Radiowalla returns to profit as EBITDA reaches Rs 81.58 lakh

Radiowalla Network Limited returned to operating and pre-tax profitability in the half year ended September 2026. Revenue from operations rose 5% sequentially to Rs 10.7931 crore, while EBITDA reached Rs 81.58 lakh against a Rs 10.38 lakh loss in the preceding six months; profit after tax was Rs 21.10 lakh.

How did Radiowalla's revenue and EBITDA change?

Radiowalla increased revenue from operations to Rs 10.7931 crore in HY September 2026, from Rs 10.3144 crore in HY March 2026 and Rs 10.065 crore in HY September 2025. The company reported that these movements represented 5% sequential growth and 7% year-on-year growth. EBITDA moved from a Rs 10.38 lakh loss in the immediately preceding half year to a Rs 81.58 lakh profit, while it was Rs 74.47 lakh in the corresponding prior-year half.

Radiowalla reported an EBITDA margin of 8% for HY September 2026, compared with negative 1% in HY March 2026 and 7% in HY September 2025. The company described the sequential EBITDA change as a 920% improvement and the year-on-year increase as 10%. HY September 2026 revenue equalled 53% of FY March 2026 revenue, although a six-month period is not directly comparable with a 12-month financial year.

Did Radiowalla return to reported profitability?

Radiowalla returned to reported profitability in HY September 2026, with profit before tax and exceptional or extraordinary items of Rs 24.70 lakh, against a Rs 35.40 lakh loss in HY March 2026. Profit after tax was Rs 21.10 lakh, reversing a Rs 19.20 lakh loss in the preceding six months. The company also reported basic and diluted earnings per share of Rs 0.30 each, compared with negative Rs 0.25 in the comparison it disclosed.

Cash flow from operations also changed direction on the year-on-year comparison disclosed by Radiowalla. Cash flow from operations was positive at Rs 1.27 crore in HY September 2026, compared with negative Rs 75.80 lakh in the same period last year. This comparison covers the corresponding six-month period, whereas the profit before tax and profit after tax comparisons highlighted by the company are with HY March 2026.

The movement from EBITDA to reported profit included higher charges below EBITDA. Depreciation and amortisation rose to Rs 70.40 lakh from Rs 47.30 lakh sequentially, which Radiowalla attributed to increased capital expenditure for its In-Store Radio business and continuing technical improvements to its delivery platform. Other expenses rose to Rs 1.459 crore from Rs 97.30 lakh, yet the company reported positive pre-tax and post-tax results.

What costs and business lines affected Radiowalla's margins?

Radiowalla said lower direct and employee costs supported the 8% EBITDA margin in HY September 2026. Management reported a 14% sequential reduction in direct costs, which it linked to improved resource utilisation and the integration of artificial intelligence, or AI, in backend workflows. It also reported a 5.32% sequential reduction in the cost of goods and services and a 10.29% reduction in employee benefit expenses despite the 5% revenue increase.

The increase in other expenses to Rs 1.459 crore included about Rs 15 lakh of international business-development travel and domestic travel for industry events, according to management. It also included a one-time withholding-tax charge of about Rs 20 lakh that was not claimable because of insufficient profit in earlier years. These expenses were Rs 48.60 lakh higher than the Rs 97.30 lakh recorded in HY March 2026.

Management disclosed different margin trends across its business lines. In-Store Radio gross margin was 42% in HY September 2026, compared with 33% in the prior-year period, while VCMS gross margin was 36% against 21%. Corporate Radio gross margin was 45%, compared with 46% in the prior-year period. Advertising margin improved to negative 14% from negative 23%, meaning that line remained negative despite a nine-percentage-point change.

What does Radiowalla plan to do in the second half?

Radiowalla plans to pursue revenue growth and EBITDA-margin improvement, which management identified as its continuing focus after reporting 7% year-on-year revenue growth and a 10% EBITDA increase in HY September 2026. Management said it was expanding marketing and technology efforts in advertising and was confident of turning that business unit around in H2 FY27. That statement is management's outlook rather than a reported financial result.

The company also launched a Fragrance business unit for retail clients during the six-month period ended September 2026. Radiowalla said revenue from this vertical would begin to flow in H2, without giving a revenue target or expected contribution. Its reported gross-margin figures showed In-Store Radio at 42%, VCMS at 36%, Corporate Radio at 45% and advertising at negative 14%, providing the disclosed starting point for management's advertising plan.

Radiowalla's September 2026 filing also recorded Rs 4.430654682 crore of unutilised initial public offering proceeds as of September 30, 2026, out of Rs 14.25152 crore disclosed in the offer document. The auditor's certificate said the balance comprised Rs 2.37 crore in a fixed deposit with ICICI Bank Limited and Rs 2.060654682 crore in a fixed deposit with Union Bank of India for future deployment in accordance with the issue objectives.

Conclusion

Radiowalla's HY September 2026 results show a shift from the Rs 10.38 lakh EBITDA loss and Rs 19.20 lakh post-tax loss of HY March 2026 to Rs 81.58 lakh of EBITDA and Rs 21.10 lakh of profit after tax. The change coincided with revenue rising to Rs 10.7931 crore, reductions in direct costs and employee benefit expenses, and positive operating cash flow of Rs 1.27 crore.

The next disclosed milestones are management's plan to turn around advertising in H2 FY27 and its expectation that Fragrance revenue will start in H2. Readers can also watch whether the Rs 4.430654682 crore of unutilised IPO proceeds at September 30, 2026 is deployed towards the stated technology, working-capital and other issue objectives, alongside progress in the 8% EBITDA margin.