DB Corp ratings affirmed despite revenue dip

DB Corp Limited (DBCL) announced that CARE Ratings Limited reaffirmed its credit ratings for both long-term and short-term bank facilities. Long-term fund-based facilities of INR 148.25 crore received "CARE AA+; Stable," while long-term/short-term non-fund-based facilities of INR 126.00 crore were rated "CARE AA+; Stable / CARE A1+." The reaffirmation reflects DBCL's market leadership in Hindi print media and a strong financial risk profile characterized by low debt and robust liquidity, including INR 1,068 crore in unencumbered cash and liquid investments.

Despite these strengths, DBCL experienced a marginal decline in total operating income to INR 2,339 crore in FY25 from INR 2,402 crore in FY24, primarily due to reduced election-related advertising spending. Advertisement revenue contracted by 3.54% year-on-year to INR 1,690 crore. Operating profitability also saw a decline, with PBILDT falling by 12.2% to INR 547 crore, leading to a softening of margins to 23.39% from 25.93%. Newsprint, a major cost component, saw average prices soften to INR 47,561/MT in FY25, offering partial relief to margins.

The company maintains a strong capital structure with an overall gearing of 0.13x and healthy coverage metrics, including an interest coverage ratio of 22.12x in FY25. DBCL also saw growth in its digital segment, with monthly average users for its news application reaching 22 million in May 2025. The company was also granted 14 new radio licenses for 15 years in August 2025.