Entertainment Network (India) Limited — Q2 FY26 earnings call

Call held 11 Nov 2025

Management summary

Entertainment Network (India) Limited reported strong Q2 FY26 results, primarily driven by robust growth in its non-FCT and digital businesses, which offset headwinds in the traditional radio segment. The company is strategically diversifying its revenue mix, with digital now contributing significantly. Gaana is on track for breakeven by mid-2026, and the events business shows strong tailwinds for the coming years, while the company maintains a healthy cash balance.

Highlights

  • Domestic revenues of Rs. 135.4 crores, up 23.7% YoY, reflecting robust growth.

  • Non-FCT and digital businesses showed strong momentum, growing 42.2% and an impressive 149.5% respectively.

  • EBITDA (excluding digital) reached Rs. 20 crores, translating into an EBITDA margin of 19.3%.

  • The Events and IP business grew a handsome 101.1%, contributing significantly to non-FCT segment revenue of Rs. 34.5 crores.

  • International business delivered revenue of Rs. 5.9 crores, up 35% year-on-year, and the company maintains a robust cash balance of Rs. 344.7 crores.

Concerns

  • The radio advertising segment continued facing headwinds, with muted advertiser sentiment and geopolitical uncertainty leading to a slowdown in media ad sales.

  • Production expenses increased disproportionately due to the growth in variable cost businesses like events and Gaana content, impacting overall margin mix.

  • Depreciation and amortization will remain consistent until the end of license periods, not declining on a sliding scale, which will continue to impact profitability.

Key financials

  1. Domestic Revenue ₹135.4 Cr +23.7%YoY
  2. International Revenue ₹5.9 Cr +35%YoY
  3. Total Revenue ₹141.3 Cr
  4. EBITDA (ex-digital) ₹20 Cr
  5. EBITDA Margin (ex-digital) 19.3%
  6. Non-FCT Revenue ₹34.5 Cr +42.2%YoY
  7. Digital Revenue ₹31.5 Cr +149.5%YoY
  8. Cash Balance ₹344.7 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

Share of Revenue
Radio ₹70 Cr 36.1%
Media Solutions (IP & Multimedia) ₹35 Cr 18.0%
Digital ₹32 Cr 16.5%
Gaana (within Digital) ₹20.54 Cr 10.6%
Events (within Media Solutions) ₹20 Cr 10.3%
Digital Solutions (within Digital) ₹10.94 Cr 5.6%
International ₹5.5 Cr 2.8%

Capital allocation

high confidence
  • Capex ₹9.8 Cr
    • Digital business investment ₹9.8 Cr
    Our investment in digital business has been reduced to Rs. 9.8 crores from Rs. 12.9 crores in Q2 FY'25
  • Debt Debt disclosed
    Effective debt growth, quarter and year-on-year? ... It's almost flattish. There is some bit of channel mix and client mix change. But otherwise, overall, it's almost flattish.
  • Liquidity Cash ₹344.7 Cr
    The company continues to maintain a robust balance sheet with a cash balance of Rs. 344.7 crores as on 30th September 2025.

Guidance & targets

Revenue Mix

  • Radio and Non-Radio Business Mix Revenue Mix · over a couple of years · Medium confidence 50:50
    the whole idea we have been telling in the previous quarters also, that we would want almost radio and non-radio business to be at a 50:50 over a couple of years, that's what we look at our overall aim.

    — Yatish Mehrishi

Radio Revenue Growth

  • Radio Business Growth Radio Revenue Growth · coming quarters · Medium confidence single-digit growth
    We stay cautiously optimistic about the coming quarters and expect the radio business to deliver single-digit growth in the coming quarters.

    — Yatish Mehrishi

Gaana Profitability

  • Gaana Breakeven Gaana Profitability · June-September next year (2026) · Medium confidence Breakeven
    between June and September next year, we should breakeven.

