Hathway Bhawani Cabletel & Datacom Ltd Management Discussions

GLOBAL ECONOMY OVERVIEW:

Global growth is projected to remain resilient at 3.3% in 2026 (rates similar to the estimated 3.3% outturn in 2025) and at 3.2% in 2027. The forecast marks a small upward revision for 2026 and no change for 2027 compared with that in October 2025 World Economic Outlook (WEO).

This steady performance on the surface results from the balancing of divergent forces. Headwinds from shifting trade policies are offset by tailwinds from surging investment related to technology, including artificial intelligence (AI), more so in North America and Asia than in other regions, as well as fiscal and monetary support, broadly accommodative financial conditions, and adaptability of the private sector.

Global headline inflation is expected to decline from an estimated 4.1% in 2025 to 3.8% in 2026 and further to 3.4% in 2027. The inflation projections are also broadly unchanged from those in October and envisage inflation returning to target more gradually in the United States than in other large economies.

Since October 2025 WEO, trade tensions have continued to abate but remain subject to occasional flare-ups. A dispute between China and the United States involving controls on exports of semiconductors and rare earth minerals was quickly followed by a truce that reduced bilateral tariffs until November 2026 and introduced a pause on export controls. US authorities also removed, for all countries, tariffs on some agricultural products, offsetting the higher tariffs on certain sectors that were previously announced and are now in effect. This leaves the overall US effective tariff rate at about the same level as assumed in October 2025 WEO but the changes for specific countries can be meaningful.

Against this backdrop of stabilizing trade tensions and supportive financial conditions, the global economy has continued to be remarkably resilient, adapting to the shifting landscape and with momentum varying across countries and sectors. In aggregate, global growth in the third quarter of 2025 decelerated to 2.4% on an annualized basis, above expectations but with upside surprises in some countries offset by downside surprises in others. A boost from aerospace exports lifted growth to 2.2% in France, whereas falling exports continued to weigh on activity in Germany, leaving real GDP unchanged from the second to the third quarters.

Rebuilding fiscal capacity and maintaining public debt sustainability are crucial, especially as rising spending needs persist. At a minimum, commitment to credible medium-term fiscal consolidation is required. Efforts to replenish fiscal buffers should be anchored in realistic assumptions, including those regarding long-term spending pressures, and sound debt management practices while seeking to strike the right balance in regard to growth-friendly adjustment. Countries should aim to bolster fiscal revenues, rationalize expenditures, and strengthen expenditure efficiency by, among other things, crowding in private investment. Beyond the navigation of near-term trade-offs and challenges, elevating medium-term growth prospects remains the most effective strategy for resolving macroeconomic dilemmas. Structural reforms targeting labor markets, education, regulatory frameworks, and competition will drive productivity, potential output, and job creation. Moreover, harnessing technological progress through digital transformation, AI adoption, and investment in renewables and energy-efficient systems, among other possibilities, can accelerate productivity gains and expand growth potential. These efforts should not be jeopardized but rather be aligned with a rebalancing of the global economy, which is a crucial element of sustainability. Weaving in growth-enhancing measures together with efforts to fortify the EU single market, to chart a credible fiscal consolidation plan to put US public debt on a decisively downward path, and to advance Chinas reforms to strengthen the social protection system and scale back unwarranted industrial policy support would help diversify the sources of global growth.

Source: International Monetary Fund (IMF), World Economic Outlook Update, January 2026 .

NDIAN ECONOMY OVERVIEW:

Even as the global economy navigates uncertainty, India continues to chart a State of the Economy 99 strong growth path, as reflected in the First Advance Estimates (FAE) for FY26 released by the Ministry of Statistics and Program Implementation (MoSPI). These estimates place the real GDP growth rate at 7.4% and the GVA growth rate at 7.3%, surpassing earlier projections by various agencies and our own estimates in the Economic Survey of 2024-25, and reaffirming Indias status as the fastest-growing major economy for the fourth consecutive year. On the demand side, domestic demand continues to anchor growth, supported by a strengthening momentum in capital formation. On the supply side, manufacturing activity has gained traction, and services continue to drive overall expansion, led by steady performance in trade, transport, and financial and professional services.

