ENIL's Q2 FY26: A Strategic Shift Towards Digital and Events Fuels Robust Growth

Entertainment Network (India) Limited (ENIL), the powerhouse behind Radio Mirchi and Gaana, has delivered a strong performance in Q2 FY26, showcasing a strategic pivot towards digital and non-traditional revenue streams. The company reported a consolidated total income of ₹141.14 crore, marking a significant 24.3% year-on-year growth. This impressive top-line expansion was accompanied by a 2.2% increase in EBITDA, reaching ₹11.38 crore, reflecting a period of dynamic transformation and disciplined execution.

The quarter's results highlight ENIL's successful efforts in diversifying its revenue base. While the traditional radio advertising segment faced industry-wide headwinds, the company's non-FCT (Free Commercial Time) and digital businesses emerged as key growth drivers. Non-FCT revenue surged by 42.2% year-on-year to ₹34.5 crore, with IP (Intellectual Property) Events revenue alone growing by an impressive 106.1%. The digital business demonstrated exceptional momentum, with revenue skyrocketing by 149.5% year-on-year to ₹31.5 crore. This rapid expansion means digital now contributes nearly 33% to ENIL's existing traditional business, underscoring the company's successful evolution into a multimedia entertainment entity.

Strategic Pillars and Digital Dominance

ENIL's business is structured around three core pillars: traditional radio FCT, media solutions (including IP and events), and digital. The management's stated ambition is to achieve a 50:50 split between radio and non-radio businesses within a couple of years, a goal that appears to be accelerating faster than anticipated due to the robust growth in non-radio segments. The digital arm, particularly Gaana, is a focal point for future growth. Gaana's revenue alone was ₹20.54 crore, with digital solutions contributing ₹10.94 crore, and other digital initiatives adding ₹2.5 crore. The company is actively enhancing the Gaana platform with features like playlist import from other services, Dolby Atmos support for superior audio quality, and an 'Offline MixTape' for seamless offline listening.

Management has shown a disciplined approach to digital investments, reducing spending on Gaana from ₹12.9 crore in Q2 FY25 to ₹9.8 crore in Q2 FY26. This cost optimization is geared towards achieving profitability, with the management guiding for Gaana to break even between June and September of next year. The company is also exploring the digital radio FM opportunity, viewing it as a significant step for the industry, despite acknowledging that its full adoption will be a long-term process involving multiple stakeholders.

Events and International Expansion

Beyond digital, ENIL's events business is thriving, leveraging post-COVID tailwinds. Major initiatives like 'Mirchi Rock N Dhol - 2025', 'SHE-E-O: The Revolutionaries', and 'Mirchi Waste-Harta' demonstrate the company's ability to create engaging, large-scale on-ground experiences. These events not only generate substantial revenue but also strengthen brand presence and community engagement. The company conducts approximately 300 events annually, ranging from concerts and festivals to corporate activations.

Internationally, ENIL reported a revenue of ₹5.9 crore, marking a 35% year-on-year growth. The company has a presence in about 170 countries, with notable activities in Qatar, Bahrain, and the USA. International markets, particularly the US, offer better subscription rates, presenting a significant opportunity for future focus and growth. The company's robust balance sheet, with a cash balance of ₹344.7 crore as of September 30, 2025, provides a strong foundation for these strategic initiatives and potential future acquisitions.

ENIL's Q2 FY26 performance underscores its successful strategic evolution. The company is adeptly navigating industry shifts by aggressively expanding its digital and events footprint, while maintaining a strong position in traditional radio. With a clear focus on profitability for its digital ventures and continued growth in its diversified segments, ENIL is well-positioned for sustained growth and value creation for its stakeholders.