Entertainment Network (India) Limited , the operator of India's #1 FM radio channel Radio Mirchi and premier Audio Streaming Platform Gaana, has reported its financial results for the second quarter ended September 30, 2025. The company's Board of Directors approved the unaudited financial results in a meeting held on November 4, 2025.

Board Meeting and Financial Results Approval

The Board of Directors convened at the company's registered office in Mumbai from 2:30 p.m. to 7:50 p.m. on November 4, 2025. During this meeting, they approved both standalone and consolidated financial results for the quarter and six months ended September 30, 2025. The Board also took on record the Limited Review Report for these results.

Revenue and EBITDA Performance

Entertainment Network witnessed a significant increase in its top line, with consolidated revenues reaching ₹1,411.00 million in Q2, up from ₹1,135.00 million year-over-year. This 24.3% growth demonstrates the company's ability to expand its market presence and diversify its revenue streams.

The company reported Q2 EBITDA of ₹114.00 million compared to ₹112.00 million in the same period last year, representing a year-over-year increase of 1.8%. However, the EBITDA margin decreased to 8.06% from 9.82% in the previous year's corresponding quarter.

Performance Breakdown

The company's financial performance shows a mixed picture:

Digital Segment Growth

A standout feature of Entertainment Network's Q2 performance was the growth in its digital business. The digital segment's revenues climbed to ₹315.00 million, now accounting for 52.5% of ENIL's core radio advertising revenue, up from 21.4% in the same quarter last year. This growth was driven by an expanding user base and deeper engagement on the Gaana platform.

Operational Efficiency

The company has shown improvements in operational efficiency, particularly in its digital business. Investments in the digital segment were reduced to ₹98.00 million from ₹129.00 million in the previous year's Q2, indicating better cost management while achieving growth.

Challenges in Radio Advertising

While the company saw overall revenue growth, it noted that radio advertising continued to face pressure due to industry-wide softness and weak advertiser sentiment. However, growth in Digital, Events, and Branded Solutions more than offset this shortfall, validating the company's platform-agnostic strategy and diversified revenue mix.

Management Commentary

Yatish Mehrishi, CEO of ENIL, commented on the results: "Our performance this quarter highlights the success of ENIL's transformation journey and the strength of our diversified business model. The significant growth in our Digital, Events, and Solutions businesses demonstrates that we are well on our way to becoming a full-spectrum audio entertainment and audience engagement company."

Availability of Financial Results

The company has announced that the detailed financial results will be made available on its website and on stock exchange platforms. Following the disclosure of these results, the trading window for the company's securities will reopen after 48 hours.

Future Outlook

Entertainment Network's focus going forward will be to continue its transformation journey—building a more balanced portfolio while enhancing monetization across its ecosystem. The company's ability to grow its digital segment and diversify revenue streams may be key to improving profitability in future quarters.

As the media landscape continues to evolve, Entertainment Network's strategic shift towards a more diversified business model and its focus on digital growth could position it well for future challenges and opportunities in the audio entertainment industry.

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.