Domestic demand continues to underpin economic growth in FY26. According to the FAE, the share of final private consumption expenditure in GDP rose to 61.5% in FY26, the highest level since FY12. This is corroborated by the strong performance during the first half of the year, with Private Final Consumption Expenditure (PFCE) growing by 7.5% in H1 of FY26, and its share in GDP rising to 61.4%. This is the fastest growth rate since the first half of FY23 and remains higher than the pre-COVID trend of 6.9%. This strength in consumption reflects a supportive macroeconomic environment, characterized by low inflation, stable employment conditions, and rising real purchasing power. Moreover, steady rural consumption, bolstered by strong agricultural performance, and the gradual improvement in urban consumption, aided by the rationalisation of direct and indirect taxes, reaffirm that the momentum in consumption demand is broad-based.

Along with consumption, investment has continued to anchor growth in FY26, with the share of gross fixed capital formation (GFCF) estimated at 30.0%. Investment activity strengthened in the first half of the year, with GFCF expanding by 7.6%, exceeding the pace recorded in the corresponding period last year and remaining above the pre-pandemic average of 7.1%. This momentum was buoyed by sustained public capital expenditure and a revival in private investment activity as evident from corporate announcements. Reflecting this strength, the share of GFCF in GDP remained steady at 30.5% in H1 of FY26, well above the pre-pandemic average of 28.6%. Together, these developments indicate a strengthening of the investment cycle, supporting growth.

From a supply-side perspective, growth in GVA during FY26 was led by the industry and services sectors, supported by sustained capital expenditure, improved capacity utilisation, and steady demand for services. Agriculture has provided a stabilising force, with output supported by favourable monsoon conditions and steady value addition from allied activities.

Future outlook

The FY26 was an unusually challenging year for the economy on the external front. Heightened uncertainty in global trade and the imposition of high, penal tariffs created stress for manufacturers, particularly exporters, and affected business confidence. The government responded by using this crisis as an opportunity to push through key measures such as GST rationalisation, faster progress on deregulation, and further simplification of compliance requirements across sectors. FY27 is therefore expected to be a year of adjustment, as firms and households adapt to these changes, with domestic demand and investment gaining strength. That said, it must be acknowledged that the external environment remains uncertain, which shapes the overall outlook.

The outlook for the global economy remains dim over the medium-term, with downside risks dominating. At the global level, growth is expected to remain modest, leading to broadly stable commodity price trends. Inflation across economies has trended downward, and monetary policies are therefore expected to become more accommodative and supportive of growth. However, certain key risks persist. If the AI boom fails to deliver the anticipated productivity gains, it could trigger a correction in overly optimistic asset valuations, with the potential for broader financial contagion. Additionally, a protraction of trade conflicts would weigh on investment and further weaken the global growth outlook. These forces collectively suggest that downside risks to global growth remain prominent, although a fragile stability holds for now.

For India, these global conditions translate into external uncertainties rather than immediate macroeconomic stress. Slower growth in key trading partners, tariff-induced disruptions to trade and volatility in capital flows could intermittently weigh on exports and investor sentiment. At the same time, ongoing trade negotiations with the United States are expected to conclude during the year, which could help reduce uncertainty on the external front. While these risks remain manageable, they reinforce the importance of maintaining adequate buffers and policy credibility.

Against this backdrop, the domestic economy remains on a stable footing. Inflation has moderated to historically low levels, although some firming is expected to occur going forward. Balance sheets across households, firms and banks are healthier, and public investment continues to support activity. Consumption demand remains resilient, and private investment intentions are improving. These conditions provide resilience against external shocks and support the continuation of growth momentum. The forthcoming rebasing of the CPI series in the coming year will also have implications for inflation assessment and warrant careful interpretation of price dynamics.

Importantly, the cumulative impact of policy reforms over recent years appears to have lifted the economys medium-term growth potential closer to 7%. With domestic drivers playing a dominant role and macroeconomic stability well anchored, the balance of risks around growth remains broadly even. Taking these considerations together, the Economic Survey projects real GDP growth in FY27 in the range of 6.8% to 7.2%. The outlook, therefore, is one of steady growth amid global uncertainty, requiring caution, but not pessimism.

