Entertainment Network (India) Ltd (NSE: ENIL) Q3 2026 Earnings Call dated Feb. 11, 2026
Corporate Participants:
Sneha Salian — Investor relations
Yatish Mehrishi — Chief Executive Officer
Analysts:
Unidentified Participant
Ronak Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Entertainment Network India Limited Q3FY26 earnings conference call. This 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 then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Neha Salian. Thank you. And over to you.
Sneha Salian — Investor relations
Thank you, Hina. A warm welcome to all the participants to the Entertainment Network India Limited Q3FY26 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 construed as a forward looking statement must be viewed in conjunction with the risk 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 site of the company as well as on the exchanges.
Please also note that the audio of the conference call is the copyright Material 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 Maharishi, Chief Executive Officer and Mr. Sanjay Balab, Chief Financial Officer. I would now request Mr. Yatish to provide you with with a brief update on the quarter. Over to you sir.
Yatish Mehrishi — Chief Executive Officer
Thank you, Slaya. Good evening everyone. On behalf of anl, I extend a very warm welcome to all participants joining us for our Q3 FY26 earnings call. I hope you had a chance to review the results. Let me briefly walk you through the quarter key highlights and provide context around our performance. During the quarter we recorded a domestic revenue of rupees 160 crores reflecting a year on year growth of 4% and a sequential growth of 18% for the year. This performance was led by the continued momentum in our non FCT business and the digital business. Our EBITDA excluding Digital stood at 23 crores translating into an EBITDA margin of 18%.
The company continues to maintain a robust balance sheet with a cash balance of Rupees 372crores as on 31st December 2025. Let me turn your attention to segment wise performance to start with our non FCT segment. Even with the festive shift, the demand was spread across Q2 and Q3, whereas in the previous year the entire festive season was in the Q3. Even with that, our event and IP business continued its strong trajectory growth of 10.5%, building on the level of recent quarters on to our digital business. Digital remains a central pillar of our long term growth strategy and continue to scale meaningfully.
During the quarter, revenues from Digital business reached rupees 30.8 crores, contributing close to 50% of our radio revenues, up sharply from 27% in the same quarter last year, underscoring the rapid expansion of this vertical. This performance was driven by an expanding user base and deeper engagement on the Ghana platform supported by continued investments in content and user experience. Total investment in digital business during the current year at YTD level stood at 29 crores, reflecting a significant 22% decline compared to the same period last year. As part of our long term strategy, we have increased our marketing investment to accelerate platform adoption, enhancing brand visibility and driving sustained user engagement.
This reflects a calibrated approach to growth. Balancing scale with cost discipline over the quarter reinforces our confidence in the digital strategy the Radio Segment Coming to the Radio segment the radio industry continues to face a tough advertising environment. Like all other mediums, advertising actively remained weak partly due to a strong base in the same period last year and the festive shift. While the demand has now started to show early sense of stabilizing, advertisers remain cautious which has kept a pressure on all traditional mediums including radio. We continue to outperform our peers, retaining our position as a market leader in the industry with a strong 25% volume share.
In summary, the strength of our diversified portfolio, the rapid scale up of digital and our disciplined approach to investment reinforces our confidence in the growth trajectory of the business. We remain focused on the execution and long term value creation. With that, I would like to hand over the call to the moderator for the Q and A session. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all the participants that you may press star N1 to ask a question. The first question comes from the line of Meghna, an individual investor. Please go ahead.
Unidentified Participant
Yes, good afternoon. Good afternoon. I had a couple of questions. I wanted to know what Is the Ghana revenue for this quarter?
Yatish Mehrishi
Yes. Another question.
Unidentified Participant
I wanted to know how our inventory utilization is like and the FCT and NFCT split for this quarter.
Yatish Mehrishi
Okay, give me one second. Ghana revenue for this quarter almost about 20.7 crores. And our capacity utilization is around 75% for radio.
Unidentified Participant
Okay. And what is your volume growth for this quarter?
