Music Broadcast Limited (NSE: RADIOCITY) Q1 2026 Earnings Call dated Jul. 25, 2025
Corporate Participants:
Unidentified Speaker
Mr Ashit Kuken — Chief Executive Officer
Prashant tomadi — cheif financial officer
Rajiv Shah — IR Team Relations Manager, strategic growth advisor
Analysts:
Unidentified Participant
Bharat Gupta — Analyst
Sakshi Pratap — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The Music Broadcast Limited Q1FY26 earnings conference call. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant 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 Start then zero on your touchstone phone.
Please note that this conference has been recorded. I now hand the conference over to Mr. Ashit Kuken, CEO of Music Broadcast Limited. Thank you. And over to you sir.
Mr Ashit Kuken — Chief Executive Officer
Thank you. Good afternoon everyone and a very warm welcome to the Q1FY26 Earnings Conference Call of Music Broadcast Limited. Joining me on the call is Mr. Prashant Tomadi, our CFO, Mr. Rajiv Shah from our IR team and our Investment Relations Manager, Strategic Growth Advisors. For the quarter gone by, the company reported revenue of 49 crores, operating EBITDA of rupees 8 crores, reflecting a margin of 16.1%. The performance for the quarter was impacted by a broader industry slowdown with overall volumes declining by 2%. These contractions were largely on the back of the continued global economic uncertainties and the prevailing trade tensions which adversely affected advertising spend and market sentiment.
Despite the overall industry slowdown and prevailing macroeconomic uncertainties, Radio City continue to remain the preferred platform for advertisers. We have held our leadership position capturing 41% of the total client base across the radio sector, reflecting the strength of our brand, the depth of our client relationship and the enduring trust advertisers place on our platform. Remarkably, 34% of all new clients entering the radio advertising space chose Radio City as their partner of choice, further reaffirming our reputation as a trusted and results driven media platform. This achievements underscore the effectiveness of our targeted marketing initiatives and our ability to consistently deliver value to our advertisers.
In addition, we have made meaningful progress in diversifying our revenue mix. For the quarter, 35% of the total income was contributed by alternative revenue streams including branded Properties, Proactive Pictures, Digital ventures, sponsorship and special events. This balanced and diversified approach enhances our financial resilience and positions us well to navigate industry challenges while driving sustainable growth. Now let me take you to the financial highlights for Q1FY26. For the quarter ended revenue stood at 49 crores. Q1FY41 26 operating EBITDA stood at 8 crores with margin standing at 16.1%. Reported PAT stood at a minus minus 2 crores.
For the quarter Q1FY26 as of June 30, 2025, our cash reserves stood at rupees 354 crores. In light of evolving market dynamics and current industry sentiments, we are undertaking a.
Prashant tomadi — cheif financial officer
Strategic realignment aimed at enhancing operational efficiency and ensuring long term resil. This restructuring initiative is designed to optimize our cost structure, sharpen our focus on growth priorities and position us for sustainable profitability, streamlining operations and reallocating resources more effectively. We are proactively addressing near term challenges while laying a strong foundation for a more designed and future ready organization. These steps are vital to ensure operational excellence and sustainable impact. With an unwavering focus on innovation, agility and strategic excellence, we are position to navigate the evolving media landscape and capitalize on emerging opportunities. As signs of standardization become visible and advertising gradually improves, we remain cautiously optimistic about delivering enhanced performances in the quarters ahead.
Mr Ashit Kuken — Chief Executive Officer
With this, I request the moderator to open the floor for Q and A. 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 and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Khushi, an individual investor. Please proceed. Hello. Yes, hello. Yeah, a little louder please.
Unidentified Participant
Yeah. So first question to you is what is the FCT and NFT split for the quarter?
Mr Ashit Kuken
65% is our FCT split. The balance is NFCD which is 35%.
Unidentified Participant
Okay. The other question would be that what is the inventory utilization?
Mr Ashit Kuken
We have Inventory utilization for the quarter has been 68%.
Unidentified Participant
And what is the volume growth for the quarter?
Mr Ashit Kuken
It has been a degrowth. No, because the industry has seen a degrowth in this quarter.
Unidentified Participant
It is a degree growth.
Mr Ashit Kuken
That’s right.
Unidentified Participant
The last question is effective rate growth for the YOY and how is it compared to pre Covid levels?
Mr Ashit Kuken
No, the if two Questions? Effective growth rate net of political. There is no degrowth last year this year and like I said it is still at 80% of the pre Covid levels.
Unidentified Participant
Still it’s 80%.
Mr Ashit Kuken
Yeah.
operator
Thank you. The next question is from the line of Jagdish Sharma, an individual investor. Please proceed.
