As India’s radio industry looks towards 2026, executives are projecting cautious optimism anchored in pricing discipline, regional strength and a steady shift beyond traditional spot advertising.
While radio continues to compete in an increasingly fragmented audio and media landscape, long-awaited regulatory reforms and evolving advertiser expectations are pushing broadcasters to rethink both growth levers and business models.
Ad growth to hinge on pricing discipline and regional demand
Radio networks are planning for high single-digit ad revenue growth in 2026, with selective headroom to move into double digits in certain markets. The emphasis is firmly on yield improvement rather than volume-led expansion, as broadcasters seek to protect pricing while offering more integrated solutions to advertisers.
Abe Thomas, CEO, Radio City, says the industry is consciously stepping away from chasing inventory-heavy growth. “We are planning for high single-digit growth in 2026, with selective opportunities to move into double digits. The growth will be driven by better yields, stronger regional demand and integrated solutions, not by chasing volumes,” he says.
Local and mid-market advertisers are expected to remain central to this trajectory, particularly across Tier 2 and Tier 3 markets where radio continues to enjoy strong community relevance. Categories such as auto, retail, real estate, education, FMCG and government advertising are projected to collectively contribute around 60 to 65 percent of total ad revenues, underscoring radio’s close linkage with regional economic activity.
According to Nisha Narayanan, Director and COO, Red FM, 2026 will see deeper convergence between radio, digital audio, live events and experiential storytelling, creating an integrated audio-plus-experience ecosystem. “Hyper-local and culturally rooted narratives will gain greater prominence, especially in Tier 2 and Tier 3 markets where radio continues to hold strong community influence,” she adds.
Digital radio reforms could reshape listenership dynamics
On the audience front, 2026 is widely seen as a potential inflection point, subject to the rollout of digital broadcasting reforms. TRAI’s recommendations for a digital radio policy for private FM broadcasters outline India’s transition from analog FM to digital radio, detailing licensing norms, auction rules and reserve prices for spectrum across key cities.
The recommendations follow a reference from the Ministry of Information and Broadcasting in April 2024, a consultation paper issued in September 2024 and an open house discussion held in January 2025. Under the proposed simulcast model, broadcasters will be allowed to operate one analog FM channel, three digital channels and one data channel on a single frequency, enabling a phased transition while expanding content offerings. TRAI has also recommended a 15-year authorisation period, with broadcasters paying an annual fee of 4 percent of Adjusted Gross Revenue, alongside concessional rates for select geographies.
Thomas believes the regulatory shift could materially alter radio’s growth trajectory. “The imminent launch of Digital Radio and removal of content restrictions will be a game changer for radio in India, bringing in new audiences and new advertisers,” he says.
Executives expect overall reach to remain stable with modest growth in 2026, while time spent listening is likely to improve. Digital audio audiences are projected to grow at a faster, double-digit pace. “Terrestrial radio remains a daily habit medium, while digital audio will increasingly extend reach and engagement, especially among younger audiences,” Thomas adds, noting that personalised and engaging content will be key to drawing younger listeners back into the radio ecosystem.
From spot-selling to solutions-led radio
Beyond audience and revenue metrics, industry leaders point to a deeper structural shift underway. Radio is increasingly being repositioned from a spot-selling medium to a local influence and solutions platform, leveraging its strengths of trust, daily engagement and local relevance.
“Radio is evolving from a spot-selling medium to a local influence and solutions platform,” Thomas says. He adds that broadcasting is now being integrated with digital streaming, podcasts and online platforms, with greater emphasis on AI and automation to deliver more personalised and dynamic experiences.
Convergence and experience take centre stage
Nisha Narayanan, Director and COO, Red FM, echoes this view, arguing that radio’s future lies in convergence rather than isolation. “Radio is no longer offered in isolation and delivers a media multiplier effect when combined with digital, social and on-ground experiences,” she says.
Advertiser expectations sharpen
Advertiser expectations are also evolving rapidly. Brands are increasingly demanding measurable outcomes, flexibility and integrated solutions that go beyond standalone airtime buys.
“Brands are increasingly favouring platform-agnostic storytelling and IP-led engagement models,” Narayanan says, adding that radio networks will need to adapt measurement frameworks to capture impact across digital, social and on-ground touchpoints as radio becomes part of a broader media mix.
Non-FCT revenues move into the mainstream
Digital audio, branded content and on-ground activations are steadily becoming central to radio revenue models. By 2026, these non-FCT streams are expected to contribute 25 to 30 percent of overall revenues, up from about 20 to 22 percent in 2025. Executives describe these as higher-engagement and higher-value revenue streams that help diversify income while deepening advertiser relationships.
“Our approach today goes well beyond traditional FCT advertising,” Narayanan says. “Non-FCT revenues from branded content, digital integrations, events and IPs are now a significant part of Red FM’s portfolio.”
Cautious optimism beneath the narrative
Privately, some executives strike a more cautious note. A senior radio executive says the industry’s optimism around 2026 is closely tied to the pace of regulatory implementation. Without timely movement on digital radio, growth risks remaining incremental rather than transformational.
The executive adds that while convergence is inevitable, radio companies will need to carefully balance innovation with cost discipline, particularly as margins remain under pressure in several markets.
As the industry heads into 2026, radio appears poised at a transitional moment. With policy clarity inching closer and business models evolving beyond spot selling, the sector’s ability to translate trust, locality and daily engagement into measurable, multi-platform value will determine the strength of its next growth cycle