Saregama India has announced its Q3FY26 financial results for the quarter ended December 31, 2025, reporting mixed performance with profitability under pressure despite operational efficiency improvements. The entertainment and media company faced significant revenue challenges while demonstrating resilience in margin expansion.

Board Meeting and Regulatory Compliance

The Board of Directors approved the unaudited financial results (standalone and consolidated) for the quarter and nine months ended December 31, 2025, at their meeting held on February 3, 2026. The meeting commenced at 1:00 PM and concluded at 1:45 PM (IST). The results have been prepared in accordance with Indian Accounting Standards (Ind-AS) and subjected to limited review by statutory auditors.

Financial Performance Overview

The company's consolidated financial results for Q3FY26 showed a substantial revenue decline alongside moderate profit reduction. Revenue from operations dropped significantly to ₹260.38 crores compared to ₹483.43 crores in Q3FY25, marking a steep 46.1% year-on-year decline.

Segment-wise Revenue Performance

The company's business segments showed varied performance during the quarter. The Music segment generated ₹179.69 crores in revenue, while Events segment contributed ₹22.20 crores compared to ₹278.89 crores in the corresponding quarter last year.

Exceptional Items and Labour Code Impact

The company reported exceptional items of ₹6.98 crores for Q3FY26, primarily due to the impact of new Labour Codes notified by the Government of India on November 21, 2025. These codes consolidate 29 existing labour laws, with the incremental impact arising due to changes in wage definition. The company continues to monitor the finalization of Central/State Rules for further clarifications.

Nine-Month Performance and Corporate Actions

For the nine months ended December 31, 2025, consolidated revenue stood at ₹697.18 crores compared to ₹930.54 crores in the corresponding period last year. Net profit for the nine-month period was ₹131.58 crores versus ₹144.38 crores in the previous year, showing a decline of 8.9%. The Board declared an interim dividend of ₹4.50 per share for FY26, representing 450% on the face value of ₹1 each, with ₹86.76 crores paid during Q3FY26.

Saregama India Limited has successfully completed its acquisition of securities in Bhansali Productions Private Limited (BPPL) for INR 325 crores on January 30, 2026. The transaction represents a significant strategic move by the entertainment company to expand its content portfolio through this substantial investment.

Transaction Details

The acquisition was executed through subscription of compulsory convertible preference shares (CCPS) in BPPL. The company informed stock exchanges that it has completed the subscription process as per the terms outlined in the Investment Agreement executed on December 16, 2025.

Investment Agreement Framework

The transaction is based on an Investment Agreement executed among three parties: Saregama India Limited, Bhansali Productions Private Limited, and Sanjay Navin Bhansali. The agreement was initially announced to stock exchanges on December 16, 2025, providing the framework for this acquisition.

The compulsory convertible preference shares structure allows Saregama to participate in BPPL's growth while maintaining specific conversion terms as outlined in the original agreement. The company has maintained transparency throughout the process by keeping investors informed about each stage of the transaction.

Regulatory Compliance

Saregama India Limited has ensured full compliance with regulatory requirements for this acquisition. The company has fulfilled all obligations under:

• Regulation 30 of SEBI Listing Regulations
• Schedule III Part A Para A (1) of SEBI Listing Regulations
• SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024

All required details and documentation were submitted to stock exchanges as part of the initial intimation on December 16, 2025. The company has maintained its commitment to regulatory transparency and investor communication throughout the acquisition process.

Strategic Implications

This acquisition marks a significant investment by Saregama India Limited in content production capabilities. The INR 325 crore investment in Bhansali Productions Private Limited demonstrates the company's commitment to expanding its entertainment content portfolio and strengthening its position in the media and entertainment sector.

The completion of this transaction positions Saregama to leverage BPPL's production capabilities while maintaining its focus on content creation and distribution. The company has made this information available on its official website at www.saregama.com for stakeholder reference.