Unidentified Participant
I’m audible.
Mr Ashit Kuken
Yeah, you are.
Unidentified Participant
Hi sir. Thanks. Thank you Sir. I have three broad questions. The first question is like we have a depreciation of like 35 or 35 crores per year. And our fixed rate asset is almost like 170. 180 crores. If we are depreciating our depreciating at this level our fixed asset should be zero in four five years. Right. So what is a reason for high level of depreciation? Almost like 25, 30% of depreciation. Enough. So what is a. What is the scenario there?
Mr Ashit Kuken
So the depreciation also includes the amortization of the one time fees which we have paid. You are talking about the last year or the current quarter? Sorry,
Unidentified Participant
Both Both. Both. For example last year it was like 8.53 crore on the same quarter and full year it is almost like 3335 crores. Right. So we are doing almost like 35 crore cut depreciation for last five years and there is no big capex is also from our side. So if that’s the case our fixed asset is almost like 180 crore. Why is that? That’s my question.
Mr Ashit Kuken
So the depreciation as I told it includes amortization of one time license fees which we have paid and they expire by effort at 30.
Unidentified Participant
Okay, okay, okay, okay. My second question is like we have almost like a cash which is equal or even more than that of our market cap in total. What is the business we are about to do for next three, four years and what is our plan in total? Because radio or radio oriented business is a little bit slower even mature level. Right? The growth is not even 1, 2% per year. If that’s the case, what is it? As an investor. As an investor why should I have to invest in a company? What is the thesis for this?
Mr Ashit Kuken
So two reasons. As you see we have already created parallel platforms along with radio which will be year on year showing growth which we have demonstrated in the toes last two years. That includes digital out of on ground activation led revenues and so on and so forth. That’s why 35% of the revenues is coming from the non core radio business per se. Number one. Number two, as mentioned in my opening remark there is A clear cost structure revisiting that is happening which will ensure that quarters going from year and years going from year, the margins will be maintained and the organization will be managing much better results.
Given the cost correction that we are doing and the increase that will happen from non radio business as we go forward.
Unidentified Participant
Sir, don’t mistake me. Our margins were when we are peak it was almost like 30% which has been reduced to a single digit. Low single digit. Not even high single digit, low single digit. Right. So if that’s the case and if you see our revenues also, it’s not growing for last 10, 12 years like it’s totally flat. So if that’s the case, why as an investor I should think about this company in terms of next five years.
Mr Ashit Kuken
Fair enough. So two things, you know, last three years if you look at it, you know, post Covid, the overall industry has been affected and that’s how our, you know, quest to do things beyond traditional radios where we started off, which is giving us initial results and it is just in the nation stage. And that is clearly enough for us to believe will add on to the revenues. Number one. Number two, other two other reason which I said is that with the kind of cost structures that being revisited, I’m sure when you look our next quarter numbers and the quarter after that, you will see that there is a great impact of cost measures that will be seen in the bottom line.
And lastly, we would want to believe that at some point in time the consumer sentiments and market sentiments will not continue to be a dampener forever. And when that happens, whatever increase will happen will increase the overall profitability of the organization. There is another thing which is right now government related. But I would want you to know that for a while the industry has been pushing for the 4% of the gross revenues as the fees that we are paying instead of the 2.5 OTF, whichever is higher. And there is a strong possibility that may come in.
And if that comes in, you will see a huge bottom line additions happening because that is something that the industry together is pushing for. And you know, in the new license phase phase, the government has already given that 4% of the gross revenues. And we are hopeful that even the legacy stations they will allow it. And if that happens, that will be one more reason why the margins will be better. And that’s the only thing which I can look at at this point. And like I said, even the non radio businesses as they grow substantially, all of these points put together will ensure that there is a strong bottom line for the Organization and hence an interest I feel as an investor you should look into.
Unidentified Participant
Just following up on this point. If the industry lease you are saying is growing at 1, 2 or 3% and you are saying that non radio business will grow, grow faster and it will grow 20, 30% or whatever it is and you are saying that this will help us in in terms of our cost and also our cost cost cutting measures and everything will help us in terms of the bottom line. Am I as my understanding right?
Mr Ashit Kuken
Absolutely right. You have got ban on that.
Unidentified Participant
Okay. My another question. Sir, I have two questions. Shall I ask those two questions or should I come back with you?
Mr Ashit Kuken
No, no, please go ahead. Since you’re online.
