KOCHI: The Indian Express Private Ltd posted a net profit of Rs94.5 crore on operating income of Rs501.9 crore in FY26, with its operating margin remaining at a historically high level despite only modest revenue growth.
Operating income grew 3 per cent from Rs487.5 crore in FY25, while net profit was virtually unchanged from Rs94.7 crore a year earlier. Operating margin eased to 18 per cent from 18.6 per cent, but ICRA said the margins recorded in FY25 and FY26 were the company's highest since FY15.
The performance has also prompted ICRA to upgrade the company's long-term rating to A+ (Stable) from A (Stable), citing sustained operating profitability, strong debt protection metrics and a robust financial risk profile. The company has remained debt-free for the past three years.
The rating agency attributed the healthy operating profitability partly to growth in advertising revenue, including advertising linked to local authority elections in Maharashtra, one of the company's key markets.
The rating agency, however, expects the operating margin to moderate to 17-17.5 per cent in FY27, suggesting that the exceptionally strong margins of the past two years may not be fully sustainable.
Strong liquidity
The company had a strong liquidity position, with cash and investments of around Rs535.9 crore as of March 2026. ICRA expects the position to remain strong, supported by healthy profitability, limited capital expenditure plans and the absence of major investment plans.
However, the rating agency flagged the structural challenges facing the newspaper industry. Indian Express remains exposed to fluctuations in newsprint prices and foreign exchange rates because of its dependence on imported newsprint. At the same time, changing consumer preferences, particularly among English newspaper readers in metros and Tier-I cities, are shifting towards digital media. Indian Exress FY26 profit
ICRA also pointed to the company's geographical concentration, with Delhi and Maharashtra accounting for around 63-66 per cent of circulation. It expects revenue to remain in the Rs500-550 crore range during FY27-FY29.
The company publishes The Indian Express, Loksatta, Jansatta and The Financial Express, besides magazines and an events business.
