing very well on Content, Product, Tech.

2. DB has the best team across all functions and a strong advisory board which has been composed of Industry Experts and Global News Leaders like Mark Thompson (Ex CEO - NYT) in the past.

3. DB is the fastest growing News App in the last 5 years.

4. DBs retention, engagement and user quality is the best compared to other news apps.

5. DB has the most depth and breadth across high quality local news as well as premium journalism content. This forms a solid base for a digital news subscription offering in the future.

6. DB is investing in building a strong brand with very high user trust focussed on Local News and also developing organic and cost-effective distribution channels.

Market Opportunity:

1. The online user base in India is growing rapidly. Mainly Video, Content and News consumption online is also growing.

2. India is one of the fastest growing markets in both mobile data users and data consumption per user, expected to continue.

3. News consumption is also shifting online, and there is a huge supply gap for high quality, credible news content and journalism which will need a lot of innovation.

4. Local content is one of the biggest markets needs especially in the news category.

5. Short video content is also emerging rapidly as a preferred content format across categories.

6. Advertising revenue is shifting more towards digital. Premium ad inventory along with credible, high-quality content is still not solved for.

7. Subscription revenue for digital content online is growing across the world, and in India too. Theres a big opportunity here if we build a direct audience with high engagement and loyalty.

8. Both are channels DB will invest in heavily, given the massive market opportunity.

Areas of Focus and Key Updates:

Dainik Bhaskar has continued its focus on building the best-in-class, ad-free user experience on its digital app while maintaining high quality, insightful and engaging content for its readers. The omni-channel presence has been important, and we see our digital presence as a strong supplementary pillar of growth.

Premium, Original, Local Content worth paying for - Dainik Bhaskar has invested consistently in delivering high quality, premium journalism to its readers and users in multiple formats including rich text, visual graphics and short videos. Our News App has been designed to make mobile-native vertical video news with a large content library of real time videos across multiple categories that is renewed daily. This has been well received and has seen strong traction as readers appreciate the premium, hyperlocal content being delivered to their handheld devices. We continue to be focussed on "high quality journalism worth paying for".

Innovative, Interactive Content Experiments for Big News Events - We intend to leverage every big News Event across India (like Ram Mandir, Lok Sabha Elections, Maha Kumbh, IPL etc and a lot of upcoming News Events) to grow our Direct App User Base by creating some really innovative and interactive content generating high engagement, loyalty and long term "willingness to pay" within our users. This will go beyond the standard formats like articles, videos etc. and be highly engaging, yet simple enough for the masses to consume and derive value from.

Analytical and In-Depth Election and Political Content - Post our experience with some Interactive and In-Depth Content experiments during the Elections in MP, CG and RJ in 2023 and Lok Sabha Elections in 2024, we intend to grow & deeply engage users with a very strong focus on in depth, local level coverage to our users possible only via Digital Platforms to keep the regular Political coverage beyond Elections real-time, personalized and engaging for them - this will be a major focus in the upcoming Bihar and UP elections too.

Strong Talent Pool - Dainik Bhaskar has built a strong product and technology team from some of Indias leading companies with Consumer Product and Technology backgrounds, as well as one of the biggest and strongest Digital Journalism and Content team in India for real time and original content.

Continued Focus on Technology - Dainik Bhaskar continues to invest substantially in technology in order to provide best-in-class personalised news experiences that serve users from a massive pool of content while considering their demographic attributes, content preferences, location, economic segment, and real-time context to accurately predict and serve content, to maximise user engagement, long-term retention, and loyalty as well as "willingness to pay" through not only great journalism, but also a great personalised, user experience. We also invest heavily in leveraging technology to scale up high quality journalism and content quickly and efficiently across many different formats for both the top original and exclusive content as well as the long tail of realtime hyperlocal content.

Radio

Brand alliance

MY FM - MY FM Garba Nights – 10 Days, 10 Top artists.