Unidentified Participant
Yeah. So the question I have is like we have almost like 330, 340 crores of cash in our reserve and we always, we always cash flow possibly for last 20, 12 or 15 years of our company history. Right. But if that’s the case, why do we need borrowings every? Because year on year our borrowing is also increasing. Why is that in our case when you have cash and everything, why you want to go for borrowing? That’s why another weekend.
Mr Ashit Kuken
So there are no borrowings in the company. It’s basically accounting entries of the least as lease properties we have for our studios. So India’s working effect is given to them. They go into depreciation and interest not as a rental.
Unidentified Participant
Okay, okay, okay. That is why you are saying our depreciation is also going he’s higher because of that thing. Understood? Understood. Sir. My final question is like we have this much of cash in our hand, right? Why can’t we go and acquire three or four small companies which are doing niche business in our own areas or our own sectors and try to consolidate as a single entity and grow it faster. Why can’t we do that?
Mr Ashit Kuken
See the thing is right now from a pure radio perspective, as you rightly said, you know there are two ways of investing. One is of course you invest in the traditional business of radio which as you rightly observed is having a slow growth. The other is going into this new form a new age businesses that we have learned whether it’s the digital or the influencer platform and so on. Both the things we have to wait at the right time. If the radio we have to invest and if the government is proactive in giving us additional benefit of 4% and all the other requirements that we are talking about then it will make sense for us to kind of take those stations and increase our profitability.
But right now since things are in a flux. You know, we don’t want to take a call speculating too much, assuming things and then going later on regretting it, you know. So yeah, we are waiting for the right time. You know, when that happens, you will see us investing.
Unidentified Participant
That’s the question.
Mr Ashit Kuken
No, that is. Obviously has a lot to do from the government’s perspective in terms of the decisions that they take and the market environment when in terms of how the addition of additional stations or a business will add up in the overall scheme of things. You know, because you need to keep a balance of both. You know, just that you have cash resources and even at this particular point in time, the cash resources are bringing in the money. From another income perspective, it’s not that it’s lying dormant, but for a larger scheme of things, of course it will happen.
Like I said, when the right kind of time comes for us.
Unidentified Participant
Understood.
Mr Ashit Kuken
As you are aware, there is a repayment of the NCPRs. So we have also provided for that so that, you know, at any given point in time we should not be, you know, struggling to finance ourselves to prepay those NCPRs. So that also is one of those reasons that, you know, we are being prudent in our investing.
Unidentified Participant
Okay, okay. Okay. Sir, is there any M and A you are looking right now, sir, in terms of doing this year? Is there any mnda? And my final question is that the peers of yours, especially in the music oriented, Saree Gamma and TIPS kind of people, they have been doing lot of in the music industries. Are you planning to enter that industry? Because in certain ways will be helpful also. So are you planning to do something similar to those two companies of what they are doing?
Mr Ashit Kuken
Yeah. So if you know, we have already launched the music platform called as Mozart Disco, which is basically a distribution platform that we have created. Through this platform we can distribute. Any artist can distribute his songs in more than 100 countries plus when it comes to music distribution. So once that traction happens, we will also get an indirect revenue from the distribution that happens. Also as we create and work on this platform, we will also be able to identify talent which then can be monetized in terms of concerts that can be taken in the tier 2, tier 3, market creation of properties and IPs with those talented artists and so on.
So yes we are. And Freedom Garage, which is an independent music is something which we have been nurturing for the last 14 years. In fact, we were the first ones to nurture that business. And with Muzad Disco, we are only, you know, increasing our footprint in that business.
Unidentified Participant
So what is the revenue for Mozart in Q1?
Mr Ashit Kuken
Sir, Mozart Disco has just launched about three, four months back. Right now we are just, you know, aggregating the list, the registrations of the artists. Once that happens, you know, it will gain traction. And even if the platform first say will be a recognition, the fact that we are also part of the industry and talent is something which will be more concentrating on, which will happen over a period of time.
Unidentified Participant
So to summarize the entire conversation, you are saying that the non radio revenues will grow faster. This will help with your cost effective measures, will try to improve our bottom line. Second is like you, you plan to do A, you are trying to do an M and A whenever there is an opportunity at our gate. Third one is you launch the music platform which will grow faster and with that it will help the company or it will help the investor. Is my understanding right, sir?
Mr Ashit Kuken
Absolutely right. In fact, the company has also launched the podcast platform. Given the fact that India is the fastest growing podcast country in the world, when that matures, you will see some benefits of that also. So we have kind of positioned ourselves into all those emerging places where the consumers kind of engage. And because we are in the marketing solutions business, each of those at some point in time will give us higher returns than what it is at this point in time.
Unidentified Participant
Understand? Sir, thank you so much sir, all the very best. Looking forward to all this thing which is which you told to happen in the future. Thank you so much.
