Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Entertainment Network (India) Ltd (NSE: ENIL) Q4 2026 Earnings Call dated May. 18, 2026
Corporate Participants:
Sneha Salian — Investor relations
Yatish Mehrishi — Chief Executive Officer
Sanjay Balab — Chief Financial Officer
Analysts:
Amit Mahindal — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Entertainment Network India Limited Q4FY26 earnings call. As a reminder, all participants lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star than zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Sneha Salin from eyir.
Thank you. And over to you.
Sneha Salian — Investor relations
Thank you Gitech. A warm welcome to all the participants to the Entertainment Network India Limited Q4FY26 earnings call. The investor presentation and the financial results are available on the company’s website and on the stock exchanges. Please note, anything said on this call which reflects our outlook for the future or which can be considered as a forward looking statement must be viewed in conjunction with the risks that the company faces. This conference call is being recorded and the transcript along with the audio of the same will be made available on the website of the company as well as on the exchanges.
Please also note that the audio of the conference call is a copyright material of Entertainment Network India Limited and it cannot be copied, rebroadcasted or attributed in press or media without specific and written consent of the company. To give you a brief business update and to take you through the results from the management team we have Mr. Yatish Mehrushi, Chief Executive Officer and Mr. Sanjay Balab, Chief Financial Officer. I would now request Mr. Yatish to provide you with a brief update on the quarter.
Over to you sir.
Yatish Mehrishi — Chief Executive Officer
Thanks Neha. Good evening everyone. On behalf of enil, I extend a very warm welcome to all participants joining us for our Q4 and FY26 earnings call. We announced our results on Friday and I hope all of you had the chance to review them. I would now like to take you through the key highlights of our performance and provide some context around the operating environment. During the year for FY26 we delivered consolidated revenues of 565 crores representing a year on year growth of 3.9%. Domestic revenue grew by 4% to rupees 548 crores primarily driven by the strong momentum in our digital business.
EBITDA include excluding the digital business stood at rupees 76 crores for FY26 translating into an EBITDA margin of 18%. PAT excluding digital stood at rupees 22 crores. This includes a one time impact arising from the reversal of deferred tax liability amounting to rupees 17.2 crores pursuant to tax reassessment under the Finance Act 2026. Our balance sheet continues to remain strong and healthy as on March 31, 2026, the company maintained a consolidated cash balance of Rupees 424 crores while the standalone cash balance stood at Rs.
404 crores. Let me now take you through the segment Wise performance Starting with the radio segment, FY26 continued to be a challenging year for the overall radio industry with demand conditions remain subdued amid persistent macroeconomic uncertainties that continue to weigh on advertisers sentiments. The slowdown was further aggravated by the ongoing geopolitical tensions in the West Arabic war which adversely impacted business confidence. Despite these challenging conditions and industry headwinds, the company continues to maintain its leadership position with a volume market share of 25.2%.
Our international operations are particularly impacted especially in the Middle east which were directly affected by the ongoing conflict. This market witnessed disruption and slowdown in economic activity leading advertisers to adopt a more cautious and conservative spending approach. Moving to our Non FCT segment for FY26, revenues for the Non FCT segment stood at Rs. 148 crores. The segment performed well for the majority of the year delivered healthy growth during the first nine months reflecting strong underlying demand across our offerings.
However, during Q4 26 the business was impacted as a result of the macroeconomic and geopolitical challenges intensified by the war situation resulting in event disruptions and execution delays. The evolving global environment continues to pose operation challenges. This impact was visible across multiple areas. For instance, couple of our international artists concerts faced travel constraints which led to cancellation of certain events. This factor disrupted planned activities and adversity affected the overall segment performance during the quarter.
Let me now take you through the digital business. Our digital business emerged as a key growth driver during FY26 and delivered an outstanding performance. Revenues for the year stood at rupees 112.4 crores representing an impressive year on year growth of 84%. The strong performance reflects the increasing scale, relevance and acceptance of our digital offerings with the within the overall business portfolio. Digital revenues now contribute to our overall revenue to our radio revenues to about 48% for FY26, making a significant structural shift in our business mix.
