Entertainment Network (India) Ltd Q2FY26 – The Radio King Turns Digital DJ: Revenue ₹141 Cr (+24%), PAT Still in Red, But “Mirchi” Keeps It Hot!
1. At a Glance
Welcome to the house of Mirchi — where even a loss sounds melodious if you tune it right. Entertainment Network (India) Ltd (ENIL), the proud owner of Radio Mirchi and Gaana.com, just dropped its Q2FY26 mixtape: a spicy ₹141 crore in revenue (up 24.3% YoY), but still grooving to a quarterly net loss of ₹4.1 crore. Market cap? A modest ₹645 crore. Stock P/E? A nosebleed 55.1. Book value? ₹159. Current price? ₹135 — meaning, you’re buying the Times Group’s DJ console at less than book value (0.85x).
Return on equity (ROE) is a sleepy 0.82%, while return on capital employed (ROCE) barely hums at 2.56%. But credit where it’s due — the company’s dividend yield at 1.48% means you’re still getting paid to stay tuned in. With 73 radio frequencies across 63 cities, and now a digital empire through Gaana and Mirchi App, ENIL is India’s OG influencer brand — from radio to reels.
And yet, as competition screams from Spotify, YouTube Music, and every influencer with a podcast mic, the company’s still trying to find that perfect remix of profitability and relevance. Will it ever hit the right frequency again? Let’s tune in.
2. Introduction – The Mirchi Masala Story
Once upon a time, before algorithms and autoplay playlists, Radio Mirchi was the original background noise of India’s daily chaos. From “Hi, I’m Malishka!” to RJ Naved’s pranks, ENIL built its empire on jingles and jokes. But in the post-pandemic digital renaissance, our Mirchi-wale found themselves competing not with other stations, but with Spotify’s “Discover Weekly.”
Incorporated in 1999 and parented by the mighty Times Group (71.15% promoter holding), ENIL has been broadcasting vibes across India and abroad — from Mirchi Mumbai to Mirchi Bahrain, and soon, even Saudi Arabia (thanks to its 50% stake in Ninety-nine Audiovisual Media Production LLC).
Despite this global expansion and digital pivot, profits have played hide and seek. Q2FY26’s ₹141 crore revenue looked promising, but profitability melted faster than ice in Chennai. While radio advertising remains the lifeline (56% of FY24 revenue), digital and subscription-based income are still finding rhythm, together forming ~8% of total revenue.
The FM king is now remixing itself into a digital powerhouse — but can the analog heart keep up with the streaming age?
3. Business Model – WTF Do They Even Do?
If you think ENIL is just a radio company, congratulations — you’re stuck in 2010. Today, it’s more like a content octopus: one tentacle in FM radio, one in digital audio, one in branded events, and one somewhere in the metaverse (probably playing AR RJs by now).
Let’s decode their playlist:
a) FM Radio Advertising (61% of FY24 revenue): Still their bread and butter, with Radio Mirchi, Mirchi Love, Mirchi 95, and Kool FM airing across 73 frequencies in 63 cities. Advertisers flock for local reach — from pani puri stalls to BMW showrooms.
b) Media & Branded Solutions (31% of FY24): This is ENIL’s “solutions business” — the Times Group’s way of saying, “We’ll make your ad, host your event, run your hashtag campaign, and probably write your speech too.”
c) Subscription-Based Music Streaming (8% of FY24): Gaana.com was once India’s Spotify, now trying to reclaim lost rhythm through ad-free subscriptions. The Business Transfer Agreement with Gamma Gaana Ltd marks ENIL’s official ownership of this digital leg.
d) International Ventures: From Mirchi Bahrain to Mirchi USA, ENIL’s brand is global — a rare feat for Indian entertainment companies. 6% of FY24 revenue came from abroad.
So yes, it’s more than radio. It’s content, creativity, and a lot of nostalgia wrapped in jingles and hashtags.
4. Financials Overview
Metric
Latest Qtr (Sep 2025)
YoY Qtr (Sep 2024)
Prev Qtr (Jun 2025)
YoY %
QoQ %
Revenue
₹141.14 Cr
₹113.54 Cr
₹116.95 Cr
+24.3%
+20.6%
EBITDA
₹11.37 Cr
₹11.14 Cr
₹7.57 Cr
+2.1%
+50.2%
PAT
₹-4.09 Cr
₹-4.03 Cr
₹-5.26 Cr
-1.5%
Loss Narrowed 22%
EPS (₹)
-0.86
-0.87
-1.13
-1.1%
+23.9%
Annualised EPS = ₹(-0.86 × 4) = ₹(-3.44) At CMP ₹135, P/E not meaningful (because, well, negative EPS is the stock market’s ghost story).
Commentary: Sales up, losses down — it’s like a Bollywood sequel where the hero’s still broke but the background score sounds better. Operating profit improved QoQ, and OPM rose slightly to 8.06%. But depreciation and interest keep eating into those margins like hungry influencers at a food fest.
5. Valuation Discussion – Fair Value Range Only
Let’s put ENIL through three valuation remixes.
Method 1: P/E Based (The “Hope FM” Method) Industry P/E: 43.6 ENIL Annualised EPS (FY26E): ₹2.46 (FY25 actual, not loss quarter annualised) → Fair Value = 43.6 × ₹2.46 = ₹107 Cr At CMP ₹135, ENIL trades ~25% above this P/E-based fair value.
Method 2: EV/EBITDA (The “Reality Check” Method) EV = ₹791 Cr EBITDA (TTM) = ₹112 Cr (approx, derived from 14% OPM on ₹575 Cr sales) → EV/EBITDA = 7.08x Peers
