(Pursuant to Part B of Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)
We present a comprehensive report on Management Discussion and Analysis focusing on business performance and outlook within the competitive landscape set by B.A.G. Films and Media Limited (the BAG/the Company)
The global economy continues to navigate a challenging and uncertain environment, marked by persistent geopolitical tensions in the middle East. The ongoing conflict has contributed to volatility in energy prices, renewed inflationary pressures and expectations of tighter monetary conditions across several economies.
Before the conflict, the global Inflation was largely stable but with supply disruptions of crucial commodities, particularly oil and natural gas, the global inflation has picked up. In all, global headline inflation is projected to pick up to 4% 4% in 2026, with advanced economies seeing the inflation rise due to increases in energy costs. Global inflation is expected to moderate to 3.1% 3.1% in 2027 as the average crude price declines.
According to the International Monetary Fund (IMF), global GDP growth stood at 3.3% 3.3% in FY 2024- 25 and is expected to remain at 3.3% 3.3% in FY 2025- 26, reflecting resilience in economic activity across major regions. Advanced economies are projected to grow by 1.8% 1.8% in FY 2025- 26. Beyond geopolitical risks, persistent trade policy uncertainty, supply- chain disruptions, and climate related events continue to pose challenges to the global growth outlook.
The IMF has highlighted a range of additional downside risks which is beyond geopolitical risks: a further escalation of trade tensions, supply- chain disruptions, climate related events continue to pose challenges, a correction in Al- related investments, sovereign fiscal deterioration across economies already operating with thin buffers, and any erosion of central bank credibility at a time when inflation expectations are under pressure. On the upside, a sustained Al productivity dividend and renewed momentum on structural reform could provide meaningful support to global economic activity.
Trade and policy uncertainty continue to shape the global outlook, influencing investment decisions, supply chain strategies and capital flows. At the same time, structural drivers such as digitalisation, artificial intelligence and automation continue to support productivity and long- term competitiveness, although benefits remain unevenly distributed. The global economy in 2026 is expected to remain stable but increasingly vulnerable to downside risks, underscoring the importance of policy coordination, resilience and risk management.
India continues to remain one of the fastest growing major economies, demonstrating strong momentum despite a challenging global environment. According to the National Statistical Offices latest estimates, real GDP growth is projected at 7.7% 7.7% in FY 2025- 26, supported by robust performance across manufacturing and services. The IMFs April 2026 outlook reinforces this trajectory, noting that Indias growth for 2025 has been revised upward to 7.6% 7.6% driven by stronger- than- expected performance across recent quarters. Growth for 2026 is projected at 6.5% 6.5% supported by carryover from the strong 2025 outturn and easing trade pressures, and is expected to remain at 6.5% 6.5% in 2027.
Although Indias external position came under moderate pressure in the latter part of FY26. The Indian rupee depreciated against the US dollar, falling to approximately H95/USD by the end of March 2026, driven by foreign portfolio outflows and financial market volatility triggered by the onset of the Middle East conflict. Foreign exchange reserves declined to approximately 698billionfromapeakofnearly 698 billionfromapeakofnearly 730 billion in late February.
The deeper structural story, however, is defined by a powerful demographic and social transition reshaping Indias internal consumption landscape. A rapidly expanding middle class, rising female workforce participation, increasing digital adoption, and the growing aspirations of a young, urban population are collectively generating durable structural demand and policy measures, even as global growth moderates. While disruptions in the Middle East may weigh on parts of Asia through tourism and remittance channels, Indias strong domestic fundamentals position it as a key contributor to global economic activity.
The Indian Media and Entertainment (M&E) industry is one of the important sectors for the Indian economy and continues to make significant strides. The Indian M&E sector is witnessing transformative growth in 2025, driven by cutting- edge technology adoption, a surge in regional content demand, and the convergence of traditional and digital platforms.
The industry is increasingly shifting towards digital platforms, with streaming services and social media playing a central role in content consumption.
The media and entertainment industry can be segmented into broadcasting, digital media, film and television, music, gaming, publishing, sports, and advertising. Consumers are shifting towards online entertainment, with streaming services and social media becoming more popular.
The year 2025 marked a pivotal inflection point for Indias Media & Entertainment industry, as it entered a new phase of scale, innovation and transformation. Beyond growth in numbers, this year reflected evolving audiences engagement with the convergence of technology with storytelling.
In 2026, the sector is now entering the post- inflection phase- one that is defined by accelerated disruption, rapid platform convergence and new value- creation models. Digitals dominance is reshaping content formats, platform strategies, redefining ratings, audience measurement, monetization models and operating structures across the entire ecosystem. The result is an industry that is more converged, data- led and commerce integrated one poised for exponential growth, but demanding strategic reinvention.
Indias M&E sector crossed a critical inflection point in 2025, when digital advertising crossed 63% 63% of total spends and digital subscriptions exceeded 140 million households. This milestone marked not just a redistribution of budgets but a fundamental restructuring of the media value chain.
In 2025, digital media is poised for explosive growth, potentially overtaking television to become the leading segment of the M&E sector. This surge in digital media is forecasted to propel the M&E sectors growth to a 10% 10% annual rate, crossing INR 3.1 trillion by 2027. This growth is buoyed by a robust digital infrastructure, widespread adoption of OTT platforms, significant growth in the gaming segment, and the availability of cost- effective options for consumers.
The M&E sector contributes around 0.8% 0.8% of Indias GDP, provides direct employment to around 2.75 million people, and indirect employment to over 10 million people. Digital advertising grew 26% 26% to reach INR947 billion in 2025, as several advertiser categories shifted ad spends from traditional to digital media, led by FMCG, travel and pharma.
Indias Media & Entertainment (M&E) industry grew 9% 9% in 2025 to reach 2.78 2.78 trillion, with digital media crossing 1 1 trillion in revenues for the first time. The sector is projected to expand further in 2026, driven by digital advertising, live events, and large- screen consumption.
AI is now central to the media- tech ecosystem, not just a productivity tool but a core layer across content, localization, analytics and monetization. With use cases now well established, AI players can save costs and, importantly, monetize their technology through proven revenue models. This growing commercial traction is driving strong investor interest and is likely to increase both deal volumes and values.
OTT platforms are accelerating experimentation with episodic, short- form and interactive content formats. Alled personalization, content commerce, shoppable ads and modular storytelling are redefining engagement, retention and monetization. The subscription model is being rewritten through exclusive content, premium features and bundling.