This transformation is aligned with our long term strategy to build a future ready and a platform agnostic business model that caters to evolving consumer behavior as well as changing advertising preferences. Ghana continues to witness a strong traction during the year, supported by continued expansion in the user base and deeper consumer engagement. Simultaneously, we remain focused on improving operational efficiency and driving cost discipline across the business. Digital spending during the year was reduced by 23% reflecting improved unit economics and tighter cost management, even as the business continued to scale meaningfully.
Overall, the strong growth in our digital and other solution business has helped offset the challenges being faced in the traditional segments. More importantly, it reinforces our confidence in digital as a key driver for our future growth, profitability and long term value. Lastly, I’m pleased to share that the Board has recommended a dividend of Rupees 2 per share for FY26. With that, I would now like to hand over the call to the moderator. We’ll be happy to take your questions. Thank you.
Operator
Thank you very much. We’ll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone phone. If you wish to remove yourself from the question queue, you may press star and two participants are requested you to use Handsome while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. The first question is from the line of Amit Mahindal from Robocapital. Please go ahead.
Questions and Answers:
Amit Mahindal
Thank you. I just wanted to get some visibility of the business plan for Ghana for next two, three years. Some broad numbers. I mean I understand that you may not want to disclose a lot of numbers because of confidentiality, but any trajectory, any broad sense of business plan will be great.
Yatish Mehrishi
Thank you Amit. Yes, you’re right. So the way we look at we are firm believers of the subscription economy overall, globally. Also if you look at the subscription trends have been really really good and that’s the way we in music also people over a period of time will go to a subscription business to a subscription rather than free model. We have always believed a music advertising model is a broken model and people should be paying. We have always in the past paid for cassettes, paid for CDs. It’s just that in the last 10 years when people have got free anything free, the behavior has changed towards getting it for free.
But over a period of time I believe it will drive subscription. We believe the way the last two years we have seen almost a 15% CAGR on subscriber growth should stay put for the next two, three years. Also overall also in the industry which is good that everybody is now trying to focus on pure subscription business and not free music. So we believe a pure subscription business is there to stay and our confidence to drive this business to a profitable growth stays put. To give you some numbers we have grown from about 61 crores of Ghana revenue to about 112 crores.
The number of subscribers have been increasing at 15% CAGR and we believe that should continue. What we believe is we don’t just look at subscriber numbers we are always the objective has been the unit economics to gain subscriber at a profitable number rather than just look at one metrics the overall way to look at the businesses look at your revenue growth, look at your profitability and simultaneously the subscriber growth. We are not here to just run after subscribers if they are not profitable.
You would have seen one of our competitors drop the price to a very large extent in the Q3 of last year. We believe that model doesn’t work when you give everything free or at a lower cost than your price make sense for us it’s critical to look at the overall economics of the business and we will go hand in hand with the subscriber growth and the revenue growth with conjunction to the profitable growth. The way we look at As I said FY27 is a year where we look at breakeven and then going forward to keep looking at more and more profitability.
Amit Mahindal
Great sir. And just any color on market share data for Ghana either a number or are we maintaining the market share or declining or growing some color will be great and also you know what type of pricing power do you think we have currently or we will have stay in 23 years because I mean you know the subscribe the amount that the users are paying is absolutely negligible. Right. So do you think there will be some pricing power? Do you see it currently or do you think that there’ll be over a period of time
Yatish Mehrishi
So couple of things. Yes, you’re right. You know the price what we’ve been charging earlier when we started the business 300 or maybe last year 499 we are now gone at 2799 annual pack and I believe generally and even most of the labels if you would have Saregama’s commentary also where Vikram talks about you know 100 rupees a month could be a right price of 1200 a year price is is the price you would want to look at even Spotify right now Apple are in the similar range at an annual pack at a steady state and that what the price we would want to believe as of today we are at 799 where we believe the unit economics work to a certain extent but as we grow along we will look at there is some headroom available for the price.
