B A G Films & Media Ltd Management Discussions

[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 Report focusing on business performance and outlook within the competitive landscape set by B.A.G. Films and Media Limited ("BAG/the Company").

A. INDUSTRY STRUCTURE AND DEVELOPMENT

The Indian Media and Entertainment (M&E) industry is one of the important sector for the Indian economy and is making significant strides. The Indian M&E sector saw a transformative growth in 2024, fuelled by cutting-edge technology adoption, a surge in regional content demand, and the convergence of traditional and digital platform.

In 2024, generative AI (GenAI) tools created an impact in the Indian M&E sector, driving innovation across content creation, postproduction and distribution. However, the best is yet to come, as these tools increase their adoption in 2025 and 2026.

The adoption of AI-powered search engine across various M&E platforms is revolutionizing user experiences through personalized content suggestions. AI driven algorithms have improved the accuracy of content recommendations by 25%, enhancing user engagement. This improved performance is not only boosting audience engagement but is also expanding the user base. Thus, reflecting the industrys commitment to innovation.

The media and entertainment industry is undergoing significant transformations in 2024-25, driven by technological advancements, shifting consumer behaviour, and evolving business models. Here are an overview of the industrys structure and development:

Key Trends:

Digitalization: The industry is increasingly shifting towards digital platforms, with streaming services and social media playing a central role in content consumption.

Generative AI: AI-powered content creation is gaining traction, with applications in video, text, animation, and audio production. This trend is expected to continue, with 54.54% annual growth rate in generative AI adoption.

Immersive Entertainment: Augmented reality (AR), virtual reality (VR), and mixed reality (MR) are becoming more prominent, with the immersive entertainment market expected to grow.

Streaming Services: Streaming services are looking to consolidation, live sports, and ad-based revenue to drive growth, with the global OTT video market projected to reach INR 4.05 Trillion by 2030.

Industry Structure:

Segmentation: The media and entertainment industry can be segmented into broadcasting, digital media, _lm and television, music, gaming, publishing, sports, and advertising.

Growth Drivers:

5G Networks: The adoption of 5G networks is expected to drive growth in mobile video consumption, with average mobile video session length increasing to 35 minutes in fully covered 5G markets.

Increasing Internet Penetration: Growing internet penetration is changing the way people consume media and entertainment, with digital platforms becoming increasingly popular.

Changing Consumer Behaviour: Consumers are shifting towards online entertainment, with streaming services and social media becoming more popular.

In 2024, 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% 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.

MEDIA GROWTH ESTIMATES*

Segment	2019	2022	2023	2024	2025E	2027E	CAGR 2024- 2027
Television	788	726	711	679	676	667	(-)0.6%
Digital Media	308	571	686	802	903	1,104	11.2%
Print	296	250	259	260	262	267	0.9%
Online gaming	64	222	236	232	260	316	10.8%
Filmed Enter- tainment	191	172	197	187	196	213	4.3%
Animation and VFX	95	107	114	103	113	147	12.5%
Live events	83	73	88	101	119	167	18.2%
Out of Home Media	51	48	54	59	66	79	10.2%
Music	15	46	54	53	60	78	13.4%
Radio	31	21	23	25	27	30	6.6%
Total	1922	2237	2422	2502	2682	3067	7.0%
Growth		23.3%	8.3%	3.3%	7.2%

All figures are gross of taxes (INR in billion) for calendar years : FICCI-EY Report 2025 estimates

Indian M&E industry continued to grew by 3.3% in 2024, reaching INR 2.5 Trillion, 30% above its pre-pandemic levels in 2019 level. Digital media overtook television for the first time to become the largest segment, contributing 32% of M&E sector revenues. We expect the M&E sector to grow 7.2% in 2025 to reach INR 2.68 Trillion, and then grow at a CAGR of 7% to reach INR 3.07 trillion by 2027. During the year 2024, the M&E sector contributes 0.73% to Indias GDP. The share of traditional media (television, print, filmed entertainment, live events, OOH, music, radio) together saw their revenues drop by 3% and their shares stood at 41% of M&E sector revenues in 2024. New media, comprising digital and online gaming, led the growth in 2024, contributing INR 113 billion and consequently, increased its contribution to the M&E sector from 38% in 2023 to 41% in 2024.

While traditional media, such as television and radio, continue to dominate the market reaching 800 and 400 million consumers respectively, digital has truly caught up, recording a reach of 600 million. While print, with a reach of 300 million, and cinema with 100 million, may appear smaller, they continue to remain essential in shaping the future of the industry.

Experiential (outside the home and interactive) segments continued their strong growth in 2024, even as online gaming, filmed entertainment, live events, and OOH media segments grew at a combined 18%, contributing 48% of the total growth.

