At a Glance
Entertainment Network (ENIL), the operator of Radio Mirchi and events/digital properties, posted Q1 FY26 revenue at ₹117 Cr (+3% YoY), but turned in another ₹5.26 Cr loss. Operating margins crashed to 6.5% as expenses rose faster than ads. Stock is at ₹138, down 46% YoY, trading at 0.84x book. Dividend payout remains at 33%, but investors wonder if that’s generosity or desperation.
Introduction
ENIL is like that old radio hit everyone hums but no one actually streams anymore. Once the darling of advertisers, it now battles digital platforms, falling ad spends, and a new generation that thinks FM is an ancient relic. The company is trying to pivot with digital and events, but profitability is stuck on “buffering.”
Business Model (WTF Do They Even Do?)
- FM Advertising: The cash cow, but its milk is drying up.
- Digital Content: Podcasts, online streaming – still small.
- Events: Music concerts, IP events – occasional hits.
The model works if ad spend rises, but the shift to digital has made life tough. High fixed costs make every rupee of revenue crucial.
Financials Overview
- Revenue: ₹117 Cr (+3% YoY)
- EBITDA: ₹7.57 Cr (OPM 6.5%)
- Net Profit: Loss ₹5.26 Cr (vs Profit ₹12.17 Cr Q4 FY25)
- EPS: -₹1.13
Commentary: Revenue growth is negligible, margins are shrinking, and losses are back.
Valuation
- CMP: ₹138
- P/E: 55 (expensive for a loss-making business)
- Book Value: ₹163
- ROE: 1.5%
Fair Value Range: ₹100 – ₹150 (value lies in the brand, but earnings don’t justify much upside).
What’s Cooking – News, Triggers, Drama
- Digital & events segment growing faster, but too small to move the needle.
- Radio ad market remains muted; FMCG spends weak.
- Cost pressures continue – wage inflation & content costs.
- No major triggers until ad cycles recover or a digital miracle happens.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Total Assets | 1,193 |
| Total Liabilities | 1,193 |
| Net Worth | 777 |
| Borrowings | 177 |
Remarks: Debt is manageable, but asset base isn’t producing returns.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 114 | 127 | 26 |
| Investing | -59 | -41 | -30 |
| Financing | -43 | -40 | -47 |
Remarks: Cash flow from operations collapsed in FY25 – not a good sign.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 1.5% |
| ROCE | 3.5% |
| P/E | 55.1 |
| PAT Margin | -4% |
| D/E | 0.2 |
Remarks: Sexy? No. Stressy? Absolutely.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 511 | 536 | 544 |
| Operating Profit | -85 | 106 | 79 |
| Net Profit | -165 | 33 | 12 |
Remarks: After years of losses, FY25 had a tiny profit – but Q1 FY26 is back in the red.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| ENIL | 548 | 12 | 55 |
| Saregama India | 1,171 | 200 | 46 |
| Tips Industries | 311 | 161 | 48 |
Remarks: Peers are profitable and scaling in music rights, while ENIL lags.
Miscellaneous – Shareholding, Promoters
- Promoter: 71.2%
- FIIs: 6.1%
- DIIs: 4.1%
- Public: 18.6%
Comment: Promoters are holding strong, but FIIs have minimal interest.
EduInvesting Verdict™
Past Performance
ENIL has seen declining revenues in radio, with slow growth in digital/events. Margins are thin, profitability inconsistent.
SWOT Analysis
- Strengths: Strong brand (Radio Mirchi), high promoter holding, asset-light digital pivot.
- Weaknesses: Low ROE, volatile profits, ad dependency.
- Opportunities: Growth in digital audio, podcasting, and IP events.
- Threats: Digital competitors (Spotify, Gaana), ad slowdown, rising costs.
Final Word
ENIL is like an old song on repeat – nostalgic, but not topping the charts. Unless digital monetization clicks or ad markets rebound strongly, investors may keep changing the station.
Written by EduInvesting Team | 29 July 2025SEO Tags: ENIL, Entertainment Network, Q1 FY26 Results, Radio Mirchi, Media Stocks