India is a value driven market. So the way we look at is not just blindly look at price, it’s about what value you bring. Because there’s a behavior change issue we hear. So unless and until we keep showing value to a consumer, it’s not about the price. The price, you’re absolutely right, it’s very low. It’s not about ability to pay off 300 bucks or 700 rupees or 800 rupees. It’s the willingness to pay towards a value, towards the value we can drive and gain and the consumer can gain from it. So we believe there is headroom on the price.
So that’s for sure. On the market share it’s a bit difficult because there’s a lot of players who are offering free product and there’s a bundled product available. But when I look at Spotify, us, Apple, we have a healthy market share and we continue to maintain that.
Amit Mahindal
Right sir. And once we break even, how do you see the margins going forward? I mean do you think there is some operating leverage in this business or what? Let me ask differently, like what, what will be the variable cost after the breakeven? Is it like 60, 70% or larger or
Yatish Mehrishi
So? See the way we look at is that the way we look at is anywhere globally. Also subscriber subscription business over after you break even drive drive good profitability. In this case there is little bit of patience to be driven because here you’re coming from a free product to a pure subscription business. So it will depend on how the overall ecosystem of Spotify and other players also play the pure subscription game. But having said that, I have always believed subscription business after a certain point does drive multi, the profitability does multiply.
Amit Mahindal
Well, I will just check. I was just requesting from a unit economics perspective, like suppose there is a music stream that you know gets played x number of times currently and then gets played say 1.5x after 3 years. Then for the incremental, you know, point X that revenue that we generate, typically a lot of it will do profit before tax or how or we have to pay in the royalty as well. Right. So what is the percentage of royalty? If you look at it that way,
Yatish Mehrishi
The economies of scale will always drive when you have more and more subscribers coming in there will always be economies of your operations and stuff. Yes, there is a variable content of content, the music label cost to be given which always remains in the range of 60 to 70% depending on how you put it up. And for us also it’s largely a variable cost. The way we look at it, there will be economies playing around as the number of subscribers increase because your tech cost also gets leveraged with the number of subscribers.
So we are covered on that and we believe for next two, three years we are covered on our tech cost, the people cost. So there is a surely you can surely look at incremental margins coming from that. Also there will be a play from a non music content also when you look at podcasts and stuff if that content goes up you can, your content cost can get little bit leveraged on those lines. So there is a margin play. But yes, you’re right, there is a variable content cost which will always be there.
Amit Mahindal
Right. Sir, if I may last quickly how do you see competitive intensity in this place? Because I think there will be YouTube which is offering for free and has large, you know, market share or dominance. So how do you see, I mean if not YouTube generally, how do you see the competitive intensity game?
Yatish Mehrishi
So I believe, you know I don’t think India has still seen the inflection point of music subscribe subscription. The video subscriptions had seen a Covid year where there was inflection point. I believe the way we look at Indian market there is 100 million subscribers, 100 million population which should be paying for any subscription that what we target. In the last two years we have seen music substitution subscription double up and I think that’s the way we look at the growth coming in and I think there is still a lot of headroom available in terms of subscriber numbers going up.
Amit Mahindal
Great sir, thanks. Thanks. Thanks a lot.
Yatish Mehrishi
Thank you.
Operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next, the next question is from the line of Tanushi, an individual investor. Please go ahead.
Unidentified Participant
Good evening sir, my name is Tanushji and I’m an individual investor. I have few questions I would like to ask.
Yatish Mehrishi
Yeah, go ahead.
Unidentified Participant
Could you please share only Ghana revenue and profitability for the quarter four financial year 26 and the YUI growth
Yatish Mehrishi
So on. Just give me one second. So overall digital business for q4. The Q4 number was about 21 crores and a year end or year on year growth of about 42%.
Unidentified Participant
Okay, and what is for financial year 26?
Yatish Mehrishi
81 crores over 46 with a growth of 71%.
Unidentified Participant
Okay, what was the FCT and non FCT split for quarter four.
Yatish Mehrishi
FCT revenue was about 74 crores and non FCT was about 38 crores.
Unidentified Participant
Okay. What was the volume growth achieved in this quarter?
