As of Mar 28, 2026, Hathway Cable & Datacom Ltd (Entertainment & Media) has a deep value score of 35/100 (rated Weak).
Deep value thesis based on recent earnings • Updated Feb 22, 2026
Hathway is transitioning from cable TV to broadband with improving margins and debt reduction, with DOT demand resolution as key catalyst for re-rating.
Verdict
TURNAROUND_IN_PROGRESS
Re-rating catalysts over the next 2-4 quarters • Updated Feb 22, 2026
Settlement of ₹3,201 crore license fee dispute could unlock ₹1,200+ crore in value.
Impact: +₹1200 Cr revenue
“DOT demand notice of ₹3,201.93 crore mentioned in Q3 results; company contesting the demand”
Monetization of 5.95 million Homepass connections (75% FTTX-ready) could drive 20%+ broadband revenue growth.
Impact: +₹286.6 Cr revenue
“Homepass at 5.95 Mn as of Dec 2025, 75% available for FTTX conversion per GTPL Hathway report”
Targeting sub-0.5x D/E ratio by FY27 end, potentially triggering investment grade rating.
“D/E improved from 1.15x to 0.85x in recent quarters through consistent deleveraging”
Risks that could prevent re-rating or deepen the value trap
No settlement by Q4 FY27
Impact: -300 bps margin impact
Management view: Company is contesting the DOT demand notice and believes it has strong legal position
Monitor: Updates on DOT demand resolution timeline
Cable TV revenue decline exceeds 5% YoY
Impact: -400 bps margin impact
Management view: Company is focusing on bundling services to retain cable TV subscribers
Monitor: Cable TV subscriber count and revenue trends
CFO negative for 2 consecutive quarters
Impact: -200 bps margin impact
Management view: Company is optimizing marketing spend and focusing on retention
Monitor: Operating cash flow and subscriber acquisition cost metrics
Forward-looking targets from management for FY27
Revenue Growth Target
6.5%
Implied PAT Growth
25%
OPM Guidance
14.5%
Capex Plan
₹350 Cr
Credit Growth Target
0%
NIM Guidance
0%
Key Milestones
• DOT demand resolution by Q2 FY27
• Broadband ARPU increase to ₹150 by FY27
• D/E ratio below 0.5x by FY27 end
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +5% | +4% | Stable |
| PAT (Net Profit) | +57% | -11% | Stable |
| OPM | 14.0% | -200 bps | Stable |
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Hathway Cable & Datacom Ltd has a deep value score of 35/100 (rated Weak). This score is calculated from three components
Hathway Cable & Datacom Ltd's quarterly profit (PAT) growth trajectory
Hathway Cable & Datacom Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
Hathway Cable & Datacom Ltd's earnings momentum is Monitoring.
Hathway Cable & Datacom Ltd's valuation metrics
Hathway Cable & Datacom Ltd's revenue and margin trends
Hathway Cable & Datacom Ltd's trailing twelve month (TTM) performance
Hathway Cable & Datacom Ltd key facts
Hathway Cable & Datacom Ltd shows limited deep value signals currently — score is 35/100 (Weak). Monitor for improvement.
Other deep value stocks in Entertainment & Media
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
Hathway Cable & Datacom Ltd has 3 key growth catalysts identified from recent earnings analysis
Hathway Cable & Datacom Ltd has 3 key risks worth monitoring
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
