Saregama India posts 13% EBITDA growth in FY26 on cost control

2 min read Updated on 24 Jul 2026, 03:38 PM

Reviewed by

Anirudha BScanX News Team

AI Summary

Saregama India Limited achieved a 13% rise in Adjusted EBITDA to ₹4,047 Mn in FY26, offsetting a 16% revenue drop with a 29% cut in expenses. PAT increased 1% to ₹2,062 Mn, with margins expanding to 41%. The company invested heavily in content and acquisitions, leading to a decrease in cash reserves.

*this image is generated using AI for illustrative purposes only.

Saregama India Limited reported a 13% year-on-year increase in Adjusted EBITDA to ₹4,047 Mn for FY26, driven by significant cost containment despite a 16% decline in revenue. The company’s Profit After Tax (PAT) rose 1% to ₹2,062 Mn, while Adjusted EBITDA margins expanded from 30% in FY25 to 41% in FY26. This performance underscores the firm's ability to protect profitability through expense management even as top-line growth contracted.

The financial results were disclosed in a corporate presentation submitted to the National Stock Exchange of India Limited and BSE Limited on July 24, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing details the company’s operational and financial performance for the fiscal year ended March 31, 2026.

Financial Performance Highlights

Revenue from operations decreased by 16% to ₹9,846 Mn in FY26, compared to ₹11,713 Mn in FY25 and ₹8,030 Mn in FY24. However, total expenses dropped sharply by 29% to ₹5,799 Mn from ₹8,147 Mn in the previous year. This divergence allowed the Adjusted EBITDA margin to widen significantly. Operational Profit Before Tax (PBT) increased by 8% to ₹2,926 Mn. An exceptional item loss of ₹85 Mn reduced the final PBT to ₹2,841 Mn, a 3% increase over FY25.

Metric (INR Mn)	FY26	FY25	YoY Change
Revenue from Operations	9,846	11,713	(16%)
Total Expenses	5,799	8,147	(29%)
Adjusted EBITDA	4,047	3,566	13%
Adjusted EBITDA Margin	41%	30%	-
PAT	2,062	2,043	1%
Diluted EPS	10.73	10.61	-

Balance Sheet and Cash Flow

The company’s net worth grew to ₹16,927 Mn in FY26 from ₹15,834 Mn in FY25. Borrowings increased, with non-current borrowings rising to ₹95 Mn and current borrowings reaching ₹609 Mn, compared to nil in FY25. Cash and cash equivalents declined to ₹282 Mn at the end of FY26 from ₹694 Mn in FY25, reflecting a net decrease of ₹447 Mn. Net cash generated from operating activities stood at ₹1,553 Mn, while investing activities consumed ₹1,686 Mn, largely due to content spending of ₹2,653 Mn and acquisition consideration of ₹3,361 Mn.

Balance Sheet Item (INR Mn)	FY26	FY25
Net Worth	16,927	15,834
Total Assets	23,220	20,952
Cash & Equivalents	282	694
Total Borrowings	704	-

What the Numbers Show

The most critical insight from Saregama India’s FY26 results is the decoupling of revenue decline from profitability growth. While revenue fell by 16%, the 29% reduction in total expenses more than compensated, leading to a 13% rise in Adjusted EBITDA. This suggests a strategic shift towards higher-margin activities or rigorous cost optimization. Furthermore, the expansion of EBITDA margin from 30% to 41% indicates improved operational efficiency. However, the significant cash outflow for content creation (₹2,653 Mn) and acquisitions (₹3,361 Mn) highlights continued heavy investment in intellectual property, which may pressure near-term liquidity despite strong operating cash flows.

Historical Stock Returns for Saregama India

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.59%	+1.42%	+4.88%	+48.76%	+0.37%	+51.84%

Will the aggressive cost-cutting measures that drove the EBITDA margin expansion to 41% be sustainable without further eroding the already declining revenue base?

How will the significant increase in borrowings and depletion of cash reserves impact Saregama's liquidity position and credit rating in FY27?

What specific strategic synergies or revenue streams are expected from the ₹3,361 Mn in acquisitions to justify the heavy capital outlay amidst falling top-line growth?

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Saregama India buys 4.82% stake in Pocket Aces for ₹20.05 crore

1 min read Updated on 23 Jul 2026, 03:22 AM

Reviewed by

Anirudha BScanX News Team

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Saregama India Limited acquired an additional 4.82% stake in Pocket Aces Pictures Private Limited for ₹20.05 crore, increasing its total holding to 95.76%. The transaction, completed on July 22, 2026, strengthens Saregama's control over the digital content creator, which reported a turnover of ₹14,217.58 lakhs in FY26.

*this image is generated using AI for illustrative purposes only.

Saregama India has acquired an additional 4.82% stake in its material subsidiary, Pocket Aces Pictures Private Limited, for approximately ₹20.05 crore. The acquisition, completed on July 22, 2026, increases Saregama India's total shareholding in the digital entertainment company to 95.76%, consolidating its control and strengthening synergies across artiste management and long-format video creation businesses.

The transaction involved the purchase of 35,635 equity shares, representing the fully diluted share capital of Pocket Aces. The consideration of ₹20,05,24,559 was paid as the third tranche sale consideration to multiple selling shareholders. One of the selling shareholders is a Managing Director of Pocket Aces, and since Pocket Aces is a material subsidiary of Saregama India, this portion of the transaction was classified as a related party transaction conducted on an arm’s length basis. The acquisition from other selling shareholders was not a related party transaction.

Pocket Aces reported a turnover of ₹14,217.58 lakhs for the financial year 2025-26. The company is a youth-focused digital content creator with an IP catalogue of over 35,000 pieces, including web series, sketches, and music videos. It operates channels such as Filter Copy, Nutshell, and Gobble, releasing over 15 new content pieces daily. Its talent management arm, Clout, manages over 215 digital talent, while its long-form studio, Dice Media, produces web series for OTT platforms like Netflix, Hotstar, and Amazon.

The acquisition was executed in accordance with the terms of the Investment Agreement and Shareholders’ Agreement dated September 28, 2023. No governmental or regulatory approvals were required for the completion of this cash consideration transaction. The move is intended to further consolidate Saregama India's holding in Pocket Aces and enhance existing operational synergies.