Challenges:

The industry is highly competitive, with streaming services and social media platforms competing for audience attention and advertising dollars.

INDUSTRY SIZE AND PROJECTION

Everyone wants to stay entertained, especially in a world filled with uncertainty and media and entertainment companies are facing uncertainties of their own. After robust 10.6% growth in 2021 and a notable surge in industry growth after the pandemic receded, the pace of growth in the entertainment and media industry is projected to decline in each of the next four years 2024 – 2027. The analysts expect the annual industry growth rate to level out at 2.8% by 2027, underscoring a recalibration in the media and entertainment industry.

Amidst this recalibration, digitalization continues to shape the media and entertainment industry. Equip yourself with valuable insights into media and entertainment industry trends that will affect the industry.

Companies are aggressively expanding vernacular content to tap into deeper and previously underserved markets. As a result, despite an increase in the time spent accessing entertainment and media content, consumer spending per capita in the digital entertainment and media industries is expected to decrease in upcoming years.

The M&E sector has entered an era of innovation and transformation as organisations seek to increase their relevance and appeal to both popular and more niche consumers. Traditional businesses – print, radio, broadcasting – are witnessing the greatest change with digital platform companies emerging as the primary disruptors. The biggest beneficiaries are the Indian consumers who have greater flexibility and choice in their M&E consumption and have finally found their place at the centre of the entire ecosystem.

Television

The Television has always been a way for families to spend time together and build discuss stories and character.The future of the Indian television market looks promising with continuous technological advancements and increasing consumer demand for high-quality content and smart TV features. The market is expected to see further growth in UHD and smart TV segments, driven by innovations and expanding internet penetration across the country.

During the year under review, the number of television channels increased from 899 to 936 channels. Total TV screens will increase from 190 million in 2024 to 214 million by 2026, with the mix changing significantly in favor of connected TVs today. The situation post 2026 could be quite different, once wired broadband crosses 60 million to 70 million homes and 5G connections scale significantly. At this point, we expect connected TVs to start scaling more quickly, and reach 100 million by 2030, while linear TV homes drop to 140 million, of which 57 million would be free TV homes.

Television continued to degrow in 2024

Segment	2022	2023	2024	2026E
Advertising	334	312	294	330
Distribution	392	398	385	435
Total	726	711	679	765

INR billion (gross of taxes) : FICCI-EY Report 2025 analysis

Television revenues fell for the second year in a row, despite viewership remaining largely fiat. Advertising revenue fell 6% on the back of a corresponding fall in ad volumes and a 10%+ fall in advertisers on the medium. Subscription revenues fell 3% due to a reduction in six million Pay TV homes as both Free TV and Connected TV homes grew. Connected TVs (whose revenues are included under digital media) grew to around 30 million, up from 23 million in December 2023.

TV segment revenues fell 4.5% in 2024, for the second year in a row after a 2% fall in 2023. TV advertising revenue fell 6% on the back of similar ad volume reduction and a 12% reduction in brands using television Distribution revenue fell 3% on the back of a 6% reduction in Pay TV households (a loss of 6 million paying subscribers to 111 million) and a small increase in ARPU to INR281 (gross of taxes Active connected TV sets reached 50 million, of which around 30 million connected to the internet weekly Factors impact growth of time spent on television include:

• Rising popularity of YouTube, which has around 467 million monthly users as of end of 2024 and provides a relatively free multi-lingual and individually curated Indian and global content palette, including certain premium content from broadcasters and studios.

• Growth of social media, short video and gaming, which all compete for the consumers free time, and have achieved a reach in excess of 400 million.

• Availability of high quality and niche content on OTT streaming platforms, which caters to niche and more a_uent audiences.

• Growth of wired and wireless broadband to around 38 million households, and sale of smart TVs, which are growing consumption on that distribution channel BARC.

Digital Media

Digital media has completely reshaped how the media industry creates, distributes, and monetizes content. It is not just a shift in format but it is a full-blown revolution. Digital media has not just added new tools but itis rewritten the rules. Traditional media outlets are adapting fast, but digital-native platforms are leading the charge.

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.

Growth in Digital Media Sector:

Digital media grew 17% in 2024 and was the fastest growing segment of the Indian M&E sector. For the first time in 2024, the digital media segment became the largest segment of the Indian M&E sector at INR802 billion, overtaking television. Digital media now accounts for 32% of the Indian M&E sector and India has, in effect, reached its digital in_ection point. Subscription accounted for just 13% of total revenues, due to the large advertising models in play in India, led by Google and Meta, as well as the growing advertising revenues earned by e-commerce platforms. Enhanced digital engagement led to different patterns in content consumption and advertising.

