Overview:
Amid global economic headwinds and escalating trade tensions, India continues to emerge as a beacon of growth and resilience. While the global economy grows below its long-term average, with near-term outlook shrouded with several risks, especially in the wake of recent reciprocal tariff impositions. However, India is poised to maintain its position as the fastest-growing large economy globally over the next two fiscal years, reaffirming its critical role in shaping global economic dynamics.
According to the World BankRs.s Global Economic Prospects (January 2025), IndiaRs.s GDP is projected to expand at a steady rate of 6.7% in both FY26 and FY27, significantly outpacing the global growth outlook of 2.7% during the same period. This strong macroeconomic performance is underpinned by robust momentum across key sectors.
The services sector remains resilient, while manufacturing activity is expected to strengthen, supported by concerted government efforts to modernize logistics infrastructure and streamline taxation. In parallel, private consumption is projected to gain traction, driven by a strengthening labour market, improved credit access and moderating inflationary pressures.
Investment activity is also expected to remain buoyant, bolstered by rising private sector participation, healthier corporate balance sheets and conducive financing conditions. These trends highlight the structural robustness of IndiaRs.s macroeconomic fundamentals and reinforce its appeal as a destination for long-term capital.
The broader context of Emerging Markets and Developing Economies ("EMDEs") further accentuates IndiaRs.s performance. Since 2000, EMDEs have nearly doubled their contribution to global GDP·from 25% to approximately 45%·with India, alongside China and Brazil, accounting for nearly 60% of global growth during this period. Notably, while ChinaRs.s growth is expected to moderate to 4.0% next year, IndiaRs.s continued expansion underscores a shift in global growth leadership.
In summary, IndiaRs.s sustained high-growth trajectory, coupled with transformative policy reforms and improving economic fundamentals, positions the country as a key driver of global growth and a pillar of macroeconomic stability in the decade ahead.
Headline inflation briefly exceeded the upper tolerance band in October 2024 but eased thereafter due to falling food prices. By March 2025, urban householdsRs. inflation expectations for the next three months and one year declined by 40 and 50 basis points to 8.9% and 9.7%, respectively. Manufacturing firms foresee easing input cost pressures and moderating selling prices in Q1 FY2026, while services and infrastructure firms anticipate rising costs. Professional forecasters expect CPI inflation to decline to 3.9% in Q4 FY2025 and stay near 4% through Q3 FY2026, though risks remain from global and domestic fronts.
IndiaRs.s economy is steadily recovering, supported by strong consumption demand, robust macroeconomic fundamentals and high growth potential. Government-driven capex, resilient services, and a healthy agriculture outlook further boost momentum. Budget 2025-26 supports consumption, while fiscal consolidation and quality spending could enhance sovereign ratings and attract capital inflows. Continued co-ordination between fiscal and monetary policy may help to improve the growth-inflation balance. Despite global headwinds, including U.S. tariff hikes, IndiaRs.s disinflation progress offers the monetary policy room to maintain focus on growth without compromising price stability.
Media and Entertainment Industry
Indian Media & Entertainment ("M&E") sector saw a modest growth of 3.3% y-o-y to reach Rs. 250,000 crore (US$ 29.4 billion). The share of traditional media - including television, print, filmed entertainment, live events, OOH, music, radio declined to 41% of the overall revenues, down from 76% in 2019.
In a significant shift, digital media overtook television for the first time in 2024 to become the largest segment, contributing 32% of the M&E sectorRs.s total revenues. Digital advertising grew 17% to Rs. 70,000 crore, accounting for 55% of total advertising revenues. This growth was primarily fueled by rising engagement with social media and e-commerce platforms.
Television advertising revenues decreased by 6.0 % from Rs. 31,200 crore in 2023 to Rs. 29,400 crore in 2024. Advertising volumes declined by 6.0% in 2024. Subscription revenue fell by 3.3%. ARPUs increased by approximately 2.54% to reach Rs.281 per month (gross of taxes).
Print segment remained stable at Rs. 26,000 crore. Advertising grew 0.7%, while circulation declined by 1.2% in 2024. Overall ad insertion volumes increased by 1.3 % over 2023. The share of advertising to the total income of print segment stood at 68.9%.
Source: FICCI Report - March 2025 Radio Industry
The radio industry recorded a 9% revenue growth in 2024, reaching Rs. 2,500 crore - recovering to 81% of its pre-COVID levels. However, it remains the only media segment yet to fully regain pre-COVID performance, underscoring the need for sustained innovation and structural reforms.
