Radiowalla Network Ltd Management Discussions

For the Financial Year 2025-26 Radiowalla Network Limited

INDUSTRY OVERVIEW AND BUSINESS ENVIRONMENT

The way consumers interact with brands in physical retail spaces is changing. Stores are no longer only places where a transaction takes place. They are increasingly becoming spaces where brands can communicate with consumers, influence purchase decisions and create a more engaging customer experience.

This change is being supported by the continued growth of organized retail in India, along with increasing adoption of technology within stores. Indias retail market is expected to grow at around 10-12% annually through FY2030, while organized brick-and-mortar retail is expected to grow at a faster pace of around 16-20% over FY2025-30. This growth is expanding the number of organized retail locations where technology-enabled media and communication solutions can be deployed.

At the same time, advertising is moving closer to the consumer and the point of purchase. Retailers are increasingly looking at their physical locations as assets that can be used not only to sell products, but also to engage consumers and generate additional advertising revenue. This has contributed to the growth of retail media, which is becoming an increasingly important part of the advertising ecosystem in India.

Industry estimates indicate that Indias retail media market is expected to witness significant growth, with the market projected to reach around Rs24,280 crore, and further expansion anticipated in the coming years. While much of the current retail media opportunity is concentrated around e-commerce and digital platforms, the same underlying trend is increasingly relevant to physical retail environments.

It is against this backdrop that in-store audio, in-store advertising, digital signage and Digital Out-of-Home (DOOH) are becoming increasingly relevant. These are different media formats, but they have a common objective - helping retailers and brands communicate with consumers in physical environments in a way that is more relevant, flexible and measurable.

IN-STORE RADIO

In-store radio has traditionally been associated with background music and creating the right ambience within a store. The role of audio, however, is gradually expanding.

With digital technology, music, promotional announcements and advertising can now be centrally managed and delivered across large networks of stores. This allows retailers and brands to use the same infrastructure not just for ambience, but also for customer communication and advertising.

There is also growing evidence that shoppers respond positively to communication delivered within the store environment. In-store advertising can influence purchasing decisions, while audio messages played within retail spaces can also encourage customers to make purchases.

For retailers, this creates an opportunity to use audio as another touchpoint in the customers journey. For advertisers, it provides an opportunity to communicate with consumers when they are already inside a store and potentially making purchase decisions.

The opportunity in India is supported by the continued expansion of organized retail. As the number of organized retail locations increases, the addressable network for centrally managed in-store audio also increases.

The Company sees an opportunity to build on its existing capabilities in music programming, content creation, advertising integration and remote content delivery to make in-store audio a more effective and scalable retail-media channel.

IN-STORE ADVERTISING AND RETAIL MEDIA

Retail media is changing the relationship between retailers and advertisers. Retailers are increasingly able to use their consumer relationships, physical locations and media assets to offer brands more targeted advertising opportunities.

The growth of retail media in India has been particularly strong. Industry estimates indicate that retail media advertising is witnessing significant expansion, with the market expected to grow further and cross Rs30,000 crore in the coming years.

A large part of this market today comes from e-commerce and quick-commerce platforms. However, the broader shift is important for physical retail as well. As brands look for ways to reach consumers closer to the point of purchase, the physical store itself becomes an increasingly valuable communication environment.

This creates opportunities for retailers to monetize media inventory across different touchpoints, including audio, screens and other in-store communication formats. It also creates opportunities for advertisers to run campaigns that are specific to a particular retailer, location, geography, product category or promotion.

The Company believes that its existing network of retail locations provides a strong base from which to build this opportunity. Going forward, the focus is not only on adding more locations, but also on increasing the utilization and monetization of the media inventory available across the network.

DIGITAL SIGNAGE

Digital screens are becoming a more common part of the retail environment. Retailers are using them for promotions, product information, brand communication and customer engagement, while the same infrastructure can also be used for advertising. The Indian digital signage market is estimated to have been approximately US$1.3 billion in 2025 and is projected to grow to around US$3.0 billion by 2033, representing a CAGR of approximately

10.7%.

The opportunity is not simply about installing more screens. As networks become larger, retailers need the ability to manage content centrally, schedule campaigns, monitor screens remotely and ensure that the right communication is displayed at the right location and time.

This is where technology becomes an important part of the digital signage proposition.

The Company has therefore focused on building capabilities across screen deployment, content management, remote delivery, scheduling and monitoring, rather than treating digital signage purely as a hardware business.

The increasing use of screens in retail also creates a second opportunity - advertising monetization. Once the infrastructure is in place, screen inventory can potentially be used by brands to reach consumers within the retail environment.

The Company believes that this combination of technology, network scale and advertising capability provides a platform for the continued expansion of its digital signage business.

DIGITAL OUT-OF-HOME MEDIA

Digital Out-of-Home (DOOH) is also seeing a significant shift as advertisers move from traditional static outdoor formats towards digital displays.

The broader Indian OOH advertising market is expected to grow from approximately US$568 million in 2024 to US$798 million by 2029. More importantly, the DOOH segment is expected to grow at around 16.5% CAGR over this period.