MEDIA GROWTH ESTIMATES*
| Segment | 2022 | 2023 | 2024 | 2025 | 2026E | 2028E | CAGR 2025-2028 |
| Digital Media | 571 | 686 | 851 | 1,110 | 1,301 | 1,640 | 14% |
| Television | 726 | 711 | 679 | 617 | 587 | 535 | -5% |
| 250 | 259 | 257 | 259 | 264 | 264 | 1% | |
| Online gaming and Video game | 222 | 236 | 236 | 195 | 749 | 2 | -22% |
| Filmed Enter-tainment | 172 | 197 | 187 | 205 | 224 | 253 | 7% |
| Animation and VFX | 107 | 114 | 103 | 105 | 113 | 138 | 10% |
| Live events | 73 | 88 | 101 | 145 | 140 | 196 | 10.2% |
| Out of Home Media | 48 | 54 | 59 | 67 | 74 | 85 | 8% |
| Music | 46 | 54 | 53 | 59 | 64 | 75 | 9% |
| Radio | 21 | 23 | 25 | 23 | 23 | 22 | -2% |
| Total | 2237 | 2422 | 2553 | 2,785 | 2,862 | 3,301 | 6.0% |
| Growth | 23.3% | 8.3% | 5.4% | 9.1% | 2.8% |
All figures are gross of taxes (INR in billion) for calendar years / EY Report 2026 estimates
The Indian M&E sector grew by INR232 billion to reach INR2.78 trillion, exceeding Indias nominal GDP per- capita growth of 7.7% 7.7% Digital media overtook television for the first time to become the largest segment, contributing 32% 32% of M&E sector revenues. We expect the M&E sector to grow 2.8% 2.8% in 2026 to reach INR 2.86 Trillion, and then grow at a CAGR of 7% 7% to reach INR 3.3 trillion by 2028.
Traditional media continues to maintain a substantial footprint, with linear television dominating the market by reaching roughly 745 million weekly viewers. Digital media has effectively established itself as the sectors primary economic engine, boasting a video audience of 572 million and social media users approaching 500 million. Meanwhile, print remains highly resilient, sustaining steady ad revenues alongside digital growth, while the live events and experiences segment emerged as the fastest- growing sector, expanding by 44% 44% in 2025.
Experiential and outside- the- home segments saw starkly diverging paths by 2025; while a strict regulatory ban on money- gaming caused online gaming revenues to contract by 17% 17% the organized live events segment became the sectors standout performer, surging by 44% 44% to reach INR 145 billion.
Indias Media and Entertainment sector is set to grow strongly in FY 2026- 27. Overall industry expansion is expected in the range of 6.8%-7.2% 6.8% - 7.2% driven by steady consumer demand, continued government investment in digital and broadcast infrastructure, and a gradual pickup in private spending on new projects.
The services side including television, digital streaming, advertising, and gaming will remain the main growth engine. At the same time, film production and broadcasting are likely to strengthen as government incentive schemes and private investments translate into higher content output and wider global reach.
This means audiences can expect more diverse programming, better quality productions, and increased exports of Indian entertainment content worldwide.
Indias media and entertainment industry is expected to keep growing in the coming years. By 2026, the sectors revenues could reach about 2.86 trillion. Even if we dont count online gaming, the industry is still likely to grow by around 8% 8% in 2026.
Indian media firms are increasingly using AI, particularly for content creation and processing, with 60% 60% of surveyed companies having adopted it. With 75% 75% of respondents noting a measurable impact, AI has transitioned from experimentation to delivering concrete business value. 67% 67% of respondents reported cost reduction as the key benefit of implementing AI.
AI budgets remain meaningful but conservative for most firms, with 46% 46% of respondents allocating less than 5% 5% of their IT budget to AI. As a result, spend is focused on near- term, high confidence use cases while organizations build stronger data, capabilities, operating models and ROI evidence before they plan to scale.
Content operations will become the most experimented and prioritized area for AI enablement within media organizations, as 80% 80% of respondents continue to believe it still has not been efficiently automated. Priorities for the year ahead will center on enabling AI in core workflows, with firms focusing investment on content creation,operations and distribution to unlock repeatable, scalable value.
AI adoption is strongest in core content workflows, with content creation and content processing leading adoption at 60% 60% of respondents each. Core implementation was around standardized workflows, repetitive tasks and multi language requirements that made automation valuable and efficient, resulting in faster turnaround times and low- mid production cost reduction opportunities.
AI is fast extending across the content lifecycle, with:
47% of respondents reported AI usage in content planning and greenlighting
40% in distribution and marketing
This signals that most firms are taking a measured investment approach, allocating limited AI budgets while they assess nighttime value and strengthen the foundations needed for broader deployment.
Everyone wants to stay entertained, especially in a world filled with economic shifts, and media and entertainment companies are navigating a structural evolution of their own. Following robust post- pandemic spikes, the global industry has moved past its feared deceleration trap, recording a strong 5.3% 5.3% growth rate in 2025 to reach 305.06 305.06 trillion in total revenue. Analysts expect the market to stabilize at a sustainable five- year CAGR of 3.4% 3.4% driven by a historic inflection point in 2026 where global advertising spend officially eclipses direct consumer spending as the industrys primary economic engine.
Amidst this structural shift, digitalization continues to redefine the media and entertainment industry, offering vital insights into evolving market trends. Companies are aggressively expanding regional and vernacular content to unlock deeper, previously underserved markets. As a result, regional content now drives 56% 56% of OTT consumption. While this hyper- localization has increased overall time spent online, premium content monetization has accelerated, with paid subscriptions growing steadily alongside hybrid, ad- supported tiers that maximize mass- market revenue.
India remains a market where traditional and new media coexist seamlessly, with brands continuing to leverage TVs unmatched scale and impact. With over 200 million TV screens on the horizon, the mediums reach and relevance are only set to deepen.
The M&E sector has entered an era of profound structural transformation as organizations seek to maximize relevance across both mass markets and highly targeted niche consumers. Traditional formats like print and broadcasting are experiencing a fundamental shift, with digital media officially cementing its status as the industrys single largest economic engine, crossing the INR 1 trillion milestone. Ultimately, Indian consumers are the primary beneficiaries; empowered by ubiquitous smartphone penetration and the rapid rise of Connected TVs (CTV), they now enjoy unprecedented flexibility, choice, and absolute centrality within the entire media ecosystem.
Television remains the cornerstone of household entertainment, serving as a powerful medium for shared family experiences and cultural dialogue. The Indian television ecosystem is poised for a new era of growth, propelled by rapid technological advancements, expanding internet penetration, and an accelerating consumer demand for premium, high- quality content.
During the year under review, 58% 58% of total viewership was from audiences aged 15 to 50 years, while 23% 23% was from audiences aged 14 years and below, consistent with 2024 levels. Consumption of kids content has moved from television to YouTube and Connected TV in a significant manner, aided by free availability and on- demand access to favorite shows.
Hindi remained the most watched language on television with the 45% 45% share of viewership, witnessing marginal growth from 2024. News consumption continues to fragment across platforms, with rising digital reach driving content diversifications into local, issue based and non- news format. Hindi news viewership grew by 4% 4% and English News grew by 6% 6% . The top five language like, Hindi, Telugu, Tamil, Kannada and Marathi contributed 81% 81% of the total viewership.
Television remains Indias predominant medium, commanding a massive weekly reach of approximately 745 million individuals. However, the media landscape is undergoing a structural shift. While Connected TV (CTV) viewership is projected to scale to 83 million households by 2030, linear Pay TV faces intensifying competition for consumer mindshare from digital content, non- broadcaster OTT, and social media platforms. Reflecting these changing dynamics, the total number of television channels expanded in calendar year 2025, driven by a strategic pivot toward Free- to- Air (FTA) channels. Conversely, Pay TV channels contracted, establishing FTA as the dominant segment at 65% 65% of the countrys total channel portfolio.
