Saregama India Limited, a leading music and entertainment company, reported its financial results for the second quarter of fiscal year 2026, showcasing resilience in a challenging market environment.

Financial Highlights

• Operating revenue: INR 230.00 crores
• Profit Before Tax (PBT): INR 60.00 crores
• Music segment growth: 12% year-on-year

Segment Performance

Music Segment

The music segment, which includes licensing and artist management, demonstrated strong performance with a 12% year-on-year growth. Notable releases contributing to this growth include:

• Tamil album 'Idli Kadai' (Dhanush movie)
• Bengali album 'Dhumketu'
• Malayalam film album 'Sahasam'

Non-film releases such as Badshah's 'Kokaina', Honey Singh's 'Mashooqa', and the Marathi song 'Chal Turu Turu' also performed well.

Video Segment

The video segment experienced a decline due to fewer releases compared to Q2FY25. Management attributes this to cyclical issues and emphasizes evaluating performance on a rolling 12-month basis due to the lumpy nature of video content releases.

Strategic Initiatives

1. Content Investment: Saregama India plans to invest INR 320.00-330.00 crores in new music content this fiscal year, slightly lower than earlier projections due to film album delays.

2. Generative AI Implementation: The company is leveraging Generative AI tools to create music videos for older songs, reducing production time from 10-12 days to 2-3 days.

3. Artist Management: The artist management vertical added 18 new artists, bringing the total to 230 artists with a combined social media following of 200 million.

4. Brand Partnership Vertical: Saregama India has created a new brand partnership vertical to consolidate selling across all business segments, aiming to offer comprehensive solutions to brand partners.

Outlook and Guidance

• Music segment growth guidance revised to 19-20% for the current fiscal year.
• Long-term projections maintained at 23% CAGR for the music business.
• Adjusted EBITDA margin guidance of 32-33% remains unchanged.
• Consolidated revenue growth (excluding Carvaan) projected at 30% between FY24 to FY27.

Management Commentary

Vikram Mehra, Managing Director of Saregama India, stated, "We are seeing movement happening. For the first time, we are seeing promotions being run and advertising communication being put out by these platforms to push for subscription." He expressed optimism about the potential growth in subscription-based streaming services, particularly among younger demographics.

Industry Trends

The company noted positive developments in the music streaming industry, with major platforms beginning to push for paid subscriptions. Management believes this shift could lead to significant revenue growth, similar to trends observed in Latin American markets.

Saregama India continues to focus on strategic content acquisition, particularly in languages where paid subscribers are expected to enter the market first. The company remains optimistic about the long-term prospects of the Indian music streaming market, anticipating a shift towards subscription-based models in the coming quarters.

In conclusion, despite short-term challenges in certain segments, Saregama India Limited maintains a positive outlook on its growth trajectory, supported by strategic initiatives and favorable industry trends.

Saregama India Limited , a leading entertainment IP company, has announced its financial results for the second quarter of fiscal year 2026, showcasing robust growth and strategic expansion across its business segments.

Financial Highlights

Saregama reported a consolidated revenue from operations of Rs 2,300 crore for Q2 FY26, marking an 11% increase quarter-on-quarter (QoQ). The company's profit before tax (PBT) rose to Rs 601 crore, reflecting an 18% growth QoQ. Key financial metrics for the quarter include:

*All figures in Rs crore

Segment Performance

The Music segment, including licensing and artist management, continued to be the primary revenue driver, contributing Rs 1,653 crore to the total revenue, a 12% year-on-year increase. The Video segment contributed Rs 218 crore to the revenue.

Operational Highlights

Saregama's digital footprint expanded significantly, with over 400 million followers and subscribers across YouTube, Instagram, and Facebook. The company released more than 1,500 tracks across various Indian languages during the quarter.

Notable releases included the Tamil album "Idli Kadai" starring Dhanush and the Bengali album "Dhumketu". The company also collaborated with major brands such as Hero, Flipkart, and Britannia for high-impact campaigns.

Strategic Initiatives

The company plans to invest approximately Rs 10,000 crore in new content over the next two years. This investment strategy aims to strengthen Saregama's IP portfolio across various entertainment segments.

Dividend Declaration

The Board of Directors has declared an interim dividend of Rs 4.50 per share (450% on the face value of Re. 1 each) for the financial year 2025-26. The record date for dividend eligibility is set for November 11, 2025.

Management Commentary

Avarna Jain, Vice Chairperson of Saregama India, stated, "H1 FY26 remained steady, reflecting overall industry conditions, and the outlook for the second half remains strong with several key projects and partnerships lined up. The company is in a strong position with its aggressive investment strategy coupled with diversifying business segments."

Future Outlook

Saregama aims to capitalize on the growing digital content consumption in India. With its diverse portfolio spanning music, films, and digital series, the company plans to leverage its IP to drive growth across various entertainment platforms.

The company's focus on expanding its digital presence, coupled with strategic investments in content creation, positions it in the evolving media and entertainment landscape. As India's music subscription market remains largely untapped compared to global standards, Saregama may benefit from potential growth in digital music consumption and monetization.