Yatish Mehrishi
It’s remain almost flattish this year.
Unidentified Participant
Okay. And have your rates increased this quarter?
Yatish Mehrishi
More or less remain in the same bank but as I said, you know there’s a festive shift. So there was some bit of drop in the inventory levels and that could have put pressure on the pricing but more or less in the flattish range, ma’. Am.
Unidentified Participant
Okay. And if we compare it to pre.
Yatish Mehrishi
Covid levels it’s still a drop as I said in the last previous years Also previous May I have meetings also it’s about almost about down 25 to 30%.
Unidentified Participant
Okay. And this time your FCT and NSCT split how is it like?
Yatish Mehrishi
So our overall business radio now contributes to about 51%. The non radio business is 49%.
Unidentified Participant
And non radio includes digital. What all does it include?
Yatish Mehrishi
Digital and our solutions business.
Unidentified Participant
Okay, thank you.
Yatish Mehrishi
Thank you.
Ronak Shah
Thank you. The next question comes from the line of Ronak Shah from Aquarius Securities. Please go ahead.
Ronak Shah
Margin for that non expert in business which we earlier used to highlight in the presentation.
Yatish Mehrishi
Can you be a little bit clear? I just missed you.
Ronak Shah
Yeah. Can you highlight the gross margin or EBITDA margin for the non SPT business which we earlier used to highlight in the presentation.
Yatish Mehrishi
So the gross margins Right. This year has been around 27.2%.
Ronak Shah
And for the quarter, for the quarter I said okay. And for the EBITDA margins.
Yatish Mehrishi
EBITDA margins are about. About 18.6%.
Ronak Shah
Got it, got it. And sir, from the marketing spend perspective if we see last few odd quarters it has ramped up drastically. So how we see it then to pan out over next two, three odd years.
Yatish Mehrishi
See the way we look at it this quarter there has been a sudden shift in the marketing because we look at a balanced growth in our subscriber numbers. So to balance out we went with a little higher marketing expense compared to the quarter. But we remain in as per our plan of overall marketing spends what we want to do as a disciplined approach. So we balance growth and the spends simultaneously. We remain committed to get Ghana breakeven in the few quarters going forward.
Ronak Shah
Okay. And from the Ghana’s perspective earlier we were highlighting that around 61% of the users are now into the new Pricing. So how much it has improved from the current quarter’s perspective.
Yatish Mehrishi
Last quarter I had said about 54% this now it’s about 66%.
Ronak Shah
Okay, got it. Thank you.
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 comes on the line of Prashant, an individual investor. Please go ahead.
Unidentified Participant
Sir. Do we have any plan to spin off the company digital business from the rest of the business due to the nature of. Due to the profitability of the business? Is there any plan for spin off the digital business?
Yatish Mehrishi
Good question, Prashant, but it’s too early to say about this. We want to build the business first, make it profitable. So one milestone at a time in future. Nobody knows right now. But as of now, as I say, we remain committed to delivering profitable growth to get the first. Get the digital business profitable first.
Unidentified Participant
Okay, thank you.
Yatish Mehrishi
Thank you.
Ronak Shah
Thank you. A reminder to all the participants that you may press Star and one to ask a question. The next question comes from the line of Rahul Goankar, an individual investor. Please go ahead.
Unidentified Participant
Yeah. Hi Atish, my name is Rahul. Just wanted to ask you a few questions regarding your performance. You have mentioned that the market share has increased in the last quarter compared to the previous quarters in your radio business. So earlier it was around 25%. So has it gone up from there?
Yatish Mehrishi
So on radio volumes it remains at 25%. That’s what I said that the leaders in the industry and our market share is robust 25% on the volume basis. Value wise it will be higher but on volume basis it remains at 25%.
Unidentified Participant
And because of the traditional radio business are other competitors of yours kind of shutting shop or how are they? Because the revenues of other companies are dwindling in this business.