Mr Ashit Kuken
Thanks so much.
operator
Thank you. Before we take the next question, I would like to remind participants that you may press Star in one to ask a question. The next question is from the line of Bharat Gupta from Fair Value Capital. Please proceed.
Bharat Gupta
Hi sir, thanks for the opportunity. Since I’m new to this company, just want to understand further. Bit like pre Covid I think our margins used to be over 30 or questions and right now the scenario has completely changed. So just can you give us some colors with regard to what kind of industry headwinds we had suffered and how do you see the traditional radio business evolve going forward?
Mr Ashit Kuken
So I’ll start with the pure radio business. If you see pre Covid almost most players had almost 95% of the business or even 99% of the business as core coming from radio. Post Covid, what has overall affected the industry is the yield. Because the yield has yet not reached the pre Covid levels and hence large part of the drain in what you see from a revenue top line to what it is today is that 20% drain that has happened on the yield number one. Number two, the large yield markets, which is your metro markets of Bombay, Delhi, Bangalore, which are the larger yield markets as compared to the tail of the industry, has not been able to still yet reach the saturation level that it needs to, unlike it was there in the pre Covid business for two reasons of course because consumers have got multiple choices, more so in the metros and hence advertisers see different ways of reaching to them.
That’s how when we started the digital journey along with radio, it was to ensure that that part of the segment is also catered to. So one of course slow growth of the radio business per se from a volume perspective, yield degrowth as far as the industry is concerned and to a large extent, you know, government, which was a large spender, has been a little slow in the last two to three years barring the election year and all this put together is where the overall profitability is getting affected.
Bharat Gupta
Thank you. Right now how you are seeing the momentum shaping up like it’s.
operator
Sorry to interrupt. Mr. Bharat, hello. Yeah, sorry to. I would request you to please be a bit louder.
Bharat Gupta
I hope I’m better.
Mr Ashit Kuken
Yeah, yeah, go ahead. Yeah, go ahead.
Bharat Gupta
So sir, I was just saying like how do you see in the foreseeable future the revenue mix to change up like with respect to non radio business evolving at a higher rate. How do you think in the foreseeable.
Mr Ashit Kuken
Next See radio will still be a core play for the next three, four years for sure. But having said that, there is a possibility that there will be a 10% shift from radio being a 65 to a 55 and the other revenue streams becoming 45. I mean I’m giving you a ballpark understanding when the other revenue streams will become core then you can see a 50, 50 kind of an opportunity, operational revenue generation which will ensure that your bottom lines are taken care of and your revenue growth continues to be there even if the radio industry is not that high in growth as compared to the rest of the business.
Bharat Gupta
And sir, if you look on a stable basis, what kind of margins can we have across both the segments whether it is radio or radio versus a non radio business.
Mr Ashit Kuken
The digital business for us has been a highly, it’s an EBITDA booster for us and we are assuming that the radio business with the current restructuring of our overall cost will also be in a healthy position and see remarkable difference between what margins we have been demonstrating in the last two to three quarters. What we will demonstrate in the next two quarters and I hope you have the faith and the results will show you that.
Bharat Gupta
And sir, what kind of investments will be requiring just to derive a higher share? In the non radio business side there is no investment.
Mr Ashit Kuken
I mean it’s a people related efficiency issues that is there which we already built up. So that is beyond that there is no additional investments required. It’s only how efficiently you can skim the market which is more the way we manage the overall process of efficiency from a revenue to return ratio. That’s the only thing that is that there is no investment led revenue. Because for the, you know, when you talk about investment, we’ve already done that from a digital perspective as far as the platform and the people are concerned. So there is nothing much more that I think we would need.
We need to just ensure that the market grows with us and in each of our efforts show us greater results than what it was with the market sentiments improving.
Bharat Gupta
Right. And so given out we have a healthy guest position. So what kind of a strategic roadmap we have? Like how do you want to deploy it?
Mr Ashit Kuken
So this question is coming over and over again. Like I rightly said, you know, you know we have developing newer platforms and newer opportunities that we are looking at and we are keeping a close eye of each of those opportunities, which is non radio that I’m talking about. Radio obviously will always be high priority because that’s the core of the business. Whenever there is an opportunity that comes in. And we feel that the non radio business which we are attempting across the two or three new things that we are doing will add to the overall presence of the organization in media from a marketing solutions perspective and will have an ability to kind of give a far greater bottom line result.
You will see us investing in those, but they are all fluid at this point in time for any kind of an investment we would want to have a clear roadmap to ourselves saying that an acquisition or a merger has to have that roadmap saying that two years from now, three years from now, we are clearly seeing the returns from an investment to return ratio and that’s the way we are looking at it.