Digital Media grew 17% in 2024

Service	2021	2022	2023	2024
Advertising	383	499	597	700
Subscription	56	72	89	102
Total	439	571	686	802

INR billion (gross of taxes), including SME ad spends :FICCI-EY Report 2025 analysis

Here are some factors supporting digital growth under media and entertainment industry:

• Telecom subscriptions remained stable at 1.2 billion in 2024. 5G adoption crossed 270 million subscriptions, though 4G subscriptions still dominated. 4G and 5G subscriptions are estimated to grow 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 a_uent households.

• According to data published by Ookla in December 2024, India ranked 23rd in the world for mobile speeds and 93rd for fixed broadband speeds, with the median mobile internet connection speed via cellular networks at 103.75 Mbps and the median fixed broadband connection speed being 62.62 Mbps.

• Time spent on media (including social media, _lms, entertainment, music and casual games) increased to 779 billion hours (69% of total time spent) in 2024.

• 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 Net_ix, Amazon Prime, and Disney+ Hotstar are changing content consumption habits.

• E-commerce advertising grew 50% to reach INR147 billion to garner 21% of total digital advertising as more brands used online channels like Amazon, Flipkart, Jio, Nykaa, Myntra etc., to drive brand awareness and sales, these platforms seen as being closest to the point of consideration and purchase.

The 5G technology will unlock the potential of entertainment for Communications Service Providers (CSPs) enabling them to capitalize on mobile media growth and provide content over the internet without the involvement of an IPTV, cable, or satellite provider. Technical limitations, including slow and unreliable networks, have historically made it difficult to deliver digital media, entertainment, and advertising content. 5G will help companies serve higher-quality, interactive, and immersive experiences across a wider variety of connected devices. It will also enable marketers to collect more accurate and granular data to personalize messaging.

Advertisement

Indias media and entertainment (M&E) industry is undergoing a dramatic transformation and advertising is right at the heart of it. The Indian entertainment industry, one of the largest and most dynamic sectors globally, is significantly influenced by advertising. In 2024, advertising continues to play a pivotal role in shaping the industrys landscape, driven by technological advancements, evolving consumer preferences, and the proliferation of digital platforms.

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 2024, 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.

Advertising growth is keeping pace with Indias nominal GDP growth across 2023 and 2024. In 2024, advertising grew 8.1% compared to the nominal GDP growth of 8.7%. Advertising reached its highest ever level in 2024, of INR1.28 trillion. Advertising comprises 51% of the total M&E sector in 2024, and 0.38% of Indias GDP Internet advertising in India is projected to grow at a 15.9% CAGR, making it the fastest in Asia-Pacific and second-fastest globally. Revenues from connected TV ads are forecast to reach USD 51 billion globally by 2029, with India contributing significantly.

In 2025, the Indian entertainment industrys advertising landscape is marked by rapid growth, digital transformation, and evolving consumer behaviour. While digital platforms are leading the charge, traditional media continues to hold significant value. The key to success for advertisers lies in leveraging technology, embracing innovative ad formats, and maintaining a consumer-centric approach to create impactful and engaging advertising campaigns.

Digital advertising is set to overtake traditional media, accounting for a significant share of the total ad spend. With the increasing internet penetration and smartphone usage, brands are leveraging digital platforms to target specific audiences effectively. Despite the rise of digital, television remains a dominant medium for advertisers due to its extensive reach and impact. Innovations such as addressable TV and interactive ads are enhancing viewer engagement and providing better ROI for advertisers. Platforms like Facebook, Instagram, and Twitter are witnessing a surge in ad revenues. Influencer marketing continues to be a powerful tool, with brands collaborating with popular influencers to reach younger demographics. OTT (Over-The-Top) Services: The growth of OTT platforms like Net_ix, Amazon Prime, and local players such as Jio Hotstar and Zee5 has opened new avenues for advertising. These platforms offer targeted advertising opportunities through data-driven insights.

Advertising revenues grew 8.1%, led by: (i) performance advertising on digital media, including spends on e-commerce platforms, (ii) growth in demand for premium and digital OOH media, (iii) resilience of print and radio retail revenues. However, there was a fall in both subscription and animation and VFX revenues. Subscription revenues were impacted by a reduction in Pay TV homes of six million falling theatrical admissions and a relatively poor performance by _lms at the box office, with revenues falling 5.6% fall in transaction gaming revenues post the implementation of a higher GST on real money games. Content and content services volumes were also impacted by the drop in subscription revenues.

Television advertising dragged growth down by 20%, driven by a decline in ad volumes and a shift in viewership to connected TVs, whose revenues are counted under digital media.

