World Radio Day: Q3FY26 reflects radio’s digital and non-FCT transformation

World Radio Day this year finds India’s radio industry at an inflection point. FM remains one of the country’s most accessible, high-frequency, and locally resonant media formats. At the same time, the commercial environment is tightening, prompting radio networks to reconsider how they generate revenue, scale operations, and sustain growth.

In Q3FY26, the radio industry recorded a 2% year-on-year decline in volumes, reflecting continued softness in advertising demand. This longer-term trend is also evident in annual advertising expenditure. According to the dentsu-e4m Digital Advertising Report, radio adex stood at Rs 1,679 crore in 2024, representing a 2% share. In 2025, adex declined to Rs 1,501 crore, with radio’s share falling to 1%. These figures highlight that, while radio continues to maintain a strong consumer presence, it is operating in a progressively smaller share of the advertising market.

Against this backdrop, radio companies are accelerating a shift towards digital audio and non-FCT revenue streams, including events, branded solutions, IPs, activations, and content partnerships. The Q3FY26 performance of key players indicates that the industry remains relevant, even as it is compelled to evolve its business model at an unprecedented pace.

Radio Shows Strong Audience Engagement Amid a Challenging Ad Market

Across companies, Q3FY26 commentary highlights a common theme: radio advertising continues to face pressure.

ENIL, which operates Radio Mirchi, noted that advertising remained under stress during the quarter, reflecting broader industry trends, cautious advertiser sentiment, and a shift in festive demand.

The pressure is visible across toplines.

HT Media’s radio business, Fever FM, reported revenue of Rs 34 crore in Q3FY26, down from Rs 51.1 crore in Q3FY25, a year-on-year decline of approximately 33.5%. The company attributed the contraction primarily to a high base effect, as the previous year included significant event-led revenue. Sequentially, HT Media recorded a 5% increase, signalling quarter-on-quarter stability, even as margins remained under pressure.

Radio City reported revenue from operations of Rs 46.47 crore in Q3FY26, down from Rs 65.38 crore in Q3FY25, a year-on-year decline of roughly 28.9%. Total income fell to Rs 54.81 crore from Rs 72.12 crore, a drop of around 24.0%.

DB Corp’s My FM recorded advertising revenue of Rs 41 crore in Q3FY26, down from Rs 48.6 crore in Q3FY25, representing a year-on-year decline of approximately 15.6%.

In contrast, ENIL was among the few companies to report growth. Its revenue rose 3.8% year-on-year to Rs 164.94 crore from Rs 158.90 crore, while total income increased 3.7% to Rs 171.61 crore from Rs 165.48 crore.

Even so, ENIL emphasised that the core radio advertising market remains cautious.

From spot buys to solution sells

A key shift underway is that radio networks are moving beyond reliance on spot advertising as the sole driver of growth. Companies are increasingly offering integrated solutions that combine radio inventory with branded content, partnerships, on-ground activations, and IP-led properties. In this context, non-FCT revenues are becoming central to business strategy rather than optional.

HT Media reflected this shift indirectly. The company’s sharp year-on-year decline was attributed to a high event-led base in Q3FY25, illustrating how non-FCT revenues can significantly influence performance. The company noted that it is proactively recalibrating its radio operations to align with current industry dynamics.

Meanwhile, ENIL reported that market pressure was partly mitigated by diversified revenue streams and its platform-agnostic operating model, which continues to generate contributions from non-radio businesses.

The sector’s trajectory is clear: radio is increasingly focused on delivering measurable outcomes and integrated brand solutions, rather than simply selling airtime.

Digital Radio: Becoming Central to Revenue Growth

If Q3FY26 had one defining takeaway, it was the rapid transition of digital from an add-on to a central pillar of radio monetisation. ENIL’s disclosures provided the clearest illustration of this trend.

Digital revenues now represent 49.5% of core radio advertising revenue in Q3FY26, up from 26.9% in Q3FY25. The company attributed this growth to a rising Gaana user base and increased engagement, driven by ongoing improvements to content and platform experience.

Crucially, ENIL highlighted that this expansion occurred alongside improved cost discipline: overall digital investments fell year-on-year, even as marketing spend increased to support platform growth.

