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As the first half of 2025 draws to a close, the Indian radio industry finds itself at an inflection point where traditional strengths meet digital ambition. While core radio formats have seen modest growth, broadcasters are increasingly betting on digital innovations and non-FCT (non-traditional) revenue streams to future-proof their businesses.
The sector’s muted topline performance is largely attributable to a high base last year, boosted by election-related government campaigns, and a continuing slump in government ad spends. Yet, key players have managed to hold ground and, in some cases, outperform expectations due to diversified revenue models and robust digital pivots.
Entertainment Network (India) Ltd. (ENIL), which operates the Radio Mirchi brand, reported a consolidated revenue of Rs 158 crores in Q4 FY25, marking a 5% year-on-year (YoY) increase. Domestic revenues stood at Rs 154 crores, up 2.9% YoY, driven largely by digital and non-FCT segments.
For FY25, ENIL’s domestic revenues rose to Rs 526 crores, a 9.4% YoY growth. While the core radio business (excluding digital) grew a modest 2.6%, it still contributed Rs 465 crores. The real story, however, lies in the company’s digital transformation.
Music Broadcast Ltd., which runs Radio City, posted a revenue of Rs 234 crores for FY25, marking a 3% YoY growth. The company’s operating EBITDA stood at Rs 40 crores, with margins of 16.8%.
As per Pawan Agarwal, Deputy Managing Director, DB Corp’s radio business continued its strong run leading industry growth with advertising revenues of Rs 166.3 crores for FY25, a 4.5% YoY increase, and EBITDA rising to Rs 55.8 crores, up 1.3% YoY.
Broadcasters embrace multi-platform play
Radio Mirchi’s digital segment delivered a stellar growth with revenue reaching Rs 61 crores, up a strong 122% YoY, largely driven by the performance of Gaana, mentioned Yatish Mehrishi, CEO, ENIL. “We’re encouraged by the customer response to the revamped Gaana 2.0 platform. Digital now contributes 26% to our total radio revenues, up from 15% in FY24. This aligns with our strategy to evolve from a traditional radio company to a diversified multimedia entertainment enterprise.”
Much like ENIL, Radio City’s digital performance was a bright spot. “Our digital business delivered an impressive 36% YoY growth,” said Ashit Kukian, CEO, Radio City. “Digital now contributes 11% to our revenues, compared to 9% in FY24. These results underscore the scalability and resilience of our premium content strategy and multi-platform approach.”
ENIL's non-FCT segment comprising events like the Green Marathon and Spell Bee saw a 20% YoY rise, clocking Rs 151 crores with EBITDA margins of 33%. “Despite the absence of political advertising this year, we remain relatively better insulated and continue to maintain a healthy 26% volume share in the radio segment,” Mehrishi added.
Radio City, on the other hand, has focused on creating deeper audience engagement through content optimization and expanded distribution. This has positioned the broadcaster well in a competitive digital media landscape, with Kukian noting, “Every tap and swipe now unlocks new opportunities.”
Rise of tier-II markets and integrated advertising
Sunil Kumaran, COO of BIG FM, noted that the industry is witnessing volume growth in the range of 3–5% in H1 2025 despite a significant decline in central and state government advertising. “The more interesting trend is the shift towards emerging markets beyond the major metros,” he said. “Even with limited government spending, the industry managed to post decent growth. What’s truly driving results is our pivot beyond radio where initiatives like on-ground activations, digital content, and IPs are contributing meaningfully.”
Kumaran added that non-metro markets are becoming vital growth drivers: “The newer growth is coming from tier II and III towns, where radio still enjoys a high trust factor and deep community connection. We're seeing a lot more local businesses stepping up as first-time advertisers.”
He also pointed out a rise in new advertiser categories. “Almost 18–20% of our advertiser base this year is new, which shows how radio continues to attract fresh interest especially when bundled with digital and on-ground activations.”
The Chief Strategy Officer of a leading radio network echoed the sentiment. “Radio is gaining traction across categories like BFSI, real estate, auto, FMCG, pharma, and education. Being a local, response-led, and experiential medium, radio has earned its share this year,” he said.
He emphasized the power of integrated packages: “More clients now want holistic media solutions. So, our radio-digital-event bundles are finding strong traction, especially in sectors like auto, BFSI, and retail. We’re no longer selling 30-second slots rather we’re delivering experiences.”
Looking ahead, with traditional ad volumes stabilizing and government ad support still subdued, the path forward for radio clearly lies in its hybrid potential. Digital revenues are no longer just supplementing growth, they’re increasingly defining it.
As the source sums it up, “This year is shaping up to be better than the last two, with the industry likely to see a 5–8% incremental uptick in both revenue and volume share, driven by digital extensions and diversified offerings.”
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