Newspaper business in India operates at a 28% EBIT margin - Experts

At the 25th edition of FICCI Frames 2025, an engaging panel discussion unfolded on the topic “Future of Print”. Moderated by Ashish Pherwani, the session featured Girish Agarwal and Sivakumar Sundaram, two prominent figures in the print media industry. The discussion revolved around the resilience and adaptability of print media in an era dominated by digital platforms.

Session Chair Ashish Pherwani opened the discussion by acknowledging the challenges faced by print media in the wake of digital transformation. However, he highlighted that despite numerous predictions of decline, print has continued to grow, proving its lasting relevance. “Even in this tough year, print has grown. That is such a heartening story for the world, and I believe the world should learn from India,” he remarked.

Girish Agarwal attributed the sustained growth of print media to its strong foundation and fundamental business model. “The newspaper business in India operates at a 28% EBIT margin, whereas many digital businesses struggle to define profitability,” he emphasized. He further explained that newspapers have a unique “right of way” into people’s homes and daily routines, creating a long-term bond with consumers.

Adding to the conversation, Sivakumar Sundaram highlighted how print media offers a distinct experience that digital platforms cannot replicate. “In the digital world, we are trapped in echo chambers, seeing only what aligns with our beliefs. Newspapers provide an opportunity to discover new perspectives, breaking away from digital algorithms,” he explained.

Pherwani pointed out that newspapers, despite being the last to report news after digital, TV, and radio, still need to “surprise the reader every morning”.

Agarwal responded by underscoring the hard work of journalists. “We have 7,000 journalists across the country, covering diverse and often difficult stories. They go to great lengths, even risking their lives, to uncover the truth,” he stated. Sundaram further stressed the crucial role newspapers play in keeping not just readers but also the government and judiciary informed, ensuring a thriving democracy.

When asked about the struggles faced by newspaper CEOs, Agarwal dismissed the notion that print is on the decline, likening it to fluctuations in other industries like automobiles and technology. “Every CEO is striving for growth, but the fundamentals of our business remain strong,” he said, asserting that newspapers will continue to thrive as long as they retain reader engagement.

He also raised concerns about digital platforms relying on newspapers for content without having their own journalists on the ground. “Google approaches newspapers for content because they know they don’t have teams to gather news. Some publications make the mistake of giving their content away instead of driving readers directly to their platforms,” he cautioned.

When asked about future investments, Sivakumar Sundaram stated, “Even during COVID, when we were down to 10%, we continued investing in print. Today, as digital screens get smaller, the demand for real, tactile experiences grows, reinforcing the importance of newspapers.”

Girish Agarwal reinforced this, emphasizing that print media will continue to adapt, especially in tier 2 and beyond cities, where people still have the time to engage deeply with newspapers. “If the format ever changes, we will evolve with it,” he asserted.

The panelists shared their strategies for success. Sundaram emphasized on “resilience and relevance” in content strategy. Agarwal encouraged the industry to remain confident, stating, “Whatever good we did in 2024, we must continue in 2025 and beyond, staying honest to our profession.”

The discussion concluded on a high note, with Girish Agarwal dispelling misconceptions about the decline of print media. “We made a record profit in 2023-24 since our listing,” he quipped, highlighting the continued profitability of the print industry.