Music Broadcast Limited has delivered a strong financial turnaround in the third quarter of FY26, marking a significant inflection point in its operational performance. The radio broadcasting company reported substantial improvements across key financial metrics, driven by strategic cost optimization initiatives and improved market conditions.

Financial Performance Highlights

The company's Q3FY26 results demonstrate a remarkable recovery trajectory with strong sequential growth momentum.

For the nine-month period ended December 2025, total income stood at ₹155.8 crores with EBITDA of ₹25.3 crores, reflecting the company's improved operational efficiency.

Strategic Cost Rationalization Initiatives

The company's management highlighted that the strong performance was primarily driven by decisive cost optimization measures implemented across multiple areas:

• Manpower rationalization: Consolidation of different teams into unified vertical structures
• Programming optimization: Rationalized content delivery with regional content sharing across stations
• Digital initiatives: Integration of AI solutions including RJ Sia for enhanced operational efficiency

These strategic actions have resulted in sustainable cost savings of approximately ₹24 crores on the expense front, positioning the company for improved profitability without compromising operational efficiency or market presence.

Strong Financial Position

Music Broadcast Limited maintains a robust balance sheet with significant financial flexibility:

The redemption of Non-Convertible Redeemable Preference Shares will eliminate annual interest costs of approximately ₹11-12 crores, further enhancing profitability prospects.

Market Conditions and Operational Metrics

Despite challenging market conditions, the company demonstrated resilience in key operational areas:

• Inventory utilization: 85-90% on a 15-minute per hour basis
• NFCT revenue: Approximately 20% of total revenue
• Station network: 39 stations across Tier 2 and Tier 3 markets
• Current advertising rates: Approximately 75% of pre-COVID levels

The management noted that while radio volumes showed a 4% degrowth according to Aircheck data for the quarter, the company's strategic positioning in smaller markets provides growth opportunities as advertiser focus shifts to Tier 2 and Tier 3 cities.

Digital Solutions and Revenue Diversification

Music Broadcast Limited continues to expand its revenue streams through integrated digital solutions, combining radio strength with digital platforms. The company's approach includes influencer marketing, content integration, podcast creation, and social media monetization, leveraging its radio network to drive audiences to digital platforms and create comprehensive marketing solutions for clients.

Music Broadcast Limited has announced its unaudited financial results for the quarter ended December 31, 2025, following a board meeting held on February 2, 2026. The company reported mixed performance with declining revenue but improved profitability metrics.

Financial Performance Overview

The company's quarterly performance showed a significant revenue decline compared to the previous year, though profitability remained positive.

Nine Months Performance

For the nine months ended December 31, 2025, the company faced challenges with negative profitability despite maintaining operational revenue.

Key Financial Ratios

The company maintained healthy financial ratios despite operational challenges, with strong liquidity and manageable debt levels.

Board Decisions and Corporate Governance

The board approved the reconstitution of the Risk Management Committee with enhanced leadership structure.

Upcoming Earnings Call

The company has scheduled its quarterly earnings conference call to discuss the Q3FY26 performance with investors and analysts.

The financial results were approved by the Audit Committee and Board of Directors on February 2, 2026, with statutory auditors S.N. Dhawan & CO LLP providing a limited review report. The company continues to operate primarily in the FM radio broadcasting segment under the Radio City brand.