MY FM, launched the Season 3 of Garba nights at Ahmedabad with artist line up – Bhumik Shah, Jasraj Shastri, Hardik Dave and many more. All attendees came together and experienced the rich cultural traditions of garba in its true spirit. With a dynamic and youthful artists line up, we were thrilled to entertain Amdavadis like never before.

MY FM, in collaboration with the Ministry of Culture, launched the "HAR GHAR HEALTHY" campaign to promote a healthy lifestyle across India. The campaign spread across 90 days, initiated during the Amrit Mahotsav of Independence, garnered immense support with over 1,800 touchpoints covering 30 cities in 7 states, engaging around 100 million people.

MY FM - The Official Radio Partner of Gujarat Titans

As part of this partnership with MY FM, Gujarat Titans facilitated a series of activities, on-air campaigns, designed to provide fans with unique experiences. The partnership with MY FM aimed to offer interactive experiences for Gujarat Titans fans and MY FM listeners.

Honda Big Wing presents MY FM Fresh Face spanning 16 cities, with 250 on-ground activities and over 11000 test rides.

MY FM and Honda BigWing partnered for a new initiative, MY FM Fresh Face, building on last years success. The campaign spanned 16 cities, with 250 on-ground activities and over 11,000 test rides. This years initiative targeted Tier II & III cities in Punjab, Gujarat, Madhya Pradesh, Chhattisgarh, Rajasthan, and Maharashtra, focussing on engaging youth talent.

MY FM Building Gujarat – The biggest business conclave of Gujarat in 2024

Held at The Forum Convention Centre in Ahmedabad, the full day event offered fresh ideas, diverse strategies and research backed insights. The landmark event gathered Gujarats top creative and business minds to promote innovation, investment and economic diversification. Renowned Bollywood actors, Suniel Shetty & Tisca Chopra graced the occasion.

Indian Media & Entertainment Industry - Opportunities and Threats

Opportunities

Traditionally, the growth rate in the media and entertainment sectors has outperformed that of Indias GDP growth rate. What makes this interesting is that consumer spending in this sector is discretionary. With the per capita outlook for the Indian economy expected to improve significantly in the coming years, the consequent overall consumer spend outlook in the sector remains positive.

As per recent Economic Times published article on June 24, US$ 40 billion consumption boom is coming soon in next 12 to 18 months time, fuelled by tax cuts, pay hikes, cheaper loans, normal monsoon, MSP hike for major agriculture products etc. The Government of Indias last Budget announcement of personal tax saving which is estimated to be around _ 1 Lakh Crore is expected to boost disposable income in the hands of Middle Class. Further, with proposed implementation of 8th Pay Commission, effective from 1st January 2026 which is expected to result in a substantial salary hike ranging between 35% and 50% and expected to boosting consumption. A third of India does not have a television, and over half do not yet use social media. Additionally, 90% of Indians do not visit cinemas, and only one in ten Indian households has a wired broadband connection. The potential for growth is immense, and both digital and traditional media have significant headroom to scale in the years ahead.

India is projected to remain the fastest growing major economy in the medium term. The National Statistical Office (NSO) has estimated India to continue showing a strong real GDP growth at around 6.8% in FY25, as compared to 7.3% in FY24. This robust performance has been delivered largely by investment growth led by the GoIs emphasis on capital expenditure Indias 2025 (FY26) growth is projected to be 1.5 times global growth and 1.3 times EMDE growth in this year. It is also projected to outpace Chinas growth by 2.6% points Digital surpassed traditional advertising for the first time this year, and will drive growth in the sector moving forward. Traditional print, radio and cinema advertising trends also indicate healthy growth in the coming times.

Higher penetration and a rapidly-growing young population, coupled with increased usage of 5G and portable devices, to augment demand.

The literacy rate in India is one of the major factors for socioeconomic progress in addition to academic achievement. A literate person is a vital asset to the nations development. Urbanisation of rural India and rising per capita income will drive growth for the mass segment.

Increase in Indias per capita income from US$ 2,500 in 2022 to around US$ 3,300 by 2025, and reduction of income inequalities due to direct subsidy transfers, employment guarantee schemes, investment in infrastructure.

Rural growth and growing middle class will also be key factors.