Source: Economic survey 2025-26

INDIAN MEDIA & ENTERTAINMENT (M&E) SECTOR OVERVIEW:

The Indian M&E sector grew by Rs. 232 billion to reach Rs. 2.78 trillion (US$32 billion), exceeding Indias nominal GDP per-capita growth of 7.7%.

We expect the M&E sector to grow 2.8% in 2026 to reach Rs. 2.86 trillion (US$32.9 billion). Excluding the online gaming segment, the M&E sector is expected to grow at 8% in 2026, then grow at a CAGR of over 7% to reach Rs. 3.3 trillion (US$37.9 billion) by 2028.

Indian M&E sector grew 9% in 2025 to reach Rs. 2.78 trillion:

Segment	2022	2023	2024	2025	2026 E	2028 E	CAGR 2025 - 2028
Digital Media	571	686	851	1,110	1,301	1,640	14%
Television	726	711	679	617	587	535	-5%
Print	250	259	257	259	264	264	1%
Filmed Entertainment	172	197	187	205	224	253	7%
Online Gaming and Video Games	222	236	236	195	74	92	-22%
Animation and VFX	107	114	103	105	113	138	10%
Live Events	73	88	101	145	140	196	10%
Out of Home Media	48	54	59	67	74	85	8%
Music	46	54	53	59	64	75	9%
Radio	21	23	25	23	23	22	-2%
Total	2,237	2,422	2,553	2,785	2,862	3,301	6%
Growth	23.3%	8.3%	5.4%	9.1%	2.8%

THE M&E SECTOR:

The Indian M&E sector grew 9.1%, exceeding the nominal GDP per capita growth after two years.

Advertising grew even faster at 13.5% due to the growth in e-commerce and point-of-sale advertising, and improved credit to MSMEs, whose share in industrial credit reached an all-time high of 33% in December 2025.

At 63% of the total advertising, digital advertising dominated marketing budgets in 2025.

India produced almost 200,000 hours of content in 2025, a majority of which was in regional languages other than Hindi. 96% of content was produced for TV (excluding news bulletins), 2% for films, 1% for OTT and 1% for short video and micro-dramas.

Television

We expect television households to cross 200 million by 2028.

Linear TV revenues will decline at 5% until 2028, with advertising falling at 7% while subscription falls at 3%.

With Connected TV viewership projected to reach 83 million households by 2030, Pay TV content will compete for eyeballs with other digital content and non-broadcaster OTT and social media platforms; this will drive innovation.

Bundled offerings will accelerate as DPOs counter cord cutting by integrating Pay TV content with IPTV and broadband services.

With FreeDish at an estimated 53 million homes (and larger than active pay DTH), broadcasters could intensify their FTA strategy.

Pricing and packaging will evolve to protect Pay TV - broadcasters will offer smarter bundles at differentiated price points.

Interactivity on TV will increase to deepen digital connect and build first-party consumer data.

Growth in Indias population will increase Indian households from 332 million in 2025 to 345 million by 2028. Further, the middle-class population is projected to grow substantially, reaching 715 million in 2030-31 and 1.02 billion in 2046-47. This will, in turn, increase the demand for TV sets.

Connected TV homes are expected to increase to 67 million by 2028, as broadband access in the home increases steadily. India has seen its wired broadband increase from 32 million to 46 million during the last two years.

The key challenge posed by connected smart TVs is that broadcasters will now compete against social media and digital native platforms as well for share of time on the large screen.

Source - EY Report March 2026

OPPORTUNITIES, THREATS AND BUSINESS OUTLOOK

Free Dish offering stiff competition in Phase 3 and 4 Hindi Speaking Markets.

High-end consumers / Nuclear families / Bachelors can move to TV viewing through OTT apps.

The Company is taking various steps to improve performance by:

Penetration in untapped markets.

Rationalize Average Revenue Per User (ARPU) through innovative Distribution Platform Operator (DPO) packs.

Increase customer engagement through better regional content.