Yatish Mehrishi
Yes, I agree that largely in the media landscape this year and particularly because of the festive shift and overall the economy remains muted. A lot of media companies have seen a very muted quarter this year on the radio front. Yes, couple of companies have not had a very good quarter. Really, really poor numbers on that. I would not want to comment on the performance on closures. Yes, there has been one radio station which has not closed on but sold to another player. So in that regard still remains robust because somebody is still buying the radio company.
So it’s not doomsday or people are closing down. But yes, somebody wanted to start a new business. So they have taken over. The ISHQ FM from TV today got sold to another radio player.
Unidentified Participant
Okay. And in your this quarter results your other expenses have increased from to. From 239 crore rupees from basically 31 crore rupees quarter and quarter and year on year. So why is there such a sharp increase in the other expenses as well as production expenses?
Yatish Mehrishi
So two things. One is on the marketing front on Ghana we spent little more on this quarter compared to the last year quarter because we were in a building phase and there were market requirements and competitive performances also which are happening. So it pushed us to increase our marketing spend on Ghana to remain to drive our subscriber growth and also fight out competition.
Unidentified Participant
And okay, so it’s a rather. And you can look at it as an investment rather than an expense.
Yatish Mehrishi
Yes. So we balance our. And we look at our investment on Ghana very carefully. So on quarter, on quarter basis we keep reviewing and where we feel we do it we remain disciplined on that because our aim is very clear to get a profitable path and a journey very very soon on that.
Unidentified Participant
Okay, regarding the subscription charges, what I believe I’m hearing and understanding is that has the annual plan been reduced from 600 rupees to 300 rupees by Jio Sawan as well as Ghana or the subscription levels are at 600 rupees.
Yatish Mehrishi
So in any industry you know there will always be a competitive tactical offers going on. In fact it started with special Spotify which reduced its price for a couple of months to 399 which led to another competition driving to 499. But I think it’s more a tactical offer. I don’t think price plays a role of going straight with growth. We have seen that and I don’t think at that price business model works. So we are very clear that we don’t reduce the price. We came under the pressure, our marketing spend went up but we remain focused of getting at the right price.
And we believe there are enough subscribers available at the right price and not too undercut on the price. It might be little patience game. It may not be a very fast growth in the music industry. But having said that I think there is lot of price elasticity available and the price headroom available to increase price. I think it could be a short term competitive pressure which came they dropped price which led to this change. But I think everybody live back to the original pricing. I don’t think at that price the business is sustainable.
Unidentified Participant
The thing is that probably if the prices have been reduced then the breakeven time which you had previously mentioned that you would break even in the last. In the next One or two quarters would that be delayed?
Yatish Mehrishi
I don’t think we have reduced price. We are going to be back on the same price soon. It’s not that we reduce the price a lot, it’s just that our Q3 generally our subscriber growth remains muted because of the business time we started off. So if you look at our last year performance also the Q3 numbers on growth on subscribers remain little muted compared to other quarters. Yes, a month or two months here and there can happen because that may be competitive pressure or you know, the marketing budgets taking a toll. Because the marketing budgets on digital spends is not just about your music competitors, it’s about the overall ecosystem.
You know, if everybody starts spending more then the price of performance marketing can go up. Like we were thinking with real money gaming stuff with the ban coming in, the price will subside. But I guess all other platforms like short form dramas and other things also coming up that also put a pressure. So the entire ecosystem on the subscription revenue, subscription economy puts pressure on the marketing monies also. So but having said that, we remain committed. We believe next two, three quarters we have a path to profitability on that one or month here and there.
But we should be there and we are not in a price drop game.
Unidentified Participant
So basically, would you like to talk more about your competition? I think so. You, you are just directly facing competition from Jio Saw and this, your SP Spotify as well as Apple Music and YouTube Music. So do these people have an edge over Nil or you as a company? Y’ all guys, because of your radio services and your radio business and your events business and the Times of India group, you all have an edge over these say Jio Sawan who has a mobile app and stuff like that.
