Entertainment Network (India) Limited — Q1 FY26 earnings call

Call held 30 Jul 2025

Management summary

Entertainment Network (India) Limited reported a mixed Q1 FY26, with domestic revenue growing 3.2% YoY to Rs. 113 crores, primarily driven by strong performance in non-FCT (up 33.0%) and digital (up 41.2%) segments. EBITDA increased by 3.6% to Rs. 6.2 crores, and PAT stood at Rs. 1 crore. However, the Radio FCT segment saw a 12.1% decline due to a high base effect from prior year's elections and geopolitical headwinds. The company is strategically shifting towards digital and events, targeting Gaana break-even by early next year and a 50-50 revenue mix between Radio and other segments by year-end.

Highlights

  • Domestic revenue grew 3.2% YoY to Rs. 113 crores, driven by non-FCT and digital segments.

  • Non-FCT segment revenue grew 33.0% YoY to Rs. 25.2 crores with a healthy EBITDA margin of 43.4%.

  • Digital segment revenue grew 41.2% YoY to Rs. 21.7 crores, with Gaana revenue up 87.6% YoY to Rs. 18 crores.

  • EBITDA increased 3.6% YoY to Rs. 6.2 crores, reflecting continuous focus on profitability.

  • PAT for the quarter was Rs. 1 crore, and the company maintains a robust cash balance of Rs. 336 crores.

Concerns

  • Radio FCT advertising segment revenue declined 12.1% YoY to Rs. 66.1 crores.

  • Decline in FCT attributed to a high base from previous year's elections and geopolitical situation.

  • Radio ERs remain about 25% lower than pre-COVID levels.

Key financials

  1. Domestic Revenue ₹113 Cr +3.2%YoY
  2. EBITDA ₹6.2 Cr +3.6%YoY
  3. PAT ₹1 Cr
  4. Cash Balance ₹336 Cr

What they filed

Q1 FY27: revenue down 2.8%, net profit down 14.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue114 159 158 117 141 +24%165 +4%142 −10%114 −3%
EBITDA11 30 29 8 11 +2%15 −50%11 −64%9 +19%
Net profit-4 9 12 -5 -4 −1%-6 −168%8 −32%-6 −14%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Domestic
    ₹113 Cr Revenue
  • Non-FCT
    ₹25.2 Cr Revenue43.4% EBITDA Margin
  • Digital
    ₹21.7 Cr Revenue40.7% Contribution to Radio Revenue₹9.8 Cr Investments
  • International Operations
    ₹4.1 Cr Revenue— EBITDA
  • Radio FCT Advertising
    ₹66.1 Cr Revenue25.4% Volume Share3% Volume Growth
  • Gaana (within Digital)
    ₹18 Cr Revenue25% Net Subscription Growth
  • Events (within Non-FCT)
    58% Growth

Capital allocation

high confidence
  • Capex Capex disclosed
    Digital investments declined to Rs. 9.8 crores from the last year numbers of Rs. 14.2 crores, in line with our guidance during the previous quarters about improving our marketing and operational efficiency. ... from a CAPEX point of view, there is no investment [in events business].
  • Liquidity Cash ₹336 Cr
    The company continues to maintain a robust balance sheet with a cash balance of Rs. 336 crores as of June 30, 2025.

Guidance & targets

Radio Business

  • Growth Radio Business · remainder of FY '26 · Medium confidence modest growth
    We remain optimistic about the coming quarters and expect a modest growth in the Radio business over the remainder of FY '26.

    — Yatish Mehrishi

Gaana Profitability

  • Break-even (EBITDA positive) Gaana Profitability · early next year, similar time · High confidence break-even
    The way I would look at it, we believe, and I have been speaking in the last investor calls also, we believe early next year, similar time, we could be breaking even.

    — Yatish Mehrishi

Gaana Content Cost

  • Percentage of revenue Gaana Content Cost · long-term aim · Medium confidence 60-65%
    Saying up to cost of content, we would expect to be at a good level at 65%, right now it is not. That would be our aim to get the content cost at about 60% to 65%.

    — Yatish Mehrishi

Gaana Net Adds

  • Annual growth rate Gaana Net Adds · annual level · Medium confidence ~25%
    But at an annual level, it is safe to say it could be about 25% level.

    — Yatish Mehrishi

Events Business

  • Revenue growth Events Business · future · Medium confidence almost doubling revenues
    it could be actually almost doubling revenues also. That is the tailwinds we see in the experiential business. So, I am very optimistic about the growth in the event business.

    — Yatish Mehrishi

Revenue Mix

  • Radio vs. Gaana + Events percentage of total revenue Revenue Mix · by year end · High confidence 50% Radio, 50% Gaana + Events
    Not really as of now. That is our aim is I think it would be by year end, we should be looking at 50% - 50% if not less for Radio.

    — Yatish Mehrishi

What to watch in Q2 FY26

Gaana Break-even (EBITDA positive)

early next year
Current Not yet break-even (digital segment still has investments)
Target Break-even

Why it matters

Achieving profitability for the digital segment is key to overall company performance and validation of the digital strategy.

The way I would look at it, we believe, and I have been speaking in the last investor calls also, we believe early next year, similar time, we could be breaking even.

Risks & concerns

  • Decline in Radio FCT Advertising

    high

    Radio FCT revenue declined 12.1% YoY due to high base from prior year's elections/government spends and geopolitical situation.

    Management acknowledged

  • Geopolitical Situation Impact

    medium

    Geopolitical situation during the quarter led to headwinds in FCT business and impacted events.

    Management acknowledged

  • Competition in Events Business

    medium

    Potential for margin pressure in events due to new players entering the market and quoting lower margins.

