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Entertainment Network Board Approves FY26 Results, Proposes Dividend
The Board of Directors for Entertainment Network (India) Ltd met on May 15, 2026, to review and approve the audited financial results for the fiscal year ending March 31, 2026. The board recommended a dividend of ₹2.00 per share, which would total ₹953.41 lakh (₹9.53 crore) if approved by shareholders.
Mixed Financial Performance Revealed
For the fiscal year 2025-26, Entertainment Network reported a standalone net profit of ₹928.29 lakh (₹9.28 crore). However, the company faced a consolidated net loss of ₹739.28 lakh (₹7.39 crore) for the same period, indicating challenges across its broader operations.
The company also recognized exceptional items for the year, including an estimated additional expense of ₹160.45 lakh for gratuity and leave encashment, driven by new Labour Codes.
Tax Demand and Appeal Detailed
The company also noted a significant income tax demand of ₹11,132.0 lakh (₹111.32 crore) for Assessment Year 2024-25 (FY24). Entertainment Network has filed an appeal against this demand. The company is also set to transition to a new tax regime from April 1, 2026, which will require adjustments to its deferred tax assets and liabilities.
Investor Impact and Significance
The proposed ₹2.00 per share dividend offers a direct return to shareholders, potentially signalling management's confidence. However, the consolidated loss highlights ongoing operational pressures. The substantial income tax demand, if upheld, could pose a significant financial strain on the company.
Company Profile
Entertainment Network (India) Limited, widely known as Radio Mirchi, is a key media player within the Times Group. Its operations encompass radio stations, digital platforms, and live events. In late 2023, the company conducted a rights issue to strengthen its balance sheet and fund growth.
Radio Mirchi has been actively expanding its digital presence and live events business to diversify revenue streams and reduce reliance on traditional advertising. It operates in a competitive media environment, influenced by evolving advertising trends and digital disruption.
Key Risks to Monitor
A primary concern is the ₹111.32 crore income tax demand for AY 2024-25, against which an appeal is pending. The resolution of this appeal is critical for the company's financial outlook.
Additionally, a pending legal matter concerning Phonographic Performance Limited (PPL) and music licensing fees before the Hon'ble Supreme Court of India is ongoing, although management views the potential financial impact as remote.
Industry Peers
Entertainment Network competes in a diverse media sector. Its peers include HT Media (Fever FM), Jagran Prakashan (Radio City), and D.B. Corp (My FM). These companies, like Entertainment Network, manage radio operations alongside print and digital media, facing similar challenges in advertising revenue, digital competition, and regulatory landscapes.
Financial Snapshot
- Standalone Net Profit (FY26): ₹928.29 lakh (₹9.28 crore)
- Consolidated Net Loss (FY26): ₹739.28 lakh (₹7.39 crore)
- Income Tax Demand (AY 2024-25): ₹11,132.0 lakh (₹111.32 crore)
- Recommended Dividend (FY26): ₹2.00 per share
Looking Ahead
Shareholders will vote on the recommended dividend at the upcoming general meeting. Close attention will be paid to the appeal against the ₹111.32 crore income tax demand. Developments regarding the PPL case and the company's adaptation to the new tax regime will also be key areas to watch.