Radio City swings to profit after slashing staff by 20%
Music Broadcast Ltd reported a 26% revenue decline for the fourth quarter. It saved its way to a ₹6.1 cr operating profit.
— 1 earlier story on Music Broadcast Ltd. →What's new
- Revenue fell 26% to ₹40.8 cr as industry advertising volumes dropped 2%.
- The firm swung to a ₹6.1 cr operating profit after cutting headcount by 20%.
- Management warned most cost-saving measures are now complete.
Why it matters
The company bought itself time with deep cuts, but growth remains missing. The easy cost-cutting phase is over. Revenue is contracting alongside the broader radio market.
What we're watching
- Whether the hub-and-spoke model can arrest the double-digit revenue slide.
- Signs of an advertising volume recovery in the coming quarters.
- Management's ability to hold margins without further workforce reductions.
The full read
Music Broadcast Ltd posted a ₹6.1 crore operating profit for the fourth quarter, a distinct improvement from the ₹3.5 crore loss it logged in the same period last year. This return to the black hides a sharper underlying weakness. Revenue for the period dropped 26% to ₹40.8 crore because radio advertising volumes shrank.
The company reached this profitability by cutting its headcount by 20% and switching to a hub-and-spoke operating model. These moves effectively shrunk the business to match its revenue decline.
It is a temporary fix.
Management told investors that most efficiency gains are already finished. With no FY27 guidance provided, the path to sustained margin gains is nonexistent without revenue growth. The radio sector is shrinking, and Music Broadcast is currently just trimming expenses to keep pace. The next phase will test if the business can survive without further deep cuts.