Total television continue to grow in 2025
| 2023 | 2024 | 2025 | 2028E | |
| Pay TV and Connected TV | 141 | 141 | 140 | 150 |
| Free TV | 45 | 49 | 53 | 54 |
| Total TV | 186 | 190 | 193 | 204 |
Total TV households rose to 193 million in 2025, up from 190 million in 2024 and 186 million in 2023, and the report projects the number will cross 200 million within two years. The growth, however, is not where the old industry would recognise it. Free TV expanded from 45 million households in 2023 to 53 million in 2025, with FreeDish alone accounting for the entire free segment. Pay TV and Connected TV combined stood at 140 million, but linear Pay TV shed 11 million subscriptions, losing them to Connected TV and Free TV. The audience is not leaving television. It is leaving the bill.
During the period under review, the total number of television channels in India increased to 956, up from 936 in mid- 2024, heavily driven by free- to- air launches. Total TV households reached 193 million, on track to cross 200 million within the next two years, with the audience mix shifting prominently toward Connected TVs (CTV). The ecosystem post- 2026 is poised for further disruption as wired broadband approaches 60 to 70 million homes alongside massive 5G scaling. Consequently, connected TVs are projected to scale rapidly to reach 100 million homes by 2030, while traditional linear TV stabilizes, supported strongly by a growing Free TV/FreeDish base of over 53 million homes.
Television viewership in India during FY2025- 26 is under pressure, with declining linear TV audiences, shrinking advertising revenues, and increasing competition from OTT and free platforms. Growth in time spent on television is being shaped by sports events, regional content strength, and regulatory changes, but overall trends point to stagnation or decline.
One ofthe key challenges is the rapid pace of technological advancements, which requires continuous innovation from manufacturers to stay competitive. This includes the development of 8K resolution TVs and enhanced smart TV functionalities. The rising middle- class population, increased disposable income, and urbanization are driving the growth of the television market in India. The preference for high- quality viewing experiences and the integration of smart technologies in televisions are major growth drivers.
Factors impacting televisions viewership include:
Factors impacting televisions viewership include:
- Viewers are upgrading their primary household screens from linear pay- TV to Connected TVs (CTV). With active CTV households reaching approximately 40 million, audiences are trading scheduled broadcast time for internet- delivered, on- demand streaming.
- Growth of social media, short video and gaming, which compete for the consumers free time, and have achieved a reach of around 500 million.
- Over 12% 12% of unique brands migrated away from television advertising toward targeted performance- led digital campaigns. A reduction in diverse ad spending has caused a subtle contraction in mid- tier, non- prime- time content development.
- Approximately 23% 23% of Indian internet users have completely decoupled from traditional broadcasting, accessing media solely through digital channels.
- Availability of high quality and niche content on OTT streaming platforms, which caters to niche and more affluent audiences.
- TV ad volumes dropped 11% 11% in CY2025, driven by reduced FMCG spending, bans on real- money gaming ads, and advertisers shifting budgets to digital. Televisions share of the ad pie is projected to shrink from 21% 21% to 15% 15% by 2027.
The Indian broadcasting sector is undergoing a profound structural reorganisation. While traditional linear television revenues continue to face a downward adjustment, the broader ecosystem is being revitalized by a massive premiumization wave.
Broadcasting in India in 2025- 26 is undergoing a major transformation, driven by digital convergence, infrastructure upgrades, and its integration into the countrys orange economy as a key growth engine. Traditional TV and radio remain important, but OTT, streaming, and connected platforms now dominate audience engagement and revenue generation.
The Indian broadcasting sector- spanning television, radio, and digital mediums- experienced accelerated transformation during FY 2025- 26, driven by rapid technological deployment and changing consumer preferences. Building on the operational shifts of the previous year, the period was marked by a strategic pivot toward digital- first ecosystems, the maturation of new business models, and heightened market competition.
Operating under the proactive regulatory frameworks of MIB and TRAI, the sector continues to successfully balance digital innovation with rigorous content and distribution standards.
There has been a significant shift towards digital platforms, with OTT services gaining substantial traction. The proliferation of high- speed internet and affordable data plans has accelerated the adoption of digital streaming services, leading to a surge in online viewership.
AI tools streamline storytelling by generating scripts, identifying plot gaps, and creating storyboards. Multilingual content production was enhanced with AI powered voice cloning and automatic lip- syncing.
Regional content continues to be a major growth driver. The demand for content in regional languages has increased, leading broadcasters to invest heavily in producing localized content to cater to diverse linguistic audiences. Despite the rise of digital platforms, linear TV remains dominant, especially in rural areas where internet penetration is lower. However, urban viewers are increasingly shifting towards digital platforms for their content consumption, creating a dual growth trajectory for both linear and digital TV.
By 2026, automated scriptwriting will be a cornerstone for Indian cinema, enabling smaller production houses to scale quickly and craft stories that resonate with diverse cultural nuances. This can be adapted by regional film production, ad agencies, OTT series, and has the potential to reduce pre- production costs by 20% 20% to 30% 30% , significantly enhance productivity, and streamline content workflows.
Digital media has fundamentally re- engineered how the media industry creates, distributes, and monetizes content. Far more than a shift in format, it represents a structural revolution that has rewritten traditional market dynamics. By officially crossing the INR 1 trillion milestone to become the largest standalone segment in the entire M&E sector, digital- native ecosystems are no longer just disrupting legacy players—they are setting the baseline to which traditional media must adapt to survive.
Platforms like YouTube, Instagram, and Facebook allow individuals to produce and share content globally. Now days Digital tools make it easier and cheaper to create high- quality videos, podcasts, and graphics. Newsrooms use AI for writing reports, editing videos, and even generating headlines. Media companies now distribute content across websites, apps, social media, and smart TVs.
Digital media has emerged as the primary growth engine, contributing a majority share of advertising revenues, with strong momentum across OTT, social media, gaming, and e- commerce- led advertising. Indias consumption landscape is increasingly mobile- first and on- demand, supported by a large and growing digital user base and rising demand for regional and vernacular content.
Digital media grew by a phenomenal 30% 30% in 2025, solidifying its position as the primary engine of the Indian M&E sector. Driven by premium sports and major movie releases transitioning behind paywalls, digital subscription revenues surged by 60% 60% to reach INR 163 billion. For the second consecutive year, digital media remained the largest segment in the industry, crossing the historic INR 1.11 trillion milestone and far outpacing television. While subscriptions are expanding rapidly, the Indian market remains overwhelmingly advertisingdriven, with digital ad spend jumping 26% 26% to INR 947 billion- commanding 63% 63% of all Indian advertising. This relentless digital engagement continues to fundamentally rewrite content monetization strategies across both global giants and emerging e- commerce platforms.
Here are some factors supporting digital growth under media and entertainment industry:
Telecom subscriptions remained stable at 1.7 billion in 2025. 5G adoption crossed 270 million subscriptions, though 4G subscriptions still dominated. 4G and 5G subscriptions are estimated to grow 92% 92% of all mobile subscriptions by 2030, which will grow the base of content consumers.
