Concall AI

Music Broadcast Limited — Q3 FY26 earnings call

Call held 4 Feb 2026

Management summary

Music Broadcast Limited delivered a strong sequential performance in Q3 FY26, with revenue growing 23% QoQ to INR46.4 crores and Operating EBITDA soaring to INR15.9 crores, leading to a 34% EBITDA margin. This turnaround was driven by strategic cost rationalization, which is expected to yield INR30 crores in annual savings. While the advertising market remains subdued year-on-year, the company is focused on digital solutions and leveraging its network in Tier 2/3 markets, maintaining a robust net cash position of INR261 crores post NCRPS redemption.

Highlights

Revenue grew 23% quarter-on-quarter to INR46.4 crores, driven by improved advertiser activity and seasonal momentum.
Operating EBITDA surged to INR15.9 crores in Q3 FY26, a substantial improvement from INR1.3 crores in Q2 FY26.
EBITDA margins expanded significantly to 34%, reflecting effective cost rationalization and operating leverage.
The company reported a PAT of INR4.1 crores, achieving a strong sequential turnaround from a loss in the previous quarter.
Cost rationalization initiatives are largely complete and sustainable, expected to generate approximately INR30 crores in annual savings.

Concerns

Year-on-year revenue experienced degrowth, attributed to a subdued advertising market and the impact of prior year's election spending.
Government ad rate announcements, though hopeful, lack a committed timeline, creating uncertainty for future revenue streams.
An analyst raised concern about the industry being perceived on a 'downward path', with the company's stock trading below book value.

Key financials

2 periods

Headline

Revenue
₹46.4 Cr
QoQ +23%
Total Income
₹54.8 Cr
Operating EBITDA
₹15.9 Cr
QoQ +1,123%
EBITDA Margin
34%
EBIT
₹9.1 Cr
EBIT Margin
20%
Adjusted PAT
₹6 Cr
Reported PAT
₹4.1 Cr

9M FY26

Total Income
₹155.8 Cr
EBITDA
₹25.3 Cr

What they filed

Q1 FY27: revenue down 9.7%, net profit up 524.9% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	55	65	55	49	38 −31%	46 −29%	41 −25%	45 −10%
Expenses	52	55	100	48	43	39	88	36
EBITDA	3	11	-45	1	-5 −281%	8 −30%	-47 −5%	8 +772%
Margin	6%	17%	-83%	2%	-15%	16%	-116%	18%
Other income	6	7	7	7	7	8	5	8
Interest	3	3	3	3	3	3	1	0
Depreciation	9	9	9	7	7	7	7	4
Profit before tax	-2	6	-50	-2	-9 −345%	6 +2%	-51 −1%	12 +665%
Tax rate	1%	39%	-24%	0%	-21%	39%	-6%	25%
Net profit	-2	4	-38	-2	-7 −246%	4 +2%	-48 −26%	9 +525%
EPS	-0.06	0.10	-1.10	-0.06	-0.20	0.11	-1.39	0.27

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.

Capital allocation

high confidence

Debt Gross ₹0 Cr · Net cash ₹261 Cr
- Repayment Redemption of NCRPS (preference shares) in January 2026. ₹107 Cr
There is no debt on the company's books. The only debt is the preference shares, which was already redeemed.
Liquidity Cash ₹261 Cr Net cash position as of February 4, 2026, after redemption of INR107 crores in NCRPS.

Correct. We asked it as on 31st December. So that is the figure as on 31st December. As on today, it is INR261 crores.

Guidance & targets

Cost Savings

Annual Savings Cost Savings · Annually · High confidence INR30 crores

if we say INR6 crores, we are saving around INR24 crores on the expenses front and around INR7 crores on the NCRPS interest. So around INR30 crores saving in the expense should be there.

— Rajiv Shah

Advertising Market

Market Stability Advertising Market · Going forward · Medium confidence Stable

things are slowly getting better. We are expecting things to remain stable going forward.

— Abraham Thomas

Cost Structure

Cost Cuts Sustainability Cost Structure · Going forward · High confidence Stable figure

No, most of the cost cuts are over. Actually, cost cuts are complete. And therefore, this is now going to be the stable figure going forward.

— Abraham Thomas

Ad Rates

Government Ad Rate Announcement Ad Rates · Soon · Low confidence Announcement soon

Not yet. We are in continuous talks with them, and we are hopeful of some announcement from that soon.

— Abraham Thomas
Rates vs Pre-COVID Ad Rates · Current · High confidence 75% of pre-COVID numbers

So it would be around 75% of the pre-COVID numbers.

— Rajiv Shah

Inventory Utilization

Utilization Rate Inventory Utilization · Q3 FY26 · High confidence 85% to 90%

Inventory utilization is about 85% to 90% on a 15-minute per hour basis.

— Abraham Thomas

What to watch in Q4 FY26

Government Ad Rate Announcement

Next quarter (implied)

Current Pending, no commitment on timeline

Target Announcement of new rates

Why it matters

A positive announcement on government ad rates could significantly boost the company's ad revenue and overall financial performance.

Not yet. We are in continuous talks with them, and we are hopeful of some announcement from that soon. There is no commitment because they are still considering it. So we have no indication when it will come in.

Risks & concerns

Subdued Advertising Market
medium

The advertising market remains subdued, impacting revenue growth year-on-year, though sequential recovery is observed.

Management acknowledged
Year-on-Year Revenue Degrowth
medium

Radio volumes degrew by 4% in Q3 and 1% YTD, attributed to subdued advertiser sentiment and prior year's election spending.

Analyst acknowledged
Uncertainty of Government Ad Rate Announcement
low

Discussions are ongoing for government ad rates, but there is no commitment or indication of when an announcement will be made.

Management acknowledged
Phonographic Court Case Contingent Liability
low

A court case from 2010-2020 is sub-judice; management believes liability is not quantifiable and expects no financial outflow due to a strong legal position.

Analyst downplayed

Q&A highlights

2 direct, 2 evasive

Maximum liability in Phonographic court case Partial

See, the liability is not quantifiable. And as per our stand, we believe there should not be any outflow as per our legal opinion and our case looks to be strong, and we are waiting now for the hearing at the Supreme Court level. We don't see any outflow going.

Analyst sought quantification of a potential legal liability, but management stated it's not quantifiable and they expect no outflow, indicating confidence in their legal position.

Asked by K. Maro

Consideration of a share buyback Evasive

Jagran this I will not be able to comment right now. The proposal has just come in.

Analyst highlighted the company's significant net cash position relative to its market cap and suggested a buyback, but management declined to comment, indicating it's a sensitive or early-stage discussion.

Asked by Chandramouli Jagannathan

Impact of cost-cutting measures on profitability Direct

if we say INR6 crores, we are saving around INR24 crores on the expenses front and around INR7 crores on the NCRPS interest. So around INR30 crores saving in the expense should be there.

Management quantified the expected annual savings from cost rationalization and NCRPS interest, providing a clear figure for future profitability improvement.

Asked by Chandramouli Jagannathan

Addressing year-on-year revenue degrowth Partial

So you're right, the advertising market outside is subdued, and there is -- there is also an impact of substantial election political spending last year same quarter due to the assembly elections. So that also has kind of added to the degrowth if you were to compare it to the previous year. So things are slowly getting better. We are expecting things to remain stable going forward.

Analyst questioned the persistent YoY revenue degrowth, to which management attributed external factors and expressed cautious optimism for stability, but did not provide a clear timeline for positive YoY growth.