HT Media (NSE:HTMEDIA) Has Debt But No Earnings; Should You Worry?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. Importantly, HT Media Limited (NSE:HTMEDIA) does carry debt. But the real question is whether this debt is making the company risky.

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When Is Debt Dangerous?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.

How Much Debt Does HT Media Carry?

As you can see below, HT Media had ₹5.79b of debt at March 2025, down from ₹7.48b a year prior. But it also has ₹12.0b in cash to offset that, meaning it has ₹6.22b net cash.

How Healthy Is HT Media's Balance Sheet?

The latest balance sheet data shows that HT Media had liabilities of ₹17.1b due within a year, and liabilities of ₹1.73b falling due after that. Offsetting this, it had ₹12.0b in cash and ₹4.08b in receivables that were due within 12 months. So its liabilities total ₹2.74b more than the combination of its cash and short-term receivables.

This deficit isn't so bad because HT Media is worth ₹5.41b, and thus could probably raise enough capital to shore up its balance sheet, if the need arose. But we definitely want to keep our eyes open to indications that its debt is bringing too much risk. While it does have liabilities worth noting, HT Media also has more cash than debt, so we're pretty confident it can manage its debt safely. When analysing debt levels, the balance sheet is the obvious place to start. But it is HT Media's earnings that will influence how the balance sheet holds up in the future. So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.

Check out our latest analysis for HT Media

In the last year HT Media wasn't profitable at an EBIT level, but managed to grow its revenue by 6.5%, to ₹18b. We usually like to see faster growth from unprofitable companies, but each to their own.

So How Risky Is HT Media?

Although HT Media had an earnings before interest and tax (EBIT) loss over the last twelve months, it made a statutory profit of ₹20m. So taking that on face value, and considering the cash, we don't think its very risky in the near term. With revenue growth uninspiring, we'd really need to see some positive EBIT before mustering much enthusiasm for this business. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. To that end, you should be aware of the 3 warning signs we've spotted with HT Media .

When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.