Growth of e- commerce advertising, which provides rich consumer data to enable segmentation and attribution accuracy across Indias top 50 million affluent households.
According to data published by Ookla in December 2025, India ranked 34th in the world for mobile speeds and 102nd for fixed broadband speeds, with the median mobile internet connection speed via cellular networks at 132 Mbps and the median fixed broadband connection speed being 61.55 Mbps.
Time spent on media (including social media, films, entertainment, music and casual games) increased to 779 billion hours 69% 69% of total time spent) in 2025.
Growth in 5G consumers, which provides the ability to improve the video and audio consumption experience.
Easy digital payment options facilitate online transactions and subscription- based models
The mobile phone has thus become the go- to medium for large, national awareness campaigns as well as more targeted regional and local ones.
Popular streaming platforms like Netflix, Amazon Prime, and Jio Hotstar are changing content consumption habits.
The rollout of 5G technology in FY 2025- 26 unlocked new opportunities for Communications Service Providers (CSPs), enabling them to capitalize on mobile media growth and deliver content directly over the internet without reliance on IPTV, cable, or satellite providers. Historically, technical limitations such as slow and unreliable networks hindered the seamless delivery of digital media, entertainment, and advertising content. With 5G, companies were able to provide higher- quality, interactive, and immersive experiences across a wider range of connected devices.
Digital media production has a positive long- term outlook, supported by the expansion of OTT platforms, social media video, connected TV advertising and crosrated content ecosystems. The sector is likely to benefit from AI- enabled workflows, cross- platform storytelling, and rising demand from brands seeking measurable digital engagement. However, success will depend on maintaining content quality, managing audience fragmentation, and adapting to evolving monetisation models.
In 2025- 26, Indias television advertising industry went through a big change. Spending on traditional TV ads slowed down as peoples media habits shifted. According to industry data, advertising on regular TV channels dropped by about 10-11% 10 - 11% in 2025. This shows that advertisers were more cautious with their budgets and that money is gradually moving to other types of media.
Indias media and entertainment (M&E) industry is undergoing a profound structural transformation with advertising serving as its primary economic engine. In 2025, total advertising revenue in India surged 13.5% 13.5% to reach an unprecedented INR 1.5 trillion, contributing 0.41% 0.41% to the nations GDP. This dynamic landscape is fundamentally driven by a relentless shift toward digital platforms, which now command a massive 63% 63% share (INR 947 billion) of all Indian ad spend. Powered by advanced Al- driven hyper- targeting, a 50% 50% explosion in e- commerce point- of- sale ads, and the rapid expansion of Connected TV (CTV) networks, advertising continues to dictate content creation and audience engagement strategies across the country.
| Genre | Share Percentage |
| GEC | 30% |
| News | 26% |
| Movies | 22% |
| Music | 10% |
| Others | 8% |
| Kids | 4% |
Digital surpassed traditional advertising for the first time this year, and will drive growth in the sector moving forward. Several factors, including the growth of 5G, rising per capita income of Indians and the growing SME advertiser base, are driving digital ad spends. That said, traditional print, radio and cinema advertising trends also indicate healthy growth in the coming times. The advertising expenditure in India substantially grow in 2025, driven by the resurgence of economic activities post- pandemic. The Indian ad market is expected to see a double- digit growth rate, reflecting strong consumer demand and business confidence.
| Year | Advertising Revenues |
| 2023 | 177.6 |
| 2024 | 176.5 |
| 2025 | 179.3 |
Digital media accounted for nearly all advertising growth in FY 2025- 26, contributing 111% 111% to overall expansion. Traditional formats (excluding television) added a modest 5% 5% . Television advertising, however, declined due to reduced ad volumes and a continued shift in viewership toward Connected TVs, whose revenues are classified under digital media.
Major platforms such as Facebook, Instagram, and X saw strong momentum in ad revenues. Influencer marketing remained a powerful lever, with brands increasingly collaborating with popular creators to engage younger audiences. OTT services including Netflix, Amazon Prime, and domestic players like Jio Hotstar and Zee5 further expanded advertising opportunities. These platforms offered highly targeted campaigns, supported by data- driven insights, opening new avenues for advertisers to reach segmented audiences effectively.
In 2025- 26, distribution in the media and entertainment (M&E) industry has shifted decisively toward digital- first ecosystems, with streaming platforms, connected TVs, and live event ticketing becoming the dominant channels. Traditional distribution models like linear TV and print are adapting, but digital advertising and subscriptions now account for the majority of revenues, fundamentally restructuring how content reaches audiences.
Distribution plays a central role in shaping how content reaches audiences and generates revenue in the modern media and entertainment ecosystem. By 2025- 26, the industry has become digital- first, with distribution channels evolving rapidly to meet consumer demand for accessibility, personalization, and convenience.
Digital platforms dominate distribution, with streaming services, OTT apps, and connected TVs becoming the primary way audiences consume films, shows, and music.
Advertising- led distribution has surged, with digital ads accounting for the majority of industry revenues. Distribution is now tightly linked to monetization strategies like e- commerce ads and targeted campaigns.
Live events highlight the experiential side of distribution, where ticketing and event management platforms ensure reach and engagement.
Hybrid models blend subscriptions, advertising, and licensing, ensuring content is distributed across multiple platforms simultaneously.
Regulatory frameworks directly influence distribution, especially in gaming and news, where policy changes can expand or restrict access.
Looking ahead, the convergence of traditional broadcasting and digital media presents a compelling growth avenue. We anticipate that FM radio operators leveraging their automotive dominance, curated content capabilities, and strong localized brand identity (stationality) will increasingly syndicate their linear or curated feeds onto paid audio OTT platforms. This strategic integration is expected to create a mutually beneficial ecosystem: expanding the digital footprint and monetization avenues for radio broadcasters while simultaneously enriching the premium content libraries of audio streaming platforms.
Radio stations are adapting to ground realities by offering podcasts, social media services, content production, influencer marketing, media and creative services for SMEs, and on- ground events to provide multi- platform solutions to advertisers
Radio companies are focusing on integrated solutions, including content production, event IPs, social media, commissioned podcasts, audio stories, influencer marketing, etc., to their retail advertisers as a one- stop shop. Creating event IPs, brand activation, building communities, international music streaming, content production, digital marketing and influencer marketing were the top contributors to such revenues for radio companies we surveyed.
Radio companies are focusing on building regional shows, with novel and engaging content, which are multi- media in nature, and non- FCT revenues contributed an average 20% 20% of total revenues. Lack of unified and independent third party monitoring continues to be an industry issue.
Three private FM stations were shut down during 2025 due to financial unviability. India had approximately 1,510 operational radio stations, including 388 private FM stations, 591 stations run by public broadcaster Prasar Bharti and 531 community radio stations.
