New Delhi: Radio broadcaster Music Broadcast Ltd on Thursday reported a sharp improvement in profitability for the third quarter of FY26, driven by tighter cost controls and better operating leverage, even as the advertising environment remained subdued on a year-on-year basis.
Speaking at the company’s earnings call, management said revenue for Q3 FY26 stood at ₹46.4 crore, up 23% sequentially, while total income was ₹54.8 crore. Operating EBITDA surged to ₹15.9 crore from ₹1.3 crore in the preceding quarter, taking EBITDA margins to 34%. EBIT margin improved to about 20%, reflecting the impact of structural cost actions undertaken over the past few quarters.
After accounting for finance costs and taxes, adjusted profit after tax stood at ₹6 crore, while reported PAT came in at ₹4.1 crore, marking a strong turnaround from losses in Q2. For the nine months ended December 2025, total income was ₹155.8 crore and EBITDA stood at ₹25.3 crore, the company said.
Management attributed the performance to a combination of manpower rationalisation, programming efficiencies and tighter control on overheads, adding that most of the cost actions are now “baked in” and should remain sustainable.
The company said the advertising environment showed gradual recovery during the quarter, aided by festive demand and improving sentiment across categories, though year-on-year comparisons continue to be impacted by a softer market and a high base linked to election spending last year.
Radio City also highlighted diversification into alternate revenue streams such as branded content, properties, sponsorships and integrated solutions, with digital and AI-led initiatives— including an AI radio jockey—being used to create advertiser solutions and improve monetisation. The company said inventory utilisation during the quarter was close to 90% on a 15-minute-per-hour basis, while ad volumes, as per industry data, were still marginally lower year-on-year.
On the balance sheet, the management said the company had a net cash position of about ₹373 crore as of December 31, 2025, which reduced to about ₹261 crore after the January redemption of preference shares, and added that interest costs linked to those instruments would now be negligible.
Looking ahead, the company said it remains cautiously optimistic, with the focus on sustaining margin gains, improving cash flows and driving profitable growth as advertising demand stabilises.