IndiaRs.s radio network expanded to 1,478 operational stations 165 more than the previous year including 388 private FM and 499 community radio stations. All India Radio retained its vital role in public broadcasting, delivering content in 23 languages and 179 dialects across 591 stations, reaching 98% of the population. Yet, while the reach of radio has widened, monetisation challenges persist. Ad volumes rose by a modest 3%, and ad rates continued to face downward pressure. This uptick, primarily driven by government campaigns and election spending at higher DAVP rates, was short-lived and did not translate into sustained momentum.
The segment remains constrained by five consecutive years of muted advertising growth, triggering a talent drain as creative professionals migrate to digital platforms. This shift has forced radio companies to confront the urgent need to rebuild their innovation edge and value proposition.
Amid these challenges, non-FCT revenues have emerged as a critical growth lever. These revenues, accounting for an average of 20% of total earnings and exceeding 30% for some players, were driven by diversified initiatives such as event IPs, branded activations, community-based content, international music streams, digital campaigns, and influencer-led marketing. This shift marks a growing recognition of the need to diversify revenue streams beyond traditional ad slots.
To further revitalise the sector, the government has proposed FM radio auctions under Phase III of the FM Radio Policy, targeting the rollout of 730 new channels across 234 cities. With an emphasis on Tier II and Tier III locations, this expansion aligns with the "vocal for local" agenda. However, participation may be limited to gap-filling efforts, as many existing stations remain commercially unviable. The introduction of a 4% license fee may encourage bidding, but the long-term sustainability of the segment hinges on stronger regulatory support and a clearer assessment of its economic fundamentals.
In parallel, the government is exploring the introduction of digital terrestrial radio in select cities. This initiative, which would allow users to access radio content without using mobile data, has the potential to dramatically expand frequency availability and content diversity. If implemented successfully, digital radio could more than double industry revenues within four years. However, the transition will require significant investment in new receivers, particularly for cars and homes, and careful planning to address disruptions linked to the analog-to-digital shift.
As traditional inventory models mature, radio companies are redefining themselves as brand solution providers particularly for regional and mid-market advertisers underserved by larger agencies. Equipped with strong field sales teams, these companies are moving from selling airtime to offering integrated, performance-driven campaigns tailored for hyperlocal and digital-first environments.
Simultaneously, FM radio is exploring content distribution via OTT platforms. In a subscription-driven ecosystem, stations could offer curated audio feeds or real-time broadcasts through digital streaming apps. This not only creates monetisation opportunities for broadcasters but also allows OTT platforms to differentiate through exclusive, localised audio offerings. Such convergence holds promise for expanding audience engagement and unlocking new revenue models.
Outlook
Looking ahead, innovation will remain central to the evolution of radio in India and across global markets. While music curation continues to be foundational, radio is expanding its reach through marketing solutions and emerging platforms such as podcasts, audio shorts, AR/VR video and audio OTT. In India, the radio segment is projected to grow at a steady 6.6% CAGR between 2024 and 2027, underscoring its continued relevance in a changing media landscape.
Through greater collaboration, creative expansion, and investment in technology, the radio industry is well-positioned to explore new avenues, connect more deeply with audiences, and strengthen its role in IndiaRs.s cultural and entertainment ecosystem. As growth opportunities expand and innovation accelerates, radio is poised to remain a dynamic and enduring medium in the years ahead.
Internal control systems and their adequacy
Adequate internal control has been put in place in all areas of operations. The role and responsibility of all managerial positions are established, monitored and controlled regularly. All transactions are authorised, timely recorded and reported truly and fairly. To ensure adherence to the laid-down systems, apart from formal Internal Audit System commensurate with the size and nature of the business. Internal audit is conducted by one of the big four accounting firms who periodically submit their report to the audit committee non- compliances if any. They also verify compliances with various applicable provisions of law.
