Next Mediaworks Ltd Management Discussions

Indian Media and Entertainment Industry

The Media & Entertainment (M&E) industry in India witnessed healthy traction in (calendar year) CY 2025, registering a 9.1% y-o-y growth to INR 2.78 trillion. Advertising grew robustly at 13.5%, with the Digital segment contributing 63% of this expansion. In contrast, traditional mediums remained under pressure with most segments recording tepid growth rates.

Radio segment underperformed this year, weighed down by subdued advertiser sentiment and continued pressure on advertising rates. As a result, growth remained muted across the segment. Non-Free Commercial Time (non-FCT) revenues now contribute approximately 25% of total segment revenues, reflecting a gradual diversification of income streams beyond traditional advertising. Looking ahead, Radio continues to face growth uncertainty, driven by profitability challenges and shifting audience tastes.

This year further reinforced the Digital inflection point, building on last years milestone when Digital media first surpassed TV in share. The shift continued as advertising budgets were increasingly reallocated in line with evolving audience consumption patterns, favouring digital platforms. Among traditional media, smaller segments suchasOut-of-Flome(OOFI) and Cinemas emerged as relative bright spots helping sustain growth within the category. Overall, the M&E sector remained upbeat, delivering growth that outpaced Indias nominal GDP per capita, underscoring its resilience and ongoing transformation.

Source: EY FICCI M&E Report, 2026

Company Overview

Next MediaWorks Limited (NMW), a subsidiary of FIT Media Ltd., became part of the broader FIT Media Group following its acguisition in CY 2019. Along with Next Radio Limited (NRL), the Company was operating under the private FM radio brand, named Radio One.

In the prior fiscal i.e. FY 2024-25, Next Radio Limited (NRL), the erstwhile subsidiary company of Next MediaWorks Limited (NMW) in accordance with regulatory approvals, issued 21,20,00,453 eguity shares of INR 10 each to FIT Media Limited (HTML) pursuant to FITML using its right to convert the loan it had given to NRL, which was INR 212,00,04,536 as of December 31, 2024, into eguity shares. Conseguent to conversion, NRL has become a direct subsidiary (rather than being a step-down subsidiary as was earlier) of FITML w.e.f. February 7, 2025. Accordingly, NMW no longer controls NRL. The stake of NMW in NRL has reduced from 51.40% to 13.53% w.e.f. February 7, 2025.

Note: The above is in line with disclosunes to exchanges by the Company dated Febnuany 7, 2025.

Financial Overview Revenue from Operations

The Company did not generate any operating revenue during the year under review.

Profitability

Earnings Before Interest, Tax and Depreciation (EBITDA) margin came in at -20.0% in FY 2025-26 from -92.9% in the prior fiscal, mainly on account of decrease in operating costs for the year under consideration. Profit After Tax (PAT) decreased to INR -5.3 crore in FY 2025-26 from INR 3.9 crore in FY 2024-25 that was driven by an exceptional gain. Return on Networth for both periods could not be ascertained due to negative networth of the Company.

Debtors Turnover Ratio

Debtors Turnover Ratio could not be ascertained.

Inventory Turnover Ratio

Inventory Turnover Ratio could not be ascertained.

Interest Coverage Ratio

Interest Coverage Ratio increased to -0.01 times for FY 2025-26 as compared to -0.1 2 times in the prior fiscal, due to some improvement in EBIT level profitability for the year.

Current Ratio

Current Ratio increased to 5.2 times in FY 2025-26 from 0.4 times in FY 2024-25. This is due to relatively higher current assets for the fiscal year.

Debt Equity Ratio

Debt Eguity Ratio could not be ascertained for both fiscal years due to negative eguity position of the Company.

Human Resource

Conseguent to the aforesaid change in the shareholding and control structure, the Company does not have active employees as on 31^st March, 2026.

Risk Management

The Company has established a comprehensive risk management framework to identify, assess, manage and mitigate risks arising from both internal and external factors. As part of this framework, periodic risk identification exercises are undertaken to evaluate key financial, operational, sectoral, sustainability, information security and cyber security risks.

The Company also maintains a regulatory compliance framework, supported by an automated compliance management tool, dedicated legal and secretarial functions, and concurrent reviews of statutory compliances. This structured approach enables the Company to effectively monitor regulatory obligations and minimise its exposure to instances of statutory or legal non-compliance.

Internal Audit

The Company has established an internal control framework commensurate with its size, and nature of business. The framework comprises a well-defined organisational structure, clearly articulated authority and responsibility matrices, comprehensive policies and procedures, a Board approved code of conduct (CoC), and a whistle-blower mechanism, with oversight by an audit committee.

The Company leverages technology through an integrated ERP (Enterprise Resource Planning) system, automated controls, and an online compliance management tool to strengthen operational efficiency, regulatory compliance, and the reliability of financial reporting. The effectiveness of the internal control framework is periodically evaluated through risk-based internal audits, reviews of internal financial controls, operating effectiveness testing, and guarterly oversight by the audit committee, thereby reinforcing sound governance, compliance, and the safeguarding of assets.

Way Ahead

Following the settlement of its borrowings and the resulting realignment of the Companys structure; Next MediaWorks Ltd. will recalibrate its strategic priorities while maintaining a balanced, stakeholder-centric approach.