Distribution

Television subscription revenues in India decreased 3% in 2024, despite a reduction of 6.4 million in pay TV homes, due to an approximately 2.5% increase in TV subscription ARPUs, which reached INR 281 (gross of taxes) at end-customer prices during the year. While broadcasters increased channel prices uniformly, ARPU increased differently across markets, in some cases resulting in an increase in under-declared households/pirated households, as LCOs could not pass on price increases to end consumers.

The fall in pay television homes has been attributed to continued movement to connected TVs at the top end of the market, growth of alternate entertainment options and digital platforms, as well as availability of a sizeable content bouquet for Hindi speaking markets on free television, which grew in 2024

Broadcasters whom earned revenues for between 111 to 160 million paid subscriptions in 2024, as compared to 118 to 163 million reported in 2023, indicating a potential base of pirated connections between 10 and 15 million homes.

Active paid subscriptions continued to reduce in 2024

	2020	2021	2022	2023	2024
Cable	72	68	64	63	60
DTH	56	55	54	52	49
HITS	2	2	2	2	2
Total Pay TV	131	125	120	118	111
Free TV	40	43	45	45	49
Total	171	168	165	163	160

Television subscriptions (in million) : Industry discussions, billing reports, TRAI data, FICCI-EY Report 2025 analysis

Radio

Radio segment of M&E Industry revenues grew 9% in 2024 to INR25 billion on the back of a growth in ad volumes, and alternate revenue streams. On an average, 20% of radio revenues are related to events, content production and other revenue streams. Radio had higher reach than television. During the year Radio FM reach more than 95 million households. The Free Dish service also delivers All India Radios audio programming content of 25 satellite radio channels. As audiences evolve, radio is transforming— blending audio, digital, and experiential engagement.

Growth will be driven by solutions-led sales, innovative content, and government policy support, ensuring radios relevance and impact in a dynamic media landscape. All India Radio generates programming in 23 languages and 179 dialects across 591 radio stations, covering 98% of Indias population whereas India had 1,478 operational radio stations, an increase of 165 stations over previous year, including 388 private FM stations and 499 community radio stations.

The government is rolling out 730 new FM channels across 234 cities as part of the Phase III FM Radio Policy. This expansion supports the "vocal for local" initiative and focuses on enhancing local content, particularly in smaller tier-II and III cities.

The proposed 4% license fee for new stations could help the auctions, but there is a need to understand the overall state of the FM radio segment, and build proactive regulation to assist its survival.

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 segment revenues grew 9 % in 2024

Billion (gross of taxes) FICCI-EY Report 2025 estimates

Radio segment revenues grew 9% in 2024 to INR 25 billion, but were still just 81% of 2019 revenues. Ad volumes increased marginally by 3% in 2024 as compared to the previous year, while ad rates remained stressed. 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% of total revenues. Lack of unified and independent third party monitoring continues to be an industry issue. Radio companies will increase their focus on non-metros, where the presence of less expensive smartphone which have FM receivers is relatively higher, and feature phones still exist in large numbers The Telecom Regulatory Authority of India (TRAI) has released recommendations on issues related to FM radio broadcasting, including private FM Radio operators being allowed to broadcast news and current affairs programs, limited to 10 minutes in each clock hour.

The government has been considering the launch of digital terrestrial audio and video in certain cities, which does not consume data. However, new receivers would be needed in phones and cars, which could take some years to gain scale, and issues in moving from analogue to digital radio would need to be carefully addressed. We believe that digital radio could help more than double radio segment revenues within four years of its launch. We expect that FM radio stations, whose music curation capabilities and stationality are second to none, will provide their linear feeds (or curated versions of the feeds) on paid streaming platforms, creating a win-win situation for both radio broadcasters and audio OTT platforms.

Broadcasting

The Indian broadcasting sector, comprising television and radio, has continued to expand. According to industry reports, the television segment alone is projected to grow at a CAGR of 8.1% from 2024 to 2029. This growth is primarily fueled by the increasing penetration of smart TVs, the rising popularity of OTT (Over-The-Top) platforms, and higher investments in content creation.

The 2024 amendments to Indias broadcasting and cable regulations reshape the industry by enforcing pricing, interconnection, and service quality standards.

Broadcasting is witnessing phenomenal technological development. We have to enable a regulatory and governance framework that facilitates technological innovation and growth, maintains a level playing field across diverse players; enhances consumer choice & experience, yet ensures responsible content dissemination.

Broadcasting in India spans television, radio, and digital platforms, forming a major part of the countrys media ecosystem.

• Television broadcasting remains a dominant force, with diverse content across languages and genres. While traditional TV still reaches millions, its facing sti_ competition from streaming services.

• Radio broadcasting, led by Prasar Bharati and private FM stations, continues to engage urban and rural audiences—especially for music, talk shows, and public service messaging.

