Radio Mirchi owner ENIL’s Q1 revenue falls to Rs 113 crore as Gaana grows 43 per cent

Mumbai: The music may still be playing, but the advertising volume has been turned down. Entertainment Network (India) Limited (ENIL), the owner of Radio Mirchi and audio streaming platform Gaana, reported a softer start to FY27 as weak radio advertising dragged revenue lower, although rapid digital growth and cost controls helped cushion the impact.

For the quarter ended 30 June 2026, consolidated revenue from operations stood at Rs 113 crore, down from Rs 142 crore in the previous quarter and marginally lower than the corresponding period last year. Domestic revenue contributed Rs 111 crore, while international operations generated about Rs 3 crore.

Radio advertising remained under pressure as brands continued to rein in marketing spends amid a subdued macroeconomic environment. The company said cautious advertiser sentiment affected its traditional radio and events businesses during the quarter.

Despite the revenue slowdown, ENIL reported EBITDA of Rs 8.7 crore, a 42 per cent increase year-on-year, driven by strategic cost rationalisation measures. The company’s legacy non-digital business also improved profitability, delivering EBITDA growth of 7.4 per cent and profit after tax growth of 85 per cent compared with the same quarter last year.

The standout performer was the digital business. Revenue from digital operations rose 43.3 per cent year-on-year to Rs 31.1 crore, accounting for 30.2 per cent of total revenue, up from 23 per cent a year earlier. The growth was led by stronger user engagement on Gaana, while investment in the digital business declined to Rs 8.3 crore from Rs 9.8 crore a year ago, reflecting improved operating efficiency.

ENIL ended the quarter with a cash balance of Rs 389.7 crore, providing the company with financial flexibility as it continues investing in digital platforms while navigating a challenging advertising market.

According to Entertainment Network (India) Limited chief executive officer, Yatish Mehrishi, geopolitical uncertainty and cautious advertising expenditure continued to weigh on traditional media businesses during the quarter. He said the early benefits of the company’s cost transformation programme helped improve profitability, while the digital business maintained strong momentum with higher revenue and narrowing losses.

Alongside its financial performance, ENIL is also reshaping its business structure. The company has signed a term sheet to transfer four FM radio stations in Kanpur, Lucknow, Nagpur and Hyderabad to its wholly owned subsidiary, Alternate Brand Solutions (India) Limited, for Rs 19.6 crore plus applicable taxes. The transfer received approval from the Ministry of Information and Broadcasting in July.

The company is also undergoing a promoter restructuring after the National Company Law Tribunal approved a scheme under which promoter Bennett, Coleman and Company Limited will transfer its controlling stake to its wholly owned subsidiary, Times Horizon Private Limited. The Ministry approved the change in June.

On the legal front, ENIL said its long-running copyright dispute with Phonographic Performance Limited remains pending before the Supreme Court, although management believes the likelihood of any significant financial outflow remains remote.

While the traditional radio business continues to grapple with weak advertising demand, ENIL’s growing digital operations are steadily changing the company’s revenue mix. With Gaana gaining traction and operating costs coming under tighter control, the broadcaster is increasingly betting that its next growth story will be streamed rather than aired.