    Management acknowledged

  • Monsoon Impact on Events Business

    low

    H1 is typically lighter for events business due to rains, with the calendar being H2 heavy.

    Management acknowledged

Q&A highlights

5 direct
Gaana Revenue and Growth Direct
The Gaana revenue for this quarter is almost about Rs. 18 crores. ... 87.6%.

Clarifies the specific revenue contribution and strong growth of the Gaana platform, a key digital asset.

Asked by Khushi Sen

FCT Revenue, Market Share, and Volume Growth Direct
FCT revenue is Rs. 66 crores. ... I spoke about 25% on a volume basis. ... The volume growth has been about 3%.

Provides specific figures for the traditional radio business, which is currently under pressure.

Asked by Khushi Sen

Gaana Subscriber Pricing Regimes and Net Adds Partial
So, I would not, I have not been positioned to detail out at each pricing level in this call. Happy to have a separate chat on it. But overall, as I said, our net adds have increased by about 25%.

Analysts are probing the impact of pricing changes on subscriber base and churn, which management is reluctant to detail publicly, but provides overall net add growth.

Asked by Shikhar Mundra

Gaana Break-even Revenue Target Direct
Yes, at Rs. 150 crores revenue, if you do, it should break even.

Provides a clear revenue target for Gaana to achieve profitability, crucial for its long-term viability.

Asked by Shikhar Mundra

Gaana Content Cost Structure Direct
Saying up to cost of content, we would expect to be at a good level at 65%, right now it is not. That would be our aim to get the content cost at about 60% to 65%.

Details management's strategy for improving Gaana's profitability by optimizing content costs.

Asked by Shikhar Mundra

Traditional Business Recovery (Radio) Partial
See, the way I look at it here is, last year, if you look at second half media industry has had a lot of headwinds since last year H2. So, there will be a base effect coming in monsoons, do not look erratic, but there have still been better monsoons than last year.

Addresses the challenges faced by the core radio business and the difficulty in direct YoY comparisons due to past events.

Asked by Shikhar Mundra

Cash Balance Utilization Partial
One thing is, we have been very consistent on dividend, even during COVID times also, we have been increasing and though margin increased, but over the last two years, you would have seen we have been very consistent on dividend and have increased that. Also, we keep evaluating different businesses, new businesses also...

Analysts are pressing for clarity on capital allocation strategy given the significant cash reserves, with management indicating evaluation of new opportunities.

Asked by Shikhar Mundra

Radio vs. Gaana/Events Revenue Mix Direct
Not really as of now. That is our aim is I think it would be by year end, we should be looking at 50% - 50% if not less for Radio.

Highlights the strategic shift towards diversifying revenue streams and reducing reliance on traditional radio, with a clear target for revenue mix.

Asked by Anant Shirgaonkar

2 min read 6 chapters

Detailed narrative

Q1 FY26 Performance Overview

Entertainment Network (India) Limited reported a domestic revenue of Rs. 113 crores in Q1 FY26, marking a 3.2% year-on-year growth. This growth was primarily fueled by the robust performance of its non-FCT and digital segments, which expanded by 33.0% and 41.2% respectively. The company achieved an EBITDA of Rs. 6.2 crores, reflecting a 3.6% YoY increase, and a PAT of Rs. 1 crore for the quarter. The company maintains a robust cash balance of Rs. 336 crores as of June 30, 2025.

Digital Segment Momentum and Gaana's Contribution

The digital business demonstrated strong growth, with revenues reaching Rs. 21.7 crores, contributing a significant 40.7% to total Radio revenues, up from 24.8% last year. Gaana, a key component of the digital segment, recorded an impressive 87.6% year-on-year revenue growth, reaching Rs. 18 crores. Digital investments were optimized, declining to Rs. 9.8 crores from Rs. 14.2 crores in the previous year, aligning with the focus on marketing and operational efficiency. Gaana's net subscription increased by 25% QoQ.

Challenges in Radio FCT Segment

The traditional Radio FCT advertising segment faced headwinds, with revenue declining by 12.1% year-on-year to Rs. 66.1 crores. This decline was attributed to a high base from the previous year's general elections and significant political advertising, as well as the prevailing geopolitical situation. Despite the decline, the company maintained a strong 25.4% volume share in the Radio FCT segment and expects modest growth for the remainder of FY26. Radio ERs remain about 25% lower than pre-COVID levels.

Events Business Expansion and Outlook

The non-FCT segment, which includes the events business, grew by a strong 33% year-on-year, reaching Rs. 25.2 crores, and maintained a healthy EBITDA margin of 43.4%. Specifically, the IP events business grew by almost 58% quarter-on-quarter. Management expressed optimism for the events business, anticipating 'almost doubling revenues' in the future, driven by a shift in consumer behavior towards experiential spending. The events business is H2 heavy, with H1 being muted due to monsoons.

Strategic Diversification and Profitability Targets

ENIL is actively transforming from a pure Radio company into a multimedia entertainment network. The company aims for Gaana to break even by early next year, targeting Rs. 150 crores in revenue for profitability and optimizing content costs to 60-65% of revenue. A key strategic goal is to achieve a 50-50 revenue mix between Radio and the combined Gaana and Events businesses by the year-end, signifying a significant diversification from its traditional revenue streams.

Capital Allocation and Liquidity Management

The company maintains a robust balance sheet with a cash balance of Rs. 336 crores as of June 30, 2025. Management highlighted its consistent dividend payout policy, even during challenging periods. While actively evaluating new business opportunities and potential acquisitions, there are no material M&A activities currently on the cards. The events business is noted to have no significant CAPEX requirements, being a people-driven model.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Media, Entertainment & Publication earnings calls