• Digital broadcasting and OTT platforms are fast becoming the new norm, with mobile internet driving growth. Giants like Net_ix, Hotstar, and Amazon Prime are revolutionizing content consumption.

• The sector operates within a regulated framework governed by TRAI and the Ministry of Information

& Broadcasting, balancing innovation with content standards.

The Indian broadcasting sector has witnessed substantial transformation and growth during 2024-2025, driven by technological advancements, changing viewer preferences, and regulatory developments. This period has been marked by a significant increase in digital content consumption, the emergence of new business models, and intensi_ed competition among broadcasters.

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 _lm production, ad agencies, OTT series, and has the potential to reduce pre-production costs by 20% to 30%, significantly enhance productivity, and streamline content workflows.

Television advertising remains a significant revenue stream for broadcasters. Innovations such as addressable TV advertising, which allows targeted ads based on viewer data, are enhancing the effectiveness of TV ads and providing better ROI for advertisers.

Out of Home Media

Out-of-home (OOH) media in India refers to advertising that reaches consumers while they are outside their homes—through billboards, transit ads, digital screens, and public installations. Key categories like real estate, education, organized retail, consumer services, FMCG and other premium categories continued their spending on OOH assets. Its a dynamic and evolving segment of the advertising industry.

• Traditional formats like billboards and posters remain widespread, especially in high-tra_c urban areas.

• Digital OOH (DOOH) is growing rapidly, with interactive screens, 3D LED displays, and augmented reality campaigns becoming more common Out of Home (OOH) media is on a growth trajectory as transit and digital media continue to grow along with traditional media. Although traditional media constitutes a bulk of the segment, transit and digital media are growing and would soon outnumber premium traditional media in the coming years. Macro-economic factors such as urbanization and growth of afluence are also contributing to the growth of the segment.

It is estimated that there are 185,000 active DOOH screens across around 50 cities in India today, of which around 15% are of the large-format premium variety. Transit media grew as India invested in more airports, railway stations, metro lines and bus stands. Station naming rights were also popular and provided assured long-term cash flows to licensorsTransit Media comprises 28% of total OOH segments.

However, some respondents expressed concerns that traditional billboards could see some decline due to a slowdown in consumer spending, and felt that fiscal policies of the government, government OOH spending and metro consumer spending would be critical parameters.

Podcast

Podcasting has rapidly emerged as a dynamic and in_uential segment within Indias digital media landscape, blending storytelling, education, and entertainment in an audio-first format. The podcasting landscape in India has seen remarkable growth and transformation during 2024-2025, driven by increased internet penetration, smartphone adoption, and changing content consumption patterns. This period has been marked by the rise of diverse content genres, new monetization strategies, and the entry of major global players into the Indian market.

• India is the third-largest podcast market globally, with over 200 million listeners expected by 2025.

• The industry is projected to grow to _17,895 crore in revenue by 2025, driven by smartphone penetration and low data costs.

• Popular genres include self-improvement, spirituality, comedy, business, and regional storytelling.

• Regional language content is booming, with podcasts now available in Hindi, Tamil, Telugu, Bengali, and more.

• Platforms like Spotify, YouTube, Facebook and Kuku FM are democratizing access and The primary audience for podcasts in India consists of young urban professionals and students, with a significant portion of listeners falling in the age group of 18-35 years. The increasing demand for on-the-go, personalized content is driving this trend. With over 40 million monthly active podcast listeners, India is becoming a significant market for audio content. The convenience of consuming content while commuting, working, or multitasking has contributed to the popularity of podcasts.

Educational and self-improvement podcasts focusing on topics such as personal finance, mental health, and professional development are increasingly popular. Podcasts like "The Habit Coach" and "The Ranveer Show" are notable examples. There is a growing demand for podcasts in regional languages, reflecting the diverse linguistic landscape of India. Platforms are investing in creating content in languages such as Hindi, Tamil, Telugu, Marathi, and Bengali.

A growing number of independent podcasters and content creators are entering the market, producing content across various genres such as news, storytelling, comedy, health, business, and technology. Celebrities and influencers are also leveraging podcasts to engage with their audiences.

BAG NETWORK MARCHES AHEAD

BAG is a prominent player in Indias media and entertainment industry, known for its diverse operations across television, radio, and digital content. Over the past three decades, the Company has grown from a small media start up to one of the most in_uential media and production houses in India. Our journey, marked by innovation, resilience, and a commitment to quality, reflects the dynamic evolution of the Indian entertainment industry. This chronicles our milestones, achievements, and the impact weve made on the media landscape in India.

