At a Glance
Jagran Prakashan, the grand old king of Hindi newspapers, surprised the street with a 62% YoY surge in PAT (₹67 Cr) despite the print industry supposedly dying. Digital grew 17.5%, the company declared a ₹6 interim dividend (8.3% yield), and litigation drama added spice. But with sales stuck at ₹460 Cr, working capital ballooning, and OPM at just 14%, is this a value play or a dividend trap?
1. Introduction
Once upon a time, Jagran ruled print like Shah Rukh ruled the 90s. Now, as ads shift to Instagram reels and readers scroll instead of flipping pages, Jagran’s survival story is part nostalgia, part hustle. Q1 FY26 results show the company still has fight left—profits jumped, dividends flowed, and digital is finally pulling its weight. But growth? Meh.
2. Business Model (WTF Do They Even Do?)
Jagran is a media conglomerate that thrives on:
- Print: Dainik Jagran (Hindi daily king), Inquilab (Urdu leader), and 10 other titles.
- Radio: FM broadcasting through Radio City.
- Digital: News portals, apps, and programmatic ads.
- Outdoor & Events: Hoardings, activations, and promo campaigns.
Revenue still leans 70% on print—cue the existential crisis.
3. Financials Overview
Q1 FY26 Snapshot
- Revenue: ₹460 Cr (↓11% YoY)
- Operating Profit: ₹64 Cr (OPM 14%)
- PAT: ₹67 Cr (↑62% YoY)
- EPS: ₹3.09
- Dividend: ₹6/share
TTM Snapshot
- Revenue: ₹1,904 Cr
- PAT: ₹120 Cr
- OPM: 8%
- ROE: 4.8%
4. Valuation
- P/E: 10x – cheap on paper.
- P/B: 0.81x – trades below book.
- EV/EBITDA: ~6x.
Fair Value Range: ₹80 – ₹90 (current price ₹72 is in value zone but with risk).
5. What’s Cooking – News, Triggers, Drama
- Digital Revenue up 17.5% – finally showing traction.
- Promoter Litigation: Ongoing, but no financial hit yet.
- Dividend Yield: Juicy at 8.3% – investors love freebies.
- Ratings: CRISIL reaffirmed stability.
6. Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 2,930 | 2,827 | 2,734 |
| Liabilities | 1,226 | 899 | 787 |
| Net Worth | 1,704 | 1,885 | 1,904 |
| Borrowings | 443 | 247 | 186 |
Comment: Low debt, healthy net worth, but assets shrinking.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 272 | 297 | 224 |
| Investing | 249 | 28 | -14 |
| Financing | -517 | -307 | -222 |
Observation: OCF is fine, but free cash flow mostly funds dividends.
8. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 7% | 5% | 4.8% |
| ROCE | 9% | 7% | 6.9% |
| PAT Margin | 10% | 8% | 6.3% |
| D/E | 0.2 | 0.13 | 0.09 |
Verdict: Dividend is sexy, growth is stressy.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 1,856 | 1,934 | 1,888 |
| Operating Profit | 254 | 271 | 159 |
| PAT | 197 | 165 | 94 |
Comment: Declining profits over three years – this quarter was an outlier.
10. Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| DB Corp | 2,308 | 334 | 14 |
| Sandesh | 292 | 77 | 11 |
| Hindustan Media | 733 | 77 | 8 |
| Jagran | 1,904 | 120 | 10 |
Verdict: Cheap compared to peers, but peers aren’t exactly rockstars either.
11. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 69% (stable)
- FIIs: 2.7% (tiny)
- DIIs: 7.6% (falling)
- Public: 20.7%
12. EduInvesting Verdict™
Jagran Prakashan is like an old warrior—battle-scarred but still swinging its sword. Q1 FY26 PAT growth is impressive, but revenue decline and weak ROE scream caution. The company’s digital shift is promising, but it’s still miles behind digital-native competitors.
SWOT Analysis
- Strengths: Strong brand, wide reach, high dividend yield.
- Weaknesses: Low growth, declining margins, print dependency.
- Opportunities: Digital monetization, cost optimization.
- Threats: Rising paper costs, ad revenue migration to online platforms.
Final Word: For yield-hungry investors, Jagran is a cash cow. For growth seekers, it’s yesterday’s newspaper—good for wrapping pakoras.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Jagran Prakashan, Media Stocks, Q1 FY26 Results