Radio segment revenues declined by 7% 7% in 2025, reaching INR23 billion, primarily due to reduced ad rates. The radio industry is experiencing significant challenges, as certain mobile devices and automobiles are no longer equipped with FM receivers. Non- Free Commercial Time (non- FCT) revenues now account for approximately 25% 25% of overall segment revenues. The radio segment faces an existential threat in India, with many smartphone models not having FM receivers and physical radio buttons being removed from several car models.
Out of Home (OOH) is one of the most effective media to reach affluent consumers, capturing high income audiences who travel frequently and often bypass advertising on premium ad- free digital platforms. To reach out to this audience segment, OOH asset quality has improved significantly, with newer sites offering cleaner designs, brighter displays and better upkeep, delivering a more premium brand experience OOH media in India continued to evolve in FY 2025- 26, encompassing advertising formats such as billboards, transit ads, digital screens, and public installations. Key categories including real estate, education, organized retail, consumer services, FMCG, and other premium segments sustained their investments in OOH assets, underscoring the mediums resilience and dynamism.
Traditional Media: Traditional media grew 10% 10% as it expanded to a larger number of sites and cities.
Digital OOH: Digital OOH assets, across both traditional and transit media, grew significantly and now contribute around 18% 18% of total OOH revenues.
Transit media: Transit media will continue to outpace the wider OOH market, supported by high daily footfalls across more airports, metro stations, railway stations, and bus networks. At present, 30% 30% of the OOH industrys revenue is generated through transit media.
The organized OOH segment grew 13% 13% in 2025 on the back of inventory growth, increased commuter volumes, premiumization of assets and firmed- up rates.
The organized OOH segment grew 13% 13% in 2025 on the back of inventory growth, increased commuter volumes, premiumization of assets and firmed- up rates. 2025 witnessed a clear shift towards premiumization and measurability, with advertisers prioritizing well- curated, high- dwell time locations. The OOH segment is expected to grow at an 8.3% 8.3% CAGR to reach INR85 billion by 2028.
OOH media overall remained on a growth trajectory, supported by transit and digital formats alongside traditional assets. While traditional media still constituted the bulk of the segment, transit and digital formats gained momentum and are expected to surpass premium traditional categories in the coming years. Macro economic drivers such as urbanization and rising affluence further contributed to this expansion.
We expect the segment to provide meaningful coverage across cities with populations of over a million. These markets will be served by large national agencies capable of delivering geographically dispersed OOH campaigns, paving the way for consolidation and partnerships.
During the 2025- 26 fiscal year, Indias music industry underwent a decisive structural pivot, transitioning from an ad- supported volume play to a sophisticated, subscription- led monetization ecosystem. Music streaming had a reach of approximately 178 million active users.
During 2025- 26, the music industry in India made a major shift from relying on free, ad- supported streaming to focusing on paid subscriptions. Instead of just trying to get the highest number of casual listeners, music platforms began offering exclusive features and premium benefits to convince people to buy paid plans. At the same time, companies started focusing heavily on artist services- which includes managing talent, organizing live tours, and setting up brand partnerships. This growth in supporting artists directly has become essential for creating long- term income and building stronger connections between musicians, fans, and businesses.
Indias music industry is pivoting from ad- supported growth to a subscription- led monetization model, anchored by premium differentiation. The scalable expansion of artist services will be essential to delivering sustained, long- term value for artists, fans, and stakeholders.
The Indian music segment, measured as revenues earned by music labels from licensing and other income, grew by 10% 10% to reach INR59 billion in 2025. The market has the potential to grow the number of paid subscribers between 28 and 30 million by 2028, driven by telco bundling, e- commerce bundling and tiered offerings. The music segment is expected to grow at a CAGR of 9% 9% to reach INR75 billion by 2028.
Digital licensing garnered 58% 58% of music segment revenues, comprising revenues earned from music streaming platforms, YouTube, social media platforms and from telecom operators, as digital consumption became the preferred mode of consumption Music streaming reached an audience of approximately 178 million2 who heard 5.8 trillion streams during the year, a 15% 15% growth over 2024.
Industry discussions indicated that the tightening of free tiers by streaming platforms reduced the reach and monetizable base for songs. In addition, reduced per- stream rates and higher minimum stream count thresholds reduced revenues for some creators.
Podcasting has emerged as a mainstream media format, transitioning from niche audio content into a significant channel for entertainment, advertising, education, and brand storytelling. Corporates increasingly utilize podcasts to strengthen customer engagement, while creators leverage subscriptions, sponsorships, and integrated video formats to establish recurring revenue streams. Global platforms such as YouTube and Spotify continue to enhance discovery through artificial intelligence- driven recommendations and cross- device listening experiences.
In India, the podcast market has demonstrated robust growth during the year under review, supported by rising internet penetration, increased smartphone adoption, and evolving consumer preferences towards audio- based content. With a diverse population and multiple regional languages, podcasts in India span genres including comedy, storytelling, business, technology, and spirituality. Both established platforms and independent creators have invested in content creation and distribution, thereby expanding reach and monetization opportunities. Advertisers have begun to recognize podcasts as an effective medium for targeted communication, resulting in enhanced prospects for revenue generation.
Despite the encouraging trajectory, the industry continues to face challenges. Monetization remains constrained due to relatively modest advertising allocations compared to other media channels. Additionally, the absence of standardized audience measurement metrics restricts the ability of creators to demonstrate reach and impact to advertisers.
The outlook for the Indian podcast market remains positive, with strong growth anticipated in the coming years. Factors such as increasing internet penetration, smartphone usage, and changing consumer preferences towards personalized, on- the- go content are expected to drive adoption. Local content creation across diverse genres and regional languages is likely to expand further. With rising listenership and content innovation, the podcast industry is poised for sustained expansion and continues to represent a promising segment within the broader media and entertainment sector.
Indias labour law reforms mark a defining moment in the evolution of the countrys employment framework. With the implementation of the four Labour Codes, namely the Code on Wages, the Industrial Relations Code, the Code on Social Security and the Occupational Safety, Health and Working Conditions Code, India has moved from a fragmented, statute heavy regime to a consolidated and principles based system.
While the reforms apply economy wide, their implications are significant for the M&E sector, which is an industry that has always operated differently from traditional industries. Newsrooms, film sets, digital studios, advertising agencies, OTT platforms and creator ecosystems thrive on project based engagement, per assignment remuneration and hybrid professional identities. The distinction between an employee an independent contractor and a freelancer has often been shaped more by industry convention than by legal precision. The New Labour Codes subtly challenge that informality.
Today, journalism is digital first, cinema often streams directly to homes and content creators operate outside of conventional studio systems. The Labour Codes respond to this transformation by embedding media professionals within a unified, sector agnostic employment regime. This integration increases coherence, but it also removes the comfort of bespoke protections and industry specific wage mechanisms.
The implementation of Indias Labour Codes marks the beginning of a transition rather than its conclusion. Much will depend on the evolution of state- level rules, industry practices and judicial interpretation. For the M&E sector, the challenge and opportunity lie in navigating this transition thoughtfully.
The B.A.G. Films and Media Limited (herein after referred as BAG or the Company) established in 1993, is one of the leading integrated media and entertainment brands in India. The Company continued to strengthen its presence across broadcasting, distribution, audio, television software producer, digital content creation, and production verticals.