Yatish Mehrishi
Volume growth has largely been flat. It’s been a tough quarter. It’s been largely been flat.
Unidentified Participant
Okay. And also can you please share the details on the inventory utilization for this quarter as well?
Yatish Mehrishi
It’s almost. It’s. It’s in the same similar range. As I said, it’s been a flat cu.
Unidentified Participant
Okay. Okay. And lastly, what was the effective rate in quarter four?
Yatish Mehrishi
It’s not much change. It’s almost the similar levels. As I said post Covid the number the ers have not gone up and it remains in the same levels.
Unidentified Participant
Okay, thank you so much.
Yatish Mehrishi
Thank you.
Operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Amit Mehendal from Robocapital. Please go ahead.
Amit Mahindal
Thanks for the follow up. I just wanted to check on Ghana. I think if I said correctly, I think last 2/4 revenue is almost flat at around 20 crores or so. Right. Any color on that?
Yatish Mehrishi
There’s been some growth for sure. It’s not that it’s not growing. It’s
Amit Mahindal
A very, I think quarter on quarter. The growth seems to have, you know come down significantly. There may be some growth but a very small maybe 20 crores, 20 points 2 may have become 21 or something.
Yatish Mehrishi
Yeah. So there has always been a Q3, Q4 churn for us when we started the business. So there could have been a play and as I said, you know the subscript we had reduced the price in looking at these Spotify numbers. But after that we have increased the price. So it’s from a. It’s almost been about 10 to 15% growth from 18 crores to 20 crores. 18 to 21 actually if you look at. You
Amit Mahindal
Mean from Q3 to Q4, you mean.
Yatish Mehrishi
Yeah, yeah.
Amit Mahindal
Okay. Okay, perfect. And what type of. You know, I mean are we spending lot of money acquire customers? I any column growth? How do you see the success like the funnel? You know, either the subscribers are not paying and then converting to the funnel which are paying subscribers.
Yatish Mehrishi
So I mean any subscription. As I said for us the funnel is quite big. It’s just that you write, you know the customer acquisition has to be at the right price. There is no point if it has to be given free. I would rather not even spend any money and maybe stand at a metro station. But the whole idea for us is very clear that we will look at profitable subscriber number growth. We are not chasing any subscriber number. We are looking at from day one a business which is sustainable, which is profitable.
So you will always see that. In fact in the last quarter also we said that there is a pressure on with everybody chasing every subscription business in India chasing the same customer. There has always been a hike on the CAC numbers which we believe we always be prudent on that side. So we don’t change every quarter any number. For us the unit economics is far more important than just looking at a pure subscriber number.
Amit Mahindal
Right sir. On that CAC to atv are you like publishing those numbers? Are you comfortable giving those numbers? What is the CAC or LTV or the CAC ratio?
Yatish Mehrishi
I don’t think this open for. That’s like sharing all your secrets. I don’t think we should be doing that.
Amit Mahindal
Okay, perfect. And quick. Last thing, the growth that we Talked about the 15% growth on subscribers which is at, you know is it the top of the funnel like the non paying subscribers or is it at the paying subscribers?
Yatish Mehrishi
We don’t differentiate. For us it’s all paid customer only. So there is nothing like bm. We don’t have any free customer.
Amit Mahindal
No. I think the original set of customers. There are a lot of customers who are not paying. Right. When the acquisition was.
Yatish Mehrishi
When we acquired the business we went completely behind the paywall. So there was never a free customer.
Amit Mahindal
Right. So basically when the 15% is on the paid subscribers effectively
Yatish Mehrishi
Everything is paid.
Amit Mahindal
Okay. Perfect. Okay great. That’s it. From mine. Thank you very much for the detailed answers.
Yatish Mehrishi
Thank you.
Operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Rahul from noventures. Please go ahead.
Unidentified Participant
Yeah. Hi, my name is Rahul. Just looking at the financial figures you all have got an income tax notice of 111 crores from the income tax department. So can you throw some light on that? What is this regarding and whether you will be able to solve it?
Yatish Mehrishi
I’ll ask Sanjay to answer that.