Commenting on the quarter, Yatish Mehrishi, CEO of ENIL, said: “Our Q3 performance reflects steady progress in building a more diversified and resilient business. The strong growth in our digital, events and solutions businesses demonstrates the effectiveness of our shift beyond a traditional radio-led model. While radio advertising continues to face industry-wide challenges, these newer revenue streams are helping strengthen the overall business.”

His remarks capture the industry’s evolving reality: radio companies are no longer operating on a single platform. Instead, they are designing experiences for audiences that move seamlessly across FM, streaming, social, and on-ground channels.

One Industry, Diverging Momentum

While digital audio is emerging as the strongest long-term bet, Q3FY26 also shows that the pace of transition is uneven across players.

Radio City reported that digital revenues accounted for just 6% of its overall ad sales in Q3FY26. This indicates that, for several radio companies, digital monetisation remains at an early stage, particularly when compared with ENIL’s rapidly expanding digital mix.

This divergence is significant because, in a soft radio advertising market, digital provides a crucial buffer. Companies with robust digital ecosystems can better offset weaknesses in traditional advertising, whereas others remain heavily reliant on spot advertising cycles.

The quarter suggests that the next phase of competition in radio will extend beyond FM market share to focus on who can build the strongest multi-platform audio brand.

The Battle for Sustainable Margins

If toplines tell one story, profitability tells an even sharper one.

ENIL, despite reporting revenue growth, posted a consolidated net loss of Rs 6.31 crore in Q3FY26, compared with a net profit of Rs 9.26 crore in Q3FY25.

HT Media’s radio business remained under pressure, with operating EBITDA holding at approximately a Rs 5 crore loss.

DB Corp’s My FM remained profitable, but its EBITDA declined sharply to Rs 12.7 crore in Q3FY26 from Rs 18.7 crore in Q3FY25, a year-on-year drop of roughly 32.1%.

Radio City, by contrast, maintained a stable bottom line, reporting a net profit of Rs 3.60 crore, marginally down from Rs 3.68 crore.

This spread in profitability indicates that the radio industry’s challenge is no longer solely about defending revenues. Companies must also focus on sustaining margins while investing in digital and non-FCT initiatives. In a market with limited pricing power, the ability to balance cost discipline with strategic reinvention is becoming a key differentiator.

Beyond Music: Expanding Content Options in Radio

Alongside financial pressure, Q3FY26 also revived a long-running industry argument that radio’s growth is constrained if it remains heavily music-led.

DB Corp’s leadership called for the government to rethink radio’s growth framework.

Girish Agarwal said: “I strongly believe government needs to relook at this radio business. Because if radio continues to do only song and music, I don’t think radio will be able to grow… eventually radio will get into the news also. I think that’s where the differentiation will come in picture… But unfortunately, that’s not happening.”

His comments reflect the industry’s broader push for content expansion. Many radio executives argue that allowing wider spoken-word formats, including news, could increase stickiness, strengthen differentiation and open new advertiser opportunities.

While regulatory changes remain uncertain, radio companies are already attempting to evolve through other routes: local IPs, city-first engagement, branded content, creator-style programming and platform-led audio offerings.

What Q3FY26 Reveals About Radio’s Future

World Radio Day is a reminder that radio remains deeply embedded in India’s daily media habits. However, Q3FY26 results show that the business needs to be reshaped in real time.

The quarter reflected continued pressure on radio advertising, with the industry posting a 2% year-on-year decline in volumes. Annual trends reinforce this shift, with radio adex falling from Rs 1,679 crore in 2024 (2% share) to Rs 1,501 crore in 2025 (1% share), according to the dentsu-e4m Digital Advertising Report.

At the same time, the industry’s response is becoming clearer.

Digital audio is emerging as the strongest long-term monetisation engine, particularly for players capable of scaling platform engagement. Non-FCT revenues are increasingly central to stability and growth, even if they remain uneven and occasionally volatile. Meanwhile, the debate around content expansion is returning as radio seeks its next differentiator.

The future of radio will not be determined by FM alone. Success will depend on how effectively radio networks transform into full-stack audio brands, capable of monetising across platforms, partnerships, and experiences, while continuing to deliver what radio has always done best: mass reach with local relevance.