Synopsis: Entertainment Network India Limited reported consolidated revenue of Rs. 565 crore for FY26, recording a 3.9% year-on-year growth despite weak advertising demand, inflationary pressures, and geopolitical disruptions affecting its radio and event businesses.
The company’s digital segment emerged as the key growth driver, with revenue surging 84% year-on-year, led by strong momentum in Gaana’s paid subscription model. Backed by a debt-free cash reserve of Rs. 424 crore, ENIL expects Gaana to achieve profitability breakeven during FY27.
Entertainment Network India Limited, which operates some of India’s leading FM radio stations, shared details from its Q4 and FY26 earnings conference call in a stock exchange filing dated May 21, 2026. The discussion was led by CEO Yatish Mehrishi and CFO Sanjay Ballabh, who highlighted the company’s performance amid challenging market conditions.
For the financial year ended March 31, 2026, ENIL reported consolidated revenue of Rs. 565 crore, up 3.9% compared to the previous year. Revenue from domestic operations stood at Rs. 548 crore, supported mainly by strong growth in the company’s digital business.
Excluding investments linked to digital expansion, ENIL’s core media business reported EBITDA of Rs. 76 crore with an EBITDA margin of 18%. Core business Profit After Tax (PAT) stood at Rs. 22 crore, including a one-time tax benefit of Rs. 17.2 crore following a deferred tax liability reversal under the Finance Act 2026. Following the yearly performance review, the company’s Board of Directors recommended a dividend of Rs. 2 per share for FY26.
Management stated that ENIL’s traditional radio and non-FCT businesses remained under pressure during FY26 due to weaker advertiser spending, inflation concerns, and geopolitical tensions. The ongoing conflict in West Asia particularly affected ENIL’s Middle East operations, reducing international business confidence and forcing brands to cut marketing budgets.
Despite the difficult environment, ENIL maintained a strong domestic radio market share of 25.2%. The geopolitical disruption also impacted the company’s events business during Q4FY26, as travel restrictions and artist cancellations affected several international concerts. For the full year, Non-FCT revenue crossed Rs. 148 crore, although Q4 performance weakened. During the quarter, FCT revenue stood at Rs. 74 crore, while Non-FCT revenue came in at Rs. 38 crore.
ENIL’s digital business emerged as the company’s strongest growth engine during FY26, with digital revenue surging 84% year-on-year to Rs. 112.4 crore. Digital operations now contribute nearly 48% of the company’s core radio revenue base, highlighting ENIL’s transition beyond traditional radio broadcasting.
The growth was largely driven by Gaana, which ENIL has transformed into a subscription-focused platform. The company moved away from the ad-supported streaming model and placed Gaana fully behind a paid subscription paywall.
Gaana’s paid subscriber base has grown at a 15% CAGR over the last two years, while Q4FY26 digital revenue increased 61% year-on-year to around Rs. 29 crore. ENIL also raised Gaana’s annual subscription pricing to Rs. 799 and indicated that pricing could gradually move closer to Rs. 1,200 annually over the next few years as the market matures.
The company further said digital expenses were reduced by 23% during FY26 through cost optimization initiatives. Management added that major technology and staffing investments are already in place, meaning future subscriber growth is expected to significantly improve margins.
ENIL also clarified that it has received an income tax demand notice of Rs. 113 crore related to FY24 tax assessments. CFO Sanjay Ballabh said the company believes the order ignored key submissions made during the assessment process and confirmed that ENIL is preparing legal appeals before tax authorities and higher courts.
Despite the tax dispute, the company said its financial position remains strong. As of March 31, 2026, ENIL held a debt-free consolidated cash reserve of Rs. 424 crore, including Rs. 404 crore at the standalone level.
CEO Yatish Mehrishi said the company is intentionally maintaining a strong cash position to support future digital expansion plans and evaluate potential acquisitions in the media sector, while also funding its digital growth targets for FY27.
Shares of Entertainment Network India Limited traded nearly flat on Friday, May 22, 2026, at around Rs. 110 despite the company reporting steady FY26 revenue growth and strong digital business expansion.
The stock opened higher at Rs. 111.19 but slipped to an intraday low of Rs. 109.10 amid weak trading volumes. ENIL currently commands a market capitalization of about Rs. 524 crore and remains significantly below its 52-week high of Rs. 174.58, reflecting continued investor caution toward the traditional radio and media sector.
Company Overview
Entertainment Network (India) Limited (ENIL), a prominent member of the diversified Times Group, is a leading player in India’s media and entertainment landscape, best known for operating its popular flagship FM radio brand. Holding a dominant domestic volume market share of 25.2% in the radio sector, the company has successfully expanded beyond traditional broadcasting into a platform-agnostic media enterprise.
ENIL runs a highly successful Non-FCT (Experiential and Events) portfolio executing large-scale corporate properties and concerts, alongside a rapidly scaling digital business anchored by its premium music streaming platform, Gaana. Operating with a robust, debt-free balance sheet and a strong localized presence across both Indian and select Middle Eastern markets, the company continues to pivot aggressively toward a high-margin, pure paid-subscription ecosystem to drive sustainable long-term growth.
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