Sanjay Balab
Yeah. Hi Rahul. So yes, we have received the income tax notice on the 31st of March. Specifically this is related to financial year 2023 24. And there was a assessment going on. The department as usual asked about lot of questions, lot of details which we have furnished duly. However, ignoring all those submissions order was passed and that resulted in a demand of 113 crore. The company is completely confident that it can go to the next level to CIT appeal and other courses of getting the justice and there is no reason will not be able to fight that in the court of law and the further appellate authorities.
Yatish Mehrishi
We are very confident out. I don’t think there is any worry on that part because our case is quite clear and I don’t think it should be a worry point at all.
Unidentified Participant
Okay, the next question is that you also significant difference of approximately 15 crores on the top line. So how is the radio industry doing and how are your radio competitors doing?
Yatish Mehrishi
So as I said, we maintain our two parts to our business radio and non radio radio. We as I said, we continue to be the leaders with a volume share of almost 25.6%. We maintain that in fact would have gained certain basis point on that Our non radio business got impacted in Q4. As you would have seen generally Q4 is a very heavy H2 is very heavy on events and experiential business which got impacted due to the ongoing geopolitical conflict. A couple of our international artist concerts had to get cancelled which resulted into drop in revenues.
So our drop majorly came from our non STD business which was growing very healthy for the first nine months. But having said that, since Q4 is a very heavy contributor which led to the fall which I believe is a momentary thing, we remain very very confident that exponential business has a lot of tailwinds and we remain geared to showcase growth. In fact, our first nine months growth was very very highly double digits.
Unidentified Participant
Okay, the other question is that you mentioned that there is a market of around 10 crores 100 million subscribers in India which you foresee for the full industry. So right now when you say that in two years time you all have doubled up in terms of the subscriber numbers. So currently how many million subscribers are there who are in the paid category as of now?
Yatish Mehrishi
So EY recently reported during the FICCY report. The EY Ficcy report which came in March talks about the Indian music subscription numbers at about 15 million which was about 8 million two years back. When I say 100 million, you know India is a very large country with 1.4 billion people. But it’s a mix of income strata. The people who really really matter in the first go. Before when you look at the Sachet pricing or economical price, 100 million people would be earning as high as any developed world.
So that’s the reason I said the 100 million people. Most of the subscription business in India would be chasing this hundred million people. When I Look at video OTT is also in the similar range, about 80 to 100 million which is consistent or a stable number. It could go up little on the IPL with IPL thing but otherwise at a steady state it’s about 80 to 100 million. And that’s the number I quoted about 100 million. So right now if you look at music streaming, it’s about 15 million. So there’s a lot of headroom available for the music subscription numbers to grow.
Unidentified Participant
So when do you think that this hundred million figure? In how many years would the industry reach that figure?
Yatish Mehrishi
If I had a magic wand, I would have done it yesterday. But jokes apart, Rahul, as I said, I’ve been saying it’s a behavioral change thing. People have been getting things for free and India is a very value driven market. So it takes a time for the behavior change. As I said, it’s not about ability to pay, it’s willingness to pay. Any behavior change will take some bit of time. You need to be patient. And also. But the good part is most of the streaming players have started focusing on subscription.
If you look at Spotify or YouTube or Apple, Apple is a paid product but I think Spotify and YouTube, there are a lot of restrictions when you do a free product. Spotify would allow to do playlists which used to allow background in music or YouTube has stopped if you are not a premium customer. So all these are good signs to drive the subscription market. And most of the players are realizing along with the labels that for music industry to grow and rightfully the way to grow is only by doing subscription and not offering free music.
Unidentified Participant
Correct. And your overseas foray into new markets, do you all see that happening in the near future?
Yatish Mehrishi
The way we look at now is with Ghana as a critical product and with a critical mass I think and now being present in many countries, we will, in any international market we would want to go with Ghana rather than radio.
Unidentified Participant
And also you had mentioned in the last quarter earnings that you all were spending a lot of time and energy in completing and making all the features in the app, Ghana app. So now all that has been completed.
