Signpost India Targets Rs 150 Crore Revenue In FY26 From Bengaluru Metro Advertising Rights

Out-of-home (OOH) advertising major Signpost India is set for significant topline growth, according to Managing Director Shripad Ashtekar. This will be driven by high-value contract wins in the transit advertising space, particularly in Mumbai and Bengaluru.

In Bengaluru, the company was recently awarded exclusive advertising rights for 67 metro stations operated by Bengaluru Metro Rail Corporation Limited (BMRCL).

On being asked if it would add over Rs 150 crore to the company’s topline in FY26, he responded positively.

“This revenue, which we have predicted for nine years, will definitely start giving yields from the second half of the year, and it will definitely be around the same number that you're talking about,” he said during a conversation with NDTV Profit.

As per an exchange filing, the contract has a revenue potential of Rs 600 crore to Rs 700 crore (excluding GST) over the tenure of nine years, i.e. till 2034.

“The project will offer a cumulative display space—both static and digital—aggregating to over 95,000 square feet, across strategically located high-footfall metro stations in the city of Bengaluru,” the company said in the exchange filing.

Karnataka High Court recently allowed Signpost India to resume its advertising business in Bengaluru following an interruption due to notices by the Bengaluru municipal corporation. This is projected to add Rs 60 crore to Rs 70 crore annually to the company’s topline. 

Ashtekar highlighted the immense potential of the Bengaluru metro network. "There are around seven to eight lakh daily commuters. This will double as phase two starts," he explained. 

The company aims to target the "tech-savvy and young traffic" that constitutes the Metro's primary user base.

In addition to Bengaluru, Signpost India is making strides in other metros. The company is actively looking to expand its footprint in the rapidly growing metro networks of both Mumbai and Delhi. 

It holds exclusive advertising rights for 15 years on Mumbai Metro’s Line 2A and Line 7, with plans to bid for upcoming lines focusing on exterior infrastructure.

Addressing the capital-intensive nature of the business, Ashtekar explained that long-term contracts require substantial initial investment. For instance, the Bengaluru metro project will involve an initial capital expenditure of Rs 75 crore to Rs 85 crore for infrastructure and digitisation.

“That kind of revenue is required to invest initially, but subsequently, the growth pattern and the revenue start coming, it's a win-win for both.”

Shares of Signpost India closed at Rs 285.93 on Aug. 25, up 0.86%. On the other hand, Nifty 50 rose 0.39% to close at 24,967.75.