Entertainment Network (India) Limited (ENIL), the company behind Radio Mirchi, continues to navigate significant corporate changes as CRISIL maintains its credit ratings under watch status while the company's promoter restructuring remains pending regulatory approvals.

CRISIL Rating Action and Rationale

CRISIL has continued its ratings on ENIL's bank facilities and debt instruments on 'Rating Watch with Developing Implications' as of January 06, 2026. The rating agency maintains its assessment across all financial instruments:

Ongoing Promoter Restructuring Impact

The ratings were initially placed on watch status on October 8, 2025, following ENIL's disclosure regarding its parent Bennett Coleman and Company Limited (BCCL) and Times Horizon Private Limited (THPL) preparing to file a scheme of arrangement. Under this proposal, BCCL's non-publishing business, including education, investment, broadcasting, media, entertainment and allied activities, would be demerged into THPL.

Key Financial Performance Metrics

ENIL's latest financial performance reflects the impact of business diversification on profitability:

Business Strengths and Market Position

CRISIL's rationale highlights ENIL's continued market leadership in the FM radio broadcasting industry, with presence across 63 cities and strong brand equity through Radio Mirchi. The company maintains a healthy financial risk profile with nil debt and cash equivalents of ₹345.00 crore as of September 30, 2025.

Challenges and Rating Concerns

The rating agency notes that ENIL's operating profitability has been impacted by investments in business diversification. Operating margins declined from 19.90% in fiscal 2024 to approximately 14.40% in fiscal 2025, with expectations of remaining around 13-14% in fiscal 2026 due to investments in non-radio businesses.

Regulatory Timeline and Future Outlook

The proposed reorganization remains subject to approvals from the National Company Law Tribunal (NCLT) and other statutory authorities. CRISIL will continue monitoring developments and their impact on ENIL's credit risk profile, particularly regarding operational and financial support from the new parent THPL. The ratings will be removed from watch status once there is clarity on the demerger's impact on business and financial risk profiles.

Entertainment Network (India) Limited , the company behind Radio Mirchi, has achieved a significant legal victory with the Madras High Court Division Bench completely setting aside all contempt orders and dismissing proceedings initiated by The South Indian Music Companies Association (SIMCA).

Court's Decisive Ruling

The Madras High Court Division Bench delivered a comprehensive judgment on December 10, 2025, that provides complete relief to ENIL. The court's decision addresses multiple contempt petitions and appeals that had been pending since the original litigation began.

Key Legal Developments

The Division Bench's ruling encompasses several critical aspects of the ongoing music licensing dispute:

Complete Dismissal of Contempt Orders: All contempt proceedings initiated against the company have been dismissed in their entirety. The court found that contempt jurisdiction was not maintainable under the present circumstances.

Elimination of Financial Obligations: The court set aside the Single Judge's directions requiring ENIL to deposit 50% of alleged royalty dues. Additionally, requirements to furnish historical music play logs and compute alleged royalty amounts have been completely eliminated.

Court's Legal Reasoning

The Division Bench provided clear legal reasoning for its decision, emphasizing that contempt jurisdiction was not maintainable in the present facts. The court noted that the underlying order in the Civil Miscellaneous Appeals is currently under consideration before the Supreme Court, and the alleged monetary liability remains unquantified.

Background Context

This victory stems from a complex legal dispute involving music licensing rights between radio broadcasters and music rights holders. SIMCA had filed contempt petitions seeking enforcement of certain obligations, but the court found these proceedings legally unsustainable.

Company's Regulatory Compliance

In accordance with SEBI regulations, ENIL has promptly disclosed this significant legal development to stock exchanges. The company's filing confirms that no financial impact arises from the previously contested contempt orders, which now stand completely annulled.

Industry Implications

This comprehensive legal victory provides clarity for Entertainment Network (India) Limited's operations and removes uncertainties that had been hanging over the company's music licensing arrangements. The judgment reinforces the company's position in ongoing industry disputes regarding music rights and royalty obligations.

The court's decision to hear ENIL's case alongside similar appeals involving other industry players suggests broader implications for the radio broadcasting sector's approach to music licensing disputes.