/** Radiowalla Network Limited’s FY26 was a year of building, not blazing. */

Radiowalla FY26: Steady Network Growth, Soft H2 Ads, and a Bet on Retail Media Tech

Radiowalla Network Limited closed FY26 with a largely stable top line but a choppy second half. On a consolidated basis, revenue from operations for FY26 was ₹2,037.95 lakh (about ₹20.38 crore). EBITDA stood at ₹64.09 lakh (about ₹0.64 crore) and PAT at ₹13.22 lakh (about ₹0.13 crore). The second half, however, turned loss-making, with H2 FY26 revenue from operations of ₹1,031.45 lakh and EBITDA of -₹10.38 lakh.

Management described FY26 as a strategic building year, focused on expanding international presence, strengthening partnerships, and upgrading retail media capabilities. The operational narrative was not about a sudden collapse in core demand. Instead, it was a combination of a weaker advertising environment in H2 and higher costs linked to technology investments and employee-related expenses.

FY26 at a glance: stable revenue, weak second half

The consolidated profit and loss statement highlights how close FY26 was to FY25 on income, but also how profitability compressed.

Two expense lines drew management attention in the earnings call.

First, depreciation and amortisation rose sharply to ₹88.86 lakh in FY26 from ₹48.00 lakh in FY25. Management attributed this to investments in technology and devices that are being deployed in stores, with testing and deployment beginning around May 2026.

Second, employee benefit expenses increased to ₹745.62 lakh from ₹662.97 lakh. Management cited ESOP-related impact as part of the year’s cost increase, and also noted hiring in new markets and technical roles.

Business model and revenue mix: subscription base with advertising upside

Radiowalla positions itself as a B2B media-tech company enabling brand engagement through in-store radio, corporate radio, digital signage CMS, and advertising formats including in-store audio ads and DOOH.

In the conference call, management provided an approximate revenue mix for FY26:

• In-store business around 55%
• Advertising around 17%
• Corporate radio around 19%
• Digital screens and related services around 9%

This mix is important because it frames the H2 slowdown. Advertising is not the largest contributor, but it is treated as a key margin lever and growth engine. Management noted that H2 is typically stronger for advertising. In FY26, that seasonal lift did not materialise.

Management attributed the slowdown in H2 advertising spends to geopolitical issues that began around January, which led to advertisers pulling back. While they acknowledged this as a business impact, they also highlighted that part of the margin pressure came from non-cash items like higher depreciation and ESOP-related employee cost.

Scale and operating footprint: 33,000 stores and a multi-format network

The investor presentation emphasised scale metrics that support the company’s pitch as a retail media platform.

• 33,000+ stores connected
• 1 billion+ footfalls across the network
• 22,000+ unique playlists delivered daily
• 1,100+ screens under content management
• 15 digital hoardings
• 700+ brands serviced
• 1,400+ cities and towns serviced in India
• Presence in 12 countries across 4 continents

In in-store audio advertising, management clarified that third-party ads can run in about 5,000 to 5,500 outlets, roughly 15% to 20% of their store base. The ad load described was structured within the hourly clock, where music dominates and a smaller portion is allocated to retailer content and third-party advertising.

Strategy: international foundations, AI workflows, and better ad delivery control

The company’s forward plan has three prominent themes: international expansion, technology integration, and improving monetisation of existing inventory.

International expansion

Radiowalla expanded into the UAE and North America through subsidiaries. Management said the UAE subsidiary was formed in January 2026, and a step-down subsidiary was opened in Canada. They reported pilots in UAE and North America but indicated revenue is still to flow meaningfully.

They also strengthened presence in Africa through a partnership in Uganda and launched a dedicated RadioWalla channel on AfrovMobile, marking entry into a fifth African market. Botswana, Namibia, and Zambia were also highlighted as expansion markets for in-store radio.

Management framed international expansion as relatively asset-light. They stated they avoid heavy fixed costs on day zero and often use commission-led selling structures outside India. They also suggested an overseas geography could break even within 12 to 15 months.

AI integration and proprietary platform

Both the investor presentation and the call reiterated investment in AI workflows. Management stated AI-generated music is already deployed in 1,000+ stores, and the company is using AI for playlist curation and voiceovers. The stated intent is efficiency and scalability: serving more clients with the same team while building IP on their proprietary platform.

Integrated amplifier and centrally controlled volume

A specific product initiative discussed was an integrated amplifier with an inbuilt music device and centrally controlled volume. Management described it as piloted in select outlets and intended for wider rollout. The purpose is to standardise sound levels across stores and solve a common concern for advertisers: whether ads are audible and consistently delivered.

They also described plans to adjust volume based on estimated footfall and third-party tools, reducing reliance on store staff for volume management.

DOOH: under-utilised inventory with scope to improve

Radiowalla operates 15 large digital hoardings, with 12 in Gujarat and 3 in Uttar Pradesh. Management said utilisation varies significantly, with one site cited at around 80% occupancy while many Gujarat sites operate at 20% to 40%. The average utilisation was stated at around 30%.

This points to a large runway for improving revenue and margins without incremental capex on new sites. Management also highlighted that Gujarat screens were empanelled with DAVP (now CBC) around November 2025, and they expect potential government business for Gujarat sites in FY27.

What management signalled for FY27

While Radiowalla did not provide detailed financial guidance, management made several forward-looking statements:

• Early signs of recovery in advertising: April was down, May showed recovery, with expectations of improvement in the coming weeks (as of late May 2026).
• Targeting 12% to 15% EBITDA margin over time.
• Expectation that international geographies where foundations are set should begin generating revenue in FY27.
• A revenue growth target of 25% to 40% discussed in the context of the next one to two years.

Takeaways

FY26 was not a breakout year on headline profitability, but it showcased continued expansion of the network and deeper investment in technology. The second half exposed the sensitivity of advertising revenues to external shocks and the effect of higher depreciation and employee costs on reported earnings.

The company’s medium-term narrative rests on three levers: scaling subscription services across a growing store footprint, increasing utilisation and realisation from advertising and DOOH inventory, and using AI plus proprietary technology to create operating leverage. FY27 becomes a key test of whether those foundations, especially in international markets and ad monetisation, translate into more consistent profitability.