BAG holds the unique distinction of producing programs of all genres for a range of channels and audiences. Realizing the potential in the digital market, we have intensive plans to produce content specifically for digital platforms.

BAG has a unique reputation for producing programs across all genres for a wide range of channels and audiences. We also have extensive plans to produce for digital platforms, recognizing the markets potential. With over 30 years in the industry, BAG is committed to consistently delivering quality and engaging content for various age groups, formats, media, and both news and non-news platforms.

The Companys extensive expertise and experience is testi_ed in its numerous successful TV shows and milestones, well received by viewers across the country. 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 a strong presence in Hindi General Entertainment Channels (GECs) and Regional GECs across India. 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 across mediums i.e. TV, Movies and OTT 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. Want a visual timeline of their growth or a comparison with other Indian media companies.

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, Tajas-24, Rastra Ki Baat, 10 ki 10 Breaking, kalchakra, Bollywood Reporter, U, Me aur TV, Insta Stalker, Bollywood Top 10, Aradhana, Jhakaas Mornings, Bhangra Junction, Hots Hits, Party on my mind, Karaare Hits, Dil Dhakne Do across different channels and strengthened its presence.

With the change of time, the world-view of people also changes. By aligning ourselves to the aspirations of evolving audiences, we strive to deliver content that grips and entices them. Our legacy is of our stories, expressed to viewers in the most appealing of ways. We continue to deliver the same as we understand what ticks, placing our creative zeal in all that we do.

OUR SUBSIDIARIES

News24 Broadcast India Limited

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, DishTV, and d2h.

Its reach and consistent viewer engagement have helped it become a trusted source for Hindi-speaking audiences across India. Want a quick comparison of News24 with other Hindi news channels.

The digital revolution has significantly ampli_ed our reach. News24s presence on YouTube, Facebook, Instagram, and other social media platforms has garnered an impressive subscriber base. The total subscriber base of News24 reached 24 million across various YouTube channels. Notably, News24 achieved the prestigious Diamond Play Button from YouTube—an accolade bestowed upon channels with over 10 million subscribers. This achievement stands as a testament to our digital popularity On the television front, programs like Amne Samne, Sabse Bada Sawal, News Shatak, Mahaul Kya hai, Tajas-24, 4 baje 24 Reporters, Rastra Ki Baat, 10 ki 10 Breaking, Nispakash News, kalchakra, amongst others cover a gamut of genres in news reporting and have been received exceptionally well with the audiences across the nation. "Kalchakra",

"Sabse Bada Sawal", "Mahaul Kya Hai" and "Aamne Saamne" are achieve remarkable TRPs and viewership on News24.

These shows continue to reflect the innovative ways of reporting news that has given the maximum viewership and rating to our channel making its marked presence felt in the whole Media Industry.

The Company further strengthened its presence in the Hindi heartland with the populority of its regional News channel – NEWS24 MPCG through its subsidiary News24 Broadcast India Limited. Madhya Pradesh (MP) & Chhattisgarh (CG) is one of the key news markets which have a population of roughly more than 150 million and their news appetite has been growing unceasingly. NEWS24 MPCG has become the leading Hindi News Channel in Madhya Pradesh & Chattisgarh.

E24 Glamour Limited

E24 Glamour Limited is an unlisted media company based in New Delhi, and part of the BAG group. It operates primarily in the television broadcasting and entertainment space.

E24, a 24 hours Entertainment channel operating under the subsidiary E24 Glamour Limited focused on Bollywood news, celebrity gossip, music, and lifestyle content. During the year it produced successful programmes like Bollywood Reporter, U, Me or TV, Insta Stalker, Bollywood Top 10, Jakass Mornings, Bhangda Junction, Hots Hits,

Party on my mind, Karaare Hits, Dil Dhakne Do etc. Apart from the above programmes, E24 procured rights to movies and started telecasting movies songs. The channel has been researching and experimenting different ideas and revenue models.

The rise of social media has enabled artists to engage directly with their fans, leading to new marketing opportunities and revenue streams. Artists are now able to build their personal brands and connect with their audience in new ways.

Despite financial challenges, E24 Glamour continues to contribute to Indias entertainment media landscape with a niche focus on glamour and celebrity culture E24 is targeting new audiences and adding a subscriber base to enhance the business model. This includes the use of subscription-based services and new marketing strategies. Rapid growth of digital platforms has hit the growth of music-based channels, forcing most of the players in this segment tore strategies their content and sales pitch.

Skyline Radio Network Limited

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, Muza_arpur, Dhule, Jalgaon, Ahemednagar, Simla and Jabalpur.

Dhamaal24 believes that life must be lived to the fullest and celebrated. Dhamaal24 is a channel with a slice of life and approach to the infotainment & entertainment programming. Various programs are purposely aligned for maximum listenership. Our content entices regional listeners.