The shift towards digital is perhaps more important than the overall growth of the OOH market. PwC expects the share of DOOH in Indias OOH advertising market to increase from 28.8% in 2024 to 44.1% by 2029. This reflects a broader movement towards media formats that can be updated remotely, carry multiple campaigns and offer advertisers greater flexibility.

For the Company, DOOH represents an extension of its digital signage and media capabilities into high-footfall locations outside traditional retail stores. The Companys focus is on building digital infrastructure and using its technology platform to manage and monetise that infrastructure.

As more advertisers look for flexible and measurable outdoor media solutions, the Company sees an opportunity to expand its DOOH network and increase the utilisation of its available screen inventory

THE OPPORTUNITY AT THE INTERSECTION OF RETAIL, MEDIA AND TECHNOLOGY

While these four business areas have traditionally been viewed separately, the boundaries between them are becoming less distinct.

A retailer may use the same digital infrastructure for its own promotions, brand communication and third-party advertising. An in-store audio network can carry both music and advertising.

A digital screen can be used for customer information during one part of the day and advertising during another. A DOOH screen can similarly be centrally managed and monetised through multiple campaigns.

This creates an opportunity to bring these capabilities together rather than operate them as completely independent businesses.

The Companys presence across in-store audio, in-store advertising, digital signage and DOOH, together with its content management and technology capabilities, gives it the ability to offer retailers and advertisers an integrated physical-media proposition.

The opportunity going forward is therefore not only about adding more stores or more screens. It is also about getting more value from the existing network - through better utilisation, increased advertising monetisation, cross-selling between business lines and greater use of technology and data.

CORPORATE RADIO

Corporate Radio extends the Companys audio and content capabilities into employee communication and engagement. It enables organisations with teams spread across multiple locations to communicate with employees through a centrally managed audio platform. Content can include company updates, announcements, employee engagement programmes, training and other internal communication.

One of the key advantages of the platform is the ability to manage communication centrally while still adapting content for different locations, languages and employee groups. This makes it particularly relevant for organisations with large and geographically distributed workforces. The Company currently has Corporate Radio projects across India, Mexico and Brazil. These projects have helped the Company build experience in managing audio-based employee communication across different markets.

As organisations place greater emphasis on employee engagement and more effective internal communication, the Company sees scope to grow this business further. It can leverage its existing capabilities in content creation, audio programming, technology and remote delivery, while also diversifying its audio business beyond the retail segment.

OUTLOOK

The Company remains positive about the long-term opportunity in the physical retail media and digital advertising ecosystem.

The continued growth of organized retail should increase the number of locations where brands can engage with consumers. At the same time, the increasing adoption of digital screens and centrally managed media infrastructure should make these locations more useful as communication and advertising platforms.

The broader retail media market is also growing rapidly, while the shift from traditional OOH towards DOOH is creating another avenue for digital media growth.

For the Company, the focus will be on building on this underlying market opportunity while remaining disciplined about the economics of expansion. Key priorities include:

• expanding the in-store media network;

• increasing utilization of existing media inventory;

• growing advertising revenues across audio and digital formats;

• using technology for playout control and audio levels in stores;

• using technology and data to improve campaign measurement;

• strengthening relationships with retailers, advertisers and media partners.

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The Company believes that the combination of a growing physical retail footprint, increasing adoption of digital media and greater demand for measurable advertising provides a favorable environment for its businesses.

Its objective will be to build on its existing network and technology platform and progressively increase the value generated from each location, rather than simply pursuing network expansion for its own sake.

References

1. Redseer - India Retail Market Outlook SEBI-Shadowfax IPO prospectus

2. PwC India - Global Entertainment & Media Outlook 2025-29: India Perspective PwC India E&M Outlook 2025-29

3. Grand View Research - India Digital Signage Market Grand View Research - India Digital Signage Market

4. Exchange4Media - India Retail Media Market Exchange4Media - Retail Media Outlook

5. Stingray - In-Store Audio and Retail Media Stingray - In-Store Audio Research

THANK YOU

Together, We Continue to Grow

As we conclude this Annual Report, we would like to express our sincere gratitude to all those who have been an integral part of Radiowalla Network Limiteds journey.

We extend our heartfelt appreciation to our shareholders and investors for their continued trust, confidence and unwavering support. Your faith in the Company inspires us to remain focused on our objectives and pursue sustainable growth while creating long-term value.

We are equally grateful to our customers, clients, business associates, advertisers, partners and service providers for their continued association with us. Your support and collaboration have played an important role in strengthening our business relationships and enabling us to serve our stakeholders better.

Our sincere thanks also go to our employees and team members, whose dedication, commitment, creativity and hard work continue to drive the Company forward. Their collective efforts remain at the heart of our progress and success.

We acknowledge the valuable guidance and support extended by our Board of Directors, advisors, professionals and other stakeholders, whose experience and contribution continue to strengthen our governance, decision-making and strategic direction.

As we look ahead, we remain committed to innovation, excellence, responsible business practices and sustainable growth. We will continue to adapt to an evolving business environment, explore new opportunities and strengthen our capabilities to deliver greater value to all our stakeholders.

The journey ahead presents new opportunities as well as challenges, and we are confident that with the continued support and trust of our stakeholders, Radiowalla Network Limited will continue to move forward with determination, integrity and purpose.

Thank you for being a part of our journey