Music Broadcast Limited has received a significant favorable outcome from GST authorities, with a rectification order completely eliminating a tax demand that originally stood at Rs. 89,63,361/-. The company announced this development through a regulatory filing on March 23, 2026, marking a complete resolution of the GST matter for financial year 2021-22.

Rectification Order Details

The Office of Deputy Commissioner, Lucknow issued the rectification order on March 19, 2026, reducing the entire demand amount to Rs. 0, including penalty. This represents a complete reversal from the original demand of Rs. 89,63,361/- that was issued under Section 73 of IGST/CGST/SGST Act, 2017.

Background and Timeline

The company had previously informed exchanges about receiving the original demand order through an intimation letter dated December 22, 2025. Following this, Music Broadcast Limited filed a rectification application challenging the GST demand order.

The rectification order was received by the company's Tax Department on March 19, 2026. After internal assessment confirming no penalty had been imposed, the order was subsequently received by the Company Secretary on March 23, 2026.

Regulatory Compliance

The disclosure has been made in compliance with Regulation 30 of SEBI Listing Regulations and relevant SEBI circulars. The company has provided detailed information as required under SEBI Master Circular and other applicable provisions.

Company Response

The favorable rectification order eliminates any financial liability that could have impacted the company's operations. Music Broadcast Limited's proactive approach in filing the rectification application has resulted in a complete waiver of the original GST demand and associated penalties.

The company has fulfilled all regulatory disclosure requirements by informing both NSE and BSE about this material development. Company Secretary and Compliance Officer Arpita Kapoor signed the regulatory filing, ensuring proper compliance with listing obligations.

Music Broadcast Limited has delivered a strong financial turnaround in the third quarter of FY26, marking a significant inflection point in its operational performance. The radio broadcasting company reported substantial improvements across key financial metrics, driven by strategic cost optimization initiatives and improved market conditions.

Financial Performance Highlights

The company's Q3FY26 results demonstrate a remarkable recovery trajectory with strong sequential growth momentum.

For the nine-month period ended December 2025, total income stood at ₹155.8 crores with EBITDA of ₹25.3 crores, reflecting the company's improved operational efficiency.

Strategic Cost Rationalization Initiatives

The company's management highlighted that the strong performance was primarily driven by decisive cost optimization measures implemented across multiple areas:

• Manpower rationalization: Consolidation of different teams into unified vertical structures
• Programming optimization: Rationalized content delivery with regional content sharing across stations
• Digital initiatives: Integration of AI solutions including RJ Sia for enhanced operational efficiency

These strategic actions have resulted in sustainable cost savings of approximately ₹24 crores on the expense front, positioning the company for improved profitability without compromising operational efficiency or market presence.

Strong Financial Position

Music Broadcast Limited maintains a robust balance sheet with significant financial flexibility:

The redemption of Non-Convertible Redeemable Preference Shares will eliminate annual interest costs of approximately ₹11-12 crores, further enhancing profitability prospects.

Market Conditions and Operational Metrics

Despite challenging market conditions, the company demonstrated resilience in key operational areas:

• Inventory utilization: 85-90% on a 15-minute per hour basis
• NFCT revenue: Approximately 20% of total revenue
• Station network: 39 stations across Tier 2 and Tier 3 markets
• Current advertising rates: Approximately 75% of pre-COVID levels

The management noted that while radio volumes showed a 4% degrowth according to Aircheck data for the quarter, the company's strategic positioning in smaller markets provides growth opportunities as advertiser focus shifts to Tier 2 and Tier 3 cities.

Digital Solutions and Revenue Diversification

Music Broadcast Limited continues to expand its revenue streams through integrated digital solutions, combining radio strength with digital platforms. The company's approach includes influencer marketing, content integration, podcast creation, and social media monetization, leveraging its radio network to drive audiences to digital platforms and create comprehensive marketing solutions for clients.