Entertainment Network (India) Limited delivered a mixed performance in Q3FY26, with digital business momentum offsetting challenges in traditional radio advertising. The company reported domestic revenue of ₹160 crores, representing a 4% year-on-year growth despite a challenging advertising environment affecting traditional media.

Financial Performance Overview

The company's financial metrics for Q3FY26 demonstrate resilience amid market headwinds:

Digital Business Emerges as Growth Engine

The digital segment showcased remarkable progress, with revenues reaching ₹30.8 crores during the quarter. This performance represents a significant milestone, as digital business now contributes close to 50% of radio revenues, marking a substantial increase from 27% in the same quarter last year. The Gaana platform specifically generated ₹20.8 crores in revenue, driven by expanding user base and enhanced engagement.

The company's strategic focus on digital transformation is yielding results, with 66% of subscribers now contributing to gross margin positive metrics, up from 54% in the previous quarter. Total digital investments for the year-to-date period stood at ₹29 crores, reflecting a 22% decline compared to the previous year, indicating improved cost discipline.

Segment-wise Business Performance

The company's diversified portfolio showed varied performance across segments:

Radio Industry Challenges and Market Position

The traditional radio segment faced headwinds due to weak advertising activity and festive season timing shifts. Unlike the previous year when the entire festive season occurred in Q3, demand was distributed between Q2 and Q3 in the current year. Despite these challenges, the company maintained its market leadership position with a robust 25% volume share in the radio industry.

Advertising rates remained largely flat during the quarter, with inventory utilization at approximately 75%. The company noted that current pricing levels remain 25% to 30% below pre-COVID levels, reflecting the ongoing recovery in the advertising market.

Strategic Outlook and Growth Initiatives

Management emphasized the company's commitment to achieving profitability in the digital business within the next few quarters. The strategic approach balances growth investments with cost discipline, particularly in marketing spend to drive subscriber acquisition and platform adoption. The company is also exploring international expansion opportunities, particularly targeting South Asian diaspora markets and the profitable U.S. subscription market.

With a strong balance sheet and diversified revenue streams, Entertainment Network India is positioned to capitalize on the digital transformation while maintaining its leadership in traditional radio broadcasting. The company's focus on execution and long-term value creation reflects confidence in its growth trajectory across both traditional and digital platforms.

Entertainment Network (India) Limited has published its unaudited financial results for the quarter and nine months ended December 31, 2025. The company announced the completion of its regulatory disclosure process through newspaper publications and formal communication to stock exchanges on February 12, 2026.

Q3FY26 Financial Performance

The company's standalone financial results for the third quarter show mixed performance across key metrics. Revenue from operations reached ₹15,981.78 lakhs for the quarter, representing an increase from the previous quarter's ₹13,541.54 lakhs.

Nine Months Performance

For the nine months ended December 31, 2025, the company reported total revenue from operations of ₹40,819.31 lakhs compared to ₹37,267.47 lakhs in the corresponding period of the previous year. The company recorded a net loss of ₹1,492.33 lakhs for the nine-month period.

Impact of Labour Code Implementation

The company recognized an estimated additional expense of ₹810.03 lakhs towards gratuity and leave encashment as an exceptional item. This adjustment was made following the Government of India's notification of new Labour Codes on November 21, 2025, which revised the definition of wages under various employment regulations.

Regulatory Compliance and Publication

The financial results were published in leading newspapers including Financial Express and Loksatta on February 12, 2026, as required under SEBI regulations. The company's EVP - Compliance & Company Secretary, Mehul Shah, formally communicated the publication to BSE Limited and National Stock Exchange of India Limited.

Board Approval and Governance

The unaudited financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors at their meeting held on February 10, 2026. The results are prepared in accordance with Regulation 33 of the SEBI Listing Regulations and are available on the company's website and stock exchange portals for stakeholder access.