Entertainment Network (India) Limited — Q3 FY26 earnings call

Call held 11 Feb 2026

Management summary

Entertainment Network (India) Limited reported Q3 FY26 domestic revenue of INR160 crores, a 4% YoY and 18% sequential growth, primarily driven by its non-FCT and digital businesses. The digital segment, particularly Gaana, saw significant revenue growth to INR30.8 crores, now contributing nearly 50% of radio revenues. Despite maintaining market leadership in radio with a 25% volume share, the traditional radio segment continues to face a challenging advertising environment. The company maintains a strong cash balance of INR372.5 crores and is focused on achieving profitability for its digital ventures within the next few quarters.

Highlights

  • Domestic revenue of INR160 crores, reflecting 4% YoY growth and 18% sequential growth.

  • Non-FCT business and digital business drove performance, with non-FCT segment growing 10.5%.

  • Digital business revenue reached INR30.8 crores, contributing close to 50% of radio revenues, up sharply from 27% last year.

  • Maintained market leadership in radio with 25% volume share.

  • Robust balance sheet with cash balance of INR372.5 crores as on 31st December 2025.

Concerns

  • Radio industry continues to face a tough advertising environment.

  • Advertising actively remained weak due to strong base last year and festive shift.

  • Advertisers remain cautious, keeping pressure on traditional mediums.

  • Gaana marketing spend increased this quarter compared to last year.

Key financials

  1. Domestic Revenue ₹160 Cr +4%YoY
  2. EBITDA (ex-digital) ₹23 Cr
  3. EBITDA Margin (ex-digital) 18%
  4. Cash Balance ₹372.5 Cr
  5. Digital Business Revenue ₹30.8 Cr
  6. Gaana Revenue ₹20.8 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

  • Non-FCT Segment
    10.5% Growth27.2% Gross Margin18.5% EBITDA Margin
  • Radio Segment
    51% Contribution to Overall Business25% Volume Share75% Capacity Utilization0% Volume Growth
  • Non-Radio Segment
    49% Contribution to Overall Business

Capital allocation

high confidence
  • Capex Capex disclosed
    Total investment in digital business during the current year at YTD level stood at INR29 crores, reflecting a significant 22% decline compared to the same period last year.
  • Liquidity Cash ₹372.5 Cr
    The company continues to maintain a robust balance sheet with a cash balance of INR372.5 crores as on 31st December 2025.

Guidance & targets

Profitability

  • Gaana Breakeven Profitability · few quarters going forward · Medium confidence in the few quarters going forward
    We remain committed to get Gaana breakeven in the few quarters going forward.

    — Yatish Mehrishi

  • Digital Business Profitability Profitability · next 2, 3 quarters · Medium confidence path to profitability
    So, but having said that, we remain committed. We believe next 2, 3 quarters, we have a path to profitability on that, 1 or month here and there, but we should be there.

    — Yatish Mehrishi

Marketing Spend

  • Gaana Marketing Spend Nature Marketing Spend · next year (FY27) · High confidence more on marketing to drive subscriber growth... on the CM3 level and not on the CM1 levels.
    Yes. So, it will be more on marketing to drive subscriber growth. As we breakeven in 2.5, 3 quarters, the nature of spend will be largely towards marketing, which will be on the CM3 level and not on the CM1 levels.

    — Yatish Mehrishi

What to watch in Q4 FY26

Gaana Breakeven Progress

Next few quarters
Current Not yet profitable
Target Progress towards breakeven

Why it matters

Achieving breakeven for Gaana is a key milestone for the profitability and long-term viability of the digital business.

We remain committed to get Gaana breakeven in the few quarters going forward.

Risks & concerns

  • Tough advertising environment for radio industry

    high

    The radio industry continues to face a tough advertising environment like all other mediums, with advertising actively remaining weak.

    Management acknowledged

  • Cautious advertisers and pressure on traditional mediums

    high

    Advertisers remain cautious, which has kept pressure on all traditional mediums, including radio.

    Management acknowledged

  • Competitive pressure on digital music pricing

    medium

    There will always be competitive tactical offers in the industry, but management believes price cuts are not sustainable for the business model.

    Management acknowledged

  • Increased marketing spend due to competition

    medium

    Competitive performances and market requirements pushed the company to increase marketing spend on Gaana to drive subscriber growth and fight competition.

    Management acknowledged

Q&A highlights

7 direct
Gaana Revenue for Q3 FY26 Direct
Gaana revenue for this quarter, almost about INR20.8 crores

Provides specific revenue figure for a key digital growth driver, indicating its contribution to the overall digital segment.

Asked by Meghna

Radio Capacity Utilization and Business Mix (FCT/NFCT split) Direct
our capacity utilization is around 75% for radio. ... our overall business, radio now contributes to about 51%. The non-radio business is 49%.

