Entertainment Network (India) Limited (ENIL), the operator of India's leading FM radio channel Radio Mirchi and audio streaming platform Gaana, has reported its financial results for the first quarter of fiscal year 2026, showcasing its ongoing strategic shift towards digital platforms and events.

Financial Highlights

ENIL reported consolidated revenues of ₹117.00 crores for Q1FY26, marking a 3.00% year-on-year growth. The company's EBITDA grew by 3.60% to ₹6.20 crores, reflecting its successful diversification strategy in a challenging market environment.

Digital Growth Momentum

The company's digital business continued its strong upward trajectory, with revenues reaching ₹21.70 crores. This now represents 40.70% of ENIL's core radio advertising revenue, a significant increase from 24.80% in Q1FY25. The growth was primarily driven by Gaana's strong user traction and improved efficiency, with reduced investment in the digital business.

Events and Solutions Business Surge

ENIL's Events and Solutions business demonstrated robust growth, increasing by 33.00% in Q1. This performance underscores the company's successful focus on solution-based offerings and diversification beyond traditional radio advertising.

Strategic Transformation

Mr. Yatish Mehrishi, CEO of ENIL, commented on the company's performance: "In a quarter marked by industry challenges and market volatility, our strategy of transformation from only Radio to Multimedia company has delivered promising results. Our Events and Solutions business grew a strong 33% in Q1, supported by our continued focus on solution-based offerings."

Digital Platforms and Events: Key Growth Drivers

The company is accelerating its multimedia transformation strategy, with digital platforms and events identified as key drivers for its next growth phase. Gaana, ENIL's audio streaming platform, is witnessing robust subscription uptake and consumer engagement, signaling growing user alignment.

Outlook

With improved cost efficiency and a sharpened focus on multi-platform expansion, ENIL is positioning itself to capture emerging opportunities in the evolving media landscape. The company's balance sheet remains strong, with a cash reserve of ₹349.00 crores as of June 30, 2025.

As Entertainment Network (India) continues its strategic shift towards digital and events, the company appears well-positioned to navigate the changing dynamics of the media industry and capitalize on new growth opportunities.

Entertainment Network (India) Limited (ENIL), operator of Radio Mirchi and Gaana, reported its financial results for the first quarter, showing signs of resilience in a challenging market environment.

Financial Highlights

• Consolidated revenue from operations increased to ₹115.13 crore, up 1.5% from ₹113.47 crore in the same quarter last year.
• Standalone net loss narrowed to ₹5.15 crore, compared to a loss of ₹5.37 crore in Q1 of the previous fiscal year.
• Consolidated net loss improved to ₹5.26 crore from ₹5.45 crore year-over-year.
• Earnings per share (EPS) stood at negative ₹1.08 for standalone results and negative ₹1.10 for consolidated results.

Business Segment Performance

ENIL's strategic diversification efforts have started to bear fruit, with notable growth in its digital and non-FCT (Fixed Commercial Time) businesses:

• Digital business revenue surged by 41.2% year-over-year, now accounting for 40.7% of the company's core radio advertising revenue, up from 24.8% in Q1 of the previous fiscal year.
• Events and Solutions business grew by a robust 33% in Q1.
• Radio advertising segment remained subdued, partly due to a high base effect from political advertising in the previous year's general elections.

Operational Efficiency

The company has shown improved cost management:

• Investment in the digital business decreased to ₹9.8 crore from ₹14.2 crore in the same quarter last year, demonstrating better efficiency.
• EBITDA for the quarter grew by 3.6% to ₹6.2 crore.
• EBITDA excluding digital stood at ₹16 crore, with margins at 17.5%.

Strategic Focus

Mr. Yatish Mehrishi, CEO of ENIL, commented on the results: "In a quarter marked by industry challenges and market volatility, our strategy of transformation from only Radio to Multimedia company has delivered promising results. Our Events and Solutions business grew a strong 33% in Q1, supported by our continued focus on solution-based offerings."

He added, "Our digital business, which registered a 41.2% growth, continues to gain momentum. Gaana is witnessing robust subscription uptake and consumer engagement - signaling growing user alignment."

Financial Position

ENIL maintains a strong balance sheet with a cash reserve of ₹349 crore as of the end of the quarter, providing financial stability for future growth initiatives.

Legal Proceedings

The company continues to face ongoing legal proceedings with Phonographic Performance Limited (PPL), with the matter currently pending before the Supreme Court of India. Management believes, based on external legal advice, that the chances of a cash outflow related to this matter are remote.

As ENIL navigates through market volatility and industry challenges, its multi-platform expansion strategy and focus on digital growth appear to be positioning the company for potential opportunities in the evolving media landscape.

Note: All figures are in Indian Rupees (₹) and 1 crore = 10 million.