Saregama India , a leading music and entertainment company, has reported a mixed performance for the first quarter of fiscal year 2026, with its core music segment showing resilience amid challenges in the broader market.

Financial Highlights

Saregama posted an operating revenue of INR 206.00 crores and a profit before tax (PBT) of INR 51.00 crores for Q1FY26. The company's music segment, which includes licensing and artist management, grew by 12% year-on-year, demonstrating the strength of its core business.

Music Segment Performance

The music vertical's growth was achieved despite the postponement of several planned movie releases during the quarter. Saregama released over 1,000 original songs across multiple languages, including successful Tamil film albums like 'Thug Life', which saw two songs topping Spotify charts.

Strategic Acquisition

In a significant move to expand its regional presence, Saregama acquired NAV Records, a prominent Haryanvi music catalog. The acquisition includes:

• 6,500 tracks across Haryanvi, Punjabi, Ghazals, Devotional, and Indie Pop genres
• Popular YouTube channels with 24 million subscribers

This strategic purchase is expected to strengthen Saregama's position in the Haryanvi music market, with revenues anticipated from Q3 onwards.

Content Investment and Future Outlook

Vikram Mehra, Managing Director of Saregama, stated, "Our spend for the new content for this year will be somewhere between INR 350.00 crores to INR 380.00 crores. But most of our big releases are scheduled at this juncture between Q3 and Q4."

The company maintains its guidance of:

• 22-23% annual growth for the music vertical
• 32-33% adjusted EBITDA

Major releases planned for the latter half of the year include films starring Ranveer Singh, Kartik Aaryan, and Sanjay Leela Bhansali's 'Love & War'.

Artist Management and Digital Initiatives

Saregama's artist management vertical added over 25 new influencers and artists during the quarter, bringing the total to 230+ managed artists with a combined follower base of 200 million on Instagram and YouTube.

Challenges and Adaptations

The quarter faced some headwinds, including:

• Impact of Airtel Wynk's closure
• Temporary advertising pauses due to geopolitical events

However, the company reported that YouTube advertising normalized by early June.

Video and Live Events

While the video segment reported losses this quarter, management expects full-year profitability. Saregama Live successfully launched the 'Cap Mania' tour with Himesh Reshammiya, starting with events in Mumbai and Delhi.

Conclusion

Despite short-term challenges, Saregama remains confident in its growth trajectory, leveraging its:

• Vast content library
• Strategic acquisitions
• Focus on digital consumption trends

The company's diversified portfolio and data-driven approach position it well to capitalize on the ongoing digital revolution in India's entertainment industry.

Vikram Mehra concluded, "We believe that with time, maybe on a medium-term basis, that should open up, and we should start getting a share of advertising there. So that's a very different line of business. But on the audio/video side, I think paid economy has started getting into both of them."

Saregama India Limited, a leading music and entertainment company, has announced its financial results for the first quarter, showing a mixed performance with revenue growth but a slight dip in profit.

Financial Highlights

• Revenue: Saregama's consolidated revenue from operations increased to ₹2,067.70 crore, up from ₹2,052.80 crore in the same quarter last year, marking a growth of 0.73%.
• Net Profit: The company reported a consolidated net profit of ₹367.00 crore, slightly lower than the ₹369.00 crore recorded in the previous year's corresponding quarter.
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose to ₹553.00 crore from ₹515.00 crore year-over-year.
• EBITDA Margin: The EBITDA margin improved to 26.70% from 25.07% in the previous year, indicating better operational efficiency.

Segment Performance

Saregama's financial results reveal the performance of its various business segments:

The Music segment continues to be the primary revenue driver for Saregama, while the Artist Management segment showed significant growth. The Video segment experienced a decline, and the Events segment saw a substantial increase, albeit from a smaller base.

Management Commentary

Vikram Mehra, Managing Director of Saregama India Limited, stated in the board meeting, "We are pleased with our Q1 performance, which demonstrates the resilience of our diverse business model. Despite challenges in certain segments, our core Music business remains strong, and we're seeing promising growth in Artist Management and Events."

Board Appointments

In addition to the financial results, Saregama announced two key appointments to its Board of Directors:

1. Mr. Pratip Chaudhuri, former Chairman of the State Bank of India, has been appointed as an Additional Director in the category of Non-Executive, Independent Director.
2. Mr. Vinod Kumar, with over 35 years of experience in companies like Tata Steel and CESC Limited, has also been appointed as an Additional Director in the same category.

Both appointments are effective from July 31, for a term of five years, subject to shareholder approval.

Outlook

While Saregama faces some headwinds in its Video segment, the company's strong performance in Music and Artist Management, coupled with the improving EBITDA margin, suggests a focus on core competencies and operational efficiency. The addition of experienced board members also indicates the company's commitment to strong corporate governance and strategic growth.

Investors and analysts will be watching closely to see how Saregama navigates the evolving entertainment landscape and capitalizes on opportunities in its various business segments in the coming quarters.