DB Corp’s Girish Agarwaal bets on real estate sector to boost advertising in coming months

DB Corp is banking on the real estate sector to drive advertising growth in the second half of the fiscal year, Promoter Director Girish Agarwaal told CNBC-TV18, following the company’s Q2FY26 results.

The publisher of Dainik Bhaskar reported a 13% year-on-year rise in net profit for the July–September quarter, with margins expanding to 22.5%.

“We are confident that high single-digit ad revenue growth should continue for the next six months as well,” Agarwaal said, adding that the overall business momentum, supported by the GST-led pickup in consumption, remains encouraging. In the second quarter, DB Corp benefited from festive advertising around Navratri and improved demand sentiment in several key markets.

While sectors such as jewellery, healthcare, education and IPO-related advertising saw double-digit growth, FMCG advertising remained flat. Agarwaal expressed optimism that the GST cuts and festive demand could lift FMCG ad spends in the coming quarters. However, he expects real estate to be the biggest growth driver. “This sector hasn’t yet seen the full benefit of GST, unlike automobiles or other sectors. From next month onwards, we hope the real estate sector will grow and advertising will come from there,” he said.

On the circulation front, the company is witnessing a gradual recovery in print readership. As per the Audit Bureau of Circulations, DB Corp’s circulation grew 3% over the past six months, with about eight lakh copies added. Agarwaal said the data is a positive sign that newspaper readership is stabilising after years of decline.

Commenting on the company’s digital operations, Agarwaal said DB Corp’s app has around 20 million monthly active users, with a focus on expanding reach before monetisation. “Monetisation will come at a later stage once we have a critical mass. Right now, the idea is to take this 20 million number much higher,” he added.

Agarwaal said DB Corp’s strong financial position gives it flexibility to invest in digital and content expansion. “Whatever is required for digital investments, the company is capable enough to fund it, and we’re doing so with board approval,” he said. The company plans to strengthen its newsroom presence by adding more manpower for ground coverage.

Newsprint prices have remained stable, providing margin relief for the print business. Agarwaal said the company’s print EBITDA margin is currently around 30%, and overall consolidated margins could improve further as DB Corp’s 14 new radio stations become operational in the coming quarters.

Below is the verbatim transcript of the interview.

Q: Your ad revenue growth has been strong this time on a quarterly basis, it is up 12% year-on-year, and even if you exclude the early festival benefit, it’s in the high single digits. Now, Q3 is also a festive season. Do you think this trend will continue? For the full year, what kind of ad revenue growth are you looking at? Because in the first half, it was just about 2%.

Agarwaal: I think with the GST momentum picking up, we are confident that this high single-digit growth should continue for the next six months as well. In this quarter, the advantage came from the festive season because Navratri started from the 22nd September, and the GST benefit also helped. But I think the overall momentum in the country is taking shape, so hopefully, we should be able to close the year with a strong single-digit growth.

One more important aspect happening in the print industry is the overall circulation growth. As per the Audit Bureau of Circulations, there has been a 3% growth—around eight lakh copies added over the last six months. That’s a very positive sign that newspapers, which people thought were declining, are actually stable and even showing 1–2% growth in circulation.

Q: Like you said, there are a couple of triggers for Q3—the festive season continues, and you also have the Bihar elections coming up. Typically, during state elections, what kind of bump-up do you see in ad revenues? Will it be better than what you saw last year?

Agarwaal: Maybe not, because Bihar is not that big a market. It’s not one of those large states where crores of rupees are pumped in by political parties. So, I don’t really see a huge uptick from the Bihar elections.

Q: So despite that, you’re guiding for a high single-digit growth in ad revenues?

Agarwaal: Yes, it looks like that because of the GST momentum. That should happen.

Q: Mr. Agarwaal, I wanted to understand which sectors are contributing to ad revenue growth. Is it real estate, or are you seeing more from consumption?

Agarwaal: Jewellery has shown strong double-digit growth. Real estate too. FMCG is flat. But healthcare, IPO business, and education have all shown good double-digit growth this quarter.

Q: I’m surprised you’re saying FMCG is flat. Do you think that will improve because of GST cuts? That’s one space where consumption push has been expected.

Agarwaal: We are hoping so, because a couple of FMCG companies have guided that Q3 and Q4 will bring some benefits for them. If that happens, advertising should go up there. But I’m banking more on the real estate sector. This sector hasn’t yet seen the full benefit of GST, unlike automobiles or other sectors. But I’m sure the whole cycle will pick up. From next month onwards, we hope the real estate sector will grow and advertising will come from there.

Q: The other thing the street wants to know, especially for FY26, is about your app-based business—subscription and advertising-led digital monetisation, what kind of growth are you seeing there? What are the targets?

Agarwaal: We have around 20 million monthly active users (MAUs) on our app, and our focus is to grow that number. Frankly speaking, monetisation will come at a later stage once we have a critical mass. So, we are not really focusing much on monetisation right now. The idea is to take the 20 million number much higher. And if you compare the DB app with other players in the market, we are doing much better.

Q: So what are the numbers looking like for the app in terms of revenues and the bottom line?

Agarwaal: Very minuscule, because we are in the development and investment stage in the app business. We’re not really focusing on revenue numbers right now. The idea is to focus on customer and reader acquisition.

Q: For that focus on acquiring more customers, have you set aside a specific kitty for investment? What kind of money will you be putting in? Are there any further investments planned for the digital business overall? Because digital is clearly the way forward for media.

Agarwaal: DB Corp has a profit of almost ₹700 crore EBITDA. Whatever is required for digital investments, the company is capable enough to fund it, and we’re doing so with board approval. Nothing extraordinary needs to be spent. Digital will grow based on content, and we are focusing strongly on that. For example, my salary bill as a company last year was ₹450 crore. If I have to invest more to increase manpower on the ground for news coverage, I’ll be happy to do that.

Q: Mr. Agarwaal, how have newspaper print prices trended, and what kind of impact do you see on EBITDA margins?

Agarwaal: Thankfully, newsprint prices are under control and are maintaining current levels. That’s a big relief, and I’m hopeful they’ll stay largely stable for the next two quarters as well.

Q: So, EBITDA margins will stay at current levels in that case?

Agarwaal: In print, we have a EBITDA margin of about 30%, and we hope that will continue.

Q: Consolidated margins this quarter were 22.5%. What’s the target for FY26?

Agarwaal: Largely the same, or maybe a bit better. In radio, we’ve now got 14 more stations, and we hope some of them will become operational in Q4. That revenue should also come into the system.Read about our editorial guidelines and ethics policy