The Company is fully committed to continually work in strengthening the systems and processes so as to achieve the highest degree of transparency, efficiency and accuracy in reporting, monitoring and decision making and has done so during the year as well as part of an on- going exercise
Financial performance
Profit and Loss:
Particulars | Year ended March 2025 | Percentage | Year ended March 2024 | Percentage |
Income | ||||
Revenue from operations | 23,448.11 | 89.7 | 22,853.85 | 90.8 |
Other Income | 2,362.59 | 9.1 | 2,056.47 | 8.2 |
Other gains and Losses | 323.87 | 1.2 | 251.3 | 1.0 |
Total Income | 26,134.57 | 100.0 | 25,161.62 | 100 |
Expenditure | ||||
Licence fees | 2,015.31 | 6.7 | 2,019.22 | 8.5 |
Employee benefit expense | 7,867.32 | 26.0 | 6,942.41 | 29.1 |
Depreciation and amortisation expense | 3,461.77 | 11.4 | 3,343.13 | 14.0 |
Impairment of non-current assets | 3,492.99 | 11.5 | - | - |
Net impairment losses on financial assets | 1,493.60 | 4.9 | 325.19 | 1.4 |
Other expenses | 10,808.20 | 35.7 | 10,251.81 | 42.9 |
Finance cost | 1,159.04 | 3.8 | 989.81 | 4.1 |
Total Expenses | 30,298.23 | 100.0 | 23,871.57 | 100.0 |
Profit/(loss) before tax | (4,163.66) | 1,290.05 | ||
Income tax | ||||
-Current tax | - | 219.42 | ||
-Deferred tax | (779.96) | 386.21 | ||
Profit for the year | (3,383.70) | 684.42 | ||
Other comprehensive income(net of tax) | (11.04) | 9.09 | ||
Total comprehensive income/(loss) for the year | (3,394.74) | 693.51 |
Revenue:
Total Income: Our total income increased by 3.87 % from Rs. 25,161.62 lakhs in FY 2024 to Rs. 26,132.47 lakhs in FY25, primarily due to an increase in revenue from operations by Rs. 594.26 lakhs.
Revenue from operations: Revenues from operations representing Advertisement Revenue increased by 2.6% from Rs. 22,853.85 lakhs in FY24 to Rs. 23,448.11 lakhs in FY25.
Other income: The other income has increased from Rs. 2,056.47 lakhs in FY24 to Rs. 2,362.59 lakhs in FY25 primarily represents interest accrued on fixed deposits and bonds.
Other Gains: This represents net fair value gain on financial assets mandatorily measured at fair value through profit and loss account, net gain on sale of investments and other miscellaneous income. Other gains have increased primarily due to increase in net fair gain on financial assets by Rs. 103.31 lakhs from Rs. 31.47 lakhs in FY24 to Rs. 134.78 lakhs in FY25.
Expenditure:
Total Expenditure: Our total expenses increased by 26.9% from Rs. 23,871.57 lakhs in FY24 to Rs. 30,298.23 lakhs in FY25.
License Fees: Amounts paid towards license fees decreased by 0.19% from Rs. 2,019.22 lakhs in FY24 to Rs. 2,015.31 lakhs in FY25.
Employee benefits expense: Employee benefit expenses increased by 13.32% from Rs. 6,942.41 lakhs in FY 2024 to Rs. 7,867.32 lakhs in FY25 on account of increment and increase in head count.
Depreciation and amortisation expense: Depreciation and amortisation expense increased by 3.55% from Rs. 3,343.13 lakhs in FY23 to Rs. 3,461.77 lakhs in FY25.
Impairment of non current assets financial assets: The Company has computed the value in use of its net assets and the said value is lower than the carrying value of its net assets by Rs..3,492.99 lakhs. Accordingly, the impairment loss of Rs..3,492.99 lakhs has been provided for in these financial results during the quarter and year ended March 31, 2025.
Net impairment losses on financial assets: Increase in net impairment loss is by 359.30% from Rs. 325.19 lakhs in FY24 to Rs. 1,493.60 lakhs in FY25.
Other expenses: Increase in other expenses is by 5.43% from Rs. 10,251.81 lakhs in FY24 to Rs. 10,808.20 lakhs in FY25 majorly on account of increase in programming and sales commission.
Finance costs: Increase in finance cost by 17.10% from Rs. 989.81 lakhs in FY24 to Rs. 1,159.04 lakhs in FY25; mainly on account of increase in provision of Non-Convertible Non-Cumulative Redeemable Preference Shares (NCRPS) premium and interest on lease liabilities.
Tax expenses: Decrease of Rs. 1,385.59 lakhs in the current year due to reduction of profit.
Net profit for the year decreased from Rs. 684.42 lakhs in FY24 to loss of Rs. 3,383.70 lakhs in FY25 due to impairment losses.