Companys holds the distinctive position of producing programs across diverse genres, catering to a wide spectrum of channels and audiences. Recognizing the significant potential of the digital market, the Company has formulated comprehensive plans to develop content specifically for digital platforms. The Companys extensive expertise and experience is testified in its numerous successful TV shows and milestones, well received by viewers across the country.
With an industry presence spanning over three decades, BAG remains steadfast in its commitment to consistently deliver quality and engaging content across age groups, formats, and platforms - encompassing both news and non- news segments. The Companys extensive expertise and experience are reflected in its numerous successful television shows and milestones, which have been well received by viewers nationwide.
The Company Serves as the central archival repository for thousands of hours of audio- visual media content produced across television shows, non- fiction dramas, serials, and news broadcasts (such as News24 and E24). It was built to support 24- hour broadcasting environments. The digital library enables newsroom editors to search, retrieve, and incorporate archival footage into live feeds with minimal latency to reduce time- to- air.
Digital and AI (D&AI) remained central of the Companys growth agenda in FY 2025- 26, driving impact across viewer engagement, business growth, operations and new program development. AI enables digital channels and partner integrations expanded market reach supported by vision based AI solutions that enhance content production and distribution effectiveness.
Going forward, D&AI will focus on viewer and customer experience, enterprise capability enhancement and cyber resilient growth.
BAG plans to create and deliver popular, high- quality programming for catering to not only domestic but also to the demands of international viewership and expects to earn high returns for its stakeholders. We have demonstrated an exceptional ability to consistently create high quality content to excite the Indian audience. We ensure proper and strategized distribution of our content in collaboration with our channel partners.
BAG create content for television and social media as well as across genres to cater to the entertainment needs of our viewers across age groups.
BAG continues to shape regional media narratives while adapting to digital trends.
We realized that to scale up in a meaningful way, we would need to make, own and broadcast our own content and be present across the entire value chain of the media and entertainment industry.
During the year under review, the Company has produced successful programmes like Amne Samne, Sabse Bada Sawal, News Shatak, Mahaul Kya hai, kalchakra, Bollywood Reporter, U, Me aur TV and Bhangra Junction, across different channels and strengthened its presence.
The Company provides specialised advisory and consulting services in television channel placement and distribution, helping broadcasters and media companies expand their reach and strengthen their market presence. Services include strategic guidance on channel placement, distribution networks, platform partnerships, commercial arrangements, and market opportunities. The Company leverages its industry knowledge and media expertise to develop effective distribution strategies, improve channel visibility, and create sustainable commercial value for its clients.
Revenue from this segment is generally earned in the form of consultancy fees, advisory fees, professional charges, carriage fee, retainers, success- based fees, facilitation charges and other service- related consideration, as applicable under the relevant agreements.
During FY 2025- 26, BAG reinforced its position as a leading content creator in the Indian broadcasting space. The Company continued to deliver impactful programming through its flagship News24, a 24x7 Hindi news channel, and E24, a Bollywood and lifestyle entertainment channel. Both channels maintained strong audience engagement by combining credible journalism with innovative entertainment formats.
The Companys content creation strategy emphasized original programming, in- house production capabilities, and efficient cost management. News24 strengthened its editorial depth with solution- oriented news coverage, while E24 expanded its entertainment portfolio with celebrity features, music programming, and lifestyle shows. In addition, B.A.G. leveraged its other channels and digital platforms to diversify offerings, ensuring relevance across demographics and formats.
Recognizing the rapid growth of digital consumption, BAG has intensified its focus on producing original content for digital platforms. The Company has initiated structured plans to expand its footprint in the OTT and online media space, leveraging its creative expertise to capture emerging opportunities in the digital ecosystem. By integrating television and digital content pipelines, the Company enhanced its ability to deliver multi- platform experiences. This approach not only optimized reach but also positioned BAG as a future- ready enterprise, capable of adapting to evolving viewer preferences and industry trends
During the financial year, the leasing segment of the Company continued to act as a resilient source of fixed income.
During the year under review, the Company continued to utilize leased media equipment to support its production and broadcasting operations. Leasing arrangements have enabled the Company to access advanced technology without incurring significant capital expenditure, thereby ensuring operational efficiency and flexibility.
The Company has also entered into property lease arrangements for office premises and studio facilities. These leased properties provide the necessary infrastructure for administrative, creative, and production activities. The leasing strategy allows the Company to maintain operational agility, expand its footprint in key markets, and manage long- term commitments prudently.
During the financial year ended March 31, 2026, the Company actively expanded its presence in the digital audio and podcast ecosystem. Utilizing its established media networks including News24, E24 and Dhamaal24, the podcast division delivered original, multi- genre audio content across national and regional distribution platforms.
News24, a news channel operated by News24 Broadcast India Limited one of its subsidiary, has carved out a strong presence in Indias media landscape. Its a 24- hour national Hindi news channel thats widely available across the country via both cable networks and DTH platforms like Airtel Digital TV and DishTV.
During FY 2025- 26, News24 continued to strengthen its position as a credible Hindi news channel, delivering timely and impactful coverage across national and regional issues. The channel maintained consistent viewership and reinforced its editorial standards, thereby enhancing its reputation in the competitive news broadcasting space.
The Companys extensive reach and consistent viewer engagement have established News24 as a trusted source of information for Hindi- speaking audiences across India.
The digital revolution has significantly enhanced our footprint. News24 maintains a strong presence across platforms such as YouTube, Facebook, Instagram, and other social media channels, collectively garnering a subscriber base of approximately 27 million across its YouTube channels. Notably, News24 has been conferred the prestigious Diamond Play Button by YouTube, an accolade awarded to channels surpassing 10 million subscribers. This recognition stands as a testament to the Companys growing digital popularity and audience trust.
On the television front, flagship programmes such as Aamne Saamne, Sabse Bada Sawal, News Shatak, Mahaul Kya Hai, Tajas- 24, 4 Baje 24 Reporters, Rashtra Ki Baat, Jo Kahenge Such Kahenge, Bee Toktok, Nispaksh News, and Kalchakra cover a wide spectrum of genres in news reporting. These shows have been received exceptionally well by audiences nationwide. In particular, Kalchakra, Sabse Bada Sawal, Mahaul Kya Hai, and Aamne Saamne have consistently achieved remarkable TRPs and viewership ratings.
These programmes represent innovative approaches to news reporting, contributing significantly to the channels viewership and ratings. The Companys strong performance across both digital and television platforms has reinforced News24s prominent presence in the Indian media industry.
NEWS24 MPCG: The Company further strengthened its presence in the Hindi heartland through the growing popularity of its regional channel, NEWS24 MPCG, operated by its subsidiary News24 Broadcast India Limited. Aligned with our strategic objective to deepen the network footprint across this key region, NEWS24 MPCG - the dedicated Hindi news channel for Madhya Pradesh and Chhattisgarh - delivered a commendable performance during the financial year 2025- 26.