Threats

Indian Economy: The turbulence in global scenarios due to the State war and resultant impact on the supply chain may have a cascading impact on the global economy and resultant Indian Economy. Weak Indian economy performance will adversely impact media spends.

Piracy: The digital media sub-sector in India has not been able to fully monetise its content due to the prevalence of rampant piracy. Weak IP regulations and ineffective enforcement have been a deterrent to producing original content and IP. Also, with the growing global reach of the Indian Media and Entertainment industry and the growth of the Indian diaspora abroad, the international piracy of Indian content has also emerged as a key challenge.

Input Costs: The Indian newspaper industry imports around 50% of its paper, mainly from the US, Russia and Canada. Being a significant component of cost, players are sensitive to fluctuations in the price of paper. Rising prices and depreciation of the Indian rupee are therefore generally a cause of concern for the industry.

External Factors: Various external factors such as the pandemic, war, etc., which are not in our control also affects the business in various manners. The company keeps itself well prepared and informed about all such uncertain happenings but, still can be affected to some extent due to its unpredictable consequences.

Internal Controls and Vigil Mechanism

The Company has built up a strong and efficient internal controls mechanism, commensurate with the size of its operations. It has laid down standard operating guidelines and processes which ensure smooth functioning of activities and zero ambiguity in the minds of people who actually execute the operations. The policies, processes, guidelines and checklists relevant to the Standard Operating Procedures are available to all on the Companys Intranet Portal.

Internal Controls

Over the years, DBCL has undertaken specific efforts to build up its Processes and deploy Standard Operating Guidelines across all operational areas.

The Finance Heads at Corporate, State & Unit levels are accountable for financial controls. They are fully responsible for accuracy of books of accounts, preparation of financial statements and reporting in line with the Companys accounting policies. DBCL has deployed a vigorous Internal Controls and Audit mechanism to facilitate an accurate and fair presentation of its financial results. This process not just ensures adherence to regulatory standards and meets statutory compliance requirements, but also confirms that the Companys reporting is complete, reliable and understandable. In addition, there is a specific impetus on safeguarding investor interests with deployment of the highest levels of governance and regular communication with them.

During FY 2024-25, the Company appointed Independent Chartered Accountancy firms to assist in re-evaluating and testing its Internal Financial Controls (IFC) which encompassed review, reclassification and rationalisation of controls.

Internal Audit

To support its Internal Audit structure, the Company has engaged experienced Chartered Accountancy firms across all locations. A system of monthly Internal Audit reporting, reviewing and monitoring is in place to ensure effective adherence to establish processes, internal controls and internal audit mechanisms on a real-time basis. Around 58 CA firms are working as Internal Auditors at different locations.

Vigil Mechanism

Integrity and ethics have been the bedrock of all the Companys corporate operations. DBCL is committed to conducting its business in accordance with the highest standards of professionalism, honesty and ethical behaviour and has the best systems in place to nurture a similar working culture, therefore, DBCL which is among the first few companies in India to take active steps towards establishing a ‘Whistle-blowing Mechanism. This initiative was taken to encourage Employees, Circulation/Advertisement Agents and Suppliers/ Vendors to report irregularities in operations, besides complying with the statutory requirements under the Companies Act, 2013 and the Listing Regulations. Any DBCL Employees, Circulation/ Advertisement Agents and Suppliers/Vendors can raise his or her Concern/Complaint via the dedicated phone numbers; or through email or post. These phone numbers are operational throughtout the year. These reporting channels can be accessed in Hindi, English, Marathi and Gujarati. An Internal Ethics Committee has been established to operate this policy under the supervision of the Audit Committee. All the Concerns/Complaints are categorised and prioritised, based on their nature; and corrective or disciplinary actions are taken based on the seriousness of the issue/findings. If the whistle blower is not satisfied with the actions taken, the mechanism also has an escalation protocol in place. Through this process, the mechanism considers and extends complete protection to the whistle blower.

Operational Highlights

Advertising Revenue

Advertising Revenue stands at _16,899 million for FY 2025 as compared to _17,524 million for FY 2024.

