Tips Music Limited , a prominent player in the Indian music industry, has reported a solid performance for the second quarter of fiscal year 2026, with revenue growth of 11% year-on-year. The company maintains its full-year guidance of 20% revenue growth despite industry challenges.

Financial Highlights

For Q2 FY26, Tips Music Limited posted the following results:

For the first half of FY26, the company reported:

Content and Platform Performance

Tips Music released 133 songs in Q2 FY26, including 76 film songs and 57 non-film songs. Notable performances include:

• "Vibe Undi" from the Telugu film "Mirai" crossed 69 million views on YouTube.
• "Raaj Karega Maalik" from the film "Maalik" surpassed 25 million views.
• The company's YouTube subscriber base grew to 134 million collectively.

On Meta platforms, catalog songs continued to perform well:

• "Tere Aane Se" from "Run" garnered 1.5 billion views.
• "Saajan Saajan" from "Dil Ka Rishta" and "Kahin Aag Lage Lag Jaaye" from "Taal" achieved 850 million and 700 million views, respectively.

Dividend Declaration

The Board of Directors declared a second interim dividend of ₹4 per share for FY26, demonstrating confidence in the company's financial position.

Growth Strategy and Outlook

Despite industry challenges, including OTT platform consolidations and shutdowns, Tips Music maintains its 20% revenue growth guidance for the full year. The company plans to focus on quality content creation and selective content acquisition, with expected content investment of 23-25% of revenue.

Kumar Taurani, Chairman and Managing Director, stated, "Despite the challenging industry environment, the company's revenue grew by 15% in the first half of financial year 2026. Over the longer term, we expect strong business momentum supported by sustained paid subscriber growth, beginning of ad revenue sharing from short-form content platforms, and robust expansion in the public performance segment."

The company's deal with Warner is locked until 2028, with overflow revenues expected in FY28.

Industry Dynamics

The management highlighted several factors that could drive future growth:

1. Increasing paid subscriptions in the music streaming industry.
2. Potential revenue sharing from short-form content platforms.
3. Growth in the public performance segment, which is expanding at a 40-50% CAGR.
4. Possible re-entry of TikTok in the Indian market, which could boost revenues.

While facing short-term challenges, Tips Music Limited remains optimistic about the long-term potential of the Indian music industry, projecting it could grow to ₹10,000-₹15,000 crore in the next five years.

As the company navigates through industry changes and focuses on quality content creation, investors will be watching closely to see if Tips Music can maintain its growth trajectory and capitalize on emerging opportunities in the digital music landscape.

Tips Music Limited, a prominent player in the Indian music industry, has reported robust financial results for the first half of fiscal year 2026, showcasing strong growth across key metrics.

Financial Highlights

The company's performance demonstrates significant improvements in revenue and profitability:

Operational Highlights

• Released 133 songs during Q2FY26
  • 76 film tracks
  • 57 non-film tracks
• YouTube subscriber base expanded to 134 million

Dividend Declaration

The Board has declared a second interim dividend of ₹4 per share for FY2026, amounting to a total payout of ₹51.13 crore. This brings the total shareholder payout for the year to ₹102.26 crore.

Growth Drivers

Chairman Kumar Taurani attributed the company's growth to:

• Sustained growth in paid subscribers
• Expansion in the public performance segment

Taurani noted that these positive trends occurred despite challenging industry conditions.

Conclusion

Tips Music's H1FY26 performance reflects a company on a strong growth trajectory, with improvements across revenue and profitability. The consistent growth in these key financial metrics points to effective business strategies and robust market positioning in the competitive music industry landscape.

As the company continues to capitalize on the growing digital music consumption trends and expands its content library, investors and industry observers will likely keep a close watch on Tips Music's future performance and strategic initiatives.