    — Yatish Mehrishi

Events Business Growth

  • Events Business Growth Events Business Growth · next two, three years · Medium confidence Continued growth with tailwinds
    growth will continue, not 100% quarter-on-quarter, but we see a lot of tailwinds going forward for the next two, three years.

    — Yatish Mehrishi

Events Profitability

  • Managed Events EBITDA Margin Events Profitability · ongoing · Medium confidence ~20%
    managed events... we generally deliver about 20-odd-percent.

    — Yatish Mehrishi

Gaana Revenue

  • Gaana Annual Recurring Revenue (ARR) Gaana Revenue · this year · Medium confidence Rs. 90-100 crores
    we are doing an ARR level, it's about almost about Rs. 90-odd crores, Rs.100 crores revenue coming in this year.

    — Yatish Mehrishi

What to watch in Q3 FY26

Gaana Breakeven Progress

Next quarter, with target of June-September 2026
Current Investment reduced to Rs. 9.8 crores; ARR ~Rs. 90-100 crores this year.
Target Progress towards breakeven, with a target of June-September 2026.

Why it matters

Gaana's profitability is a key milestone for the digital segment and overall company performance, impacting future earnings.

by the time next year, this time, we should be breaking even on the Gaana business and with a top end heavy number.

Risks & concerns

  • Radio Advertising Headwinds

    medium

    The radio advertising segment continued facing headwinds due to overall slowdown in media, muted advertiser sentiment, geopolitical uncertainty, and anticipated GST benefits.

    Management acknowledged

  • Margin Pressure from Business Mix Change

    medium

    Muted growth in FCT (radio) combined with growth in lower-margin non-FCT and digital businesses puts pressure on the overall margin scheme of things, as it's a weighted average.

    Management acknowledged

  • Long Transition for Digital Radio Adoption

    medium

    The transition to digital radio, while exciting, will take significant time (not next year) due to the need for technology adoption in mobile phones and car stereos, and regulatory processes.

    Management acknowledged

  • Impact of Weather on Events Business

    low

    Erratic rains, particularly during Navaratri events, impacted margins in the events business this quarter, highlighting vulnerability to external factors.

    Management acknowledged

Q&A highlights

6 direct, 1 evasive
Revenue Mix Target (Radio vs Non-Radio) Direct
the whole idea we have been telling in the previous quarters also, that we would want almost radio and non-radio business to be at a 50:50 over a couple of years, that's what we look at our overall aim.

Clarifies the company's strategic goal for revenue diversification and transformation over the medium term.

Asked by Disha Shah

Digital Business CapEx Plans Direct
So, right now, the way we are, in terms of Gaana, we do not have any CapEx requirement. So, from that point of view, on the digital side, we are covered on the CapEx front. So, we do not require anything immediate on our digital business as of now.

Indicates that no significant capital expenditure is planned for the digital segment in the near term, suggesting a focus on operational efficiency and organic growth.

Asked by Disha Shah

Increase in Production Expenses Direct
The production expense is a function of our content in Gaana and also the events business. Since you have realized our event business, IP business has grown 101%. In line with that, our production expense has also gone up. So, it's a variable component, not a fixed component.

Explains the increase in production costs as a variable component tied to the strong growth in the events and IP business, clarifying it's not a fixed cost issue.

Asked by Hari Kumar

Depreciation and Amortization Trajectory Partial
the depreciation and amortization portion are coming down categorically. But the point here is that as you understand the components of the amortization, it will not be like on a sliding down scale. It will remain same till the end of the license period.

Provides clarity on the nature of D&A, indicating it's tied to license periods and will not decline sharply, which is important for future profitability projections.

Asked by Hari Kumar

Digital Business Contribution to Radio Revenue Direct
when we say 52%, the digital percentage to the radio percentage is about 52%. Now digital is almost half of our radio business. So, which shows how we have moved from being just a radio company to a multimedia company moving towards digital, which is in line with the way media industry is impacted and driven by digital growth.