Circulation Revenue

Circulation Revenue stands at _4,734 million for FY 2025 as compared to _4,791 million for FY 2024.

Income from Operations

On a consolidated financial basis, DBCL has reported total income of _ 24,212 million for FY 2025 as compared to _ 24,821 million for FY 2024. Raw Material Consumed

The cost of newsprint consumption decreased by 13% YoY to _ 6,425 million for FY 2025 as compared to _ 7,352 million for FY 2024. The decrease in the raw material cost is owing to the softening of newsprint spot prices from as high as US$ 950 to around US$ 500.

Employee Cost

At a consolidated level, the employee cost increased by 3% YoY to _4,446 million for FY 2025 as compared to _ 4,317 million for FY 2024. Other Expenses Other operating expenses increased by 16% YoY to _ 7,072 million for FY 2025 as compared to _ 6,118million for FY 2024. EBITDA EBITDA degrew by 11% to _ 6,270 million in FY 2025 from

_ 7,033 million in FY 2024. Depreciation

Depreciation and amortisation expenses decreased by 9% to _ 1,037 million during FY 2025 from _ 1,140 million during FY 2024.

Finance Cost

Finance Cost increased by 4% YoY to _ 247 million in FY 2025 from _ 238 million in FY 2024.

Profit after Tax (PAT)

DBCL has reported operational PAT of _ 3,710 million during FY 2025 as compared to _ 4,255 million during FY 2024. The quality and strength of the Balance Sheet of DBCL as on March 31, 2025 is satisfactory and can be gauged from the following ratios:

Ratio

Ratio	2024-25	2023-24
Current Ratio (times)	3.72	2.93
Debt-Equity Ratio (times)	0.13	0.11
Debt Service Coverage ratio (times)	5.18	8.92
Inventory Turnover ratio (times)	3.47	4.29
Trade Receivable Turnover ratio (times)	4.86	4.92
Trade payable Turnover Ratio (times)	2.93	3.15
Net Capital Turnover Ratio (times)	1.66	2.65
Net Profit Ratio (%)	15.85%	17.68%
Return on capital employed (%)	20.83%	23.75%
Return on investments - Mutual Funds (%)	10.15%	34.71%
Return on investments - Fixed Deposit (%)	7.36%	6.73%
Interest coverage ratio (Times)	21.14	24.74
Operating profit margin (%)	22.36%	24.50%
Return on Net Worth (%)	16.66%	20.33%

Reason for variance (only for change in the ratio by more than 25% as compared to the previous year except for return on net worth): Current Ratio (Times): The increase in the Current Ratio during the year is primarily attributable to a rise in the Companys current bank balances. This increase in liquid current assets has enhanced the Companys short-term liquidity position as at the reporting date.

Debt Service Coverage ratio (times): The decrease in the Debt Service Coverage Ratio for the year is primarily due to a significant increase in the Companys short-term borrowings, which has led to higher debt servicing requirements. This was further impacted by a decline in the Companys net profit compared to the previous financial year, resulting in reduced cash flows available for servicing debt obligations.

Net Capital Turnover Ratio: Decrease in the Ratio for the year is primarily due to a significant increase in the Companys working capital, mainly on account of higher investments in fixed deposits. This increase in capital employed, coupled with a decline in revenue compared to the previous financial year, has resulted in a lower turnover ratio.

Return on investment - Mutual Funds: Decrease in return on investment in mutual funds during the year is primarily due to a reduction in the market value or Net Asset Value (NAV) of the funds.

Return on Equity Net Worth (%) : The decrease in the Return on net worth for the year is primarily due to decline in the Companys net profit compared to the previous financial year.

Shareholder Value

DBCLs dividend distribution policy is aimed at sharing its prosperity with its shareholders, while maintaining an adequate reserve for liquidity and growth. DBCL has declared an aggregate equity dividend of 120%, i.e. 12 per share which is a pay-out of around 57.60% of Consolidated PAT for the year.