Bharat Gupta
And so just coming back with respect to, to the margin profile. So I think over the next three to five years can we see ourselves coming back and reaching out to about 20% kind of a margin levels given out the industry plays as per what we are expecting?
Mr Ashit Kuken
Yes, of course. Yes, of course, without a doubt.
Bharat Gupta
And our growth trajectory will continue to be in double digit going forward.
Mr Ashit Kuken
See it all depends on how radio grows. We are now closely Monitoring our bottom line. So we’d rather aim towards a better margin than promising something of the growth because that unfortunately being years in media, last two or three years, each time we are bullish, there is something or the other happens. So we are very clear that come what may, the bottom line is what you have to deliver. Both from a promoter group versus stakeholders perspective and hence we would ensure that those things are taken care of. And whatever the growth comes in, we will ensure that we have a higher share of the available business in the market from a perspective of whatever business that comes into our form of business.
So I don’t want to stick my neck because like I said, last two to three years it has been much different from what it is. But I can stick my neck and say that from a profit margin perspective and a healthier bottom line, you will see that happening because those measures have already been taken. And profitable growth, growth is what we believe is what we will be looking at rather than looking at top line growth. And you know, not really sure whether that’s going to add to my profits as we go forward.
Bharat Gupta
And so just a final question, like with respect to your opening remark, you mentioned that you have done and given out a revisit with respect to the cost structure. So can you give provide some colors like what kind of a system reorientation which we have done, see two, three.
Mr Ashit Kuken
Things, you know, if I look at it from a perspective over a period of time, organizations, whether you like it or not, some way or the other, gather some flab. So when times become tough, it’s prudent that you look at those flaps and try and ensure that you are a lean, trim organization, which is what we are doing. And when you do a closer exercise, you get to see those flaps. Sometimes it gets in the, in the operations, it gets lost, number one. Number two, some of our investments from a emergent business perspective, if we have been little too bullish, we have kind of curtailed that and said that let’s look at the returns coming in and then go higher on the investments in terms of people and so on and so forth.
So it’s a mix of prudency both at the operational level and at the cost level, which will ultimately give us the savings that is required to ensure healthy bottom line.
Bharat Gupta
That’s really useful, sir. That’s it from my side, sir. And thank you. All the best.
Mr Ashit Kuken
Thank you so much.
operator
Thank you. Before we proceed with the next question, a reminder to the participants that you may press STAR in one to ask a question. The next question is from the line of Sakshi Pratap from Pratap Securities. Please proceed.
Sakshi Pratap
Hello. Thanks for taking my question, sir. So my question was on the demand side for the entire year for the next quarter. So are you seeing any early signs of recovery with the festive season coming, etc. Could you show some light on that?
Mr Ashit Kuken
There is an early sign of recovery for sure. India being India unlike the global market, while the 70 initially has been low. But we are doing a lot of conversations in the market with reference to newer campaign commitments that is coming. And if I have to go by that indication, you are right. We are sensing a better quarters going forward given the fact that there is increased level of interest that I am seeing from advertisers.
operator
Okay, thank you. Thank you. Before I take the next question, a reminder to the participants. In order to ask a question, please press star in one. The next question is from the line of raj Mehta from Mr. Securities. Please proceed.
Unidentified Participant
Hello. Am I audible?
Mr Ashit Kuken
You are audible, Raj.
Unidentified Participant
Thank you so much sir for taking my question. I had just one question. So what has been year on year growth in a digital business?
Mr Ashit Kuken
We’ve been averaging last two years, we’ve been growing at a 20, 25% average, you know, and that’s. That’s how it is. And you know, even if it is little muted, we expect a 15 to 20% growth. 15% at least as we go forward which will be much more than the regular radio group.
Unidentified Participant
Okay, Got it. Got it, sir. Thank you so much.
operator
Thank you. Ladies and gentlemen, in order to ask a question, please press star in one. As there are no further questions from the participants, I would now like to hand the conference over to Mr. Ashid Kukian, CEO of Music Broadcast Ltd. For closing comments. Over to you.
Mr Ashit Kuken
Thank you. Thank you. We sincerely thank you for your active participation in today’s earnings call At Radio City. We are approaching the future with cautious optimism and strategic intent. Our roadmap is centered around efficiency, innovation and sustainable growth. With continued discipline and focus, we are confident in our ability to deliver long term value and navigate the evolving landscape successfully. If you have any further queries, please get in touch with anyone of us or with strategic growth advisors or investors relations partners. Thank you.
operator
On behalf of Music Broadcast Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.