Gives insight into the operational efficiency of the radio segment and the evolving business mix between traditional radio and non-radio ventures.

Asked by Meghna

Gross and EBITDA Margins for Non-FCT Business Direct
the gross margins this quarter has been around 27.2%. ... EBITDA margins are about 18.5%.

Clarifies the profitability metrics for the growing non-FCT segment, which includes events, IP, and solutions businesses.

Asked by Ronak Shah

Rationale for Increased Gaana Marketing Spend Direct
this quarter, there has been a sudden shift in the marketing because when you look at a balanced growth in our subscriber numbers. So, to balance out, we went with a little higher marketing spend compared to the quarter.

Explains the strategic decision behind the increased marketing investment in Gaana, linking it to subscriber growth and competitive dynamics.

Asked by Ronak Shah

Adoption of New Pricing by Gaana Users Direct
Last quarter, I had said about 54%. This now it's about 66%.

Shows progress in user migration to the new pricing model, indicating the effectiveness of monetization efforts and potential for ARPU improvement.

Asked by Ronak Shah

Potential Spin-off of Digital Business Partial
Good question, Prashant, but it's too early to say about this. We want to build the business first, make it profitable. So, one milestone at a time. In future, nobody knows right now.

Addresses a significant strategic question regarding the future corporate structure of the digital business, indicating the current focus is on achieving profitability before considering such moves.

Asked by Prashant

Impact of Subscription Pricing on Gaana Breakeven Timeline Direct
I don't think we have reduced price. We are going to be back on the same price soon. It's not that we reduced the price a lot. It's just that our Q3, generally, our subscriber growth remains muted because of the business time we started off.

Clarifies the company's stance on digital music pricing amidst competitive pressures and its potential influence on the previously guided breakeven timeline for Gaana.

Asked by Rahul Goankar

Reasons for Spike in Production Costs Direct
No. So, it's largely our Events and Solutions business, which has shown growth. For that, the production cost has gone up. So, it's the production on those lines.

Explains the increase in production costs by linking it directly to the growth and activity within the Events and Solutions business, which is a part of the non-FCT segment.

Asked by Chetan Thacker

2 min read 6 chapters

Detailed narrative

Q3 FY26 Performance Overview

Ent.Network reported domestic revenue of INR160 crores for Q3 FY26, marking a 4% year-on-year growth and an 18% sequential increase. This performance was primarily driven by the continued momentum in the non-FCT and digital segments. The company maintained a robust balance sheet with a cash balance of INR372.5 crores as of December 31, 2025, underscoring its financial stability.

Digital Business Growth and Investment Strategy

The digital business remains a central pillar of the long-term growth strategy, with revenues reaching INR30.8 crores this quarter, contributing nearly 50% of radio revenues. This represents a sharp increase from 27% in the same quarter last year. Total investment in the digital business for the current year (YTD) stood at INR29 crores, reflecting a significant 22% decline compared to the previous year, indicating a calibrated approach to growth and cost discipline.

Gaana's Monetization and Marketing Efforts

Gaana's revenue for the quarter was approximately INR20.8 crores. The company reported that 66% of its users are now on the new pricing model, an increase from 54% last quarter, signaling progress in monetization. Management noted an increased marketing spend this quarter compared to last year, strategically aimed at accelerating platform adoption, enhancing brand visibility, and driving sustained user engagement, with a commitment to achieving breakeven within the next few quarters.

Radio Segment Challenges and Market Leadership

The radio industry continues to face a tough advertising environment, with advertising actively remaining weak due to a strong base in the prior year and festive shifts. Advertisers remain cautious, putting pressure on traditional mediums. Despite these challenges, Ent.Network maintained its market leadership with a strong 25% volume share and reported a radio capacity utilization of 75%. The radio business contributed 51% to the overall business, while non-radio (digital and solutions) contributed 49%.

Profitability and Cost Management

EBITDA excluding digital stood at INR23 crores, translating into an 18% margin. The non-FCT segment, which includes events and IP businesses, reported gross margins of 27.2% and EBITDA margins of 18.5%. The increase in production costs was attributed to the growth in the Events and Solutions business, which is part of the non-FCT segment, and is considered in line with overall EBITDA margins, indicating efficient cost management relative to growth.

Outlook and Strategic Focus

Management expressed confidence in the growth trajectory, emphasizing a disciplined approach to investment and a focus on execution and long-term value creation. They anticipate the digital business, including Gaana, to achieve profitability within the next 2-3 quarters. Future marketing spend for Gaana will strategically shift towards driving subscriber growth at the CM3 level, rather than initial platform development, aligning with the goal of profitable growth.

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