Di_erences in music royalty rates prevent FM radio companies from creating and airing their radio channels on internet streaming platforms — an issue which the industry needs to resolve to mutually benefit broadcasters and music licensors — as curated content with RJ interactions are largely missing online, and migrant population cannot enjoy radio stations in the language of their choice

B. OPPORTUNITIES AND THREATS

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.

Opportunities for Indian Media Industry

Heres a segment-wise breakdown of the key opportunities in the Indian Media and Entertainment Industry:

Television

• Regional channel growth: Audiences increasingly prefer content in local languages.

• Connected TVs: Higher adoption of smart TVs is driving hybrid consumption—mix of linear TV and streaming.

• Ad revenue recovery: Post-pandemic normalization has sparked brand spending in key categories like FMCG and automotive.

Film & Cinema

• Multiplex expansion: Tier 2 & 3 cities are seeing new cinema infrastructure.

• Regional cinema success: Films in Telugu, Tamil, Malayalam, and Kannada are performing well across geographies.

• Global tie-ups: Co-productions and OTT premieres on global platforms are making Indian _lms internationally visible.

Digital & OTT

• Boom in OTT platforms: Subscription growth and ad-supported models are surging, especially in vernacular content.

• Influencer economy: Social media creators are emerging as micro media houses.

• Podcast & audio streaming: Growing popularity among young audiences, especially in infotainment and comedy.

Gaming & Esports

• Massive user base: India has the worlds second-largest internet population, fueling online gaming growth.

• Government support: Recognition of esports as part of multi-sports events is boosting legitimacy and investment.

• Local game development: "Made in India" games and studios are slowly gaining traction.

Music & Live Entertainment

• Music streaming: Regional and indie music is thriving on platforms like Spotify, JioSaavn, and Gaana.

• Concerts & festivals: Return of live events post-COVID is rejuvenating the event economy.

• Virtual performances: New formats like VR concerts and interactive live streams are on the rise.

Threats for Indian Media Industry

Heres a detailed breakdown of the key challenges and threats facing different segments of Indias Media and Entertainment industry:

Television

• Audience fragmentation: Rapid growth in digital platforms is pulling viewers away from traditional TV.

• Ad revenue volatility: Brands are shifting budgets to digital, creating uncertainty for broadcasters.

• Content piracy: Unauthorized distribution of cable and satellite broadcasts still poses economic losses.

Film & Cinema

• High production costs: Budgets are rising, but returns are unpredictable—especially for theatrical releases.

• OTT cannibalization: Direct-to-streaming releases are reducing footfall in cinemas.

• Limited theatrical screens: Compared to the audience size, India has fewer cinema screens per capita.

Digital & OTT

• Subscription fatigue: With multiple platforms, users are becoming selective—impacting monetization.

• Regulatory scrutiny: Content on OTT platforms is under growing government regulation and censorship pressure.

• Cybersecurity risks: Data breaches and platform hacking threaten user trust and brand value.

Gaming & Esports

• Online addiction concerns: Rising screen time among youth is attracting parental and policy scrutiny.

• Payment and fraud issues: Microtransactions and unregulated third-party payments have led to misuse.

• Lack of robust IP protection: Indian gaming IPs are vulnerable to imitation and lack enforcement mechanisms.

Music & Live Entertainment

• Copyright infringement: Music piracy, sampling without credit, and unauthorized re-uploads plague creators.

• Event unpredictability: Weather, security, and permissions make live events risky investments.

• Platform monopoly: Dominance of global streaming platforms challenges independent music discovery.

AI & Personalization

• AI is reshaping TV through personalized recommendations, automated editing, and even script generation.

• Content localization using AI (subtitling/ dubbing) is expanding global reach

Regulatory Challenges

• The evolving regulatory landscape for digital content poses a challenge. Stricter regulations on content standards and censorship could impact creative freedom and operational efficiency.

• Changes in advertising regulations, such as restrictions on certain types of advertisements, can affect revenue streams.

• The widespread issue of digital piracy threatens revenue and undermines the value of original content. E_orts to combat piracy through technology and legal measures are essential but remain a significant challenge.

C. SEGMENT WISE PERFORMANCE

The segment wise performance has been shown elsewhere in the Annual Report.

D. OUTLOOK

The Indian media and entertainment (M&E) industry is diverse and dynamic, encompassing various segments such as television, _lm, 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.

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 _lm 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.

E. RISK AND CONCERNS

The Indian media and entertainment (M&E) industry is a rapidly evolving sector with significant growth potential. 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. 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.

2. 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.