Human Resource

In FY 2024-25, DB Corp Limited continued its sharp focus on building a future-ready, performance-driven, and people-first organization by optimising human capital strategies across businesses. Anchored in our philosophy of excellence and inclusivity, we advanced our position as a preferred employer, with ratings on platforms like Ambition Box (4.4/5) and Glassdoor placing us as best in the industry and ahead of many leading Indian companies. This recognition reinforces our commitment to nurturing a transparent, purpose-led work environment.

Here are the highlights of our achievements in FY 2024-25:

Performance and Growth Initiatives

To ensure retention, development, and growth of key talent, several structured programmes were accelerated, including fast-track career paths and function-specific capability building. Our high-potential employees were identified through structured assessments, and we continued investing in Individual Development Programs (IDP) across Editorial, Ad Sales, and Circulation functions.

For our senior-most talent and Top Team members, we launched tailored Individual Development Programs (IDPs) focussed on leadership growth and succession readiness. These programmes integrate hands-on project ownership, participation in strategic reviews and planning forums, and regular, structured feedback sessions to accelerate experiential learning and leadership depth.

People Development and Engagement

Employee experience remained central to our HR strategy. During the year, we strengthened our Family Connect initiative, allowing spouses and children of employees to engage with the organisation and leadership through engagement events and unit anniversary celebrations.

Our quarterly webinars with Promoters enabled two-way communication between leadership and employees across geographies, ensuring transparency, visibility, and direct access to company priorities.

Recognition and Reward Programs

Our employee engagement and recognition efforts, such as the GREAT Champions, Spot Awards, Prerna Puruskars and Bhaskar Journalist of the Year, have played a vital role in reinforcing our culture of meritocracy and values-driven leadership. Festivals were celebrated with purpose through our

Festive R&R Program, where top-performing team members were recognised and rewarded across functions - boosting morale and motivation during the festive period.

Employee Satisfaction and Community Engagement

To remain competitive and attract the right talent, we revised the minimum salaries for our Ad Sales and Editorial teams. These changes were based on certain benchmarks and internal comparisons, ensuring fair compensation and supporting stronger retention in key roles.

We took further strides in employee well-being by enhancing healthcare coverage limits for employees and their families.

During Prerna Diwas, we successfully organised a Blood Donation Drive with 10,000+ participants across our locations - demonstrating collective impact and social responsibility led by our teams on the ground.

With a workforce of over 7,000+, we remain committed to fostering a resilient, agile, and people-centric organisation while managing operational costs prudently and investing in the long-term growth and engagement of our employees.

Outlook Print

Improved per capita income and overall GDP growth of India has led to good amount of disposable income on ground, resulting in higher spending, further reflecting in improved advertisements. With the Government of Indias Budget announcement of a Personal Income tax reduction worth _ 1 Lakh Crore and the implementation of the 8th Pay Commission, disposable income in the hands of Middle class is expected to rise substantially.

All the major sectors are showing a positive atmosphere with improved advertisement spending. Our leadership in most of the Tier 2 and Tier 3 cities continues to grow and we are confident enough to reflect this on the books in the coming years.

Sectors like Education, Real Estate, Jewellery, Auto and Response are consistently contributing to DBCLs advertisement revenue. The emerging sectors are also adding to print advertisement revenues.

Digital

As the largest advertising segment in 2024, digital media is expected to be the primary driver of media growth in 2025. All categories increased their spending on digital media in 2024 compared to 2023, and this trend is expected to continue. Digital advertising is projected to grow at a CAGR of 13.5% through 2026, reaching _ 842 billion. Its share of total advertising is expected to rise from 51% in 2024 to 54% in 2025, and further to 57% by 2026.

Radio

MY FM continues to report industry leading EBITDA margins with continued engagement with its clients and continuous connect with audience and augment listeners engagement activities through innovative content creation. Our radio network continues to maintain leadership position in key markets such as Chandigarh, Haryana, Punjab, Rajasthan, Madhya Pradesh, Maharashtra and Chhattisgarh. Our efforts at building the Radio business with strategic investments, strong focus on content and various engagement events lead us to believe that this performance is sustainable.