Entertainment Network (India) Limited , a prominent player in the Indian media and entertainment industry, has been directed by the Madras High Court to produce music logs and compute royalties for members of the South Indian Music Companies Association (SIMCA). This development comes as part of an ongoing legal dispute between the company and SIMCA.

Court Order Details

The Madras High Court, in its order dated August 26, 2025, has instructed Entertainment Network (India) Limited to:

1. Produce music logs for SIMCA members covering the period from August 2010 to December 2020.
2. Compute royalties payable at the needle-per-hour rate according to individual agreements with SIMCA members.
3. Furnish the computed royalties to the court within four weeks.

It's important to note that the court order does not require the company to make any immediate payments either to the petitioner or to the court.

Company's Response

Entertainment Network (India) Limited has announced its intention to appeal the order. The company stated in its regulatory filing that it is currently seeking legal advice to assess the potential impact and implications of the court's decision.

Compliance and Next Steps

The matter is scheduled for a compliance reporting on September 26, 2025. This gives the company approximately one month to prepare and submit the required information to the court.

Potential Financial Implications

While the exact financial implications of this order are yet to be determined, the company has assured stakeholders that it will make further disclosures if and when required, in compliance with applicable regulatory requirements.

Investor Considerations

As this legal matter unfolds, investors and stakeholders of Entertainment Network (India) Limited will likely be watching closely for any updates on the potential financial impact and the outcome of the company's planned appeal.

As the situation develops, market participants may want to keep an eye on any further announcements from the company regarding this legal matter and its potential effects on the company's financials and operations.

Entertainment Network (India) Limited (ENIL), the company behind Radio Mirchi, has reported a 3.2% year-on-year growth in domestic revenue, reaching Rs. 113.00 crores. The company's financial results reveal a mixed performance across its various segments, with digital and non-FCT businesses showing strong growth while the traditional radio segment faced challenges.

Digital Segment Leads Growth

The digital segment emerged as the star performer for ENIL, registering a robust 41.2% year-on-year growth. Gaana, the company's music streaming platform, saw its revenue surge by 87.6% to Rs. 18.00 crores, contributing a significant 40.7% to total radio revenues. This marks a substantial increase from its 24.8% contribution in the same quarter last year.

Non-FCT Segment Shows Strong Performance

The non-FCT (Free Commercial Time) segment also demonstrated impressive growth, with revenues increasing by 33% year-on-year to Rs. 25.20 crores. This segment maintained a healthy EBITDA margin of 43.4%.

Radio FCT Advertising Faces Headwinds

Despite growth in other areas, the radio FCT advertising segment experienced a decline. Revenue in this segment fell by 12.1% to Rs. 66.10 crores, primarily due to a high base effect from the previous year's political advertising and current geopolitical headwinds. However, ENIL maintained a strong 25.4% volume share in the Radio FCT segment.

Financial Highlights

• EBITDA stood at Rs. 6.20 crores, showing a 3.6% year-on-year growth.
• EBITDA excluding digital investments was Rs. 16.00 crores with a margin of 17.5%.
• Profit After Tax (PAT) for the quarter was Rs. 1.00 crore.
• The company maintains a robust balance sheet with a cash balance of Rs. 336.00 crores as of June 30, 2025.

Digital Investments and Future Outlook

ENIL has been strategically managing its digital investments, which decreased to Rs. 9.80 crores from Rs. 14.20 crores in the previous year. The company expects Gaana to break even by early next year, indicating confidence in its digital strategy.

Event Business Growth

The event business grew by 58% despite some cancellations due to geopolitical situations. Management expects significant expansion in the events business for the remainder of the fiscal year.

Management Commentary

Yatish Mehrishi, CEO of Entertainment Network (India) Limited, commented on the results: "We remain committed to driving profitable growth and returns for our shareholders. Our focus on transforming ENIL from just a radio company to a multimedia entertainment network is yielding results, with our digital and non-FCT segments showing strong growth."

Looking ahead, the management expects modest growth in the radio business and anticipates that by the end of the fiscal year, revenues from events and Gaana combined could potentially match or exceed traditional radio revenues.

As ENIL continues to diversify its revenue streams and capitalize on the growing digital and experiential entertainment markets, the company appears well-positioned to navigate the evolving media landscape.