Yatish Mehrishi
So if I look at it, you know, as a UI or as a product, we would be at par with any competition. But if you look at any technology product, it’s a dynamic thing, it’s a continuous process. To answer yes, whatever large thing which we large changes which we had to change in the last two years, we have taken care of that. But as I said, technology keeps changing, keep evolving. So you have to be on toes rather than just sitting on your laurel that you have come to a certain level of your product. It’s a continuous process to keep improving the feature sets.
Unidentified Participant
Okay, Cello, thanks a ton. And all the best for the future. And good that you all have increased the market share in the radio business. And all the best for your Ghana’s future.
Yatish Mehrishi
Thank you, Rahul. Thank you very much.
Operator
Thank you. A reminder to all the participants that you may press Star and one to ask a question. The next question is from the line of Meghna from an individual investor. Please go ahead.
Unidentified Participant
Am I audible?
Yatish Mehrishi
Yes, Meghna,
Unidentified Participant
I just wanted to know the overall digital revenue for the quarter and the growth rate.
Yatish Mehrishi
For the quarter you said.
Unidentified Participant
Yes.
Yatish Mehrishi
So pure business is about 29 crores with a growth of 61% approximately.
Unidentified Participant
Okay. And how much is branded it and what’s the growth like?
Yatish Mehrishi
So we don’t segregate revenues like that, Meghana. So I would not be able to answer you on that.
Unidentified Participant
Okay. Okay. Thank you. That’s it.
Yatish Mehrishi
Thank you.
Operator
Thank you. A reminder to all the participants that you may press Star and one to ask a question. The next question is from the line of Tanushi, an individual investor. Please go ahead.
Unidentified Participant
Hello. I just wanted to ask you the branded ip but I guess that question was addressed earlier.
Yatish Mehrishi
Yes. Thank you.
Unidentified Participant
Thank you.
Operator
Thank you. A reminder to all the participants that you may press Star and one to ask a question. A reminder to all the participants that you may press Star and one to ask a question. The next question is from the line of Amit Mahendan from Robocapital. Please go ahead.
Amit Mahindal
Thank you. Thanks for the follow up. Again, my question is on the cash. We are carrying a lot of cash and if you see, you know, the markets are not giving any valuation to the radio business. You know, not just our business but you know, across the industry, our peer setters.
Yatish Mehrishi
Yeah.
Amit Mahindal
You know, at a faster clip. Even though, even if we burn slightly more money just to scale it up quickly or what is, I mean what is the thinking internally around that?
Yatish Mehrishi
No. So see as I said, for us it’s not about just burning cash and generating. It’s a hard earned money. It’s not. So we are very clear we will chase profitable growth only. We will not just chase numbers. So that’s one part that it’s not about. We can’t burn whatever we believe is the right amount to be invested. We will always do that. As I said, for last two years we have been building this business. It’s now come to a certain level where we believe it will break even over a period of. Over this year.
And that’s the reason we are holding that we keep evaluating inorganic opportunities also. So that’s always been the case. You have seen that overall geopolitical thing and the economic conditions. The overall media landscape is also a bit challenging right now. So you have to be very careful about it from that perspective. Having said that, you would appreciate that even any year we’ve been always in consistent with our dividend policies also. So it’s been increasing over here. The whole idea is we will keep evaluating inorganic growth also and also keep investing in our digital business.
Amit Mahindal
Right. So great. And for Ghana, the breakeven do you expect, I mean broadly, is it in like Q3, Q4 or like Q1 of next year? Broadly. Any sense of direction there?
Yatish Mehrishi
So we would, we would be happy to do that this year. In this financial year itself, you’ve been reducing quarter on quarter. You would have seen even this quarter we have reduced. So we’ll continue to do that. And I think FY27 could be the defining year for that.
Amit Mahindal
Okay, perfect. Thank you very much.
Yatish Mehrishi
Thank you.
Operator
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Yatish Mehrishi
Thank you everyone for joining this call. We remain committed to driving sustainable growth and in a profitable manner. Thank you very much. Have a nice day.
Operator
On behalf of Entertainment Network India limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.