Adjusting for the items that will not be reclassified to profit and loss account, total comprehensive loss for the year was FY25 Rs. 3,394.74 lakhs as against income of Rs. 693.51 lakhs in FY24.
(i) Balance Sheet:
2024-25 | 2023-24 | |
Total Equity | 49,773.67 | 53,168.40 |
Total Non-current Liabilities | 2,766.09 | 10,525.74 |
Total Current Liabilities | 13,977.30 | 4,367.41 |
Total Equity and Liabilities: | 66,517.06 | 68,061.55 |
Total Non-current Assets | 40,598.68 | 50,044.16 |
Total Current Assets | 25,918.38 | 18,017.39 |
Total Assets: | 66,517.06 | 68,061.55 |
Total equity comprises of Paid-up equity share capital, reserves and surplus and other reserves. The increase in Reserves and surplus is due to the Profit for the year.
Non-current liabilities represent lease liabilities, employee benefit obligations expected to be settled after one year and Non-Convertible Non-Cumulative Redeemable Preference Shares (NCRPS) liabilities shown in Borrowing. Current year movement includes (i) Decrease in NCRPS of Rs. 9,159.71 lakhs (ii) increase of Rs. 1,217.73 lakhs in lease liabilities (iii) increase in leave obligation by Rs. 74.91 lakhs and (iv) increase of Rs. 107.42 lakhs in gratuity liability.
Current liabilities consist of lease liabilities, trade payables, NonConvertible Non-Cumulative Redeemable Preference Shares (NCRPS) liabilities shown in Borrowing, other current financial liabilities and other current liabilities. The increase in current liabilities is due to (i) Increase in NCRPS of Rs. 10,018.97 lakhs (ii) decrease in trade payables by Rs. 69.69 lakhs (iii) decrease in other financial liabilities Rs. 76.69 lakhs and (iv) decrease in lease liabilities by Rs. 118.81 lakhs. (v) decrease in other current liabilities by Rs. 171.66 lakhs.
Non- Current Assets comprise tangible and intangible assets, right of use asset, long-term investments, financial assets, deferred tax assets, non- current tax assets and other noncurrent assets expected to be realizable after one year.
Tangible assets have increased on account of addition during the year which was partly offset by depreciation during the year. Intangible assets have reduced due to amortisation cost for the current fiscal. Decrease in long term investment is due to shift to current investment due to maturity in next twelve months. Decrease in deferred tax assets is mainly on utilization accumulated losses during the year.
Current Assets consists of short-term investments, trade receivables, cash and cash equivalents, other bank balances, other financial and current assets expected to be realisable within next twelve months.
Current investments have increased due increase in short term investments. Trade receivables have increased due to increase in business during the year.
Further to the above, the financial ratios are as follows:
Particulars | 2024-25 | 2023-24 |
1 Debtors turnover | 3.14 | 3.28 |
2 Inventory turnover | Not applicable | Not applicable |
3 Interest coverage ratio | 13.10 | 27.44 |
4 Current ratio | 1.85 | 4.13 |
5 Debt equity ratio # | 0.25 | 0.20 |
6 Operating profit margin (%) | 16.85% | 24.60% |
7 Net profit margin (%) | -14.43% | 2.99% |
8 Return on net worth (%) | -6.80% | 1.29% |
# The total outstanding debt of the Company is Rs. 12,600.56 lakhs (including lease liabilities).
Current ratio has decreased primarily due to classification of NCRPS borrowing to Current from Non-current in previous year.
Interest coverage ratio has deteriorated due to reduced profitability during the current year.
Operating profit margin, net profit margin and return on net worth have deteriorated due to reduced profit during the year.
Human Resources
In line with our objective of enhancing organizational capability by nurturing talent and fostering learning and developing digital mindset, Radio CityRs.s HR department has launched several initiatives while keeping the momentum of the earlier initiatives. These initiatives are designed to facilitate learning, growth and fun at workplace.
Some of the key initiatives planned and executive this year are:
Knowledge Konnect - As the Radio Business is about integrated solutions of Radio, Digital & on-ground, RC has champions who excel in providing clients with the best integrated solutions. Knowledge sharing is one platform where we showcase these champions who share their learning with other team members across 39 locations every month thus impacting the revenue growth of the organization
Digital Media Training - Through our various digital media training sessions like Facebook, Insta, You Tube, Effective AI tools, video editing etc our RJs have become avid social media influencers who have been able to connect with their listeners and engage with them on social media platforms. We have been regularly conducting these sessions for our Programming teams. This year Sales team was invited for the session on You Tube. The session covered deeper understanding of You Tube Channel, how to leverage the content and content dissemination & how to run a campaign effectively on You Tube.
