Private FM ad revenue dips despite radio expanding to 390 channels

MUMBAI: The airwaves are getting busier, but the cash register isn’t singing the same tune. India’s private FM radio industry expanded its footprint during the January-March 2026 quarter, but advertising revenue slipped, highlighting the growing challenge of turning network growth into stronger monetisation.

According to the latest performance indicator report from the Telecom Regulatory Authority of India (TRAI), private FM operators generated Rs 414.03 crore in advertising revenue during the quarter ended 31 March 2026, down 1.3 per cent from Rs 419.29 crore recorded in the previous quarter.

The decline comes even as broadcasters widened their reach. The number of operational private FM channels increased from 385 across 113 cities as of 31 December 2025 to 390 channels across 120 cities by 31 March 2026, while the number of operators remained unchanged at 31.

The expansion was led by D B Corp Limited, which launched seven new FM stations in Alwar, Bhuj, Daman, Gandhidham, Ganganagar, Pali and Ratlam. However, growth was partially offset after JCL Infra Ltd surrendered licences for its two stations in Leh and Kargil, leaving three private FM stations operational in Ladakh.

Behind the headline numbers, however, the industry is undergoing a broader reshaping as operators pull back from markets that no longer make commercial sense.

HT Media recently shut down several stations, including Radio Nasha in Mumbai, Radio One in Delhi, Mumbai and Bengaluru, and Fever in Chennai after describing them as financially and strategically unviable. TV Today Network has also initiated the closure of Ishq 104.8 FM in Mumbai, Delhi and Kolkata as part of its exit from the radio business.

Industry consolidation has also gathered pace. Sapphire Media acquired the parent company of BIG FM through the insolvency resolution process, while Red FM surrendered its Magic FM frequency in Mumbai. Separately, Entertainment Network India Limited (ENIL) approved the transfer of station assets in Kanpur, Lucknow and Nagpur to Abhijit Realtors and Infraventures, signalling a more selective approach to managing regional portfolios.

The contrasting trends underline the challenges facing India’s private FM sector. While broadcasters continue expanding into newer cities, advertising growth remains subdued amid cautious marketer spending, rising operating costs and intensifying competition from digital audio platforms and music streaming services.

TRAI’s latest data suggests the industry’s map is still expanding, but its revenue story is proving harder to tune. For radio operators, the next phase may depend less on adding frequencies and more on finding profitable ways to keep advertisers listening.