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Music Broadcast Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤2nd Feb 26

Summary : Music Broadcast Limited reported mixed Q3 2025 results with improved margins but a 9-month loss, alongside ongoing legal challenges and board changes.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Total expenses (Q3 Dec 2025): 4,872.61 lakhs
  2. License fees (Q3 Dec 2025): 487.66 lakhs
  3. Employee benefit expense (Q3 Dec 2025): 1,391.01 lakhs
  4. Depreciation and amortisation expense (Q3 Dec 2025): 680.83 lakhs
  5. Other expenses (Q3 Dec 2025): 1,947.05 lakhs
  6. Finance costs (Q3 Dec 2025): 305.20 lakhs
  7. Total income from operations (Q3 Dec 2025): 5,481.21 lakhs
  8. Total income from operations (9M Dec 2025): 15,583.55 lakhs
  9. Revenue from operations (Q3 Dec 2025): 4,647.53 lakhs
  10. Other income (Q3 Dec 2025): 833.68 lakhs
  11. NCLT petition and PPL litigation are potential contingent liabilities, though management expects no economic outflow from PPL case.
  12. Paid up equity share capital (Dec 31, 2025): 6,913.71 lakhs
  13. Free reserves (Dec 31, 2025): 7,423.95 lakhs
  14. Securities Premium Account (Dec 31, 2025): 32,626.22 lakhs
  15. Net worth (Dec 31, 2025): 49,343.57 lakhs
  16. Outstanding redeemable preference shares (value) (Dec 31, 2025): 10,711.20 lakhs
  17. Capital redemption reserve (Dec 31, 2025): 896.96 lakhs
  18. Debt equity ratio (Dec 31, 2025): 0.27
  19. Standalone results for Music Broadcast Limited, a single reportable segment company.

Corporate Overview

  1. India (Registered office in Mumbai).
  2. Pending NCLT petition against promoters.
  3. Ongoing litigation with Phonographic Performance Limited (PPL).
  4. Potential impact from new Labour Codes.
  5. Impairment loss of Rs. 3,492.99 lakhs in previous year (March 31, 2025).
  6. Operating private FM radio stations.
  7. Factual and formal, reporting financial results and governance changes.
  8. Single reportable segment.

Risk Factors

  1. NCLT petition pending against promoters.
  2. Ongoing PPL litigation, potential financial impact.
  3. New Labour Codes impact employee benefits.
  4. Nine-month period shows significant loss.

Key Drivers

  1. Q3 profit increased year-over-year.
  2. Risk Management Committee re-constituted.
  3. Preference shares redeemed on maturity.
  4. Improved operating and net profit margins.

Auditor’s Report

  1. Unmodified conclusion on the unaudited financial results.
  2. Attention drawn to Note 5 regarding a pending NCLT petition, but conclusion is not modified.

Board Commentary

  1. Re-constitution of the Risk Management Committee approved.
  2. Mr. Abraham Thomas, Chief Executive Officer, joined the Risk Management Committee as a member.
  3. Interim dividend of Re. 0.01 per Non-Convertible Non-Cumulative Redeemable Preference Share (NCRPS) declared for FY ending March 31, 2026.
  4. NCLT petition against promoters.
  5. PPL litigation over music licensing fees.
  6. Impact of new Labour Codes on employee benefits.
  7. Petition filed under sections 241, 242, and 244 of the Companies Act, 2013, pending before NCLT.
  8. Litigation with Phonographic Performance Limited (PPL) regarding music licensing fees, with a favorable High Court decision setting aside a previous order.
  9. Assessment of incremental impact from new Labour Codes on employee benefit obligations.

Corporate Governance

  1. Mr. Madhukar Kamath is Chairman and Independent Director.
  2. Ms. Anita Nayyar and Ms. Divya Karani are Independent Directors.
  3. Audit Committee reviewed financial results.
  4. Risk Management Committee re-constituted.

Management Discussion & Analysis

Operational Focus Areas

  1. Monitoring developments related to new Labour Codes.

Performance Drivers

  1. Q3 2025 showed improved profit and margins compared to Q3 2024.
  2. Nine-month period ending December 31, 2025, shows a net loss.

Risk Control Measures

  1. Management does not expect impact from NCLT petition.
  2. Company has good case on merits for PPL litigation, no economic outflow expected.
  3. Company continues to monitor Labour Codes developments.

Critical Risks

  1. NCLT petition under Companies Act, 2013.
  2. PPL litigation regarding music licensing fees.
  3. Accounting implications of new Labour Codes.