Digital Innovation - To inspire the GenZ and digital native of Radio City, 4 cross-functional teams of 10 member each were set up. These teams worked on digital concepts and came up with 23 brilliant ideas with a plan of execution in "Digital Spark" initiative. To encourage employees to think digital and creatively we also launched "Creative star Podcaster" we received 50 podcast ideas. Top 5 Podcasts were worked on by the winners with the RC Production team.
Automation - To build in efficiencies and work towards paperless organization we have automated Performance Management System on Zing HR and Exit process is managed online.
Sales Pitch Training - As a part of continuous learning initiatives for our Sales off-roll employees, Neo Skill Enhancement Programme was launched in September 2024. This special training programme is exclusively designed for our employees in Sales function who are on third party payrolls.
Skill development workshops: A series of skill development workshops have been organised to empower employees with essential competencies. Programs like MS Excel, and AWE Training have equipped our workforce with valuable skills to excel in their roles.
Collab Meet - A monthly meeting to focus on the collaboration of key functions of the organizations. Functions such as Marketing, Sales, RC gennarative, Brand & PR, and Programming, Strategy & Revenue Management participate in this meeting which is anchored by HR Function. This is a pan India initiative with zonal leaders being a part of this meeting. This meeting allows the leaders to voice any collaboration issues that are emerging in any project. The meeting discusses the forth coming plan and IPs that the content team is planning in the coming month and quarter.
Station Meet - Station meets are conducted once a month led by HR Business Partners. New employees are welcomed, minutes of previous meeting are discussed, status updates are addressed, cheers to peers called out, rewards and recognition (Spotlight Award, Sher of the Quarter etc.) are applauded, new initiatives are discussed
Succession Planning: We have implemented robust succession planning strategies to ensure a pipeline of talented individuals ready to assume key roles within the organisation and they are groomed through challenging live projects.
Campus Hiring: As part of our talent acquisition efforts, we conducted campus drives and hired 8 Management Trainees from reputable institutes. These MTs have undergone rigorous training and contributed to projects under the guidance of senior leadership.
Rewards and Recognition: Our rewards and recognition programs, including Spotlight, Sher of the Quarter, City Ka Sitaara and Cheers to Peers, celebrate the achievements and efforts of our employees, motivating them to strive for excellence
Employee Wellness: We prioritise the well-being of our employees through initiatives such as Daily Health Tips, Choosing Health, and the RC Wellness League, which encourage a healthy and balanced lifestyle. The organization has provided an option of Insurance Top Up Program for all the employees and consultants and their family members at very reasonable Corporate rates and 18% of the employees have opted for the same.
Hobbies Masterclass: Hobby classes offer employees a chance to pursue their interests outside of work, leading to increased job satisfaction and overall well-being, reduces stress, and this leads to team building and camaraderie.
Be the Change : CSR Initiative - Radio City has always contributed towards and given back to society. In the past the organization has supported schools, orphanages, schools for differently abled and up-liftment of women and children. This year we have supported 5 institutions as compared to 3 institutions last year and sponsored the education of three of their brightest children. The institutions are from Mumbai, Bangalore Vadodara, Lucknow and Nagpur locations
Radio City School of Broadcasting (RCSB) - Launched in April 2009. RCSB was established with the objective of grooming and developing world-class radio professionals. Radio City proudly presents Radio City School of Broadcasting in its new avatar which encapsulates in providing various robust training platforms ranging from getting to know-hows of becoming RJ, generating content, creating interactive podcasts, sessions on voice modulations, to become a social media influencer.
In September 2024 we conducted a 2-day voice modulation session - Rs.Ace Your VoiceRs. event had some of our top RJs and the National Programming Head conduct the session for the participants who were from different walks of life.
Culture Excellence - The above initiatives have created the impact on the culture and as a result our organisationRs.s Great Place to Work score has increased by 1 basis point thus reaching 90 in 2024-25. Our current score of 90 with 98% of employee participation in the survey talks about strong people practices in the organization.
This achievement reflects the trust and pride our employees have in the Radio City brand.
As of March 31, 2025, Radio City employs 489 permanent employees. We remain dedicated to nurturing talent, fostering a culture of learning and innovation and creating a workplace where every individual can thrive and realise their full potential.
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