Radiowalla Network Returns to Profit in H1 FY27 and Adds In-Store Fragrance Service

Bengaluru-based Radiowalla Network Limited, listed on the NSE Emerge platform, has posted its first-half results for FY27 and moved back into the black. The company reported a positive profit after tax of ₹21.11 lakh for the period, compared with a loss of ₹19.20 lakh in H2 FY26.

If you have ever walked into a shop and noticed the music, the screens and the smell in the same breath, you have seen the kind of work Radiowalla does. The company sells in-store audio, digital signage and customer engagement tools to brands, and it now counts more than 700 of them as clients across 35,000-plus stores.

The biggest new piece is in-store fragrance. Radiowalla has started offering scent solutions for retail clients, adding a smell layer to its existing sound and visual services. Management expects revenue from this line to start coming in during the second half of FY27.

The numbers behind the turnaround are worth a closer look. The EBITDA margin rose to 8%, up from 7% in H1 FY26 and from negative 1% in H2 FY26. Operating cash flow also flipped, bringing in ₹127.00 lakh in H1 FY27 after an outflow of ₹75.80 lakh a year earlier. Earnings per share came in at ₹0.30, both basic and diluted.

Management credits better use of resources, tighter costs and the use of AI in back-end operations. The firm's subscription-led lines did especially well on margins. In-store radio gross margin climbed to 42% from 33%, and VCMS rose to 36% from 21%. Corporate radio held steady at 45%, slightly below 46% a year earlier. Its advertising business, however, remains a work in progress, and the company says it is putting more money into marketing and technology to fix that.

Radiowalla also says demand is growing from organised retail chains in Tier-2 and Tier-3 cities, and it is building its presence in the Middle East and African markets. Its service mix now uses AI-powered music curation, multilingual voiceovers and smart amplification to tailor the in-store experience.

Why it matters: small and mid-sized retail chains are often where in-store experience gets neglected, and that is where Radiowalla is aiming. A profitable quarter does not prove the model will hold, but it shows that the business can cover its costs while it expands into new senses. For shoppers, the next step may be stores that sound, look and smell more deliberately designed. For investors, the test will be whether fragrance and advertising start contributing meaningful revenue in the months ahead.

Read the company's full announcement at the original report on ANI.

Related: Vintage Coffee Revenue Jumps 64% as Shares Surge on Freeze-Dried Expansion Plans · Sajjan Jindal Meets Bengal CM Suvendu Adhikari to Discuss Investment Plans