Tips Music (TIPSMUSIC) investor relations material

Executive summary

• Strong content usage momentum across platforms supports 20% revenue growth guidance, with PAT growth guidance revised upward to 25% for FY26.

• Dividend of INR 5 per share approved, totaling INR 63.91 crore for the quarter and INR 166.18 crore for the year, fulfilling the commitment to return 100% of last year's PAT to shareholders.

• Operates a large music catalogue in over 25 languages, distributed globally across digital platforms, with 145.3 million YouTube subscribers and a focus on the Indian subcontinent and diaspora.

• Maintains a debt-free balance sheet with ₹303 crore in cash and investments as of Q3FY26.

• Unaudited financial results for the quarter and nine months ended December 31, 2025, were approved and reviewed with an unmodified conclusion by statutory auditors.

Financial highlights

• Q3 FY26 revenue at INR 94.29 crore, up 21% year-over-year from INR 77.7 crore in Q3 FY25; nine-month FY26 revenue at INR 271 crore, up 17% year-over-year.

• Operating EBITDA grew 34% to INR 74.5 crore, with margins improving to 79% from 72% year-over-year.

• PAT for Q3 FY26 at INR 58.7 crore, up 33% year-over-year; PAT margin at 62%.

• Basic and diluted EPS for the quarter were Rs. 4.59, up from Rs. 4.16 in the previous quarter.

• Employee expenses include a one-time impact of INR 96.7 lakhs due to new labor code implementation.

Outlook and guidance

• Revenue growth guidance for FY26 maintained at 20%, with PAT growth guidance raised to 25%.

• Content cost for FY26 expected to be around 18% due to a movie shifting to next year; target content cost for FY27 is 25%-28%.

• Industry subscription revenue is growing at 40-50% CAGR; paid subscribers expected to more than double in three years.

• Digital advertising in India projected to grow at 19% CAGR through CY2026, with digital media to account for 61% of total ad spend.

• Monetization from YouTube Shorts expected to shift from fixed fee to revenue share in the medium to long term.