Yatish Mehrishi
So the way I look at this in the industry Raunangar Rahul is it’s everybody has his own advantages. We have a massive advantage of being present in 63 markets for us to advertise that our radio jockeys who are about 150 are like your first case influencers. So we have a massive strength on the media might and also for last two decades people in India have been listening to music which has been curated by Mirchi. So from that perspective, yes, we have a massive strength compared to Spotify or a Jio while JioSawan has a has a massive funnel of Jio mobile.
So everybody has his own advantage. But the way I look at this industry, it’s not like a Pepsi Coke fight that I need to, you know, get a competitive. You have to gain from your competition there is enough subscribers available in India. If I was to look at video subscription the numbers are about 100 million. While in audio the numbers still stand at 50, 20 million. So there is enough room available. I think all players together can increase the size of the cake and have enough share. Generally with the content being same on Spotify, Us and Sawan, people may not have multiple subscription.
You know, it’s not like a Netflix and Amazon prime that you would want both. In this case you have one. So chances of gaining from competition are less. It’s about, you know, finding your own subscribers. And in that case we have, we are better placed with our strength in tier 2, tier 3 markets with our radio network and our concerns. It just helps us to be in a better place to market it. So I would look at competition as increasing the category to together increase the category and get people to spend on music. I think people in the past have also spent on music a lot.
Even though it was pirated music or people have been tendency, you bought CDs, you bought cassettes. So it’s just that in between for 10 years people are offering free. So the behavior has changed I think over a period of time people will value that music and will pay for it. So I think all players are looking at increasing the category rather than fighting against each other.
Unidentified Participant
Okay. And see if you talk of Spotify, they are I think so in more than 60 countries and they have a market cap of in billions of dollars. So would you also foray into overseas markets where the NRI population is there or you all are just kind of seemingly want to focus on India because you all have such reserves of 300, 350 crore rupees in your bank. So you all guys should go all out to try and promote yourself and try to create a spot for yourself.
Yatish Mehrishi
So good one Rahul. So the thing is we as Mirchi, we always we are present as radio market in Gulf and New Jersey also our radio stations are there. It’s not that we are not present. Even Ghana is present in more than 120 countries. So it’s not that we are not present to give you a perspective. For us it’s wherever the South Asian population is there, we target them. So it’s not just Indian population, the South Asian population because of Hindi, Telugu music being very, very famous. Hindi, Telugu, Tamil, the Indian music industry being very famous India across, across South Asian countries.
So wherever there is a South Asian diaspora, we focus on that. Just that, you know, compare our journey. We took over Ghana two and A half years back where the product was not so great, the experience was not so great. So it took us time to build that. While Spotify has been the business for more than a decade. So for us to get the product right was critical. You are absolutely right. The biggest subscription market globally is us. We intend to start focusing on that market soon. It’s a very, very profitable subscription market which is US and North America.
So that is the immediate need for us. But as I said, for us it’s a step, you know, you can’t just expand across the board and lose the discipline while your product was still not ready.
Unidentified Participant
So now you think your product is ready?
Yatish Mehrishi
Yeah, the product is ready. The content is at par with Spotify. So then you can start looking, you know, you are looking at Indian market. Get the Indian diaspora first. Get a basic number up there. So now we, as I said, the international market is a given. It’s the most profitable. US is the biggest subscription market for any industry. So for us also remain the same. So our focus on international will start going forward and which will give us more benefits also.
Unidentified Participant
Okay, what about just a few thoughts that say because you all are also in the events business, when you all sell tickets, you all can give Ghana coupons to the subscribers who attend the events in your business. And people who probably advertise on your radio, you can give them Ghana coupons or vouchers to them also. So are you doing such practices or. It’s more kind of blatant in the sense that. Not too aggressive.