During the fiscal year under review, NEWS24 MPCG fortified its presence as one of the leading regional Hindi news channels in its target territory. Capitalizing on an unceasing regional news demand from a consumer base of over 150 million, the channel has delivered robust viewership matrices across traditional linear networks and extended digital/social media platforms, reinforcing the networks overall brand leadership and operational resilience.
E24 Glamour Limited, an unlisted subsidiary of BAG based in New Delhi, manages the Groups flagship 24- hour television channel, E24. Operating in the broadcasting and entertainment domain, the channel focuses on Bollywood news, celebrity updates, music, and lifestyle content.
E24, the Companys entertainment and Bollywood- focused channel, sustained its appeal among younger audiences by offering engaging celebrity news, film updates, and entertainment features. The channels differentiated positioning in the infotainment segment contributed to steady audience traction and advertiser interest.
During the year under review, the channel successfully produced and telecast popular programs including Bollywood Reporter, U, Me or TV, Insta Stalker, Bollywood Top 10, Jakass Mornings, Bhangda Junction, Hot Hits, Party on my mind, and Karaare Hits. The subsidiary also expanded its content portfolio by acquiring rights to broadcast movies.
The company continues to research, test, and adopt new revenue models to capture evolving viewership habits. With the rapid growth of social media, artists are engaging directly with audiences to build personal brands, creating new avenues for cross- platform marketing, digital synergies, and diversified revenue streams.
Darshan24: Enhancing spiritual and cultural Dissemination operated under E24 Glamour Limited, Darshan24 is a 24x7 Hindi- language devotional and spiritual television channel. Positioned as a prominent Free- to- Air (FTA) offering, Darshan24 caters to the deeprooted cultural and spiritual needs of a vast pan- India demographic. The channel provides an engaging blend of religious programming, cultural discourses, and devotional content, consistently building high- affinity viewership. In line with current market trends favoring high- reach FTA channels, Darshan24 serves as a crucial vehicle for expanding our networks footprint across tier- 2, tier- 3, and rural markets, delivering robust, brand- safe advertising environments for our corporate partners.
Your FM radio station, on frequency 106.4 in the name of Dhamaal24 - Har Khushi hai Jahan is now the voice of the regions and its many shows are household names in all ten cities where it is operational i.e. Hissar, Karnal, Patiala, Ranchi, Muzaffarpur, Dhule, Jalgaon, Ahemednagar, Simla and Jabalpur.
Dhamaal24 celebrates life and encourages viewers to live it to the fullest. The channel offers a slice- of- life approach to infotainment and entertainment, with programming designed to engage and delight regional audiences. Our shows are carefully curated to maximise listenership and resonate with local tastes, ensuring strong viewer connection and sustained audience interest.
The Company has prepared its standalone and consolidated audited financial statements as per Indian Accounting Standards (Ind AS) for the financial year 2025- 26. The standalone and consolidated performance of the Company and its subsidiaries, for the year under review along with previous year figures are given below:
(Rs. in Lakhs)
| Particulars | Standalone | Consolidated | ||
| 2025-26 | 2024-25 | 2025-26 | 2024-25 | |
| Total Income | 4411.50 | 3,817.80 | 15121.99 | 13,996.31 |
| Total Expenditure other than Financial Costs and Depreciation | 3516.85 | 3,160.33 | 13226.93 | 11,523.60 |
| Profit before Depreciation & Financial Charges | 894.65 | 657.48 | 1895.06 | 2,472.71 |
| Financial Charges | 360.28 | 364.58 | 817.30 | 837.16 |
| Depreciation and Amortisation Expense | 108.57 | 138.72 | 308.36 | 411.29 |
| Profit before Tax | 425.80 | 154.18 | 769.41 | 1,224.26 |
| Provision for Tax | 45.57 | 45.23 | 265.38 | 225.23 |
| Profit after Tax | 380.23 | 108.95 | 504.02 | 999.03 |
| Proposed Dividend | Nil | Nil | Nil | Nil |
The details of the financial performance of the Company are appearing in the Balance Sheet, Profit & Loss Account and other financial statements appearing separately.
The Indian media and entertainment (M&E) industry is buzzing with potential and driven by a combination of factors such as digital transformation, increasing internet penetration, and a diverse and dynamic consumer base. However, the industry also faces several challenges that could impact its growth trajectory. This note provides a detailed analysis of the opportunities and threats in the Indian M&E industry.
Heres a segment-wise breakdown of the key opportunities in the Indian Media and Entertainment Industry:
1. Digital Expansion: Indias internet penetration (over 900 million users) and affordable data costs continue to fuel OTT, gaming, and digital advertising growth.
2. Regional Content Growth: Rising demand for vernacular and regional language content offers scope for deeper market penetration beyond metros.
3. Global Reach: Indian films, music, and OTT platforms are gaining international audiences, opening export opportunities and cross-border collaborations.
4. Advertising Upside: Digital advertising is projected to grow at ~10%~10% annually, with influencer marketing and programmatic ads driving innovation.
5. AI & Technology Integration: AI-driven personalization, recommendation engines, and content automation enhance consumer engagement and reduce costs.
6. Gaming & Esports: Indias gaming industry is expected to surpass 500 billion by 2028, creating synergies with media and entertainment platforms.
The Company intends to strengthen this vertical by:
Expanding the advisory team with specialized expertise in digital distribution
Developing proprietary analytics tools for placement optimization
Building strategic partnerships with technology platforms for data-driven recommendations
Heres a detailed breakdown of the key challenges and threats facing different segments of Indias Media and Entertainment industry:
Unauthorized distribution of films, music, and OTT content continues to erode revenues.
Enforcement remains difficult across jurisdictions despite stronger intellectual property laws.
Rising incidents of ransomware, phishing, and data breaches threaten consumer trust.
Protection of subscriber data and digital assets is a critical compliance challenge.
Stricter rules on digital advertising, influencer marketing, and content moderation increase compliance costs.
Frequent policy changes create operational uncertainty for broadcasters and OTT platforms.
Global streaming giants (Netflix, Disney+, Amazon Prime) compete aggressively with Indian players.
Escalating content costs and consumer churn threaten profitability.
Al- generated content raises copyright disputes.
Deepfakes pose reputational risks for artists and companies, requiring proactive monitoring.
Social media amplification of misinformation undermines credibility of traditional media.
Regulatory scrutiny and reputational damage are growing concerns.
The segment wise performance has been shown elsewhere in the Annual Report.
The Indian media and entertainment (M&E) industry is diverse and dynamic, encompassing various segments such as television, film, digital media, print, music, radio, and live events.
Our main businesses are:
1.Creating original and diverse show content;
2. Exploring opportunities across channels, languages;
3. Building our marketing and distribution capabilities;
4. Creating newer show formats for television content;
5.Leveraging opportunities in regional markets by expanding network.
6. Growing integration of linear TV and OTT distribution requiring hybrid strategy consulting.
7. Increasing demand of regional and niche content channels requiring distribution advisory.
The Indian media and entertainment industry is undergoing a transformative phase, with digital media leading the growth trajectory. While traditional segments like television and print face challenges from digital disruption, they continue to hold significant value. The film and music industries are leveraging digital platforms to expand their reach, and live events are rebounding with hybrid formats. Overall, the industry is set for continued growth, driven by technological advancements, innovative content, and evolving consumer preferences. Addressing challenges such as piracy, regulatory changes, and monetization strategies will be crucial for sustained success.
