Entertainment Network (India) Limited (NSE: ENIL, BSE: 532700) reported modest revenue growth in the December quarter, driven by sharp gains in digital and IP-led businesses, while profitability declined due to higher operating costs and continued stress in the radio advertising market, according to the company’s Q3 FY26 investor presentation.
Q3 FY26 financial performance
On a standalone basis, total income rose 4.0% year on year to ₹1,598.2 million in Q3 FY26. The growth was led by non-core radio segments. Digital platform revenue surged 99.9% year on year to ₹308 million, while impact properties revenue increased 10.5%. In contrast, existing core radio business revenue declined 6.7% year on year to ₹1,291 million, reflecting a muted advertising environment and early festive season shifts.
EBITDA declined 51.6% year on year to ₹137.4 million, as operating expenditure rose 16.6% to ₹1,460.8 million. EBIT turned negative at ₹67.5 million, and profit before tax (before exceptional items) was a loss of ₹37.4 million. The quarter included exceptional items of ₹81.0 million, resulting in a reported PAT loss of ₹62.0 million.
On a consolidated basis, total income increased 3.8% year on year to ₹1,649.6 million, while EBITDA declined 49.6% to ₹153.5 million. PAT stood at a loss of ₹63.1 million after exceptional items.
Nine-month FY26 snapshot
For the nine months ended Dec. 31, 2025, standalone total income increased 9.5% year on year to ₹4,081.9 million. However, EBITDA declined 31.5% to ₹302.0 million due to cost pressures and slower recovery in core radio advertising. PAT for 9M FY26 was a loss of ₹149.2 million after exceptional items.
The company reported net cash of ₹3.72 billion as of Dec. 31, 2025, providing balance-sheet resilience despite operating losses.
Digital and IP businesses gain scale
Digital continues to gain share in ENIL’s revenue mix. The digital platform’s share of core radio revenue increased to 49.5% in Q3 FY26, up from 26.9% in Q3 FY25 and 13.4% in Q3 FY24, according to the trend chart in the presentation.
The IP-led business recorded steady growth, with revenue rising to ₹353.5 million in Q3 FY26 from ₹319.9 million a year earlier. Management noted that growth was slightly muted due to a shift in festive season timing, but the IP portfolio continues to scale across live events, branded properties and integrated solutions.
Operating highlights
ENIL continued to invest in product and platform enhancements across its audio streaming app Gaana and Radio Mirchi’s content ecosystem. New features launched in the quarter included user-driven “Top Charts” by region and language, faster playlist creation flows, and collaborative playlists, aimed at improving user engagement and discovery (pages 19–21).
The company also executed high-visibility IPs and partnerships during the quarter, including large-format events such as SBI Green Marathon, Mirchi Club Nights, and collaborations with major concerts and festivals. International activations across Bahrain, Qatar and the U.S. supported brand visibility and advertiser engagement.
Market environment and outlook
Management said the domestic radio ad market remains under pressure, with advertisers cautious on discretionary spends. However, the company expects digital, IP and impact properties to continue outpacing the core radio business, helping diversify revenue streams. ENIL reiterated its focus on integrated solutions across radio, digital and on-ground IPs, alongside continued investment in product features on Gaana to drive user engagement and monetisation.
Summary
ENIL delivered Q3 FY26 revenue growth driven by strong digital and IP momentum, while the core radio business faced continued advertising headwinds. Higher operating costs and exceptional items weighed on profitability. The rising contribution of digital and IP to the revenue mix, along with a net cash balance, provides strategic flexibility as the company navigates a soft ad market and continues its transition toward a more diversified media platform.