3. Digital Piracy: 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.

4. Data Breaches: Increasing digital consumption exposes the industry to cybersecurity threats, including data breaches and hacking. Ensuring robust cybersecurity measures is essential to protect sensitive content and consumer data.

5. Cyber risk in the Entertainment Industry: M&E companies will need to develop efficient detection and continuous monitoring systems to identify personal data breaches promptly. Companies will need to invest in cyber resilience programs to manage the identification of affected individuals, and reporting to the data protection board and data principals within specified time.

6. IP Protection: Weak intellectual property enforcement can discourage investment in high-quality content production and impact the overall growth of the industry.

7. Impact on Advertising Revenue: Economic downturns can lead to reduced advertising budgets, impacting the primary revenue source for many media companies. This can lead to a contraction in spending on content production and innovation.

While the Indian media and entertainment industry is poised for continued growth, it must navigate a landscape filled with regulatory, technological, economic, audience behavior, and operational risks. Addressing these challenges through strategic planning, innovation, and adaptive measures will be crucial for sustaining growth and maintaining competitiveness in this dynamic sector.

Broadcasting companies pay transponder charges to satellite companies for transmission of their TV signals. The tax authorities contend that payments made towards transponder charges are in the nature of royalty.

India boasts a comprehensive data privacy law, the Digital Personal Data Protection Act (DPDPA) 2023, M&E companies stand at the threshold of a new compliance era. While the government is in the process of rolling out rules to operationalize DPDPA, M&E companies must grasp the impact and adapt swiftly to the evolving landscape of data privacy.

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

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.

G. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Company has prepared its standalone and consolidated audited financial statements as per Indian Accounting Standards (Ind AS) for the financial year 2024-25. 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
	2024-25	2023-24	2024-25	2023-24
Total Income	3,817.80	3,672.68	13,996.31	13,357.99
Total Expenditure other than Financial Costs and Depreciation	3,160.33	2,969.43	11,523.60	11,031.67
Profit before Depreciation & Financial Charges	657.48	703.25	2,472.71	2,326.32
Financial Charges	364.58	378.18	837.16	1,005.84
Depreciation and Amortisation Expense	138.72	173.55	411.29	478.33
Profit before Tax	154.18	151.52	1,224.26	842.15
Provision for Tax	45.23	46.71	225.23	165.02
Profit after Tax	108.95	104.81	999.03	677.13
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.

H. MATERIAL DEVELOPMENT IN HUMAN RESOURCES

BAG considers Human Resources to be one of the key elements to sustain competitive advantage in the News Media Sector. Media organizations are human driven; its growth depends upon the quality contribution made by the people in the organization. Therefore, your Company recognizes human resources as a key component for facilitating organizational growth.

BAG understands that the M&E industry is rapidly evolving and it is crucial to keep up with the latest trends and technologies to stay competitive. The Company provides regular training and development programs to its employees to ensure that they are equipped with the necessary skills and knowledge to perform their roles efficiently. These programs include on-the-job training, mentoring, coaching and leadership development programs. BAG aims to recruit, nurture and retain quality professionals and provide them with a high performance environment. Knowledge and intellectual assets are being strategically shared across BAG. The Company has 14 permanent employees on the roll of the Company as on March 31, 2025. At BAG, we have understood the potential of the human resource and its contribution to the financial standing of your company. Therefore, the human asset is highly valued and regarded by your company. We would like to thank all our employees for their contribution and we look forward to their continued support in maintaining our leadership position in the industry. We would also like to thank all our shareholders for continuing to trust and believe in the Company and look forward to your continued support as we scale new heights with BAG.

I. KEY FINANCIAL RATIO

As per the SEBI Listing Regulations, the company is required to give details of significant changes (i.e. 25% or compared to the immediately previous financial year in key-sector-specific financial ratio. The Company has no significant changes in any key financial ratio during FY 2023-24 and FY 2024-25. Details of movenent in key financial ratios are here under:

			(Rs. in Lakhs)
Particulars	2024-25	2023-24	Growth (in %)
Revenue from Operation	3,814.28	3,595.08	6.10
Gross Margin	0.23	0.26	(8.25)
EBIDTA	657.48	703.25	(6.51)
PBT	154.18	151.52	1.76
PAT	108.95	104.81	3.95
Current Ratio	1.01	0.96	5.57
Net Profit Margins	2.86	2.92	(2.02)
Debt Equity Ratio	0.13	0.12	9.02
Interest Coverage Ratio	1.42	1.40	1.59
Return on Net Worth	0.41	0.40	3.44
Debtors Turnover	4.04	3.89	3.72
Inventory Turnover	0.99	1.03	(4.07)

Cautionary statement

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: Shape the Future, FICCI-EY-Report Indian M & E Sector, 2025)