The Indian media and entertainment (M&E) industry is a rapidly evolving sector with significant growth potential. Your Company continuously tracks, assesses, and mitigates several evolving risk vectors that could impact business operations, financial performance, and stakeholder value. However, it also faces several risks and concerns that could impact its progress.
Being a content driven entity, we are strengthening our intellectual property to ensure cost optimization at all levels. The four key pillars that continue to influence the digital Media and Entertainment space are infrastructure; mobility, government policy and digital technologies. We continue to have a readily available database of our IP, such as scripts, dialogues, clips and other content. The following risks and challenges are affecting our business:
1. Regulatory and Compliance Volatility: The M&E sector operates under a tightening regulatory lens. Constant evolution in regulatory frameworks creates compliance pressure. Phased implementation of the Digital Personal Data Protection (DPDP) Act necessitates costly systemic overhauls in data architecture for streaming platforms. Additionally, shifting self-regulation policies for over-the-top (OTT) content require continuous monitoring to prevent legal liabilities.
2. Digital Disruption: The rapid migration of audiences to OTT and digital platforms continues to erode broadcasting revenue. Fragmentation of consumer attention has increased content acquisition costs and reduced predictability of revenue streams.
3. Advertising Dependence: Advertising remains the primary source, but is highly vulnerable to macroeconomic cycle. FY 2025-26 witnessed volatility in ad spends due to inflationary pressures and shifting consumer behaviour.
4. Censorship and Content Standards: Stringent content regulations and censorship laws can limit creative freedom and affect the type of content produced. The lack of clear guidelines can lead to arbitrary decisions, impacting the industrys ability to innovate and address diverse audience interests.
5. OTT Regulation: The increasing scrutiny and potential regulation of OTT platforms could affect the flexibility and variety of content offered. New policies might impose restrictions on content types, age ratings, and advertisements, posing challenges for content creators and distributors.
6. Cybersecurity Threat: Rising incidents of ransomware, phishing, and data, breaches pose significant operational and reputational risks. Whereas, Protection of subscriber data and intellectual property remains a critical compliance requirement.
7. Digital Piracy: Unauthorized distribution of films, music, and gaming content continues to undermine revenues. Piracy remains a significant concern, especially with the easy availability of pirated content online. This not only affects revenue but also undermines the value of original content.
8. AI and deep fake risks: AI-generated content raises copyright disputes, while deepfakes pose reputational and legal challenges.
The Board remains committed to proactive risk management through structured planning, innovation, and adaptive measures, thereby safeguarding sustainable growth and competitiveness in this dynamic sector.
While the Indian Media and Entertainment industry remains poised for sustained growth, it continues to operate within a dynamic environment characterized by regulatory, technological, economic, audience- driven, and operational challenges. The Board recognizes that addressing these risks through structured strategic planning, innovation, and adaptive measures will be critical to ensuring long- term growth, safeguarding compliance, and maintaining competitiveness in this evolving sector.
The Company has established a robust internal control framework, commensurate with the size and nature of its business operations. These controls are designed to address governance, compliance, audit, control, and reporting concerns that may impact its operations. These internal controls play a vital role in ensuring regulatory compliance, protecting assets, preventing fraud, and ensuring the accuracy of financial reporting. The Companys internal auditors are responsible for regularly monitoring and evaluating the effectiveness of these internal control systems. Any significant findings are promptly reported to management for swift corrective action.
The Audit Committee of the Board of Directors is active in checks and balances that ensure the adequacy and effectiveness of the internal control systems. This committee suggests improvements to strengthen the internal controls and ensure their ongoing effectiveness. The CMD/CFO Certification provided elsewhere in the report discusses about the adequacy of our internal control systems and procedures.
BAG considers Human Resources to be one of the key drivers of sustaining competitive advantage in the News Media sector. Media organizations are fundamentally human- driven, and their growth is directly dependent upon the quality of contributions made by individuals within the organization. Accordingly, the Company recognizes Human Resources as a critical component in facilitating organizational growth and long- term success.
The Company provides regular training and development programmes to its employees to ensure that they are equipped with the requisite skills and knowledge to perform their roles efficiently. These initiatives include on- the- job training, mentoring, coaching, and structured leadership development programmes, thereby fostering a culture of continuous learning and professional advancement.
The Company aims to recruit, nurture, and retain talented professionals while providing them with a high- performance environment. Knowledge and intellectual assets are strategically shared across the organization to strengthen collective capability. The Company has 18 permanent employees on the roll of the Company as on March 31, 2026. At BAG, the potential of Human Resources and their contribution to the Companys financial standing are well recognized. Accordingly, human capital is highly valued and regarded as a cornerstone of organizational success.
I. KEY FINANCIAL RATIO
As per the SEBI Listing Regulations, the company is required to give details of significant changes (i.e. 25% 25% or compared to the immediately previous financial year in key-sector-specific financial ratio. The Company has following significant changes in any key financial ratio during FY 2024-25 and FY 2025-26. Details of movement in key financial ratios are here under:
(Rs. in Lakhs)
| Particulars | 2025-26 | 2024-25 | Growth (in %) | Reason of Changes |
| Revenue from Operation | 4,405.25 | 3,814.28 | 15.49 | Reasons for percentage increase in PBT, EBITDA, PAT, Net Profit Margins, Interest Coverage Ratio and Return on net worth are: |
| Gross Margin | 0.26 | 0.23 | 13.04 | 1. There have been increase in the revenue from operations. |
| EBITDA | 894.64 | 657.48 | 36.07 | 2. Increase is due to increase in content production expenses, which is shown as increase in the finished stock. This will be realisable in near future. |
| PBT | 425.80 | 154.18 | 176.17 | |
| PAT | 380.23 | 108.95 | 248.99 | |
| Current Ratio | 1.60 | 1.01 | 58.42 | |
| Net Profit Margins | 8.63 | 2.86 | 201.75 | |
| Debt Equity Ratio | 0.15 | 0.13 | 15.38 | |
| Interest Coverage Ratio | 2.18 | 1.42 | 53.52 | |
| Return on Net Worth | 1.40 | 0.41 | 241.46 | |
| Debtors Turnover | 4.21 | 4.04 | 4.21 | |
| Inventory Turnover | 1.33 | 1.17 | 13.68 |
We acknowledge that certain projections within this discussion are forward- looking and may be subject to variations due to dynamic factors such as regulatory shifts, economic fluctuations, and market competition. Our analysis includes internal estimates regarding market size and growth rates across various segments, other internally developed data, publicly available information, and additional sources the Company considers reliable. We also remain committed to transparency and aim to provide stakeholders with a comprehensive understanding of our financial trajectory and strategic initiatives, ensuring sustainable growth and value creation.
(*Source of information: Stories, Scale and impact unlocking Indias Media and Entertainment Economy, FICCI- EY- Report 2026)
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