Yatish Mehrishi
Rahul, maybe next time I’ll get you our marketing room also. Thanks for all the advice. We do that. We love doing it. It’s just that as I said, you know, the first two years have been on the basic hygiene side. You are absolutely right. That’s. And we do a lot of concerts. We could, we start, we started doing that, you know, for super fans. We can get them to meet the stars. So all the market strategies are in place as I said, for the last two years, two and a half years. If the important part was to get the product hygiene and the catalog ready, the app experience more ready.
Because you know to get a customer once and having a bad experience, you never get the customer back. So the whole idea was to get the basic hygiene ready. All these marketing strategies are in place. Some work, some don’t work. You can work market wise, language wise, region wise, you can work it out. But you’re absolutely right, there are enough and more opportunities for us to drive subscriber growth. But as I Said for people to spend money you don’t want to give a habit of free product, you know you need because that’s where the industry ails.
Because if it’s available for free, why will people pay? So the whole idea is to make them see value. If they see value in the product and they experience they have a better experience, they will tend to pay for it. So that’s what our belief is. Yes, we give trial offers in during concert, during other events. But you are up to the point that you know marketing strategies will surely help. So thanks rahul for that.
operator
Mr. Rahul, thank you. You may rejoin the queue for the follow up question. The next question comes from the line of chetan Thakkar from N3 Investment Private Limited. Please go ahead.
Unidentified Participant
Good evening sir.
Yatish Mehrishi
Good evening Chetan.
Unidentified Participant
So I just wanted to understand we’ve seen a spike in production cost this quarter. So any particular thing there due to which that has gone up?
Yatish Mehrishi
Sorry, come again.
Unidentified Participant
The production cost has gone up this quarter. Just wanted to understand anything there that we should read into?
Yatish Mehrishi
No. So it’s largely our events and solutions business which has shown growth for that the production cost has gone up. So it’s the production on those lines. So it’s in line with our EBITDA margins and on that. So nothing to worry on that part.
Unidentified Participant
Understood. And some early trends on the ad revenue growth for this quarter given we are seeing some about of recovery in the economy.
Yatish Mehrishi
Yeah. So there is some bit of recovery. We seeing that not major. I would not say we are very bullish on that. There is some bit of recovery, some basic coming in, some sentiments improving. So it’s little bit there I haven’t seen great on the sports side also if you look at, you know I’m not looking at this radio but when I look at the overall media scene I’m not seeing much growth on the even the cricket tournament, cricket World cup also. So I would still remain cautious. There is a base effect of last year because Even last year Q4 was not so great.
So it could be a little bit of base effect and some bit of sentiment improving but definitely better than the previous quarters.
Unidentified Participant
Understood. At the Last bit on 9 months what would we have spent for Ghana?
Yatish Mehrishi
So just give me one second. So about 29 crores.
Unidentified Participant
Understood. Next year to assume. Yes sir. Am I audible?
Unidentified Participant
Yeah. And next year fair to assume that nature of the spend will change a bit because we are through with the investment phase of getting the UI UX. In place, the platform in place. So the nature of the spend should change in FY27.
Yatish Mehrishi
Yes. So it would be. It will be more on marketing to drive subscriber growth as we break even in two to three, two, two and a half, three quarters. The nature of spend will be largely towards marketing which will be on the CM3 level and not on the CM1 levels. The gross margin we believe, as I said, 66% of our subscribers are gross margin positive. So hoping that number also goes up. So the more marketing spend typically more marketing spends.
Unidentified Participant
Understood. Sure. Thank you so much all the way.
Yatish Mehrishi
Thank you. Chetan.
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. Ladies and gentlemen, that was the last question for today. I now would like to hand the conference over to management for closing remarks.
Yatish Mehrishi
Thank you Ina. Thank you ladies and gentlemen. It’s a pleasure to have you all. We remain committed to our driving our profitable growth and creating long term value for our shareholders. Thank you once again for joining this call. Have a great day.
Ronak Shah
Thank you on behalf of Entertainment Network India limited that concludes this conference. Thank you for joining us. And you may now disconnect your line.