Highlights the significant and growing contribution of digital business relative to traditional radio, underscoring the company's successful transformation towards a multimedia entertainment company.

Asked by Navin

Gaana Breakeven Timeline Direct
between June and September next year, we should breakeven.

Provides a specific and critical timeline for Gaana's breakeven, a key milestone for the digital segment's profitability and overall company performance.

Asked by Anant Shirgaonkar

Digital Radio FM Opportunity Direct
on the digital radio, it's still on the TRAI recommendation, which has happened. We are very excited about it. You ask me as on the face of it, digital radio will change the radio dynamic because it helps getting radio on mobile phones.

Discusses a potential future growth driver for the radio business, acknowledging its long-term nature and the need for multi-stakeholder collaboration.

Asked by Deepan Narayanan

Government Policy for Radio Sector Reforms Evasive
With government, I think it is beyond my pay grade, to answer on government's behalf.

Indicates that while discussions are ongoing for reforms in the radio and digital sectors, the timeline and specifics are uncertain and outside the company's direct control, posing a potential regulatory risk or opportunity.

Asked by Hari Kumar

2 min read 6 chapters

Detailed narrative

Strong Overall Revenue Growth Driven by Diversification

Entertainment Network (India) Limited reported robust Q2 FY26 domestic revenues of Rs. 135.4 crores, marking a 23.7% year-on-year growth. International business also performed well, contributing Rs. 5.9 crores, up 35% YoY. This strong performance was primarily led by the non-FCT and digital segments, which grew 42.2% and an impressive 149.5% respectively, effectively offsetting headwinds in the traditional radio advertising segment.

Digital Business Continues Rapid Expansion and Efficiency Gains

The digital business demonstrated exceptional growth, with revenues reaching Rs. 31.5 crores in Q2 FY26. Digital now accounts for nearly 33% of the company's traditional business, a significant increase from 15.9% in the prior year. Notably, the investment in the digital segment was reduced to Rs. 9.8 crores from Rs. 12.9 crores in Q2 FY25, indicating improved cost discipline. Gaana contributed approximately Rs. 20.54 crores to digital revenues.

Strategic Shift Towards 50:50 Radio and Non-Radio Mix

Management reiterated its strategic aim to achieve a 50:50 revenue mix between radio and non-radio businesses over the next couple of years. Currently, the digital segment's contribution is approximately 52% relative to radio, with non-FCT businesses (excluding digital) contributing 15-20%. This diversification strategy aims to transform the company into a multimedia entertainment entity, leveraging digital growth to mitigate traditional media slowdowns.

Gaana on Track for Breakeven by Mid-2026

The company expects its Gaana business to achieve breakeven between June and September of next year (2026). This milestone is critical for the digital segment's profitability, with current Annual Recurring Revenue (ARR) for Gaana estimated at Rs. 90-100 crores for the current year. The focus remains on subscriber growth and operational efficiency, with no immediate CapEx requirements for the platform.

Events Business Shows Strong Growth and Profitability

The events and IP business experienced stellar growth of 101.1% year-on-year, contributing Rs. 34.5 crores to non-FCT revenues. Within the media solutions segment (totaling ~Rs. 35 crores), events accounted for approximately Rs. 20 crores. Management indicated that managed events generally deliver an EBITDA margin of about 20%, and they foresee strong tailwinds for this business over the next two to three years, despite some quarterly fluctuations due to factors like weather.

Radio Segment Faces Headwinds, Government Reforms Anticipated

The traditional radio advertising segment continues to face headwinds, characterized by muted advertiser sentiment and geopolitical uncertainties, leading to a slowdown in ad sales. Despite this, ENIL maintained a healthy 25% volume share in the radio market. Management expects single-digit growth for the radio business in the coming quarters. Discussions are ongoing with the government regarding potential reforms in the radio and digital sectors, which could be beneficial to the industry in the long term.

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