Optimization of overheads by exercising effective control and regular review mechanism.

INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company has established adequate internal control systems commensurate with the nature and size of its business to ensure the orderly and efficient conduct of operations, safeguarding of assets, reliability of financial reporting, and compliance with applicable laws and regulations. The effectiveness of these controls is regularly reviewed by the management, functional heads, and the statutory auditors. The Audit Committee reviews the adequacy and effectiveness of the internal control systems and the implementation of audit recommendations on a quarterly basis.

BUSINESS PERFORMANCE

The Company is engaged in providing Cable Television Network Services, which constitutes its sole reportable segment. The Companys operations are primarily concentrated in the State of Maharashtra, India.

HUMAN RESOURCES

The Company continues to recognise its human resources as a valuable asset and remains committed to fostering a performance-driven work culture. During the year, employee responsibilities were effectively aligned and reallocated, wherever necessary, to optimise resource utilisation and enhance operational efficiency.

The Company continues to focus on improving productivity through ongoing employee development initiatives, training programmes, strengthened coordination, and effective communication across all levels of the organisation.

As on March 31, 2026, the Company had 7 permanent employees on its rolls.

COMPANYS FINANCIAL PERFORMANCE AND ANALYSIS

Particulars		Year ended
	March 31, 2026	March 31, 2025	March 31, 2026	March 31, 2025
	Standalone		Consolidated
Income
Revenue from Operations	233.77	256.80	238.53	256.80
Other Income	3.25	18.37	3.36	18.37
Total Income	237.02	275.17	241.89	275.17
Expenses
Feed Charges	88.29	87.99	91.46	87.99
Operational expenses	22.10	22.60	21.84	22.60
Employee benefit expenses	38.48	59.66	40.13	59.66
Depreciation and amortization expenses	17.50	15.61	17.80	15.61
Other expenses	70.90	82.43	73.36	82.43
Total Expenses	237.27	268.29	244.59	268.29
Profit / (Loss) before exceptional items and tax	(0.25)	6.88	(2.70)	6.88
Exceptional items (Impairment of Investment)	39.68	-	-	-
Share of Loss of Joint venture accounted for using the	-	-	(12.88)	(0.96)
equity method
Profit / (Loss) before tax	(39.93)	6.88	(15.58)	5.92
Tax Expense:
Short Provision of current tax for earlier years (net)	1.46	-	1.46	-
Deferred tax	(0.06)	1.59	(0.06)	1.59
Profit / (Loss) after tax	(41.33)	5.29	(16.98)	4.33
Other Comprehensive Income (net)	0.33	0.15	0.45	0.15
Total Comprehensive Income for the period	(41.00)	5.44	(16.53)	4.48

Ratio Analysis

Sr. No.	Particulars			March 31, 2026	March 31, 2025	% Variance	Remarks
1	Current Ratio			0.75	1.01	-25%	Decreased due to increase in trade payable
2	Debt-Equity Ratio		NA	NA	NA	-
3	Debt Service Coverage Ratio	NA	NA	NA	-
4	Return on Equity Ratio		(0.22)	0.03	-906%	Due to decreased net profit in current year
5	Inventory Turnover Ratio	NA	NA	NA	-
6	Trade Receivables Turnover Ratio	15.04	18.19	-17%	Decreased due to Decreased in operation
							revenue
7	Trade Payables Turnover Ratio	6.70	4.41	52%	Increased due to feed charges
8	Net Capital Turnover Ratio	(30.82)	302.67	-110%	Due to Decreased Revenue and Increase
							in working Capital
9	Net Profit Ratio		(0.18)	0.02	-958%	Decreased due to net loss in current year
10	Return on	Capital	Employed	(0.24)	(0.06)	325%	Decreased due to net loss in current year
	(Excluding	Working	Capital
	Financing)
11	Return on Investment		0.08	0.82	-90%	Due to fixed deposit interest

Operational Review:

The financial statements of the Company, have been prepared on going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. As on March 31, 2026, the Company had a positive net worth of Rs.166.94 lakh.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be "forward-looking" within the meaning of applicable laws and regulations. Actual results might differ materially from those expressed or implied.