News Earnings Saregama India Q3FY26 Results: Music Revenue Grows 29% YoY, Operating Revenue at INR 260 CroresSaregama India Q3FY26 Results: Music Revenue Grows 29% YoY, Operating Revenue at INR 260 Crores
Saregama India reported robust Q3FY26 results with operating revenue of INR 260 crores and operating PBT of INR 76.5 crores. The music segment achieved exceptional 29% year-on-year growth, driven by successful content releases including the blockbuster Hindi film Dhurandhar. The company made strategic investments in Bhansali Productions and expanded its artist management portfolio to over 270 artists. Management maintains medium-term guidance of 21-23% music growth and 32-33% adjusted EBITDA margins while continuing significant content investments.
*this image is generated using AI for illustrative purposes only.
Saregama India delivered a strong Q3FY26 performance with operating revenue reaching INR 260 crores and operating PBT of INR 76.5 crores. The quarter included a one-time non-cash exceptional item of INR 7 crores related to the new Labour Code implementation, resulting in a reported profit of INR 69.5 crores after adjusting for this impact.
Music Segment Performance
The music vertical demonstrated exceptional growth of 29% year-on-year during Q3FY26, marking a significant acceleration from previous quarters. This growth was primarily attributed to strategic new content releases across Hindi and regional languages, combined with the elimination of the Airtel Wynk revenue impact from the previous year's denominator.
| Performance Metric: | Q3FY26 Growth |
|---|---|
| Music Revenue Growth: | 29% YoY |
| Nine-Month Growth: | 18% YoY |
| Full-Year Guidance: | 17-18% |
| Medium-Term Target: | 21-23% |
Content Releases and Market Success
The quarter's standout performance was driven by the super successful Hindi film Dhurandhar, which achieved the remarkable distinction of having all 11 songs featured on Spotify India Charts. The film's biggest track "Gehra Hua" currently holds the number one position on Spotify India Charts, while "Shararat" ranks as the global number one song on YouTube.
Other prominent releases included:
- Tu Meri Main Tera Main Tera Tu Meri from Dharma Productions in Hindi
- The Devil starring Darshan in Kannada
- Zat Pat Pata Pat featuring Pocket Aces artist Danny Pandit in Marathi
- Circle by Amanraj Gill in Haryanvi language
The company released over 1,100 original and premium recreations across multiple languages including Hindi, Bhojpuri, Gujarati, Punjabi, Tamil, Telugu, Malayalam, Marathi, Bengali, Chhattisgarhi, and Odia.
Strategic Investments and Partnerships
Bhansali Productions Investment
Saregama made a strategic minority investment in Bhansali Productions, structured with valuation linked to financial performance over the next three years. This arrangement provides exclusive access to marquee Hindi film music at pre-agreed cost structures, eliminating bidding processes and ensuring long-term cost optimization.
| Investment Details: | Specifications |
|---|---|
| Transaction Closure: | January 30, 2026 |
| Structure: | Minority ownership with performance linkage |
| Benefits: | Exclusive music access, pre-agreed costs |
| Creative Control: | Retained by Sanjay Leela Bhansali |
| Financial Oversight: | Managed by Saregama |
Content Investment Strategy
The company's content spend for the current year is projected between INR 275 crores to INR 300 crores, reduced from earlier plans due to film release postponements. Major productions including Sanjay Leela Bhansali's "Love & War" and Telugu superstar Nani's "Paradise" have been pushed to the next financial year.
Technology and Innovation
Saregama has implemented generative AI video generation tools for creating music videos for older catalogue songs. This technological advancement has significantly reduced production timelines from 10-12 days to less than 3 days, with expectations of further reduction to 1-1.5 days within a year.
Artist Management Expansion
The artist management vertical added 60 new artists during the quarter, bringing the total managed artists to over 270 with more than 300 million followers and subscribers across Instagram and YouTube platforms. This vertical focuses on monetizing artists through live events, weddings, and brand endorsements.
Live Events Business
The live events segment generated INR 57 million in profits during Q3FY26, featuring performances by Diljit Dosanjh and Himesh Reshammiya, along with stand-up comedy shows. The company has expanded into bhajan clubbing shows and plans its first music festival in Bangalore for March 2026.
Financial Guidance and Outlook
Saregama maintains its medium to long-term guidance of 21-23% annual growth for the music segment and 32-33% adjusted EBITDA margins at the consolidated level. The company expects to achieve 17-18% music revenue growth for the full financial year FY26.
| Guidance Parameters: | Targets |
|---|---|
| Music Growth (Medium-term): | 21-23% annually |
| Adjusted EBITDA: | 32-33% |
| Content Investment (3-year): | INR 1,000 crores |
| Content Payback Period: | 5 years |
The management emphasized evaluating performance on a rolling 12-month basis rather than quarterly fluctuations, citing the inherent variability in live events business and content release timing.
Source: Saregama India Limited Q3FY26 Earnings Conference Call transcript
Historical Stock Returns for Saregama India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.04% | +6.59% | -4.24% | -29.18% | -34.67% | +264.79% |
16
