Entertainment Network (India) Limited (ENIL), a prominent player in the Indian media industry, has announced a strategic move to divest assets of three of its FM radio stations. The company has signed a Memorandum of Understanding (MOU) with Abhijit Realtors & Infraventures Private Limited for the transfer of assets related to its stations in Kanpur, Lucknow, and Nagpur.

Transaction Details

The proposed transaction involves the transfer of tangible and intangible assets of the following FM radio stations:

• Kanpur 91.9 FM
• Lucknow 107.2 FM
• Nagpur 91.9 FM

It's important to note that this transfer excludes any trademarks or other intellectual property rights owned by ENIL.

Financial Implications

The deal is valued at Rs. 12.60 crores plus applicable taxes. Here's a breakdown of the financial aspects:

Transaction Timeline and Conditions

The completion of this sale is subject to several conditions:

1. Execution of definitive documents
2. Approval from the Ministry of Information and Broadcasting, Government of India
3. Fulfillment of other mutually agreed conditions precedent

ENIL expects the transaction to be completed on or before September 30, 2026.

About the Buyer

Abhijit Realtors & Infraventures Private Limited, the acquiring company, is not related to ENIL's promoter or promoter group. Key details about the buyer include:

• Incorporation Date: September 14, 2007
• Business Focus: Real estate, radio, and entertainment
• Authorized Capital: Rs. 3.00 crores
• Paid-up Capital: Rs. 2.70 crores

Strategic Rationale

ENIL has stated that the primary motivation behind this sale is to monetize these radio station frequencies. This move aligns with the company's strategy to optimize its asset portfolio and potentially focus on more profitable or strategic areas of its business.

Market Impact

Given that the three stations contributed only 0.55% to ENIL's total turnover in FY 2024-25, the immediate financial impact on the company is expected to be minimal. However, this transaction could signal a shift in ENIL's long-term strategy and resource allocation.

Investors and market watchers will likely be keen to see how ENIL utilizes the proceeds from this sale and whether this marks the beginning of a broader restructuring of its radio station portfolio.

As the media landscape continues to evolve, such strategic moves by established players like Entertainment Network India warrant close attention from industry observers and investors alike.

Entertainment Network India Limited (ENIL), the operator of Radio Mirchi, has reported a robust performance for the second quarter of fiscal year 2026, with significant growth in its digital and non-FCT segments offsetting challenges in the radio advertising market.

Financial Highlights

Digital Business Surge

ENIL's digital business has shown exceptional growth, with revenues reaching Rs. 31.50 crores, marking a 149.5% year-on-year increase. This segment now contributes 33% of the company's existing traditional business, up from 15.9% in the same quarter last year. The Gaana platform, a key component of ENIL's digital strategy, generated Rs. 20.54 crores in revenue, nearly doubling from the previous year.

Non-FCT and Events Business Growth

The non-FCT (Non-Free Commercial Time) segment grew by 42.2% to Rs. 34.50 crores. Within this, the events and IP business expanded by an impressive 101.1%, showcasing the company's successful diversification strategy.

Radio Advertising Challenges

While other segments thrived, the radio advertising segment faced headwinds due to muted advertiser sentiment and campaign deferrals. These challenges were attributed to anticipated GST benefits and overall market conditions.

Operational Efficiency

ENIL has demonstrated improved operational efficiency in its digital business. The investment in the digital segment reduced to Rs. 9.80 crores from Rs. 12.90 crores in Q2FY25, indicating better cost management while maintaining growth.

International Business

The company's international business showed strong growth, increasing by 35% to reach Rs. 5.90 crores, contributing to the overall positive performance.

Future Outlook

Management expects the Gaana platform to reach breakeven by June-September next year, signaling confidence in the sustainability of its digital growth strategy. For the radio business, the company anticipates single-digit growth in the coming quarters, reflecting a cautious but optimistic outlook in the face of current market challenges.

Investor Conference Call Insights

During the Q2FY26 earnings conference call held on November 6, 2025, ENIL's management provided additional context to the company's performance and strategy:

• The company maintains a strong market position with a 25% volume share in the radio market.
• ENIL's diversified portfolio, particularly in digital, events, and solutions, has helped offset softness in the radio advertising business.
• The events business has seen significant tailwinds post-COVID, with the company organizing about 300 events annually across 63 markets.
• Management remains cautiously optimistic about radio business growth, expecting single-digit increases in the coming quarters.
• The company is exploring opportunities in digital radio, pending government policies and industry-wide adoption.

ENIL's Q2FY26 results demonstrate the company's ability to navigate a challenging media landscape by leveraging its diversified business model and focusing on high-growth segments like digital and events. While traditional radio advertising faces headwinds, the company's strategic investments in digital platforms and non-FCT businesses are driving overall growth and positioning ENIL for future success in the evolving media industry.